Airlines in Indonesia. The Indonesia National Air Carriers Association (Inaca) has a big ask for the government: they want the cap on economy-class flight tickets to disappear. Yep, they’re saying, “Let the market decide the prices!”
Why the Fuss?
Bayu Sutanto, the association’s general secretary, spilled the tea. See, jet fuel prices are sky-high, and these ticket price limits are pulling down the financial game for a bunch of local airlines. But hold up, they’re not greedy for more profits; they just want a breather from the soaring costs of running things.
What They’re Hoping For
Inaca’s got a wish: they want the government to rethink this upper limit on ticket tariffs. That way, airlines can be a bit more flexible with their prices, ya know, to cope better with all the expenses.
Back in Time: The Price Cap Story
Flashback to 2009, the Indonesian government laid down the law with this price cap thing for airline tickets. It’s been hanging around since then, making sure ticket prices don’t go out of control.
A Bit of Help: Fuel Surcharges
Back in April 2022, when folks were starting to fly again after the whole Covid-19 mess, the government cut airlines some slack. They said, “Okay, you can bump up the fuel surcharge for economy tickets.” They allowed a 10% increase for jet planes and a cool 20% for propeller planes.
Why? Well, ’cause jet fuel costs make up a whopping 40% of what it takes to set ticket prices. Then you’ve got about 25% for spare parts and keeping the planes in shape.
So What Now?
This plea from airlines is basically a plea for a little breathing room. They’re hoping the government will ease up on these price caps to help them keep their heads above water with all these crazy costs flying around. After all, no one wants to see their favorite airlines struggle, right?