Indonesian Airlines Slash Ticket Prices in Response to Government Stimulus

KOMPAS.com – Four Indonesian airlines have officially lowered airfares as part of the government’s new airport tax policy.

Effective October 23, Indonesia’s Ministry of Transportation covers airport taxes which were previously borne by airlines. The Indonesian government’s airport tax policy will run until December 31, 2020.

Four Indonesian airlines — Garuda Indonesia, Citilink, Lion Air Group, and Sriwijaya Air — have welcomed the policy. 

Read also: Indonesia Waives Airport Tax to Make Way for Cheaper Air Travel

These carriers have gone ahead in lowering ticket prices as a show of support to the government’s policy and to boost the number of airline passengers.

1. Garuda Indonesia

Garuda Indonesia’s CEO Irfan Setiaputra welcomed news of the new stimulus for airlines and stated the company’s readiness to remove airport tax from their airfares.

More affordable ticket prices open up the possibility of attracting people in opting for air travel.

“The stimulus is an important step that we have been hoping for to support the revival of the airline industry’s performance,” said Irfan.

However, Garuda Indonesia only waives airport taxes in 10 airports where its aircraft are found out of the 13 airports listed in the government policy.

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These are Soekarno-Hatta International Airport, Hang Nadim Airport, Kualanamu Airport, I Gusti Ngurah Rai International Airport, Jogjakarta International Airport, and Halim Perdanakusuma Airport.

Lombok Praya International Airport, General Ahmad Yani Airport, Sam Ratulangi Airport, and Komodo Labuan Bajo Airport are also subject to Garuda Indonesia’s airport tax levy.

2. Citilink

Citilink has lowered its airfares by 10-15 percent since the recent regulation went into effect. Its reduced ticket prices apply to flights in all 13 airports listed by the government.