Friday, August 12, 2011

Five airlines warned over tariff violations. (Jakarta, Indonesia)


Five local airlines have received warning letters from the Transportation Ministry for violating the government’s tariff policy and flight permits.

Air transportation director general Herry Bhakti Gumay said in Jakarta on Friday that the five airlines were warned because they charged their passengers above the tariff ceiling imposed by the government.

“Those airlines are Merpati, Trigana Air, Susi Air, Express Air and AMA [Associated Mission Aviation], all of which operate in eastern Indonesia,” Herry told reporters on Friday at his office.

He said that as this was the five airlines’ first warning about pricing violations, they would not be
penalized.

“But if they continue the violation after a second and third warning, their licenses will be revoked,” he added.

Trigana Air, Merpati Airlines, Travel Express (Express Air), Pelita Air and Susi Air were among those that violated the ceiling prices, while AMA and NAC, both charter companies, violated permits by selling retail tickets to the public.

Harry Priyono, Express Air’s commercial director, confirmed that his company had received the warning letter.

“We will check where the mistake was. It could have been in the price components or from the travel agent,” he said, adding that the letter did not ask his company to return the excess to its customers.

Harry added that the company would adjust its ticket prices so that they complied with the government’s regulation.

In the lead up to the Idul Fitri celebrations later this month, when most Indonesian Muslims will travel to their hometowns, the government has imposed ceiling and floor prices on all modes of transportation to prevent soaring ticket prices.

The decree imposes different prices for different routes. For example, the decree set a ceiling price for the Jakarta–Medan route at Rp 1,847,000 (US$216).

Transportation Ministry spokesman Bambang S. Ervan said the ceiling prices excluded taxes and insurance fares. 

Source:  http://www.thejakartapost.com

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