Government Reviews Upper Limit Flight Ticket Tariffs for Fair Pricing and Accessibility

travel, airplane, aviation

The soaring prices of flight tickets to various destinations have garnered the government’s attention. In response, the Ministry of Transportation (Kemenhub) is actively engaged in crafting revisions to the Upper Limit Tariff (TBA) for flight ticket tariffs, a regulation that has remained unchanged for nearly five years.

Adita Irawati, the Kemenhub’s spokesperson, has disclosed that the ongoing revision of TBA for flight ticket tariffs is currently in the discussion phase at the Directorate General of Civil Aviation. Among the critical considerations in this revision is the comprehensive evaluation of the components used to calculate the upper limit for flight tickets.

One significant factor under consideration is the determination of the upper limit based on the distance to the destination. Moreover, the MoT aims to introduce a fresh upper limit tariff structure, distinguishing between different aircraft types, namely, jet and propeller-driven planes.

“We are scrutinizing various operational costs, including fuel expenses, insurance, employee salaries, and more. Additionally, our assessment encompasses factors such as exchange rates and other relevant elements,” explained Adita on Monday (22/1/2024).

Despite being in the early stages of discussion, Adita refrained from providing a detailed timeline for the official release of the revised upper limit tariff.

Minister of Transportation Budi Karya Sumadi had previously issued a stern warning, indicating that airlines found breaching the upper limit tariff (TBA) regulations for flight tickets would face stringent consequences. Carriers proven to set ticket prices exceeding the specified TBA would be subject to penalties, including fines.

“While acknowledging the pricing dilemma of flight tickets, we emphasize that any surpassing of the upper limit (TBA) will lead to the imposition of fines,” clarified Budi Karya.

Furthermore, Budi Karya highlighted that these fines could be augmented if airlines repeatedly violate TBA regulations. However, he refrained from specifying the exact minimum and maximum amounts of fines that the MoT could impose on airlines found in violation.

In a related development, Minister of Tourism and Creative Economy Sandiaga Uno expressed his positive stance on the Ministry of Transportation’s initiative to revise the upper limit tariff (TBA) for flight tickets.

Sandiaga welcomed the efforts, stating that the Ministry of Tourism and Creative Economy fully supports regulatory initiatives that offer incentives, such as TBA, to ensure more affordable flight ticket prices.

“The upper limit tariff, as well as the lower limit tariff [TBB], has received valuable input from several airlines. We stand behind regulations that promote the affordability of flight ticket prices,” remarked Sandiaga at the Ministry of Tourism and Creative Economy office in Jakarta on Monday (22/1/2024).

Furthermore, Sandiaga underscored that specific flight routes currently impose excessively high tariffs. He pointed to flight tickets for popular tourist destinations like Bali-Lombok and Bali-Sumba, which remain relatively expensive despite their relatively short distances.

In light of this, Sandiaga urged the Ministry of Transportation and other relevant stakeholders to conduct a thorough discussion on this upper limit tariff revision. He emphasized the necessity for a meticulous examination of the calculation scheme for these upper limits to ensure a fair and balanced outcome.