The Ministry of Transportation (Kemenhub) has previously allowed airlines to increase surcharges. This increase has had an impact on the airline ticket prices. For this reason, the Ministry of Transportation explains the latest KM policy No. 142/2022.
A spokesperson for Kemenhub, Adita Irawati, explained that in setting the new policy, the government had coordinated with many parties. Including soliciting input and evaluating together with academia, airlines, and associations.
Based on this evaluation, the previous fuel surcharge policy of 10 percent for jet aircraft and 15 percent for propeller planes is considered not comparable with the current increase in AVTUR prices.
“With the rising avtur price, the burden will automatically become heavier. Therefore, we give an additional 5 percent,” She said, Wednesday (10/8/2022).
Adita emphasized that the main impact of the new extension policy was mainly due to the avtur price. Thus, the government must evaluate the impact of aviation fuel prices on the addition of airline operating expenses.
He also explained in KM 106/2019 Decree of Kemenhub of the Republic of Indonesia No. 106/2019 concerning the Upper Limit Tariff for Passengers on scheduled commercial air transport economy class services that allow for additional costs if there is an increase in fuel prices of more than 10 percent which affects the company’s operations.
“The fact is that now the avtur price has increased by more than 10 percent. In the end, the government’s decision to give room for an increase of 5 percent,” he explained.
The amount of increase, according to him, has taken the middle point on how to have a positive impact on the airline but the ticket prices do not soar too high.
Currently, the amount of fuel surcharge is highly dependent on fluctuations in avtur prices. Compared to last year, the price of avtur, Adita emphasized, has increased by more than 70 percent. The impact of the increase in avtur can affect operating expenses up to 60 percent.
Meanwhile, in KM No. 142/2022, there is an increase in the amount of fuel surcharge compared to KM No. 68/2022 which was previously issued in April 2022. Now, airlines can charge a surcharge for jet aircraft at a maximum of 15 percent of the Upper Limit Tariff ( TBA) while the propeller plane is the highest at 25 percent.
This is felt to be burdensome for airlines because, after the pandemic, the government must also maintain air connectivity while maintaining flight safety and comfort.
Furthermore, the Indonesia National Air Carriers Association (INACA) said that the surcharge policy released by the Ministry of Transportation was a proposal by airline companies.
“Yes, it is indeed a proposal from the airline to readjust the previous fuel surcharge after three months of its implementation,” said Secretary General of INACA Bayu Sutanto, quoted Tuesday (9/8/2022).
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