Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · The Point of Diminishing Returns
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

The Point of Diminishing Returns

Surcharges on Indonesian Domestic Flights Causing Drop in Passenger Numbers


Bali News: The Point of Diminishing Returns
Click Image to Enlarge

(3/21/2014)

Sales outlets for domestic low-cost carriers are reporting a 20% drop in sales following the implementation of a government authorized surcharge on February 26, 2014, intended to offset currency exchange losses suffered by Indonesian airlines due to the weak Rupiah.

The airlines successfully lobbied the government to allow the surcharge to compensate for losses incurred due to the cost of fuel and foreign crew, both of which are denominated in U.S. dollars.

The surcharge charged on domestic routes is Rp. 60,000 (US$5.20) on flight flown by jets and Rp. 50,000 (US$4.30) on flights serve by turbo-props.

As reported by Bisnis.com, the chairman of the Association of Indonesian Tour and Travel Agents (ASITA), Asnawi Bahar is blaming the ticket surcharge on the decline in domestic ticket sales experienced by his members. ‘Ticket sales for low-cost carriers declined 10-20% at the introduction of the surcharge,” said Asnawi.

Asnawi said the surcharge created a psychological resistance to purchasing the low-cost carrier tickets that following the application of the additional charge were nearly the same price as tickets offered by full-service airlines.

The ASITA chairman predicts that demand for the low-cost carrier tickets would eventually return to normal within two month of the surcharge’s implementation.

ASITA is asking the government and the airlines to remove the surcharge as soon as possible. “If the Rupiah improves and the price of aviation fuel remains unchanged, the surcharge must be removed in order to bolster demand for airline tickets,” Asnawi explained.

In response, the chairman of the Indonesian National Air Carriers Association (INACA), Arif Wibowo, said that any contraction in tickets sales caused by the surcharge would be short-lived.

Arif said ticket sales would return to normal in May and that demand for tickets remains strong. “There is no reason for tickets agents to worry,” he said.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Reducing Fatal Snakebites in Indonesia
Indonesia Needs to Develop a Range of Poisonous Snakebite Serum Vaccines
(11/23/2014)
Imprisoned on Appeal
Supreme Court Send Bali Lawyer Rizaldy Wartuty to Prison for Fraud in a Property Deal
(11/23/2014)
Snatch Thieves, Catch Thieve
Police Arrest Two Pickpockets Operating on Poppies Lane II in Kuta, Bali
(11/23/2014)
Prisoners of Paradise
Bali’s Kerobokan Prison Bursting with Inmates While New Prison Construction in Bangli Stuck in Bureaucratic and Funding Delays
(11/23/2014)
Roadside Banditry
Villagers between Selat and Sideman Participating in Collection Illegal Retributions from Passing Trucks
(11/23/2014)
Where to Lunch in Ubud
Too Good Not to Share: Warung Teges, Peliatan, Ubud for Outstanding Nasi Bali
(11/23/2014)
Refusing Treatment Proves Fatal for Arab Tourist
Saudi Arabian Tourist Fall Ill and Dies in Bali
(11/23/2014)
Asia’s Best Street Food in a Single Locale
Too Good Not to Share: Bali Update Editor Discovers that Sarong’s Love Affair with Indonesian Cuisine Continues to Blossom and Bloom
(11/23/2014)
Saved from the Satay Grill
Bali Water Police Rescue 51 Endangered Green Turtles
(11/23/2014)
Man of the People
President Joko Widodo Flies Economy to Attend Son’s Graduation in Singapore
(11/23/2014)
A Dozen Years for Homicide
19 Year-Old Male Prostitute who Killed American Paul Latourell Sentenced to 12 Years Prison
(11/23/2014)
Fire in Ubud
Massive Fire Destroys Clear Café and Five Nearby Homes in Ubud, Bali
(11/23/2014)
All [News]!