Green Light for Higher Domestic Air Fares reports that the Coordinating Ministry for Maritime Affairs and Investment has given the green light to Indonesian air carriers to increase the cost of flight tickets to the maximum permitted under government pricing guidelines.

The decision was taken to help Indonesian Airlines cope with the physical distancing rules that limit the number of seats that can be occupied on any given flight.

The Deputy for Infrastructure and Transportation Coordination at the Ministry, Ridwan Djamaluddin, said on 15 June 2020, during an online press conference, “Airlines have the opportunity to raise ticket prices if they cannot finance their operational costs.”

A circular (Number 13/2020) issued by the Director-General of Civil Aviation from the Ministry of Transportation has set the maximum load limit of available seats on Indonesian airplanes at 70%. 

Cash-strapped Garuda Indonesia has indicated that it will soon petition the Government to increase the floor price and maximum selling price for domestic air travel.