Despite recent findings by the Indonesian government that the Lion Air Group was guilty of conspiring with six other airlines in “price-fixing” domestic airline fares, the Lion Air Group adamantly insists that the Company’s current domestic airfares comply with maximum and minimum airfare levels set by the Indonesian Ministry of Transportation.
Quoted by the Corporate Communications-Strategic for the Lion Air Group, Danang Mandala Prihantono, the ticket prices for Lion Air, Wings Air, and Batik Air still follow the price levels authorized under Decision Number 106 of 2019 of the Minister of Transportation.
“We do not sell above the maximum permissible airfare or at prices below the government’s minimum permissible airfare,” said Prihantono in a written statement issued on Wednesday, 14 June 2020.
Refuting KPPU findings that the Lion Air Group colluded with other Indonesian air carriers in airfare price-fixing, Danang flatly denied any oligopolistic behavior in setting their pricing. Ticket prices used by the Lion Air Group, he insists, are based on the projected purchasing power of air passengers and the class of air travel used.
Airfare pricing is also based on Transportation Minister Decision No. 20 of 2019 that stipulates minimum and maximum pricing on specified routes for Economy air travel.
What follows is a sampling of the current fares used by the Lion Air Group:
From / To
Minimum Fare / Maximum Fare
Aek Godang (AEG) – Kualanamu (KNO)
Rp 862.000 Rp 302.000
Alor (ARD) – Kupang (KOE)
Rp 802.000 Rp 281.000
Ambon (AMQ) – Langgur (LUV)
Rp 1.743.000 Rp 610.000
Bima (BMU) – Lombok Praya (LOP)
Rp 888.000 Rp 311.000
Jet Routes
From / To
Minimum Fare / Maximum Fare
Balikpapan (BPN) – Jakarta Soekarno-Hatta (CGK)
Rp 1.614.000 Rp 565.000
Banjarmasin (BDJ) – Yogyakarta Kulonprogo (YIA)
Rp 1.255.000 Rp 439.000
Denpasar (DPS) – Surabaya (SUB)
Rp 638.000 Rp 223.000
Gorontalo (GTO) – Makassar (UPG)
Rp 1.418.000 Rp 496.000
Jayapura (DJJ) – Sorong (SOQ)
Rp 1.387.000 Rp 485.000
Luwuk (LUW) – Makassar (UPG)
Rp 1.203.000 Rp 421.000
Makassar (UPG) – Tarakan (TRK)
Rp 1.419.000 Rp 497.000
Manokwari (MKW) – Sorong (SOQ)
Rp 744.000 Rp 260.000
Samarinda (AAP) – Surabaya (SUB)
Rp 1.430.000 Rp 501.000
Palangkaraya (PKY) – Surabaya (SUB)
Rp 1.160.000 Rp 406.000
Surabaya (SUB) – Labuan Bajo (LBJ)
Rp 1.388.000 Rp 486.000
Danang explained that the final price paid by the public to is comprised of the following component parts:
- The actual airfare that fluctuates depending on demand and season between the minimum and maximum fare set by the government.
- The 10% government tax charged on airfares.
- Jasa Raharja Insurance Premiums.
- The Passenger Service Charge (PSC) or airport tax that varies depending on the airports used.
- Any surcharges, if required.
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