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
A Voice from Ukraine. A Voice from Beyond
I Wayan Sujana: Born Bali - 1989 Died Ukraine -2014
(7/21/2014)
Calling all F&B Professionals
Join a Feast Breaking Gathering of Bali Culinary Professionals on Saturday, July 26, 2014 at Pica Tapas Bar
(7/21/2014)
Bali, Mystical and Darkly Magic
Séance Held to Communicate with one of the Balinese Victims of the Shoot Down of MH17
(7/21/2014)
The Hills are Alive with the Sound of Jazz
Ubud Jazz Festival August 8-9, 2014
(7/20/2014)
Tree of Death
Young Australian Designer Commits Suicide in Dalung, Bali
(7/20/2014)
Interrupted Journey to Paradise
Six Bali Residents Die in Crash of MH 17 Shot Down Over Ukraine
(7/20/2014)
Colorfast Rainbow
Sanur Beach Now Home to Rainbow Coin Laundry - Our Favorite Laundromat.
(7/20/2014)
Show Them the Door
DPR Tells BUMN Minister Dahlan Iskan to Replace all Merpati Directors
(7/20/2014)
Self-energizing
Bali Needs to Become More Energy Independent
(7/21/2014)
Seeking a Lion’s Share of Jetstar
Lion Air Reported to be Seeking to a 49% Share of Jetstar from Qantas Airways
(7/19/2014)
A Disgusting Shell Game
Police Arrest Man Attempting to Sell Turtles to Bali Restaurants
(7/19/2014)
A Decade of Thanks
Balinese Thanksgiving of ‘Nyelung’ Celebrated Once every Decade by Gianyar Farmers
(7/19/2014)
All [News]!
 
Tourism and Transport Tourism Agents