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Fuel Surcharge Set to be Introduced on May 10th

INACA Approves Fuel Surcharge on Domestic and International Flights.

(5/6/2006) The Indonesian National Air Carriers Association (INACA) have applied to the Government for permission to apply fuel charges on domestic and international flights operated by their member airlines.

The increase, scheduled to come into effect on May 10, 2006, will be Rp. 20,000 (approximately US$2.30) on domestic flight sectors and between US$5 and US$20 on international flights.

In announcing the fuel surcharge, Tengku Burhanuddin, Secretary-General of INACA cited fuels costs of Rp. 5,600 per liter (approximately US$0.62). According to Burhanuddin, fuel costs for Indonesian carriers have increased from 35 to 40% of its member's operational costs.

While it is expected that the planned surcharge will be introduced on all domestic flights on May 10, 2006, the additional charge for international flights will most likely be introduced over time, as competitive conditions permit.