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Domestic Air Fare to Increase 20%?

New Regulations Raise Amounts Indonesian Domestic Carriers Can Charge for Air Tickets.

(5/17/2010) A new regulation (No 26/2010) from the Indonesian Minister of Transportation that takes effect from the end of May 2010, establishes maximum tariff guidelines for economy class tickets sold by domestic air carriers.

Quoted in NusaBali, the Commercial Director Sriwijaya Air, Toto Nursatyo said the new fare rules provide for increases of between 10 and 20% over current fares.

The new fare levels include a basic fare, fuel surcharges and value-added-taxes.

It is still unclear if all domestic airlines will increase their fares by 20%, bearing in mind that the new government guidelines specify maximum fare levels.

When contacted by NusaBali, officials of both Lion Mentari Airlines and Batavia Air refused comment on new fare levels for their airlines.