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Lion Air Rejects Accusations of Price Fixing

Lion Air Group Rejects Accusations of Price-Fixing

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:

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