GOVERNMENT URGED TO ABOLISH REGULATION ON LOWER FLIGHT TARIFF LIMIT

by Andi Abdussalam

Jakarta, May 24 (Antara) - The Business Competition Supervisory Commission (KPPU) has urged the Transportation Ministry to lift its regulation on the lower flight tariff limit as it was unable to reduce violations of operational standards in the aviation industry.         "We call on the Transportation Ministry to abolish the regulation on the lower limit of flight ticket prices as its implementation, so far, did not reduce the violations of aviation operational standards," KPPU Chairman Syarkawi Rauf stated in Jakarta on Monday.         Syarkawi said the facts hinted that so far, the implementation of the lower tariff limit on each flight route, which is some 30 percent of the upper tariff limit, had not reduced the incidents of violations of aviation operational standards by flight operators.         Furthermore, the implementation of the lower tariff limit had reduced the number of passengers on several flight routes, particularly those to tourism destinations. Hence, it had affected the economic growth in the concerned regions.