The Business Competition Supervisory COMMISSION (KPPU) has summoned seven airlines to dig up information on the causes of the current increase in ticket prices. The summons process will be carried out by the KPPU between Tuesday, March 26 to Tuesday, April 2 2024.
The seven airlines called were PT Garuda Indonesia, Tbk, PT Citilink Indonesia, PT Lion Air, PT Batik Air Indonesia, PT Wings Air Abadi, PT Sriwijaya Air, and PT NAM Air. KPPU member Gopprera Panggabean explained that in the meeting, the KPPU clarified the implementation of the decision, the trend of increasing ticket prices, as well as the sale of sub-class tickets with a maximum price of seven. days before and following Eid.
In a previous release, the KPPU stated that it would summon seven airlines that were reported and proven guilty of carrying out ticket price cartels. In its decision, the KPPU has required the respondents to notify the KPPU in writing of any policies that will affect the business competition map, ticket prices paid by consumers and the public, before the policy is taken. This obligation is valid for two years from 18 September 2023.
“Six airlines have complied with the KPPU’s summons. One airline, namely PT Batik Air Indonesia, was not present to fulfill the summons,” said Gopprera in an official statement, Friday (5/4).
Apart from not appearing before the KPPU, Batik Air is also said to have not submitted documents requested by the KPPU regarding an explanation of the increase in plane ticket prices. PT Lion Air and PT Wings Air Abadi, which were present at the meeting with KPPU, also have not submitted the documents requested by KPPU.
Meanwhile, other airlines, namely PT Garuda Indonesia, Tbk, PT Citilink Indonesia, PT Sriwijaya Air, and PT NAM Air were present and submitted documents requested by the KPPU.
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Gopprera emphasized that airlines must comply with the decision which has permanent legal force. They must be cooperative in notifying in writing any policies that will affect the business competition map.
“In response to the various responses from the airlines that were reported, the KPPU asked them to cooperate in implementing the KPPU’s decision,” said Gopprera.
After summoning these airlines, KPPU will also summon travel agents to obtain information regarding the policies made by the seven airlines. Especially those that affect the business competition map, such as soaring plane ticket prices, flight frequency and so on.
Also read: KPPU asks 7 airlines not to raise ticket prices like crazy during the Eid homecoming period
After receiving all documents from airlines and other related parties, KPPU will carry out an analysis to see the behavior of airlines in complying with the a quo KPPU Decision, as well as determining whether there are indications that lead to allegations of unfair business competition between airlines.
“If there are indications, the KPPU can follow up by carrying out an initial investigation into an initiative case regarding existing alleged violations,” concluded Gopprera.
Previously, the President Director (Dirut) of Garuda Indonesia, Irfaniaputra, spoke regarding the KPPU’s statement asking seven airlines, including Garuda, not to increase ticket prices significantly or unreasonably ahead of the 2024 Eid homecoming. that period.
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“We never increase (ticket) prices,” said Irfan when contacted by Media Indonesia, Saturday (16/3).
He admitted that the airline tickets sold by Garuda did not exceed the upper limit tariff (TBA) provisions regulated in the Decree of the Minister of Transportation Number KM 106 of 2019 concerning Upper Limit Tariffs for Economy Class Services for Domestic Scheduled Commercial Air Transport.
“Our plane ticket prices are according to TBA. We will always comply with government regulations,” concluded Irfan.
(Z-9)
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