4 Components of Airline Tickets Contributing to Its Price Rise

TEMPO.CO, Jakarta Year-on-year inflation in July this year, which reached 4.94%, contributed to the rise in the plane tickets as it exceeds the government’s initial projection of 3 percent with a plus or minus of 1 percent.

One of the causes of this inflation can be attributed to the volatile food inflation which reached a staggering 11.47% (year-on-year), which is expected to peak at 6%. Meanwhile, administered prices, which include airline tickets, rose to 6.51%.

What are the components of the price of a plane ticket?

Citing Article 2 of Ministry of Transport Regulation No. 20/2019, airline passenger fares for economy class services for domestic scheduled commercial air transport are calculated on the basis of the following: distance fares, taxes, compulsory insurance contributions and surcharges.

  1. Kilometer rates

The components of the flight ticket distance are differentiated according to the type of aircraft used. Namely, air cargo rates using propeller aircraft and jet aircraft. The distance fare amount is the upper limit of the passenger fare for economy class commercial air transportation services. This distance tariff is applied according to the group of services provided by the scheduled commercial air transport business entity as stipulated in the ministerial regulation

Fares based on service groups for Scheduled Air Transport Commercial Entities consist of the application of a fare of 100% of the maximum fare that provides services with a maximum standard (full services), the application of a maximum tariff of 90% of the maximum tariff tariff for services of average standards (average services). ), and the application of a maximum tariff of 85% of the maximum tariff for services with minimum standards or services without frills.

  1. Taxes

The tax components referred to in Article 2 of Regulation of the Minister of Transport No. PM 20 of 2019 are regulated on the basis of the provisions of tax laws and regulations.

  1. Compulsory insurance contributions

The component of compulsory insurance contributions according to Regulation No. PM 20/2019 of the Minister of Transport refers to the provisions of the legislation concerning compulsory insurance contributions.

  1. Supplements

The surcharge element is determined by a ministerial order or by the approval of the minister. This element of cost is imposed in case of conditions such as fluctuating fuel prices, costs incurred by airline companies during holidays, or fees charged to passengers due to additional services provided by commercial airline entities. .

In addition to the calculations by component, in certain cases, the Minister may provide for a ceiling of air ticket prices considering, among other things, the operating capacity of the airport and the capacity of the aircraft for the maximum number of passengers to be carried.


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