Garuda Indonesia Considers to Raise Flight Tariff

TEMPO.CO, Jakarta - Garuda Indonesia airline is mulling over to raise flight tickets if the new normal state is expected to be implemented for quite a long period.

Garuda CEO Irfan Setiaputra said in a virtual press conference Friday, June 5, that one of the new norms that must be applied is to maintain passengers’ physical distance. It forces the airline to empty the middle seat and limit passengers’ capacity to 50 percent.

“We agree with the physical distancing, we’ll empty the middle seat. But it will create financial implication if it happens in a long period, so, we might possibly raise the tariff,” Irfan said.

However, he argued it will reduce the revenue, and therefore, his office is still discussing the matter as it will affect the company’s finances.

Garuda Indonesia's revenue has contracted to 90 percent due to 70 percent of its aircraft is ceased to operate during the COVID-19 pandemic, he went on. Moreover, the temporary flight suspension from and to China, as well as the suspension of the Umrah pilgrimage and this year’s Hajj cancellation have worsened the situation.

The state-owned airliner has also to cut the contract of 135 pilots from a total of 1,400 pilots to survive the pandemic economic impact and to delay the salary payment of its employees, directors, and commissioners in April.

Antara