Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
User avatar
janders
Moderator
Topic Author
Posts: 1101
Joined: Mon Dec 11, 2017 4:27 pm

Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 4:54 am

Interesting way to run a country/airline...

---------------------------------

Indonesia’s national flag carrier Garuda has slashed ticket prices by 20%, the company said on Thursday, following a public outcry over high fares and a call by the country’s president for airlines to offer cheaper tickets. The move applies to all of Garuda’s domestic routes as well as those of its low-cost subsidiaries Citilink Indonesia, Sriwijaja Air and NAM Air, executives said.

“This is in line with the aspirations of Indonesians, a number of national industry associations, and the (wishes of) the president of Indonesia, who wants a reduction in flight prices to support economic growth, especially in the tourism sector,” Garuda Chief Executive Ari Askhara said in a statement. The price cut would not affect the airline’s income because it would help to increase the number of passengers, he added in a text message. Garuda shares fell 2.7% on the news, underperforming the broader market.

President Joko Widodo, who is seeking re-election in April, asked airlines this week to cut prices to help the hospitality industry boost occupancy rate. Analysts however said political meddling in the aviation sector was misguided and pressure to cut prices could compromise airline safety in a country with a long record of crashes and poor maintenance.



Indonesia’s Garuda cuts ticket prices 20% under govt pressure
https://www.gulf-times.com/story/622317 ... t-pressure

Indonesia's Garuda airline ordered to cut ticket prices by 20%
https://www.channelnewsasia.com/news/bu ... s-11243954


=

So already loss making GA CEO thinks, he will make up the lost income via volume and not affect earnings :sarcastic:
Last edited by janders on Sat Feb 16, 2019 5:08 am, edited 1 time in total.
"We make war that we may live in peace." -- Aristotle
 
anshabhi
Posts: 2247
Joined: Thu Oct 20, 2016 10:40 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 4:57 am

Happens with flag carriers around the globe during election times. CEO has to say that if he wants to keep his job.
 
User avatar
RyanairGuru
Posts: 8252
Joined: Wed Nov 01, 2006 3:59 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 5:57 am

It's an election year in Indonesia. There's not much more to this story than that.

I'm sure GA will quietly raise their fares again in six months or so.
Worked Hard, Flew Right
 
TheEuphorian
Posts: 418
Joined: Tue Jan 03, 2017 9:35 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 11:17 am

Well, 50/50 move by the government, I guess, since GA is overpriced on domestic sectors. But, on the other hand, this will make them even more unprofitable.
 
User avatar
LAXintl
Posts: 24443
Joined: Wed May 24, 2000 12:12 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 4:31 pm

Not just airfares, but fuel prices being reduced by State energy holding company Pertamina for both consumers, and also airlines after President Joko Widodo ordered a review.


Pertamina lowers subsidized, non-subsidized fuel prices
https://www.thejakartapost.com/news/201 ... rices.html

Indonesia's Pertamina Cuts Jet Fuel Price in Relief for Airlines
https://www.bloomberg.com/news/articles ... r-airlines

For example jet-fuel at GCK is now 26 lower than at SIN per above article.
From the desert to the sea, to all of Southern California
 
User avatar
mercure1
Posts: 4734
Joined: Sun Jul 13, 2008 5:13 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 5:37 pm

The president must really need to buy lots of votes.
mercure f-wtcc
 
User avatar
lightsaber
Moderator
Posts: 19587
Joined: Wed Jan 19, 2005 10:55 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 16, 2019 5:40 pm

LAXintl wrote:
Not just airfares, but fuel prices being reduced by State energy holding company Pertamina for both consumers, and also airlines after President Joko Widodo ordered a review.


Pertamina lowers subsidized, non-subsidized fuel prices
https://www.thejakartapost.com/news/201 ... rices.html

Indonesia's Pertamina Cuts Jet Fuel Price in Relief for Airlines
https://www.bloomberg.com/news/articles ... r-airlines

For example jet-fuel at GCK is now 26 lower than at SIN per above article.

Wow. I'm sure this will improve Indonesia's rating at Transparency International. Not.

Wow. Vote buying imho.

Lightsaber
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
User avatar
UPlog
Posts: 547
Joined: Sat Jan 27, 2018 5:45 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sun Feb 17, 2019 4:46 pm

:eyepopping: Amazing what a president can do.

I guess we should not be surprised to continue seeing stories about Garuda's financial situation when things like occur in Indonesia.
I fly your boxes
 
Bavd
Posts: 57
Joined: Fri May 05, 2017 8:56 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sun Feb 17, 2019 5:02 pm

No problem, just skip a few maintenance checks, lower the staff training interval and buy bogus spares.
Hey presto 50% cut in cost.
 
Ziyulu
Posts: 835
Joined: Thu Oct 13, 2016 10:35 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sun Feb 17, 2019 5:21 pm

Start introducing Basic Economy!
 
trent768
Posts: 140
Joined: Wed Feb 03, 2016 5:32 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sun Feb 17, 2019 6:37 pm

Before you guys plays the "third world country airline who doesn't maintain their planes and wants to see their passengers die" card, there's an indication of an unhealthy duopoly between GA and JT, ever since SJ "merged" with GA. Fare has been increasing up to 200% in the last few months. To the point that many people connects in KUL for domestic flights from Sumatera to CGK with AK group. While I see no problem with that, keep in mind that Indonesia is a very big archipelago and still very centralised so every business must be done in Jakarta (thanks to 32 years of dictatorship). While development is now starting to spread across the country, it doesn't change overnight. Repots also showed that domestic tourism has fell due to the rising ticket prices.

A good friend of mine works as an engineer at an airline and they work very professionally and up to the standard. So I'm a bit offended when some armchair expert just throwing stuff up without any facts or knowledge of the actual situation :)
 
User avatar
LAXintl
Posts: 24443
Joined: Wed May 24, 2000 12:12 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Fri Feb 22, 2019 6:54 am

Hey maybe, air transportation will be a basic free right for Indonesian citizens the way this is heading... :sarcastic:


Garuda flights still expensive, minister says

https://www.thejakartapost.com/news/201 ... -says.html

Transportation Minister Budi Karya Sumadi said on Friday that the airfare for many Garuda Indonesia flights was still too high, even after the flag carrier — along with other airlines under its operation — had slashed prices by 20 percent on Thursday.

“I checked the prices this morning; they are still too high,” Budi said as quoted by kompas.com, adding that he had called on Garuda Indonesia to revise down its prices for domestic flights.

He expects other airlines to follow suit and drop their prices as well.

“We will monitor [the situation]. If Garuda’s price is 100, Batik [Air] may charge 95 or 90 and Sriwijaya’s [tickets] can be even lower, Meanwhile, Citilink [Indonesia] will also make some corrections,” he said.
From the desert to the sea, to all of Southern California
 
Pyrex
Posts: 4786
Joined: Thu Aug 25, 2005 7:24 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Fri Feb 22, 2019 12:45 pm

How will they other Indonesian competitors react? Does this mean Lion Air will now only be able to afford to lose a new 737 in a runway overrun every other month, instead of monthly?
Read this very carefully, I shall write this only once!
 
User avatar
Aesma
Posts: 12968
Joined: Sat Nov 14, 2009 6:14 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Fri Feb 22, 2019 2:44 pm

trent768 wrote:
Before you guys plays the "third world country airline who doesn't maintain their planes and wants to see their passengers die" card, there's an indication of an unhealthy duopoly between GA and JT, ever since SJ "merged" with GA. Fare has been increasing up to 200% in the last few months. To the point that many people connects in KUL for domestic flights from Sumatera to CGK with AK group. While I see no problem with that, keep in mind that Indonesia is a very big archipelago and still very centralised so every business must be done in Jakarta (thanks to 32 years of dictatorship). While development is now starting to spread across the country, it doesn't change overnight. Repots also showed that domestic tourism has fell due to the rising ticket prices.

A good friend of mine works as an engineer at an airline and they work very professionally and up to the standard. So I'm a bit offended when some armchair expert just throwing stuff up without any facts or knowledge of the actual situation :)


Lack of competition is indeed unhealthy, however the government dictating prices with no regard to profitability is not the way to get more competition.

If some routes are impossible to fly profitably, offer subsidies, to any airline willing to fly a route. If airlines can fly profitably, but poor people who need to fly can't afford the ticket, then subsidize the people so they can fly (I'm talking real need to fly, obviously).
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
User avatar
mercure1
Posts: 4734
Joined: Sun Jul 13, 2008 5:13 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 23, 2019 6:42 am

Its a little shocking how openly the government intervenes and forces airlines to adjust pricing.

I also agree that if the government feels the pricing is an issue, instead of mandating a blanket cut, they should instead look to offer more targeted subsidies to help out specific routes, or specific customers as an economic practice.
mercure f-wtcc
 
n757kw
Posts: 446
Joined: Sat Sep 13, 2003 3:08 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 23, 2019 12:15 pm

Having just returned from Indonesia this week. The ticket prices on my Jakarta-Palembang-Jakarta segments were not much higher than in the past. On Garuda, it was normally Rp700,000 per segment. Now it is about Rp1.2 million per segment. The other carriers Lion Air, Swirijaya, Citilink were running about Rp800,000 per segment which was higher than I have seen in the past of Rp300,000 to Rp500,000. What I did notice is that the flights were pretty full with Indonesians traveling on Umra. The flights, hotels and airports were packed. It was similar to the times I have traveled during the Hajj in Indonesia.

I have never had an overly expensive flight to Jakarta. However, any regional flight on Sumatra or domestic flights beyond Jakarta can get expensive very fast. The interesting thing is I have had very few empty flights in Indonesia. Most flights I have been on have been pretty full.

N757KW
"What we've got here, is failure to communicate." from Cool Hand Luke
 
Flyinggeek33
Posts: 19
Joined: Thu Jun 09, 2016 8:23 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Sat Feb 23, 2019 2:42 pm

As trent768 mentioned above, since Sriwijaya Air (SJ) managed by Garuda it become an almost duopoly for domestic market in Indonesia. Ever since Lion Air recently introduce check in baggage fee with expensive price for IDR 150.000 per 5 kg block, add to the expensive base fare it becomes ridiculously expensive. As for Garuda, their ticket price usually for CGK-KNO can be found below IDR1,5 million but now it almost IDR 2 million which also what Lion charged after baggage check in fee. LCC charged around same price with full service carrier. Even here in local newspaper, there are so many flights cancelled due to low load.
 
User avatar
mercure1
Posts: 4734
Joined: Sun Jul 13, 2008 5:13 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 3:49 am

Indonesia travel agent association complains airfares remain too high and consumer need lower prices

http://www.ttgasia.com/2019/04/02/indon ... -airfares/
mercure f-wtcc
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 5:24 am

Everyone, let me put the current Indonesian airline fare saga into context... Those who don't follow the developments here from the beginning wouldn't understand what's going on otherwise.

Garuda has raised its fares since october, and generally only full economy fare is now on offer... Lack of sub-class availability has resulted in massive drop in passengers, and the number of passengers dropped continuously OCT - JAN... yes, even the year end holidays saw a massive drop.

In January, the public criticized the high fares amidst the low season, to which GA's CEO cited "high fuel costs", but then, GA's own published figures for Intl, Domestic, and subsidiary Citilink operations shows that fuel price has since dropped.

After being proven that fuel costs are not as high as they claimed, they then moved to accuse the state oil company as being the culprit of "uncompetitive fuel price", once that's shown to be incorrect, then they claimed it was the VAT on fuel...

January to January, GA domestic fuel CASK is only up by 10%, and Citilink was actually down by 3% or so, yet the fares are still high.

Once all excuses have been exhausted and proven wrong/inaccurate, they're now starting to preach that "all airlines should sell at full economy fares"... LOL...

Not only fares, but also cargo fares have been hiked up 200%-300% according to some.
Cargo operators complained, and when they threatened to charter their own cargo jet, the cargo operators "magically" followed the rate hike, and also the carrier they were about to use "magically" entered into "cooperation" with GA...


The mistake GA did was in January when answering public criticism of the high fares, the CEO (also head of the airline association here), said, "we agreed to reduce the fares." (They haven't!)... anyways... This caused the Competition Commission to look into allegation of price fixing and cartel behaviour, which is illegal.

Anyway, all airlines have followed GA's move to raising fares... hence the competition commission started to investigate. Then, one airline didn't want to follow the game (Indonesia Air Asia), and now, magically one by one, all travel agents are dropping Air Asia from their offerings...

Two articles to read:
https://skift.com/2019/03/13/did-airasi ... air-fares/

and

https://skift.com/2019/03/18/the-dirty- ... t-dirtier/

When you look at statistics, it's a sad picture. I believe the current rate hikes, are killing the industry (and the nation) in the long run. Multiple announcements of "fare reductions" have seen no real reductions... I checked the fares for the next few days and weeks, and the prices offered are still at full economy fare.

The effects of the high fares is worrying for the economy (and elections). Airports are already reporting more than 10% drop in passenger number, january 2018 vs january 2019. Hotel occupancy rates are down, etc... This is a real tough low season compared with previous years.

While I agree airlines need to make a profit, the heavy handed tactics used is disgusting.

The problem lies in poor (non-existent?) yield management policies of the airlines.
Up to last year, the pricing mechanism used (except for Air Asia) is reverse of what is used in other countries... If you want to buy a ticket for a flight 3 months from now, the tickets are at full economy fare, but as you go nearer the travel date, the fares would reduce to bargain prices (government stated minimum of then, 30% (now 35%) of the max fare cap). This basically destroys airline's ability to manage its yield properly, making forecasts inaccurate, etc.

So now, they're just selling max economy fares. Which is ridiculous.
I can fly CGK to Tokyo for cheaper than CGK-UPG/MDC... CGKSIN/KUL is now cheaper than CGKDPS... etc, etc, etc...

The government shouting demanding airlines to lower their fares also how the lack of understanding by the government on how the market works.

Pyrex wrote:
How will they other Indonesian competitors react?

Everyone except Air Asia have raised their fares...

Aesma wrote:
If some routes are impossible to fly profitably, offer subsidies, to any airline willing to fly a route. If airlines can fly profitably, but poor people who need to fly can't afford the ticket, then subsidize the people so they can fly (I'm talking real need to fly, obviously)

mercure1 wrote:
Its a little shocking how openly the government intervenes and forces airlines to adjust pricing.

I also agree that if the government feels the pricing is an issue, instead of mandating a blanket cut, they should instead look to offer more targeted subsidies to help out specific routes, or specific customers as an economic practice.

Subsidy? Oh GOD FORBID!!!!!
The flight routes here are generally competitive... multiple frequencies... There are PSO routes, but that's not where the problem is...

Cancellations are rife.... airports are suddenly empty, travel agents and hotels are suddenly wondering what the heck happened with the airlines... small businesses around the country is facing travel cost and freight cost overruns due to the price hikes...
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
strfyr51
Posts: 4861
Joined: Tue Apr 10, 2012 5:04 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 5:52 am

Slashing ticket prices is pretty short sighted unless they're Domestic flights. Not sure exactly how you might cut international tickets below the fixed costs of fuel, food, maintenance and Crew.
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 6:00 am

strfyr51 wrote:
Slashing ticket prices is pretty short sighted unless they're Domestic flights.

We're talking about domestic fares. International fares, let the market decide what to buy or not... :)
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
User avatar
zeke
Posts: 14913
Joined: Thu Dec 14, 2006 1:42 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 6:41 am

They just announced a full year profit of $800,000. A cut this size will result in a loss this year.
Human rights lawyers are "ambulance chasers of the very worst kind.'" - Sky News
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 7:04 am

The profit is unsustainable if it is achieved by (allegedly) price fixing and (again, allegedly) bullying competitors and travel agents...
The economic cost from their fare hikes isn't worth $800k of profits.
The last time they had profits, the CEO was sacked because the profits was deemed "not enough"... :( That was the last time GA had a sustainable and systemic improvements... :(
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
User avatar
CARST
Posts: 1556
Joined: Tue Jul 25, 2006 11:00 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 7:14 am

Aaaaahhhh .... welcome to the third world !

That's slapdash as hell...
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 7:15 am

That's great perfomance - given that they lost 216m USD in 2017. Sounds that it is working... (pushing the fares up)
 
juliuswong
Posts: 2021
Joined: Wed Dec 14, 2016 3:22 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 7:18 am

mandala499 wrote:
The profit is unsustainable if it is achieved by (allegedly) price fixing and (again, allegedly) bullying competitors and travel agents...
The economic cost from their fare hikes isn't worth $800k of profits.
The last time they had profits, the CEO was sacked because the profits was deemed "not enough"... :( That was the last time GA had a sustainable and systemic improvements... :(

Poor Emirsyar Satar, he has every cut to be a good CEO, unfortunately his tenure was cut short.

Back the the topic, the government should not get involved in doing business. Every government attempt to control the economy/ market or industry will only stifle its growth. It leads to nothing but loss for every players.
- Life is a journey, travel it well -
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 7:27 am

emisyah also made some odd decisions (777-300ER configuration & take off weight issues at CGK)

You do realise that the government owns Garuda, and appoints senior management...
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 8:12 am

The operating loss grew from $40million in 2017 to $200 million in 2018...
No significant changes to "other operating income", but significant change in non-operating "other income", it's $270 million change...

With airlines, what I look at is their operating income... it's not looking good still :(

juliuswong wrote:
Every government attempt to control the economy/ market or industry will only stifle its growth. It leads to nothing but loss for every players.

Government should not meddle with the airline's pricing strategy... but the government should heavily enforce fair competition... any "funny games" on how to manipulate the market should be punished... Oh hang on... we got: https://skift.com/2019/03/18/the-dirty- ... t-dirtier/

So, can the government punish it's own SOE?
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 10:37 am

LOL - you are right (looking at their accounts)

Sriwijaya owe them 85m USD...

O thers mainly consist of 2 units of Boeing 747-400
aircrafts as assets available for sale MSN 25704 and
MSN 25705. In 2018, 2 unit of aircrafts has been sold to
the third party with total amount USD 14,100,000.

The 'other income' is almost entirely from Mahata - who have bought the right to IFE and inflight wifi for the next 15 years...
On 31 October 2018, the Group and PT Mahata
Aero Teknologi (Mahata) entered into a
cooperation agreement which was amended, most
recently with amendment II dated 26 December
2018, regarding the providing of in-flight
connectivity services and in-flight entertainment
and content management.
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Wed Apr 03, 2019 2:44 pm

As far as I know with Mahata, only 1 aircraft is so far fitted with the IFE and Wifi.. and did not generate any revenue to date, in fact, it should be costing them.
The inflight wifi business model is not yet set in stone. Still various discussions going on.

Anyway... an increase in operating loss of 160 million USD or so... Sounds like the current price hike is nothing but pure desperation...
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Thu Apr 04, 2019 12:15 am

They have recognised all the revenue this year though...(>200m USD!)
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Thu Apr 04, 2019 3:26 am

lutfi wrote:
They have recognised all the revenue this year though...(>200m USD!)

All 15 years accrued ahead into 2018, and only 1 aircraft installed... what's funny is the revenue appears to be Mahata "buying rights" to the BigData accrued from the aircraft wifi, in addition to the wifi revenues (which I believe is not yet decided), with none of the costs... LOL... what a joke... And the Shareholders meeting appears to have been "postponed"...
At least Mahata has good lawyers... :P
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Thu Apr 04, 2019 3:35 am

Yep - that's certainly an interesting interpretation of accounting rules of when is a sale a sale... And coincidently just enough to put GA in the black coming up to an election...
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Tue Apr 16, 2019 9:54 am

Shareholders meeting for GA is set for 24APR. News is circulating here that the CEO will be replaced.
One shareholder did not like the "creative accounting" that tried to hide the growing operating loss using the multi-year forward WiFi sales...

And coincidentally, cheaper fares for 25APR onwards are beginning to be on offer...
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
IWMBH
Posts: 606
Joined: Tue Apr 17, 2018 5:01 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Tue Apr 16, 2019 9:58 am

Luckily stupidity doesn't hurt, otherwise the creators of this plan would be screaming in pain
 
User avatar
mercure1
Posts: 4734
Joined: Sun Jul 13, 2008 5:13 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Tue May 14, 2019 10:06 pm

Government lowering airfare cap on by 16 percent as airlines have not budged on lowering prices themselves which has harmed consumers and hospitality sector.

https://jakartaglobe.id/context/govt-to ... 16-percent
mercure f-wtcc
 
filipinoavgeek
Posts: 334
Joined: Mon Mar 04, 2019 1:18 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Tue May 14, 2019 11:17 pm

Somehow I can't help but feel that Garuda is being (unfairly?) hit on so much on this site. I mean, when you compare them to other airlines in the region or in Indonesia, they have a really good reputation.
 
jteruel06
Posts: 89
Joined: Mon Nov 26, 2012 3:33 pm

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Thu May 23, 2019 11:29 pm

Garuda is responding by cutting some domestic and international routes including the London (LHR) and Amsterdam (AMS) flights.

London will be cut before the end of summer, and AMS will be reduced from x6 to x3 weekly.

http://www.flightsinasia.com/article/4429
Jeffrey Teruel
Programmer, Publisher, Aviation Geek
 
PPVRA
Posts: 8475
Joined: Fri Nov 12, 2004 7:48 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Fri May 24, 2019 12:03 am

Claiming this will not impact income is a lie, and doing so in public is a misleading statement to investors which is a crime.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
filipinoavgeek
Posts: 334
Joined: Mon Mar 04, 2019 1:18 am

Re: Garuda forced to reduce domestic ticket prices 20% per Gov't

Fri May 24, 2019 12:09 am

When you think about it, it's kind of interesting that of the large SEA carriers, only Philippine Airlines is fully privatized, with the rest either being wholly or partly-government owned (though PR was only privatized in the 90s). Wonder why.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos