While Garuda Indonesia has racked up some impressive service awards in recent years, the national carrier’s high ticket prices, especially compared to budget airlines like Lion Air, has seen its business slipping sharply. But that may all change with the announcement of a massive 20% cut across-the-board on all domestic ticket prices — including Garuda subsidiaries Citilink and Sriwijaya Air — starting today.
“This is in line with the aspirations of the community and a number of national industry associations as well as the direction of the President of Indonesia regarding the reduction in airline ticket rates in supporting efforts to increase the national economic sector specifically to support the growth of the tourism sector, MSMEs, and other national industries in supporting economic growth,” Garuda Indonesia’s managing director, I Gusti Ngurah Askhara Danadiputra, wrote in a press statement released today.
“We will ensure that the reduction in ticket prices fulfills the continuing commitment of Garuda Indonesia Group to provide quality flight services at competitive rates.”
The announcement comes on the heels of the government making a deal with state-owned fuel company Pertamina that will sharply decrease the price of jet fuel. President Joko Widodo had touched on the high price of jet fuel in a speech on Monday and said that he would find a solution with the heads of the State-Owned Enterprises Ministry.
Also yesterday, Garuda was told by the Transport Ministry to set reasonable prices on their tickets and keep their affordability to general society in mind.
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