ID :
32065
Tue, 11/25/2008 - 06:50
Auther :

NUMBER OF INDONESIANS ON INTERNATIONAL FLIGHTS DOWN 40 PCT

Jakarta, Nov 24 (ANTARA) - The Indonesian National Air Carriers Association (INACA) estimated that passengers on international flights from Indonesia would decline by 30-40 percent, INACA Secretary General Tengku Burhanuddin said.

"This is to be blamed to the 30% depreciation of the rupiah against the US dollar from Rp 9.200 to Rp 12.000 per dollar," Burhanuddin said here Monday.

The secretary general admitted that, usually, during year-end peak season, Indonesians' bookings for international flights had already started, but this time this was not the case, he said.

"Some travel agencies have even reported cancellations," he said adding that the reason for this condition was passengers refused to have to pay an extra 30 to 40 percent of the fare.

"The cost include hotel reservations and shoppings while abroad," he added.

Meanwhile, domestic airline companies flying to regional and international destinations also charged 30 to 40 percent higher.

"It's because 60 to 70 percent of the aircraft operational costs are paid in the US dollar. This condition is posing an extra burden to the the airline companies," he explained.

Therefore, Tengku urged the goverment to issue policies which relief the burden of domestic airline companies.

Asked about his advice to the government, Tengku said that in such a situation, the government revoked or at least reduced taxes like the 10 percent added value tax on avtur purchases.

"Crude oil price has declined, however it is followed by the depreciation of the rupiah. Therefore, the decline in the price of avtur price from state oil and gas company Pertamina did not mean much," he said.

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