Sentenced guilty by KPPU, Lion Air Claims Ticket Prices According to Rules

Jakarta, IDN Times – Lion Air Group is one of seven airlines convicted by the Business Competition Supervisory Commission (KPPU) Council related to the practice of a flight ticket cartel. They were convicted of violating Article 5 and Article 11 of Law Number 5 Year 1999.

This is related to commercial air transportation services scheduled domestic economy class passengers involving 7 national airlines. The seven airlines include PT Garuda Indonesia, PT Citilink Indonesia, PT Sriwijaya Air, PT NAM Air, PT Batik Air, PT Lion Mentari, and PT Wings Abadi.

Responding to that, Lion Air Group stated that it still sells airplane ticket prices according to the applicable regulatory rules, namely the Decree of the Minister of Transportation Number 106 Year 2019. In determining the selling price of domestic economy class airplane tickets, Lion Air Group never cooperates and determines with other parties (outside the company).

“The calculation formulation used is reasonable and in line with the affordability of prospective passengers to pay based on airline service categories,” said Corporate Communications Strategic of Lion Air Group, Danang Mandala Prihantoro in a written statement, Wednesday (24/6).

1. Ticket prices are claimed according to the upper and lower tariff limits

ID.ND Times / Special

According to Danang, Lion Air Group applies the selling price of passenger airplane tickets between the upper and lower limit (according to the corridor of the provisions) and applies to other domestic routes.

“For the selling price of airplane tickets at the moment is the implementation of combining several components into a unit of selling ticket prices,” he said.

Also Read: Sentenced Wrongly in a Flight Ticket Cartel Case, This is the Garuda Boss’s Response

2. Some components of ticket selling prices one way

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Sentenced guilty by KPPU, Lion Air Claims Ticket Prices According to RulesID.ND Times / Special

The components of the sale price of one-way airplane tickets (one way) For direct flights (non-stop) consists of several things. Among these are air transport rates (fluctuations in the corridor of the upper and lower limit tariffs), and taxes (government tax) 10 percent of air freight rates.

“Then there are compulsory insurance contributions which are abbreviated as IWJR (Mandar Jasa Raharja Dues), Passenger Service Charge (PSC) or airport tax, the amount of which varies according to the airports in each city, and the costs of surcharges or additional if any (surcharge), “explained Danang.

3. KPPU convicted seven airlines in the ticket cartel case

Sentenced guilty by KPPU, Lion Air Claims Ticket Prices According to RulesIllustration of Lion Air Stewardess (IDN Times / Sunariyah)

Previously, the decision hearing held by KPPU took place on Tuesday. The trial was open to the public and carried out in accordance with health protocols.

“KPPU decided that all reported legally and convincingly violated article 5 in the air transportation service,” said a written statement from KPPU on Wednesday (24/6) that referred to case decision number 15 / KPPU- / 2019.

Article 5 of Law number 5 of 1999 concerning Scheduled Domestic Commerce Class Passenger Air Transport Services contains “business actors prohibited from entering into agreements with business competitors to determine the price of goods and or services that must be paid by consumers or customers in the relevant market concerned. same.”

As for the alleged violation of article 11 in the same law, the commission panel led by Kurnia Toha said the seven airlines had not been proven to do so. Article 11 contains “business actors are prohibited from influencing prices by regulating the production and or marketing of goods and services that may result in monopolistic practices and or unfair business competition.”

Also Read: 7 Airlines Proven Ticket Cartels, Ministry of Transportation: Fares Are Evaluated

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