Garuda Boss Outspokenly Causes Expensive Airline Ticket Prices

President Director (Managing Director) of Garuda Indonesia Wamildan Tsani. (Photo: Mery Handayani/VOI)

JAKARTA - Garuda Indonesia President Director, Wamildan Tsani, revealed several competitors that caused the price of domestic aircraft tickets to be expensive. One of them is aviation fuel.

This was conveyed by the Military Commander in a working meeting with Commission V of the DPR, at the DPR Building, Parliament Complex, Jakarta, Thursday, January 23.

Furthermore, the Military Commander said that the avtur price contributed 35 percent to the price of domestic aircraft.

"So the ticket price component that we can convey is the largest of the avtur price, 35 percent," said the Military Commander.

Then, continued the Military Commander, the aircraft rental fee occupies the second position as a component of the current aircraft ticket price formation.

"Then 30 percent is the aircraft rental price. We tell you that the price of the plane is one plane, one month it is around 300 thousand US dollars. So indeed these two components are the hardest we feel in terms of maximum," he said.

In addition, the Military Commander said, there were several costs paid by the airline and most of the costs were taxed. Such as costs related to services at airports, take-off fees and plane landings.

"Take off and land fees that we have to pay, that does not include taxes. So all transactions that we make are related to the avtur and payment of airport services, including our room rent at the airport related to taxes. We have not said that there are import duties from spare parts that enter Indonesia that are also taxed," he said.

The military commander admitted that all the costs borne by the airline were quite heavy. In fact, he said, the ratio to airline revenue is 94 percent.

"We say it's tough and we in this full service airline cost to revenue very thin, so 94 percent. That's if airlines are full service airlines because we have to provide layanas on planes in the form of food and snacks," he said.

"But at the LCC in Citilink it can still be at 88 percent. So the meaning range or margin is still bigger, so we are like that," he continued.