Indonesia tightens leash on local airlines

INDONESIAN airline operators are feeling the heat from a new set of government measures implemented since January 1 to raise industry service standards.

Local airline companies must now fork out compensation of up to 300,000 rupiah (US$33) per passenger when a flight is delayed for more than four hours, up to 200,000 rupiah per kg for lost luggage, and a supplementary compensation fee of 200,000 rupiah per day for a maximum three days while customers are waiting for the missing bags.

The new regulations also stipulate compensation on injury and death at the airport pre-, post-flight and during transit.

Indonesia Minister of Transportation, Evert Erenst Mangindaan, explained in a statement: “(The new regulations) have been introduced to make airline operators care more about (customers), be it cargo or passengers.”

Indonesia Director General of Air Transportation, Herry Bakti Gumay, said airline operators would be given a chance to cut the compensation liability in half provided they offer alternative travel arrangements.

Should passengers need to be transferred to other carriers, the airline would still have to bear any additional cost that might arise due to a higher cabin class, and would also have to return the balance if passengers’ tickets were to be downgraded.

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