Upper and Lower Thresholds for Economy-Class Flights

The Minister of Transportation (“Minister”) has issued Regulation No. PM.126 of 2015 on the Mechanism for Formulating Upper and Lower Tariff Thresholds for Economy-Class Passenger Flights Scheduled by Domestic Commercial Airlines. (“2015 Regulation”).

The 2015 Regulation aims to protect economy-class passengers and airline companies from unfair business practices by standardizing economy-class flight tariffs.[1] With this end in mind, the 2015 Regulation incorporates detailed guidelines on the formulas and mechanisms to be used when determining economy-class tariffs.