Ceiling Tariffs for Domestic, Economy-Class Flights Reregulated

The Minister of Transportation (“Minister”) has issued Regulation No. PM 20 of 2019 on Procedures and Formula for the Calculation of Ceiling-Tariff Thresholds for Economy-Class Passengers on Scheduled Domestic Commercial Flights (“Regulation 20/2019”). This new regulation is part of the government’s attempts to mitigate the effects of the recent airfare price hike, which is currently having a negative impact upon consumers, while at the same time maintaining the viability of airline businesses.[1]  

In essence, Regulation 20/2019 renews the procedures and formula which are to be implemented by airline companies in order to calculate the airfare tariffs which can be levied upon their economy-class passengers. These matters were previously addressed under Regulation of the Minister No. PM 14 of 2016 on the Mechanism for Formulating Ceiling and Floor-Tariff Thresholds for Economy-Class Passengers on Scheduled Commercial Domestic Flights (“Previous Regulation”).[2]