Airport Tax Countdown

Last updated: February 10, 2015
No Airport Tax

Airport tax to disappear on 1 March 2015… or will it?

Ignasius Jonan, Indonesian Transport MinisterTransport Minister Ignasius Jonan (right) has decreed that Indonesian domestic airlines must include airport tax in ticket prices for domestic flights no later than 1 March 2015.

Any airline that does not follow this regulation will face administrative sanctions, including possibly having their licence to operate suspended.

At the time of writing (mid-February), only two airlines – Garuda Indonesia and Citilink – have complied.

TickGaruda Indonesia logo
CrossAirAsia logo Batik Air logo Kal-Star logo Lion Air logo Sriwijaya Air logo Trigana Air logo Wings Air logo

That leaves a lot of airlines with work to do.

It seems highly unlikely that the Transport Minister will shut down the Indonesian aviation industry on 1 March for administrative reasons (unless he wants to be compared to Qantas boss, Alan Joyce).

In 2012, the Transport Department similarly threatened to close airlines operating less than 10 planes, but – like the enforcement of many laws in Indonesia – it never happened.

Still, the author can’t see why Indonesian airlines can’t include airport tax in fares when most other countries can. Another nearby country, Thailand, recently rolled most airport taxes into fares.

By contrast, there is still no word on when international airport tax can/will be rolled into fares.

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