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State-Owned Airlines Merger to Reduce Ticket Prices and Boost Tourism, Minister Says

Jakarta

Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed the reasons for the merger of state-owned airlines, Citilink and Pelita Air. According to him, the merger is to balance skyrocketing ticket prices.

Erick believes that ticket prices have soared high because of the lack of plane availability. He said there were 750 planes flying before the COVID-19 pandemic, whereas now there are only 450 planes.

“We had 750 aircraft before COVID-19. Today there are 450, that’s why the tickets are expensive. So that’s why we are pushing for something called a merger or merger of Pelita with Citilink,” said Erick to the media crew, in East Jakarta, Thursday (13/12 /2023).

For this reason, he is pushing for a merger of the two airlines to reduce ticket prices. On the other hand, there is a need to increase airport standardization. However, this merger will certainly take a long time.

“What is called a merger requires a process. There are 4 Pelindos becoming 1, Pelindo alone needs 2 and a half years. Yes, Angkasa Pura is only talking about this year,” he explained.

Erick said that several countries are now renovating airports to become comfortable places to travel. For this reason, it is necessary to repair or renovate airports, such as in Bali.

That way, he said he could encourage Indonesians to travel domestically rather than abroad. Together with the Minister of Tourism and Creative Economy, Sandiaga Uno, he is targeting the number of tourism in 2024 to be 12.5 million foreign tourists.

“Well, that’s why friendly policies are needed. What’s an example? That was an airport. Yes, an airport,” he added.

Watch Video: Garuda Indonesia’s Response to the Merger of 3 State-Owned Airlines

(kilo/kilo)

2023-12-13 08:33:52
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