Indonesia's Garuda cuts air ticket prices under govt pressure

Indonesia’s Garuda has slashed ticket prices by 20%, the company said on Thursday, following a public outcry over high fares and a call by the country’s president for airlines to offer cheaper tickets. The move applies to all of Garuda’s domestic routes as well as those of its low-cost subsidiaries Citilink Indonesia, Sriwijaja Air and NAM Air, executives said. “This is in line with the aspirations of Indonesians, a number of national industry associations, and the (wishes of) the president of Indonesia, who wants a reduction in flight prices to support economic growth, especially in the tourism sector,” Garuda CE Ari Askhara said. The price cut would not affect the airline’s income because it would help to increase the number of passengers, he added in a text message. President Joko Widodo, who is seeking re-election in April, asked airlines this week to cut prices to help the hospitality industry boost occupancy rates. There have also been complaints from consumers over a spike in fares.<br/>