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Garuda and Angkasa Pura Agreement Ends, As of 1 October 2014 Garuda Passengers Pay "Passenger Service Charge (PSC)" at Airport

As the contract on the collection of “Passenger Service Charge (PSC)” between Garuda Indonesia and Angkasa Pura ended on September 30, 2014, effective from October 1, 2014, Garuda Indonesia will no longer include PSC in the price of the ticket.

From now on, passengers will pay the fee during departure at the point of embarkation.

Garuda Indonesia has always been the most supportive of the government’s policies, and the customers’ request to incorporate PSC into the ticket. Evidence of this is that for the past two years, only the Garuda Indonesia Group carried out the policy.

At the time of the initial agreement among related stakeholders, it was agreed that during the bridging period, all airlines will carry out policy. However, in reality, up till the end of the contract period, no other airlines followed suit, hence preventing Indonesia from being not included in IATA’s list of countries that implement this policy.

However, it should be emphasized that although Garuda is compelled to take these measures, it remains ready and willing to re-apply the PSC in the ticket, together with other airlines, in accordance with IATA standards, under the coordination of the Ministry of Transportation, the Ministry of State-Owned Enterprises and Angkasa Pura.

The agreement to include PSC in the cost of the airline ticket between Garuda, PT. Angkasa Pura I and PT. Angkasa Pura II was signed on October 1, 2012 and extended for two years, or until 30 September 2014. The provision applies to Garuda’s domestic flight sector.

The two year contract period was in fact a “bridging” period for airport operators to eventually include PSC in all airline tickets in accordance with “International Air Transport Assosciation (IATA) Standard”.

Including the PSC in the cost of the airline ticket is a standard practice in the airline industry today. According to IATA, as many as 95 percent of the world’s countries have already included PSC in tickets, except Indonesia, another Asian country and several countries in                      Africa.

The implementation of PSC in the ticket has so far not been profitable for Garuda, such as the uncollected PSC on “multileg stop over” tickets, which amounted to Rp. 2,2 billion per month.

The fee paid by the passenger for the use of airport service and facilities during air travel is within the authority and responsibility of the Airport Management Company’s, and not of the airline.

Director General of Civil Aviation Regulation No. KP/447/2014, dated 9 September 2014 on the billing of PSC in the price of the ticket, would be the legal basis for airport operators to include PSC in the ticket according to IATA Standards. This PSC system is a “one for all” solution that applies to all domestic and international airlines flying to and from Indonesia  and implemented simutaneously.

As the PSC will hence be collected by the Airport Management Company, to ensure the passengers’ comfort, Garuda Indonesia advices passengers to arrive early at the airport. 

 

Jakarta, 24 September 2014

PT GARUDA INDONESIA (PERSERO) Tbk.

VP CORPORATE COMMUNICATIONS

 

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