Garuda To Lion Air Reportedly Found Guilty In The Case Of Flight

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TEMPO.CO, JakartaThe Business Competition Supervisory commission (KPPU) decided on seven airlines in the country, including Garuda Indonesia to conduct a breach of the determination of the price of the airline ticket for the transportation of scheduled commercial.

The verdict on the case no. 15/KPPU-I/2019 was read by the Chairman of the Assembly Commission Kurnia Toha on Tuesday, July 23, 2020.

“That all the reported party was legally and convincingly commit a breach of Article 5 of Law Number 5 Year 1999 related to Air Transport Services Scheduled Commercial Economy Class Passengers In the Country,” said Kurnia in the trial, the verdict in Jakarta.

The article reads business actor is prohibited to make agreements with the businesses of its competitors to set prices for certain goods and/or services payable by consumers or customers on the relevant market.

As for the seven airlines that sentencing is PT Garuda Indonesia (Defendant I), PT Citilink Indonesia (Defendant II), PT Sriwijaya Air (Reported party III), PT NAM Water (Reported party IV), PT Batik Air
(Reported party V), of PT Lion Mentari (Defendant VI), and PT Wings Abadi (Reported party VII).

Previously based on the trial, the Assembly Commission rate there has been a joint action of the parties to encourage agreements to eliminate discounts or to make the uniformity of the discount. The reported also proved to have waived the products are offered with cheap prices in the market.

This agreement resulted in the limited supply and high price of the service scheduled commercial air transport passengers of economy class in the territory of Indonesia. As for the joint action carried out through reduction of the subclass with an unwritten agreement between business actors.

However, the Assembly Commission considered that this collective agreement does not meet the elements of the agreement in Article 11. Article it mention about the existence of monopolistic practices and unfair business competition.

Based on these rulings, the Commission imposed sanctions in accordance with applicable law. KPPU also asked the Ministry of Transportation to perform the evaluation related to the tariff policy of the upper limit and the lower limit of flight so that the formulations used can protect consumers and businesses.

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