Indonesia Claims Airline Price Collusion

Seven Indonesian airlines were found guilty of price collusion in 2019, according to conclusive findings by Indonesia’s antitrust regulator. The Komisi Pengawas Persaingan Usaha (KPPU) revealed in a statement on Tuesday, June 23, that it has decided not to impose a fine for the airlines due to the current COVID-19 situation.

According to an official document sent to Simple Flying, Garuda Indonesia, Sriwijaya Air, Citilink, Lion Air, Batik Air, Wings Air (Indonesia), and NAM Air orchestrated price collusion last year. These airlines took part in anti-competitive practices, implementing falsely inflated airfares.

Although seven airlines are implicated, they belong to a collective of three holdings – Garuda Indonesia Group, Lion Air Group, and Sriwijaya Air Group.

In the official statement by KPPU, “concerted action or parallelism” occurred, which led to a simultaneous hike on all airfares. These actions go against anti-monopoly laws.

Full Content: Simple Flying

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