An Indonesia airline, Garuda Indonesia president director Irfan Setiaputra in Tuesday’s House hearing said that the flag carrier has scaled down the cost of Hajj pilgrimage flights from Rp33.4 million to Rp32.7 million.
“We have slashed roughly Rp212,900 and has been set now at Rp32.7 million,” said Irfan in the Hearing with the House of Representatives (DPR) Hajj committee on Tuesday, February 14.
Irfan acknowledged that the cost reduction does not seem significant but assures that there are aspects that can help reduce the costs of flying to transport hajj pilgrims. The main cost reduction is in jet fuel, which Garuda says is offering below the current market price.
“There are some factors when we made our calculation. One of which that is really crucial is the price of jet fuel,” he explained.
The second consideration is the aircraft rental cost as an additional fleet. The agreed price of the aircraft uses the exchange rate of Rp15,150 per US dollar as a benchmark and Garuda uses the same aircraft rental price as in 2019, assuming normal conditions.
“We urge your consideration as we are indeed only taking a 2.5 percent margin. There are risks but we will manage it our best in regards to jet fuel prices, cost of renting airplanes, and exchange rate,” the Garuda Indonesia president said.
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