Indonesia’s transport ministry is raising ticket prices on domestic flights so airlines can spend more money on safety.
According to ministry documents seen by Reuters the transport ministry has raised the ticket floor price for economy class domestic flights. This means airlines are now prevented from selling tickets at less than 40 per cent of a ceiling set by the ministry.
Indonesia's transport minister Ignasius Johan said: "We want the aviation sector to be healthy, not cheap. If it's cheap, there are many things that might not be done."
The decision came two days after Air Asia flight QZ8501 went missing about 50 minutes after take-off from Indonesia’s second biggest city of Surabaya. There were no survivors among the 162 on board.
Reuters reported that Mohammad Alwi, an official at the transport ministry, said the rule change on ticket pricing had "no connection with the accident" and that authorities had taken the decision to raise the floor on price sometime earlier.
Price controls only apply to domestic flights and will not affect the cost of international services to or from Indonesia.