The Impact of Price Ceiling and Price Floor Implementation Towards Indonesia Scheduled Commercial Air Transport

AG. Fabianto, Tito Warsito, Aditya Wardana, Novembriani Irenita, Yulianti Keke

Abstract


Along with the increasing ticket price of air transport and monopolistic market that emerge in Indonesia aviation industry, the government implements price ceiling and price floor regulation to control air transport ticket price based on airline class of services. The goal of price ceiling and price floor regulation is to maximize economic welfare. With this regulation the airline still retains its freedom to manage prices and capacities as long as still in the range of price ceiling and floor. This paper aims to describe the purpose of price ceiling and price floor implementation and the impact towards airlines, consumers and another mode of transportation. Author uses descriptive method with qualitative approach to describe the problem.


Keywords


price ceiling and price floor regulation, impact towards airlines, ticket price

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DOI: https://doi.org/10.25292/atlr.v2i0.186

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