The nation's airlines have permission to reinstate fuel surcharges, but only if they promise to behave. Nawir Messi, chairman of the Business Competition Supervisory Body (KPPU), said on Sunday (Mar 13) that airlines could start charging their passengers as long as the fee was transparent. "Surcharges are allowed as long as one airline charges differently than another," he said. The Indonesian Air Carriers Association (Inaca) called on the government on Friday (Mar 11) to reintroduce fuel surcharges to reflect rising oil prices that affect their operating costs. Airlines had stopped using fuel surcharges since last year after the Transportation Ministry left fuel prices out of its pricing calculations, as recommended by the KPPU. Nawir said airlines must be transparent in their application of the surcharge so customers can have accurate information. "If the fuel surcharges are the same, it may indicate price-fixing," he said. Last year the KPPU accused the country's nine largest airlines of using fuel surcharges to boost revenue even though fuel prices had declined. It leveled Rp 80 billion in fines against the airlines and demanded Rp 504 billion in compensation to customers. However, the Central Jakarta District Court struck down the KPPU's ruling last month, saying there was no evidence of price-fixing between the airlines. The court said the airlines' surcharges were identical because they purchased their jet fuel from state oil and gas company Pertamina. Herry Bhakti, the air transportation director general at the Transportation Ministry, said the ministry was monitoring oil price fluctuations before deciding on the proper surcharge. "Jet fuel prices have yet to reach Rp 10,000 ($1.14) per liter, the maximum assumption. There's still room to move for airlines," he said. According to the Transportation Ministry Regulation No. 26/2010, airlines are allowed to impose surcharges if jet fuel prices exceed Rp 10,000 per liter and carriers experience a 20 percent rise in operational costs for three successive months. Surcharges are also allowed on certain conditions such as for transporting hajj pilgrims, in order to compensate for empty seats on the airline's flight back home. Inaca secretary general, Tengku Burhanuddin insisted the ministry allow airlines to include surcharges immediately. "It is better to implement it immediately before waiting for jet fuel prices to exceed Rp 10,000. The price is currently nearing Rp 10,000 and we are worried that this will erode our profit margins," he said. Tengku said jet fuel prices have hovered between Rp 7,000 and Rp 8,000 per liter, but outside forces such as the political uprisings in the Middle East and North Africa could send prices above the government's assumption. He also said the airlines would remove the surcharges again if oil prices returned to normal levels. Airlines have already started to deal with rising operational costs by increasing airfares and allocating more seats to the business and executive classes.(jg)