Is this a legal itinerary? Cabotage?

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Old May 22, 19, 7:42 am
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Is this a legal itinerary? Cabotage?

Hi everyone, I was just wondering if anyone has any insight regarding this.

As you may or may not know, airfares for domestic flights in Indonesia is at its highest in the moment, and the government has been discussing with the airlines about a price ceiling recently.

Interestingly, MH has been offering a cheaper alternative via KUL on routes like KNO to CGK/DPS. On certain days, CGK to DPS is cheaper on MH than on Garuda, which is quite surprising.

What I was just wondering is whether this is or this is not cabotage? Technically MH, as a foreign airline is transporting passengers on a domestic itinerary via a foreign country which I thought would be illegal, particularly when compared to the cases in the US (Air Canada fined for selling an itinerary between two US cities via Canada).
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Old May 22, 19, 11:38 pm
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Originally Posted by clubeurope View Post
Hi everyone, I was just wondering if anyone has any insight regarding this.

As you may or may not know, airfares for domestic flights in Indonesia is at its highest in the moment, and the government has been discussing with the airlines about a price ceiling recently.

Interestingly, MH has been offering a cheaper alternative via KUL on routes like KNO to CGK/DPS. On certain days, CGK to DPS is cheaper on MH than on Garuda, which is quite surprising.

What I was just wondering is whether this is or this is not cabotage? Technically MH, as a foreign airline is transporting passengers on a domestic itinerary via a foreign country which I thought would be illegal, particularly when compared to the cases in the US (Air Canada fined for selling an itinerary between two US cities via Canada).
If it's going via KUL, I don't find it unusual. It's cheaper to fly say from Singapore to London business class than direct. Or maybe I misunderstood your question.
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Old May 22, 19, 11:52 pm
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Originally Posted by SQTraveller View Post
If it's going via KUL, I don't find it unusual. It's cheaper to fly say from Singapore to London business class than direct. Or maybe I misunderstood your question.
What OP asked is that will it be legal for him to fly from a city in Indonesia to another city in Indonesia via international-transit route? Since CKG, KNO and DPS are all Indonesia city, but Garuda domestic price is way too high when compare to the price offer by MH via the international transit route.

This is rather a very good question...
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Old May 22, 19, 11:56 pm
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Cabotage would be if MH were to fly solely between CGK-DPS and would only be allowed if the Indonesian Government allow for cabotage to occur. By flying to KUL the A/C is leaving the state and so becomes just a normal flight.
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Old May 23, 19, 12:10 am
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Are you sure? How is this different from JFK/YYZ/LAX or SFO/ICN/GUM which are apparently not allowed?
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Old May 23, 19, 5:07 am
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Originally Posted by PilgrimsProgress View Post
Are you sure? How is this different from JFK/YYZ/LAX or SFO/ICN/GUM which are apparently not allowed?
That's what I was thinking about.

I mean it's crazy to see that Garuda is charging ~USD900 for a flight from KNO to CGK. Batik is at ~USD600 and MH at ~USD500.

*in J
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Old May 23, 19, 7:05 am
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Cabotage describes a series of laws and rules which are specific to a given nation. The fact that US law might prohibit AC from selling a ticket NYC-YYZ-LAX does not mean that another country prohibits the sale of a parallel routing in its geography. So, forget comparisons to the US, Canada, and other countries.

OP's question is solely a matter of local law and that is where he needs to look. If there is expertise on that specific issue here, it may help to know what that is. Otherwise, the fact that what OP proposes could not be ticketed between two points in the US is not informative.
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Old May 23, 19, 10:15 am
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US laws do not apply to other countries.
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Old May 23, 19, 10:35 am
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Originally Posted by AxeFire View Post
US laws do not apply to other countries.
Saipan is a U.S. possession; the U.S. is free to make laws concerning airlines (both foreign and domestic) that fly to and from the U.S.
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Old May 23, 19, 6:03 pm
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Originally Posted by clubeurope View Post
That's what I was thinking about.

I mean it's crazy to see that Garuda is charging ~USD900 for a flight from KNO to CGK. Batik is at ~USD600 and MH at ~USD500.

*in J
As far as MH us concerned you are buying two tickets to two destinations. Cos I don't it will price under one ticket.
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Old May 24, 19, 1:42 am
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Originally Posted by Guy Betsy View Post
As far as MH us concerned you are buying two tickets to two destinations. Cos I don't it will price under one ticket.
actually, it does price under one ticket surprisingly
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Old May 24, 19, 3:50 am
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Originally Posted by AxeFire View Post
US laws do not apply to other countries.
tell that to someone who wants to trade with Iran
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Old May 24, 19, 5:24 pm
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You can fly Bangkok to Phuket too via Kul, believe it has to do with Asean open skies. Many of these itineraries work very well for BA and QF SCs.
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Old May 27, 19, 3:21 pm
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I've travelled to Medan from Denpasar then back to Jakarta with MH a couple of tmes. The attraction is not only the fare, but the four sets of tier points to my BA account AND the opportunity to break the journey in KL.

Garuda prices are bonkers: Medan Jakarta prices are bonkers on all Indonesian carriers. I guess they are responding to increased demand with higher prices rather than increasing capacity. So it's great that MH (and SQ?) can step in to take up some slack

The first time I had mild concern about a puzzled reception from KNO immigration. But he didn't bat an eyelid.
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Old May 27, 19, 3:44 pm
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Originally Posted by amnicoll View Post
tell that to someone who wants to trade with Iran
Going OT but if you trade only with Iran and not with the US then this law does not apply to you.
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