The Competition Commission of Pakistan (CCP) has passed a special order under Section 36 of the Competition Act, 2010 to the Chief Executive Officers of the private airlines operating in Pakistan to submit information regarding the recent unreasonable increase in the air fares and to appear before the inquiry committee on 8 October 2015. The special order to seek information has been passed as part of an inquiry initiated under Section 37 of the Competition Act into the alleged unreasonable increase in air fares by private airlines taking advantage of the cancellation of flights due to the on-going deadlock between PIA management and Pakistan Airlines Pilots Association (PALPA), on domestic routes. The sudden hike in air fares resulted in an extra burden on the consumers who were already suffering due to strike by PALPA. Section 3 of the Competition Act prohibits unreasonable increase in the prices of goods and services while Section 4 of the Act prohibits undertakings from colluding on price. Through the inquiry, CCP will investigate the possible abuse of dominant position or collusion amongst the private airlines to raise air fares, therefore adding burden on the consumers. In case the airlines failed to comply with the special order, the Commission will further proceed in accordance with law against the CEOs.
The Competition Commission of Pakistan (CCP) has passed a special order under Section 36 of the Competition Act, 2010 to the Chief Executive Officers of the private airlines operating in Pakistan to submit information regarding the recent unreasonable increase in the air fares and to appear before the inquiry committee on 8 October 2015. The special order to seek information has been passed as part of an inquiry initiated under Section 37 of the Competition Act into the alleged unreasonable increase in air fares by private airlines taking advantage of the cancellation of flights due to the on-going deadlock between PIA management and Pakistan Airlines Pilots Association (PALPA), on domestic routes. The sudden hike in air fares resulted in an extra burden on the consumers who were already suffering due to strike by PALPA.
Section 3 of the Competition Act prohibits unreasonable increase in the prices of goods and services while Section 4 of the Act prohibits undertakings from colluding on price. Through the inquiry, CCP will investigate the possible abuse of dominant position or collusion amongst the private airlines to raise air fares, therefore adding burden on the consumers.
In case the airlines failed to comply with the special order, the Commission will further proceed in accordance with law against the CEOs.
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