The Competition Commission of Pakistan (CCP) today issued a policy note to the Civil Aviation Authority (CAA) strongly recommending the abolishment of the airport entry fee being levied at the Benazir Bhutto International Airport (BBIA) Islamabad. The policy note expresses concern that the imposition of the airport entry fee is likely to be in contravention of Section 3 of the Competition Act, 2010 (the ‘Act’) and calls upon CAA to abolish the fee and submit a report in 30 days. Section 3 of the Act forbids the abuse of dominance by undertakings. Potential violations encompass unjustified discriminatory behavior by dominant undertakings, such as the CAA, in their interaction with customers and other commercial entities. This policy note follows the CCP’s suo moto notice of the imposition of the airport entry fee. CCP, taking cognizance of the fee, had expressed its concern over the imposition and asked CAA about the rationale in imposing the fee. In its reply, CAA contended that the fee was imposed to reduce the number of people visiting the airport, especially during Hajj and Umra season, in order to improve security. Furthermore, in its reply, CAA informed the CCP that it was planning to revisit the imposition of the airport entry fee. The policy note observes that there are several facts that negate the rationale provided by CAA. First, CAA has not satisfactorily explained the factor of reducing visitors to improve security. It has been noted that no such fee is imposed at other airports where there are comparable security concerns. Furthermore, the fee is not imposed on children, defeating the rationale of reducing visitors presented by CAA. Second, CAA has exempted a certain categories of people, including high ranking government officials, diplomats and their visitors, who are most likely to be a target of miscreants, from paying the fee, ensuring that no meaningful deterrence takes place. Third, it is highly unlikely that people who have come from long distances to see off their loved ones during hajj and umra season will be deterred by the imposition of a PKR 20 airport entry fee. Fourth, CAA has neither indicated any extra-ordinary measures it has taken to beef up security in lieu of the airport entry fee nor has provided any statistics to show a decline in the number of visitors in accordance with its rationale. CCP, therefore, observes that in the absence of a reasonable justification, and any statistics to substantiate CAA’s claims, the imposition of the fee is unjust, discriminatory, and a cause of inconvenience to the general public, and should be abolished at the earliest in line with the representation made to the CCP and the contents of the policy note.
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