Unreasonable raise in fares: CCP summons airlines' CEOs on October 8

Flexing its muscles in its inquiry against the private airlines, the Competition Commission of Pakistan (CCP) on Tuesday passed an order using its powers under section 36 of the Competition Act, 2010, binding the Chief Executive Officers of the airlines to submit information on recent unreasonable increase in the air fares and to appear before the inquiry committee on 8 October 2015.
Sources informed Business Recorder that the order has a binding effect and non-compliance could lead to a legal action against the CEOs of the airlines, including imposition of penalties. The CCP has jumped into the fray to overcome crisis created due to a strike by the Pakistan Airlines Pilots Association (PALPA) resulting in deadlock between the PIA and its own pilots. The crisis has badly hit the flight schedule and people have been forced to depend on private airlines only. Taking advantage of the situation, the private airlines increased their fares manifolds, thus burdening the consumers. The Prime Minister also took notice of the situation and ordered an inquiry into the matter. The PM wants the issue to be resolved forthwith to relieve the consumers.
Sources said that the anti-trust watchdog has seriously pursued the matter and will take every legal action to save consumers from the exploitative practices. A press release issued by the CCP here on Tuesday that 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, the 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.