Competition Commission of Pakistan (CCP) is examining possible abuse of dominance position/collusive behaviour under Competition Act as domestic private airlines have increased fares from 100 to 300 percent as Pakistan International Airline''s (PIA) strike entered its second day. Shaheen Airlines has increased its fare (Islamabad-Karachi) from Rs 7000 to Rs 28000 with a return ticket now costing Rs 56000. Air Blue Airline has increased its airfare one way for the same sector from Rs 8000 to Rs 16000 with a return ticket costing Rs 32000.
Civil Aviation Authority (CAA) has allowed Airblue to operate additional late night flights. The airline is charging Rs 9000 which is relevantly a low price. There are two late flights - one at 9:00 AM and the other at 11:00 PM, confirmed travel agent Bilawal, adding that these charges would be applicable till PIA flights become operational. Civil Aviation Authority (CAA) official said that CAA has taken notice of the sudden increase in airfares of private airlines although the responsibility for taking appropriate action lies with the CCP which has yet to take any action. The official further said that the oversight of airfare does not come under Aviation Policy.
When contacted a CCP official said that the Commission is analysing the issue in light of the provisions of the Competition Act. However, so far no official inquiry has been initiated against the private airlines. PIA spokesperson while explaining the situation said that no single flight has taken off due to prevailing strike of PIA employees throughout Pakistan. He said other domestic airlines are accommodating those passengers with confirmed booking.
Last year the CCP passed a special order under Section 36 of the Competition Act, 2010 to the Chief Executive Officers of private airlines operating in Pakistan asking them to submit information regarding the unreasonable increase in the air fares and to appear before the inquiry committee. The inquiry did not produce any evidence against the airlines.
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