The Competition Commission of Pakistan (CCP) has decided to examine issue of exorbitant Hajj fare being charged by two international airlines. Sources told Business Recorder that the issue of expensive international air travel tickets being offered to the Hajjis was discussed during the third meeting of the Competition Consultative Group of the CCP held here on Wednesday.
The CCP would examine the matter for possible issuance of a policy advice to the Ministry of Defence. As a second option, the CCP would convene a public hearing on the matter, if necessary. Details revealed that the Saleem Asghar Mian Former Chairman MCA highlighted Hajj package and other price fixing activities of a major airline during the meeting of Competition Consultative Group.
Khalid Pervez Marwat of Civil Aviation Authority (CAA) discussed the matter in detail explaining various steps taken by CAA to improve competition in the airline industry, including the instructions to Travel Agents Association of Pakistan (TAAP) not to charge compulsory insurance from the consumers.
During the meeting, it was pointed out that only two international airlines have been allowed to take Hajjis, who have to purchase extraordinary expensive tickets. As compared to other international destinations, the prices of air tickets for Hajj are far more expensive which needs to be checked.
One of the participants opined that the bilateral agreement between two countries has allowed their airlines to take Hajjis. Although the agreement provides for three airlines, but only two international airlines have been permitted to operate for Hajjis.Referring to the CCP law, sources said that the CCP would examine whether selling of air tickets at inflated charges comes within the deceptive market practices. Secondly, if both the airlines are collectively charging expensive tickets from Hajjis, it is a kind of collusive behaviour/cartel or not.
The Group has been set up by the CCP to provide a platform for seeking advice, soliciting suggestions for better promotion of the competition regime in Pakistan, and acting as a think-tank for the CCP's ongoing activities and proposed initiatives. The meeting was attended by eminent representatives of academia, other sector specific regulators, the legal community, and the private sector.
Welcoming remarks were made Ms Maleeha Bangash, Member (Research & Advocacy) and the Chairman, Khalid A. Mirza, made an opening statement. Abdul Ghaffar, Dr Joseph Wilson, and Ms Rahat Kaunain Hassan, Members of the CCP, were also present on the occasion.Ms Maleeha Bangash gave a presentation about "The Supportive Role of CCP In Promoting Business", briefing the audience about the activities, role and structure of the Commission.
Ms Unjela Siddiqi, Secretary of OICCI appreciated the interactive session held by CCP in Karachi and suggested that CCP should have such a session at least once a year with OICCI. Tasleemuddin Batlay President, American Business Council, discussed the Supreme Court of Pakistan and Sindh High Court's decision in favour of the Commission in Pakistan Banking Association's case and discussed the role of the Commission for consumer protection.
Professor Ashraf Janjua Dean, IBM intervened by giving examples of State Bank of Pakistan's law and its various implications with reference to competition/deceptive marketing practices. M.H. Asif from Ogra highlighted the fact that an effective regulator can play a pivotal role in saving the businesses from financial disasters.
Mir Muhammad Ali CEO, UBL Fund Managers spoke about deceptive marketing practices and Chairman CCP Khalid A. Mirza explained the steps taken by CCP and the establishment of Office of Fair Trade (OFT)-CCP to address these issues.
Hussain Babur from Nepra, Ashfak Jumani from Pemra and Khurram Siddiqi from PTA also contributed positively in the meeting and discussed the competition related issues in their specific sectors. Batlay complimented the CCP for being highly professional and dealing with all matters efficiently. The meeting ended with a vote of thanks from Chairman CCP Khalid A. Mirza.