CCP takes notice of fare raise by private airliners

ISLAMABAD: After witnessing increase in fares of private airlines owing to ongoing strike by employees of the Pakistan International Airlines (PIA) employees, the Competition Commission of Pakistan (CCP) has written letters to Shaheen Airlines and Airblue for providing information to anti-trust watchdog.

“The CCP has taken notice of exorbitant increase in airfares of private airlines in recent days,” said an official statement issued by the CCP here on Thursday. The commission is in the process of collecting information and has written to Shaheen Airlines and Airblue to provide comprehensive data on airfares charged recently. These airlines have been intimated that unreasonable price increases by dominant businesses and collective price fixing between competitors are anti-competitive activities that should be avoided at all costs. 

In this regard, the CCP would request passengers who have recently purchased tickets at seemingly high fares to approach the commission’s complaint cell with evidence on: Email: complaints@cc.gov.pk, Tel: 051-9100260, Fax: 051-9100297 and Post: 55-B, 7th Floor, ISE Tower, Jinnah Avenue Islamabad.

The CCP is mandated by the Competition Act, 2010 to check anti-competitive practices by businesses. Such practices include excessive increase in prices by businesses having market power and collective fixation of prices or collusion by competing businesses.

The CCP is cognisant of media reports regarding a sharp rise in private airline fares following the disruption of PIA's flight operations due to a strike by its employees. The CCP is probing the matter under the law and strict action will be taken against any undertaking indulging in anti-competitive practices.