ISLAMABAD: Taking action against the unfair hike in fares of private airlines, the Competition Commission of Pakistan (CCP) has directed the CEOs of such airlines to submit information regarding the increase in their fares till October 8.
The CCP passed the special order under Section 36 of the Competition Act, 2010, while the 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 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, 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.
