CCP recovers Rs 10 million penalty from PIA for abusing domain position

ISLAMABAD, April 18: The Competition Commission of Pakistan (CCP) has recovered a long-standing penalty of PKR 10 million from Pakistan International Airlines (PIA), originally imposed in 2009 for abusing its dominant position by excessively increasing Haj fares in 2008.
The penalty was imposed after the CCP conducted an inquiry based on media reports alleging that PIA had charged exorbitant Haj fares. The inquiry revealed that the national carrier had unreasonably increased Haj fares by more than 80%—from Rs38,500 to Rs70,000 for the southern region, and from Rs46,200 to Rs85,000 for the northern region.
This conduct was found to be in violation of Section 3(3)(a) of the then Competition Ordinance. Taking a lenient view in line with its policy of encouraging compliance and good business practices, the CCP imposed a token penalty of PKR 10 million.
PIA challenged the CCP’s decision in the Supreme Court of Pakistan, arguing that it had incurred losses on Haj flights and was only fulfilling its duties as a national carrier. The Supreme Court, however, referred the matter to the Competition Appellate Tribunal (CAT) as the appropriate forum for adjudication.
Following multiple hearings, the case was dismissed by the Tribunal due to non-appearance of PIA’s counsel. After the lapse of the appeal period, CCP exercised its enforcement powers under Section 40(2)(a) of the Competition Act, 2010, and recovered the penalty amount through attachment of the airline’s bank accounts.
The recovery marks a significant enforcement action and reflects CCP’s continued commitment to holding entities accountable for anti-competitive conduct.
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