ISLAMABAD – The Competition Commission of Pakistan (CCP) has recovered Rs10 million penalty from Pakistan International Airlines (PIA).
According to a press release issued by the CCP on Friday, the penalty was imposed on the national flag carrier in 2009 for abusing its dominant position by excessively increasing Haj fares in 2008 after an inquiry based on media reports.
As per the inquiry, PIA had unreasonably increased Haj fares by more than 80 per cent—from Rs38,500 to Rs70,000 for the southern region, and from Rs46,200 to Rs85,000 for the northern region.
Taking a lenient view in line with its policy of encouraging compliance and good business practices, the CCP imposed a token penalty of Rs10 million.
PIA challenged the verdict in the Apex Court, arguing that it had incurred losses on Haj flights and was only fulfilling its duties as a national flag carrier. The Apex Court 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 and recovered the penalty amount through attachment of PIA’s bank accounts.
