The Competition Commission of Pakistan (CCP) has recovered a penalty of Rs. 10 million from the Pakistan International Airlines (PIA), imposed on it for abusing its dominant position by excessively increasing Haj fares in 2008.
The penalty was imposed in 2009 after a CCP inquiry based on media reports found the national carrier had unreasonably increased Haj fares by more than 80%—from Rs. 38,500 to Rs. 70,000 for the southern region, and from Rs. 46,200 to Rs. 85,000 for the northern region.
The CCP found the increase 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 Rs. 10 million.
The PIA challenged the CCP’s decision in the Supreme Court, arguing it had incurred losses on Haj flights and was only fulfilling its duties as a national carrier. The apex court, however, referred the matter to the Competition Appellate Tribunal as the appropriate forum for adjudication.
Following multiple hearings, the tribunal dismissed the case over non-appearance of PIA’s counsel. After the appeal period had lapsed, the 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.