The Competition Commission of Pakistan (CCP) has recovered a penalty of Rs10 million from Pakistan International Airlines (PIA). This penalty stems from a violation concerning excessive Haj fare increases in 2008. The CCP originally imposed the fine in 2009 after investigating media reports about exorbitant fares charged by PIA.
According to the CCP, PIA raised Haj fares unreasonably, increasing them by over 80%. Fares jumped from Rs38,500 to Rs70,000 in the southern region. In the northern region, prices rose from Rs46,200 to Rs85,000. This pricing strategy violated Section 3(3)(a) of the Competition Ordinance.
PIA challenged the CCP’s decision in the Supreme Court, arguing that it faced losses on Haj flights. However, the Supreme Court referred the case to the Competition Appellate Tribunal (CAT). Following multiple hearings, the Tribunal dismissed the case due to the absence of PIA’s counsel.
Meanwhile, the Pakistani government plans to sell 51-100% of PIA to address its financial issues. The airline is struggling under debt, and the move is part of a $7 billion International Monetary Fund program. Last year’s privatization attempt failed after receiving only one offer below the expected price.