Case Details

Citation(s)
2010 SLG 540 2010 SLD 540 2010 CLD 462

File No. 14/DIR (M&TA)/PIA/CCP/09 decided on 3rd November, 2009. dates of Hearing: 12 October, 2009 and 3rd November, 2009

Suhail Mahmud, GM Legal and Rashid Aziz, GM (Revenue and Management) and Ali Tahir Qasim, Deputy GM (Revenue and Management) for P.I.A

PAKISTAN INTERNATIONAL AIRLINES

Law:

Section:

Competition Ordinance (LII of 2007)--Ss. 3, 30, 37 & 41---Abuse of dominant position---Complaint against---Government of Pakistan was the largest shareholder of Pakistan International Airlines having 89.93% of the total shares, whereas the remaining shares were held by the public--competition Commission of Pakistan, received various complaints to the effect that PIA was charging a percentage of the ticket fare whenever passengers rescheduled or cancelled flights, which was not only contrary to the practice followed by other domestic and international carriers and was also discriminatory--Said Policy of PIA was verified from its Customer Services Department and was found to support the complaints received by the Commission---Commission took suo motu notice and constituted an Inquiry Committee under S.37(1) of Competition Ordinance, 2007, which conducted a formal inquiry in the matter, completed its report and recommended that proceedings under S.30 of the Ordinance could be initiated against PIA---Section 3 of Competition Ordinance, 2007, which had prohibited abuse of dominant position, would apply only when one undertaking had a dominant position or where two or more undertakings were collectively dominant--Finding of dominance whether individual or collective would involve a ,two-stage procedure: First was the determination of relevant market and the second was the determination, whether the undertaking concerned enjoyed dominant position---PIA having understood the concern of the Commission, had volunteered to remove the discriminatory fee structure and offered a proposal---Appellate Bench appreciated the understanding and co-operation of PIA and ordered; that proposed non-discriminatory re-scheduling fee structure be implemented in letter and spirit as of January 1, 2010; and that a passenger who wished to reschedule his/her flight to an immediate preceding flight, be allowed to do that without any charge---In the light of PIA co-operation and understanding, Bench had taken a lenient view and exonerated the undertaking from any penalty. ORDER Dr. JOSEPH WILSON, MEMBER.---An issue in this case is whether Pakistan International Airlines' policy to charge a…
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