
CCP Recovers Rs. 10 Million Fine from PIA Over 2008 Hajj Fare Surge
The Competition Commission of Pakistan (CCP) has successfully recovered a Rs. 10 million penalty from Pakistan International Airlines (PIA), marking the resolution of a long-standing case concerning excessive Hajj fare hikes in 2008. The fine, originally imposed in 2009, stemmed from PIA’s significant fare increase, which saw prices surge by more than 80%—from Rs. 38,500 to Rs. 70,000 for southern travelers and Rs. 46,200 to Rs. 85,000 for northern travelers.
The CCP initiated an inquiry after media reports highlighted public concerns over PIA’s pricing strategy for Hajj flights. Investigations confirmed that the airline had leveraged its dominant position to implement unjustified fare hikes, violating the prevailing competition laws at the time. Despite challenges from PIA, including appeals to the Supreme Court and subsequent hearings at the Competition Appellate Tribunal, the case ultimately remained unresolved due to the airline’s legal representatives failing to appear.
After the appeal period expired, CCP exercised its enforcement authority under Section 40(2)(a) of the Competition Act, 2010, securing the fine by freezing PIA’s bank accounts. The recovery underscores CCP’s dedication to upholding fair market practices and preventing anti-competitive behavior, reinforcing accountability within Pakistan’s aviation sector.