Airblue,Shaheen Airfare hikes are not excessive: CCP

ISLAMABAD: The Competition Commission of Pakistan (CCP) has completed its inquiry into the alleged exorbitant increase in airfares by Airblue and Shaheen Air.According to a statement released on Monday, the commission had taken notice of concerns expressed over the conduct of the two private carriers during the suspension of Pakistan International Airlines’ (PIA) flight operations from October 1-7 2015 and February 2-9, 2016. It was alleged that fares had been increased by up to 300%.

A five-member inquiry committee was constituted to determine whether the private operators had exploited the consumers by charging high airfares.Airblue and Shaheen Air were asked to submit detailed information about airfares charged from each passenger on domestic routes for the period under investigation as well as of preceding months. The commission also issued a press release asking consumers to provide evidence of tickets purchased at high rates.

It was observed that as per standard industry practice worldwide Airblue and Shaheen Air employ a revenue management system allowing them to set different parameters for determining the basic fare, some of which are demand and supply, size of the aircraft, the route, time of ticket booking, passenger load on other airlines, etc.The lowest fares are applied when the booking is made well in advance, but as the time of the flight approaches near the higher fare classes are adopted depending on the availability of seats.

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