CCP to probe aviation, energy sectors for any collusive trends

[Naveed Yaseen]

PEER MUHMMAD
ISLAMABAD (September 09 2009): The Competition Commission of Pakistan (CCP) has decided to examine the aviation and energy sectors to have updated economic data on these sectors to ascertain any kind of collusive behaviour, trends and economic situation of these sectors. Sources told Business Recorder on Tuesday that the CCP would conduct study on the overall situation in the aviation and energy sectors. The analysis would be conducted from the competitive point of view, it is learnt.

In case of aviation sector, the study would cover performance of Civil Aviation Authority, airlines, travel agents and other stakeholders of the industry. The process would be a kind of study to judge the competitive behaviour in the aviation sector. It would be examined whether airlines industry is showing any anti-competitive behaviour or not. The weakness in the existing system and efficiency of the aviation sector would also be highlighted through these studies, sources added.

It is learnt that the study would also check any kind of collusive behaviour in the airlines industry and performance of current players, prevailing regulations, and policy implementation in the sector. In the energy sector, sources said, research-based study would be conducted in consultation with a Canadian agency to analyse overall energy situation.

The study on energy sector would cover power and natural gas. The analysis would help the Commission to check productivity, efficiency and economic growth of the energy sector. It is worth mentioning that the CCP is already investigating reasons behind high airfares being charged by some airlines from Pakistani pilgrims going to Mecca for Haj. The Commission had initiated an inquiry to see if the airlines had violated the competition laws of the country by fixing the airfares jointly.

http://www.brecorder.com/index.php?id=959136