CCP absolves airlines for allegedly charging Indian exporters less

KARACHI: Competition Commission of Pakistan (CCP) has absolved international airlines for allegedly offering better rates to Indian mango exporters as compared to what they offer Pakistan exporters.

The complainants – the fruit and vegetable exporters’ associations had accused the international airlines of charging higher rates on the export of mangoes from Pakistan in comparison to the charges levied for exports from India for the same destinations.

The exporters accused the airlines for charging them more for taking their export items to the same destination as India in spite of the fact that the distance is lesser from Pakistan as compared to India.

However, CCP didn’t find concrete evidence to establish that international airlines were charging Pakistan exporters more therefore airlines stand absolved of it.

Meanwhile, CCP has obliged international airlines to take responsibility of the cargo of short-life perishable fruit and vegetables, which they previously evaded in Pakistan against international conventions of the airline industry.   

Exporters had to give an undertaking of no claim or indemnity bond which made exporters powerless to claim the loss incurred due to delay or damage caused during transit and handling by the airlines. This condition was a major hurdle in mango export to the United Arab Emirates, Europe, and other countries.

According CCP spokesperson Asfandyar Khattak, the petition filed by associations of fruit and vegetable exporters was for mango exports. But since airlines have agreed now to remove the indemnity bond clause they used to ask exporters to sign before taking consignment, it will apply to all perishable items.  

The CCP’s enquiry noted that contrary to international conventions and prevalent practice in other jurisdictions, Pakistani mango exporters were required to furnish an indemnity bond by most of the airlines, which absolves the airline of all responsibility of loss.

Following, CCP’s judgment the airlines are now responsible for catering the loss or damage, if incurred, during the air carriage as this issue was pending for the last fifteen years and many exporters had left the export business due to this condition.

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