IN THE MATTER OF OF A JOINT VENTURE BETWEEN FLY JINNAH SERVICES (PRIVATE) LIMITED AND AIR ARABIA ACADEMY LLC.

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

IN THE MATTER OF OF A JOINT VENTURE BETWEEN FLY JINNAH SERVICES (PRIVATE) LIMITED AND AIR ARABIA ACADEMY LLC. VS Ss. 2(1)(e), 11 & 31(1)(d)(i)---Competition (Merger Control) Regulations, 2016, Regln. 6---Application for Joint Venture jointly submitted by parties---Approval of Joint Venture (JV), sought---Issues of market dominance and competition evaluated by Competition Commission of Pakistan---JV Party 1 was a company incorporated under the laws of Pakistan engaged in the business of commercial air transport while JV Party 2 was a sole proprietorship company incorporated under the laws of United Arab Emirates and was involved in aviation training business in the UAE---JV Parties were to contribute a total share capital to the newly incorporated entity (New Company) under the transaction---Competition Commission of Pakistan (Commission) carried out Phase-I competition assessment of the Application/request to determine adherence to the relevant provisions of Competition Act, 2010 and Competition (Merger Control) Regulations, 2016, which evaluation particularly emphasized potential competitive issues, such as market dominance and competition post-merger---The relevant product market, for the purposes of said assessment, was identified as Aviation Training Services while the relevant geographic market was Pakistan, based on local supply dynamics and consumer preferences for aviation training---At present, the new company had no existing market share in Pakistan, however, its competitive position post-transaction would be subject to market entry conditions and potential competitive constraints from existing players---The submissions revealed that the transaction was of a conglomerate nature, as JV Party 1 (Pakistani Company) operated in airline services while JV Party 2 (UAE Company) specialized in training---Thus, both operated in different markets and geographic regions---The joint venture would act as a separate legal entity, managing its own day-to-day operations, making it a full-function joint venture---No horizontal overlaps existed, and the integration of airline operations with aviation training services was expected to enhance efficiency and workforce alignment---There was no indication that the Company would restrict access to aviation training for third parties---Given the regulatory oversight by the Pakistan Civil Aviation Authority, competition remained open to other aviation training institutions---The collaboration was likely to improve service quality and enhance technical skill development in the aviation sector---The Commission concluded that the proposed transaction was not likely to substantially lessen competition by creating or strengthening a dominant position in the relevant market as defined under S. 2(1)(e) read with S. 11 of the Competition Act, 2010 and Regln. 6 of the Competition (Merger Control) Regulations, 2016---Commission authorized the proposed transaction under S. 31(1)(d)(i) of the Competition Act, 2010---Application for Joint Venture was allowed accordingly.

IN THE MATTER OF OF A JOINT VENTURE BETWEEN FLY JINNAH SERVICES (PRIVATE) LIMITED AND AIR ARABIA ACADEMY LLC. vs Ss — 2025 CLD 1336 COMPETITION COMMISSION OF PAKISTAN

Case information

Judgment text as reported

Other judgments reported in 2025 CLD