Globally, air transportation is one of the sectors which were excluded from the competition and anti-trust laws until the US-led regulatory reforms and 'privatization' dragged the industry into the competition and anti-trust regime (sock-yong 2009). the liberation of commercial air service triggered an instant wave of competition and the states were compelled to strengthen national competition policies to control unfair practices, including abuse of dominant position such as capacity dumping and predatory pricing (ICAO 2009), price fixing, and inter-airline coordination through alliances. Competition policies of south Asia are yet to emerge fully at state level (except in India and Pakistan). The lack of competition legislation in general, and sector-specific (aviation-specific) legislation in particular, has yet to impact on the air transport markets as the LCCs which have entered it are also being kept under control on foreign participation, foreign investments and the BASAs.