Routing Types

Fares vary not only by class of service or face type but also by routing type as represented by global
indicators (GI). For example, an economy (Y) fare from LAX to HKG via the atlantic would be higher than
the fare paid if the passenger traveled via the pacific.

Consequently, it is important to first find out what type of routing the passenger is taking in order to
quote the correct fare

TC1 Also refers to travel within Area I or the Western Hemisphere.

Global Indicator : WH - for Western Hemisphere travel.

Example : RIO – MIA –SFO

TC2 Represents travel within Area 2 or the Eastern Hemisphere.

Global Indicator : EH - for Eastern Hemisphere travel.

Example : GVA-JNB-JED

TC3 Also refers to travel within Area 3 which is part of Eastern Hemisphere travel.

Global Indicator : EH - for Eastern Hemisphere routing

Example : SIN-KTM-BKK

The longhaul routings are between two areas. Such routings may involve traveling via another area or
ocean crossings.

TC12 Travel between Area 1 and Area 2

Global Indicator : AT - via the Atlantic Ocean

Example: LON-NYC-BOG

TC31 Travel between Area 3 and Area 1

Global Indicator: PA - via the North/Central Pacific

Example: SIN-YVR

PN - a specific type of pacific routing but passes via North America

Example: AKL-LAX-CCS

SP - via the South Polar route between the South Atlantic area,

Bolivia, Peru and the South West Pacific Over Auckland and Buenos Aries
TC123 Travel between Area 1 and Area 3 (passing over Area 2)

Global Indicator: AT - a Transatlantic routing

Example: BKK-LON-NYC

SA - South Atlantic routing is a specific type of Transatlantic travel

particularly between South Atlantic area and Southeast Asia
Example: RIO-FRA

TC2 Travel between Area 2 and Area 3

Global Indicator :

AP - via the Atlantic and Pacific Oceans

example : HKG-YTO-LON

TS - Trans Siberian Routings

 Between Europe and TC3 (except China and SASC)

 Between Middle East/Africa and japan/Korea

With non-stop flights between Europe and Japan/Korea or flying over Siberia

(over MOW-Japan)

Examples:

a) TYO - STO
b) BKK – TYO - PAR
c) TPE - MOW(nonstop flight flying over JAPKOR/Siberia)
d) JED – IST – TYO

FE - Travel exclusively between the Russian Federation (West of the Urals), Ukraine and Area
3 with a nonstop sector between Russian (West) / Ukraine and TC3
Example: MOW – HKG – POM

EH - via Eastern Hemisphere(which does not fall under any above mentioned global indicator)
 TC23 GLOBAL INDICATORS
The following flowchart helps identify the correct global indicator for travel between TC 2
and TC 3

Is there a sector that crosses the

Atlantic and another sector that NO
YES crosses the Pacific Ocean?

Is the component origin or

NO destination located in China or YES
SASC

Is there a nonstop
sector between Europe
and JAPKOR? OR is Are there points in TC2 located
NO OUTSIDE European Russia and
there a sector that flies
over Siberia? Ukraine?

NO YES
yes

EH
TS
AP FE
RESOLUTION:

IATA Milage Manual

passenger Tariff Coordinating Conferences Resolutions Manual
- General Information
Comp. Reso. 011

- Mileages and routes for tariff purpose

Comp. Reso. 012 - Definition of Terms

REFERENCE:
PAT General Rules – Abbreviations and Definitions
EXERSICE : 01

Match that City!

Decode the following city codes by listing the appropriate name and IATA geographical designation.

City City name Country Sub TC#

code name Area(s)
1 PNK

2 ADL

3 EDI

4 NGO

5 KCH

6 FRA

7 YTO

8 ZRH

9 RUH

10 MAD
EXERCISE :02
Establish the correct Global Indicator (GI) for the following routings:

1.Jkt 07. Jed

MNL fra
SEL was
TYO GI: sfo GI:

2. DPS 08. OSA

SIN BRU
HKG X/LON
MOW GI: EDI
GI:
3. FRA 09. TYO
X/TYO ANIS
MNL X/LAX
JKT GI: MIA GI:
4. HNL 10. MOW
LAX SIN
SFO JKT
YTO GI: ADL GI:
5. SIN 11. DPS
TYO SIN
 SFO LAX
MEX GI: LON GI:
6. PAR 12. MEL
ATH JKT
X/BKK X/TYO
MNL GI: NYC GI:

What are International Sale Indicators?

 An International Sale Indicator (ISI) is a transaction code that determines
what formula to use to arrive at the correct fare quote.

When a passenger asks for a fare quote however simple, it is important to

first ask him the following questions:
 Where will the ticket be issued? Will it be ticketed inside or outside
the country of commencement of travel?
 Where will the ticket be paid for? Will it be sold inside or outside the
country of commencement of travel?

What are the types of ISIs?

SITI the places of ticket sale and issuance are both in the country of
commencement of transportation, SITI will also apply to ticket :

1. Both sold and issued in Scandinavia for travel originating in

Scandinavia
2. Both sold and issued in the area comprised of Canada and USA for
travel originating in Canada or USA

SITO the place of sale inside the country of commencement of

transportation and the place of ticket issuance is outside the country
of commencement of transportation. SITO will also apply to tickets:

1. Sold in Scandinavia but issued outside Scandinavia for travel

originating in Scandinavia
2. Sold in Canada or USA but issued outside Canada and USA for
travel originating in Canada or USA

SOTI the ticket is sould outside the country of commencement of

transportation and the ticket is issued inside the country of
commencement of transportation. SOTI will also apply
for tickets:
 1. Sold outside Scandinavia but issued in Scandiva for travel
originating in Scandiva
2. Sold outside Canada or USA but issued in Canada or USA for travel
originating in Canada or USA

SOTO the places of ticket sale and issuance are both outside the country of
commencement of transportation.

Country of commencement of Tranportation(COC)

the country from wich travel on the first international sector takes

One Country Rule

Additionally, the following geographical areas are considered as one COC

 USA and Canada

 Scandinavia which is namely Norway, Sweden and Denmark

Example:

1. Sold in JKT Ticketed in DPS

Journey : JKT

PAR

COC is the Indonesia as journey starts from Jakarta .

Therefore, it the ticket is Sold Inside and Ticketed
Inside the Indonesia, the ISI is SITI
2. Sold in TPE Ticketed in YVR
 Journey: SEA

TPE
COC is USA. The place of sale is Taiwan which is outside the US/Canada area.
However, the place of ticket issue in Canada which is considered to be in the same
country as the COC-USA . Therefore, the ISI is SOTI.

3. Sold in AKL Ticketed in SYD

Journey: AKL

LAX

The place of sale and the COC is Auckland in New Zealand . However , Sydney , the
place of ticket issue, is outside the COC. Therefore, the ISI is SITO.

4. Sold in NBO Ticketed in NBO

Journey : JNB
SIN

COC in South Africa . NBO is in Kenya and not in South Africa so this is a SOTO case

Ticketing Notes :
Since the ISI has a direct effect on the fare calculation breakdown, the correct ISI
code is a mandatory entry in the origin/Destination box of the international
passenger ticket .
Consequently , whenever there are changes made to the passenger’s itinerary ,
the fare will be recalculates based on such ISI

REFERENCE
PAT General Rules - Abbreviations and

Definitions

RESOLUTION

Composite Resolution 012 gives the definitions of terms

EXERCISE : 03

Identify the COC, Countries of Sale and Ticket Issue and the subsequent ISI

ROUTING COC PT. OF PT.OF ISI

SALE TKT ISSUE
DPS-AMS BTH MDC
ADL-TYO SYD SYD
ROM-JKT MAD ROM
NYC-LON YTO MAN
OSA-NYC SEL BKK
SYD-JKT MEL BNE
MIA-RIO JKT LAX
SIN-CPH SIN CPH
KCH-SEL KUL KCH
AKL-HKG MOW AKL

JOURNEY CONCEPT
Basic Terms
To correctly identify the different types of journeys, it is important to understand
some basic terms. The terms listed below are not in alphabetical order but are
shown in the sequence of how a journey may be broken down into smaller parts.
Journey the entire itinerary shown on the ticket. It is composed of the origin
to the final destination of the ticket .

Fare component a portion of an itinerary between to consecutive fare

construction points. If the journey has only one fare
component then the points of origin and
destination are the only fare construction points.

Ticketed points all points shown in the “good for passage” section of the
passenger ticket

Fare construction point the terminal points of a fare component which mark
the beginning and end of a fare quote. These are
also fare breakpoints.

Origin the initial starting place of the journey as shown on the ticket.
A side from being the first ticketed point it is also a fare
construction point.

Destination the ultimate stopping place as shown on the ticket. It is both

a ticketed points as well as a fare construction point.

Intermediate point(s) the ticketed points in between fare construction

points. These are transfer points that may be
further classified as:

 Intermediate stopover points or

 Intermediate connecting points

Transfer a change from the service of one carrier to another.

There are two types:
  Online Transfer: change from the service of
one carrier to another service of the another
carrier.
 Interline Transfer: change from the service of
one carrier of the service of another carier.

Stopover Points are intermediate ticketed transfer points where a

passenger arrives and is then scheduled to
depart after 24 hours of arrival.

Connecting points are intermediate ticketed points where a passenger

transfer flights within 24 hours of arrival .

Ticketed Points : Ticketed points are cities shown in the

“Good for passage” and fare calculation areas of a
passenger ticket it includes the origin point,
destination, stopover and transfer connections
Stopover points : A STOPOVER takes place when a passenger

 Arrives at an intermediate point and

 Is not scheduled to depart within 24 hours of
arrival

Transfer Connections :
A TRANSFER CONNECTION is an involuntary interruption to a journey to change
flights within 24 hours. It may be an online (same carrier) connection or an
interline (different carries) connection.

To identify a transfer connection, the cod x/ precedes the city name or code (x is

shown without an oblique if shown in the X/o column beside the “Good for
passage” area.) This is mandatory code as it would affect not just the correct
application of checks but would also facilitate the correct proration of fares.

One Way
A one way is travel using one way (OW) fares having the following features:

The origin and the final destination are in different countries.

Example:

1. Routing : CAS

NYC M

SJU 1155.61

This journey consists of one fare component, CAS to SJU. The fare is calculated in
the direction of travel, i.e., to SJU

2. Routing : TPE
SGN M
KUL 576.19
BWN 167.90
This OW routing is composed of two fare components:
Component 1 : The fare is in the direction of TPE to KUL
Component 2 : The fare is in the direction of KUL to BWN

A One Way may contain one or more international surface breaks at the
origin and/or turnaround points.
Example:

3. Routing : AKL
TYO 1354.38
SYD 2362.11
 This routing can be viewed from two perspectives:
It is a OW where the origin and final destination are located in two different
countries. This is also a journey having an international surface sector
between the origin and destination (also called an international gap at the
origin point) i , e, a gap between AKL and SYD

Component 1 : The fare is in the direction of AKL to TYO

Component 2: The fare is in the direction of TYO to SYD
4. Routing : SAH
RUH M
KWI 451.95
X
BGW M
BAH 514.65
SAH

This journey consists of two international fare components with an

international surface sector at the turnaround points i. e KWI-BGW

The origin and destination points are the same but as the turnaround points
(KWI & BGW) are in 2 different countries, this is considered a One Way.

Component 1 : The fare is in the direction of SAH to KWI

Component 2 : The fare is in the direction of SAH to BGW as this
component ends in the COC
A one Way may include only domestic surface sector(s) but is composed of
more than two international fare components.

Example:

5. Routing : JNB 1353.99

RIO
X
SAO
NYC 1113.00
JNB 1984.28
 Component 1: The fare is in the direction of JNB to RIO
Component 2: The fare is in the direction of SAO to NYC
Component 3: The fare is in the direction of JNB to NYC as this component
ends in the COC

6. Routing: ROM
CAS 500.71
MAD 275.44
X
BCN 340.46
MIL

The origin (ROM) and the destination(ML) are different cities but are both located
in the same country; thus creating a domestic surface sector at the origin point.
Additionally, a second domestic surface sector appears between MAD and BCN.

However , as there are three international fare components, the journey is still
calculated as a One Way.

Component 1 : The fare is in the direction of ROM to CAS

Component 2 : The fare is in the direction of CAS to MAD

Component 3: The fare is in the direction of MIL to BCN

Important:

 OW NUCs apply.
 BHC , DFUC (OSC), DMC (in that order) and COM checks
apply to OW journeys

ROUND TRIPS
A Round Trip (RT) is a travel entirely by air from a point of origin to another point
and return to the point it has two fare components of equal NORMAL fare
amounts which are also combinable end-on.

This destination shall not apply to journeys for which the same all year through
one way fare is established between two points. In either direction around the
world.

 Round trips typically have two fare components ,i .e . the Outbound

and inbound components which have equal normal half return fare
amounts.
 The origin and destination points are one and the same
 The COC is also the same as the Destination Country

Example

Routing : BNE
SIN M
BOM BNESHJ
SHJ 1795.10
DHA
X/MCT M
BKK
BNEMCT BNE
1795.10

Fare Component 1: (BNE - SIN - BOM –SHJ- DHA)

The Higher Intermediate Fare from BNE to SHJ (in the direction of actual
travel )

Fare component2: (BNE – BKK –X/MCT-DHA)

Using fares in the reverse direction of travel, the return component is
raised to a Higher Intermediate fare from BNE to MCT . (See Additional HIP
Rule as explained in the previous section)
The whole journey is a round trip as the constructed normal outbound fare is equal to the constructed
normal inbound fare.

Important:

 Half Return (1/2 RT) fares apply to each fare component.

 No minimum check applies for Round Trips except for the Country of
Payment Check (COP) in SOTI/SOTO cases. This check is only used by
certain carries

Circle Trips
A Circle Trip involves travel from a point and return there to by a
continuous, circuitous air route, including journeys comprising two fare
components but which do not meet the conditions of the round trip definition.

The original and final destination of a CT are the same but the Outbound and
Inbound Fares are not the equal.

Example:

Routing : GBE
HRE
DAC
NBO M
LUN 403.12
JNB JNBNBO
GBE
407.80

Component 1: (GBE – HRE – DAR –NBO )

The fare is in the direction of Gaborone to Nairobi

 (following the actual direction of travel)

Component 2: (GBE – JNB – LUN – NBO

The fare is in the direction of GBE to NBO as any component

That ends in the COC follows the reverse direction of travel.

Important :

 Half return (1/2 RT) fares apply to each fare component

 Circle Trips may have two or more fare components
 For components that end in the COC, the fares are in the reverse direction
of travel.
 However, those components between Canada and the USA and
components within Scandinavia shall be assessed in the direction of travel.
 The Circle Trip Minimum Check (CTM) also apply as a final journey check to
all Circle Trips.

Round the World Journeys

A Round the World Journey (RW) is a form of Circle Trip. It includes continuous
Eastbound Westbound travel via one Atlantic and one Pacific Ocean crossing.

The total for the journey is calculated by using the Lowest Combination of two
or more half return fares.

Example :

Routing : AMS
NYC
SFO
TPE M
MNL 3392.04
AMS 2092.97
 Component 1 : AP (AMS – NYC – SFO – TPE – MNL)
The fare the actual direction of travel (AMS – MNL) using the
AP fare and MPM
Component 2 : EH (AMS – MNL)
The fare is in the reverse direction of travels as this fare
component heads back to the COC. The EH fare (point to point)
apply.
Important :
 Half Return (1/2 RT) Fares apply.
 The Round the World Minimum check (RWM) applies as a final journey
check except if originating from Australia or New Zealand.

Journey Other Than RT/CT

A Normal Fare Open Jaw (NOJ) is travel from one country and return thereto,
comprising not more than two international fare components with a domestic
surface break.
A maximum of two domestic surface sectors is allowed. The domestic gap may be
located in the Country of turnaround.

Types of NOJ
1. Origin Normal Fare Open Jaw (ONOJ)
The gap is between the origin and the destination.
Example :
Routing : HAN
BKK HAN BKK NUC
SGN SGN BKK NUC
2. Turnaround Normal fare Open Jaw (TNOJ)
The gap is at the country of turnaround.
 Example :
Routing : FRA
ROM FRA ROM NUC
X
MIL FRA MIL NUC
FRA
3. Double Normal Fare Open Jaw (DNOJ)
The gap at both country of origin and country of turnaround .
Example :
Routing : MUC
ROM MUC ROM NUC
X
MIL FRA MIL NUC
FRA

Journey other than RT/CT (cont’d)

Exception :

 The following areas are considered as one country (domestic travel)

 USA and Canada
 Scandinavia
 For travel originating in Canada or the US, a surface sector is
permitted between countries Europe, provided that travel in both
directions is via the Atlantic.

Important :
 Half Return (1/2 RT) fares Apply.
 Fare components between Canada and the USA, and within
Scandinavia will be assessed in the direction of actual travel.
 The backhaul does not apply.
 However, the Directional Minimum Check (DMC) and Common Point
Minimum Check (CPM) apply to the Normal Open Jaw.

REFERENCE

PAT General rules – Application of Tariffs

RESOLUTION

Comp. Reso. 012 - Definition of Terms

Comp. Reso. 150 - Fares for Round Trips

Comp. Reso. 151a - fares for Circle Trips

Comp. Reso. 152a - Fares for other than Round or Circle Trips

Comp. Reso. 152d - Open Jaw - Special Fares

Neutral Unit of Construction

NUC is an acronym for Neutral Unit of construction. This is a standard unit used in
fare calculation and is based on the US dollar. Fares are published in local currency
at the NUCs. When NUCs are used for construction purposes, they must be
converted into local currency at the NUC conversion factor of the Country of
Commencement of Transportation. This factor is better known as the IATA Rate of
Exchange or IROE.

IATA Rates of Exchange

The rates of exchange notified by IATA to convert local currency fare to NUC and to convert

Total NUC amounts to the currency of the country of commencement of transportation.

The IROE list is established notified by IATA Clearing House on a five-day average
ending on the 15th of each month. It changes four times a year and remains frozen
for three-month periods unless there is a major variation in currency value by
more than 10% in the intervening period. If this happens, it is most important to
check the IROE in each new edition of the tariff books.

Using the IROE

The IROE can be used in two ways:

1. To convert a NUC into local currency

Example : NUC into NZD
AKL SIN NUC 1793.45 X IROE 1.6084 = NZD 2885.00
2. To convert the Local Currency Fare (LCP) into NUC
Example : INR into NUC
BOM NBO INR 34315 : IROE 16.0728 = NUC 2134.97

Rounding – off procedures

For NUCs
Neutral Units of Construction are not rounded off. NUCs are expressed to two
decimal places only.

NUC 2132.90458 becomes NUC 2132.90

NUC 2132.0190 becomes NUC 2132.01

For Local Currency Fares

Each local currency has its own rounding –off unit which is listed in any IROE table
found in major tariff references. Thus when rounding off currency amounts,
Remember to:

 Calculate up to one decimal place beyond the number of decimal places

shown under Routing Units in the IROE list
 Ignore any further decimal places;
 Round UP to the next higher rounding unit, unless there is an
accompanying footnote that says otherwise.
Example :

a) When the rounding unit is a whole number, e.g. 100, convert total fare to one
decimal place and, unless otherwise stated, round up to the next higher unit.
b) When the rounding unit is to one decimal, e. g . 0.1 , convert total fare to two
decimal place and, unless otherwise stated, round up to the next higher unit.
c) When the rounding unit is to two decimal, e. g . 0.05, convert total fare to three
decimal places and, unless otherwise stated, round up to two the next higher unit

Example :
1. How do you round off the French franc (FRF) for Guadeloupe if the amount is FRF
4238.165? Check out the Rounding Unit for Local Currency Fares recommended
for the FRF.
 The rounding unit is the next higher 5 with no decimal figures. There are also no
footnotes accompanying this figure.

As there are no decimal figures following the rounding unit 5, check the amount
to be rounded to one decimal figure beyond the whole number, i. e

65
Drop decimals beyond I place !
FRF 4238.1
Round UP this whole number
To the next higher unit of 5.

2. What about if the amount is FRF 4240.00? How is this rounded off? FRF 4240.00
4240.00
Using the same procedure, check the amount to be rounded to one decimal
figure beyond the whole number.

9
FRF 4240.0 Drop decimal beyond the first place

Retain this whole number without further rounding.

FRF 4240.0
As the remaining whole number is already a multiple of 5, further rounding is no
longer necessary.
3. If the remaining amount is FRF 4241.0 , is further rounding required?
Yes. The correctly rounded figure is FRF 4245.00.
4. How about rounding by decimals? For example, when rounding off the Jordian
Dinar, round up to the higher 0.1.
JOD 758.0309 ~ JOD 758.03 ~ JOD 758.10 ~ JOD 758.100
JOD 744.1099 ~ JOD 744.10 ~ JOD 744.100
JOD 744.122 ~ JOD 744.12 ~ JOD 744.20 ~ JOD 744.200

TIPS :
 When rounding off to a whole number, if the first decimal is a zero, drop all the
decimals and check if the whole number needs to be further rounded off.

When showing local currency in the “Fare” and/or “Equivalent Amount Paid” box
of the tickets, express this amount with the appropriate number of decimals as
listed in pages 8-12 of this section.

IMPORTANT:

Not all LCFs are rounded up ! if there are accompanying footnotes, check if half
adjustments are required.

Take the case of the US Dollar. The following note is shown against any country
using the USD as its local currency:
ROUND UP to the next higher 1 USD, if the decimal is 50 cents or more
ROUND DOWN to the lower 1 USD, if the decimal is less than 50 cents.

Example : USD 1422.32 is rounded to USD 1422.00

USD 1422.02 is rounded to USD 1422.00
USD 1422.66 is rounded to USD 1423.00

Another case is that of Hong Kong. When rounding off the Hong Kong Dollar(HKD), take
note of the following procedure:

Calculate the HKD to the nearest rounding unit:

ROUND UP to the higher HKD 10.00- for figures of HKD 5.00 and above

ROUND DOWN to the lower HKG 10.00- for figures below HKD 5.00

Example : HKD 8777 becomes HKD 8780.00

HKD 8774.02 becomes HKD 8770.00
HKD 8780.09 becomes HKD 8780.00

For IROEs
The IATA Rate of exchange is a mandatory entry on both the manual and
automated tickets. It is shown in the fare calculation box as ROE (instead of IROE)
followed by the amount of the rate of exchange. Trailing zeroes beyond two
decimal places are dropped.

Example: ROE 1.0000 ~ 1.00

ROE 1.0890 ~ 1.089
ROE 1.08020 ~ 1.0802

NUCs, on the otherhand , are always expressed up to two decimal places in the
fare calculation box of the ticket.

Other Charges
Charges which are other than fares such as taxes, fees, etc. excluding excess
baggage charges are rounded off according to what is listed under the “Other
Charges” column of the IROE/ Conversion table.

IMPOTANT:
If tax is USD 3.04, the rounding off unit listed for the US Dollar is 0.1. Therefore , the
final tax amount is expressed as USD 3.10

If the tax is a Canadian tax amount collected in Canadian Dollar(CAD), the rounding unit
for the CAD is 0.1 However, there is an accompanying footnote that states that Canadian
tax charges must be rounded to the nearest CAD 0.01

Therefore, CAD 8.008, it becomes 8.01 and CAD 8.004 becomes CAD 8.00

However, other fess may be shown in the fare calculation box as surcharges (Q) and
expressed in NUCs One good example is the Hong Kong Airport Service Charge collected
for each departure from a HKG stopover.

Example:

FROM TO
YVR CARR. FARE CACL
 HKG YY
BKK YY
X/HAN YY
SGN YY M
KUL YY 1578.17
JKT YY 222.27

HKG X
BKK Q 2.58

ROE 1.26221
TOTAL FARE CACL NUC 1803.02
TAT Entry:
YVR YY HKG YY BKK Q2.58 YY X/HAN YY SGN YY KUL M1578.17 YY
JKT 222.27NUCI 1803.02END ROE1.26221

Introduction to the Euro

What is the euro?
The euro is the new single currency for eleven EMU (European Economic and
Monetary Union) member States. It came into being cashless form on January
1,1999, when these eleven EMU countries formed the EMU and permanently
locked the exchange rates of their currencies against the euro.

Euro countries
The eleven Member States in Europe which have joined the euro are Australia,
Belgium, Finland, France, Germany, Ireland , Italy , Luxemburg , Netherlands ,
Portugal and Spain. The French territories such as French Guiana, Guadaloupe ,
Martinique, Mayotte, Monaco , Reunion, St. Pierre-Miquelon also use the euro.
Denmark and the United Kingdom decided not to join the euro at the beginning,
while Greece and Sweden were judged not to have met the necessary conditions.
These four Member States may join the euro at a later date.

Euro notes
Euro notes and coins will be put into circulation on January 1,2002. However, the
euro (EURO) is now being used for cashless transactions such as cheques, credit
transfers and direct debits.

Rounding procedure
Resulting loyal currency fares and other charges expressed in EUR shall be half
adjusted to the nearest 0.01 based on the third decimal place ignoring any further
decimal places.

Example : EUR 1231.455 ~(N0.01) EUR 1231.46

EUR 1231.451 ~(N0.01) EUR 1231.45

EUR 1231.4509 ~(N0.01) EUR 1231.45

However , starting April 1, 2001, the euro will be rounded up to the next higher
euro 1.

Fixed conversion rates

The irrevocable fixed conversion rates (FCR) between the euro and the currencies
of the Member States adopting the euro are:
I euro = 13.7603 Austrian schillings
= 40.3399 Belgian francs

= 6.55957 French francs

= 5.94573 Finnish marks

 = 1.95583 Germany marks

= 0.787564 Irish pounds

= 1936.27 Italian lira

= 40.3399 Luxembourg francs

= 2.20371 Netherland guilders

= 166.386 Spanish pesetas

= 200.482 Portuguese escudos

For transportation originating in an EMU country

In the period January 1, 1999 to June 30, 2002, the use of either the euro or the present
national currency will be permitted for fare quotation and as the fare amount on tickets and
MOCs.

The tariff books will show:

1) The IROE for the euro and

2) The IROE for the present national currencies established using the FCR between such
national currencies and the rate of exchange between the euro and the US Dollar (NUC).

If the fare is expressed in euros, then the euro IROE shall apply.
If the fare is expressed in the national currency, the IROE for the natinal currency
shall

The IROEs will be expressed to 6 decimal places dropping any other decimals.

Discrepancies due to rounding differences

1) If the LCF/Euro selling fare, resulting from the use of the NUC method, is at a different
level than the LCF/Euro published fare due to differences in rounding units of the selling
 and published local currency/Euro fares, the selling fare shall be adjusted to the level of
the published fare
2) In order to achieve this it will be acceptable that the NUC application is waived and the
local currency/euro published fare is reflected as the selling level.

Example : Routing: PAR – LON RT LCF.EUR 100.00

IROE for EUR= 0.923077
Construction: PAR –LON ½ RT EUR 50.00 divided by IROE 0.923077=NUC 54.166

PAR-LON ½ RT EUR 50.00 divided by IROE 0.923077 =NUC 54.166

= NUC 108.32

Using NUC calculation, the base fare is EUR 1 108.32 x 0.923077 = EUR 99.986
~(N0.01) EUR 99.99 and not the original EUR 100.00
In this case, euro selling fare is adjusted to the published fare EUR 100.00

Conversion Procedures

For SITI/SITO
1. After having applied the appropriate fare construction formula, the resulting total
NUC is converted into the Local Currency Fare(LCF) at the IROE of the COC.
2. When travel is paid in a currency other than that of the COC, convert LCF into the
Currency of the Country of payment (CCP) at the Bankers Buying Rate(BBR), I , e

LCF X BSR = CCP or Equivalent Fare Paid(EQFP)

EXCEPTION: for sales made in Canada, use BBR

The list of sources of BSRs Per country are found in the Fares Book of major tariff references.

EXCEPTION:

For payment in an EMU country for travel originating in another EMU country.

If the fare to be collected is expressed in the national currency of an EMU country, such national
currency amount will be converted to euros using the applicable FCR (Fixed
Conversion Rate) between such national currency and euro.

Example : Place of Sale and Ticket Issue : GVA ISI : SOTO

journey: FRA-KWI LCF: in DEM but paid
in FRF

1) Convert DEM to EUR: DEM divided by FCR = EUR (N.01)

 2) Convert EUR to FRF: EUR X FCR = FRF (N.01)

Rounding units

The following rounding units shall apply for the conversion from euro to the currencies below
for the purpose of establishing equivalent selling fare levels and other charges:

Nearest 0.01 for all EMU countries except for Belgium, Italy , Luxembourg and Spain

Nearest 1 for Belgium , Italy Luxembourg and Spain

DISCLAIMER:
Although airlines and agents must collect the required charges, the main thrust of this manual is
to illustrate fare calculation rules and checks

Please refer to the Passenger Air Tariff Rules book or the Official Airline Guide for more on taxes

RESOLUTION:
REFENCE:
Comp. Reso . 012PAT General
- Definition
Rules –ofV.11
IROE. NUC and
Currency Local Currency Fare
Regulations

Comp. Reso 024a - Establishing Passenger fares and related charges

Comp. Reso 024c - Combination of local currency fares

Comp. Reso 024d

&attachment A - Currency Names, Codes , Rounding Units & Acceptability of

coc NUC ROE LCF

MALAYSIA 257.89
INDONESIA 659.78
FRANCE 911.45
HONGKONG 590.34
JAPAN 1198.44
UNITED 729.72
KINGDOM
EGYPT 345.67
USA 765.32
AUSTRALIA 1327.38
 GERMANY 834.75

Basic Elements of the Mileage System

A published fare permits direct travel when no stopover of connections are made between the
origin and the destination of the fare component: As soon as passenger’s itinerary involves one
or more stopovers/transfers between the two fare component, the fare must be constructed by
using the Mileage system.

The following elements are to be taken into consideration:

 Maximum Permitted Mileage (MPM)

 Ticketed Point Mileage (TPM)
 Ticketed Point Mileage Deduction or Extra Mileage Allowance (EMA)
 Excess Mileage Surcharge (EMS)

Additionally, the Higher Intermediate Point Check and other supplementary cheeks are also used when
applying the mileage system.

These cheeks will be discussed separately in a different section.

Maximum Permitted Mileage (MPM)

The Maximum Permitted Mileage is published in connection with a fare and varies depending
on global indicator. It is maximum distance a passenger is permitted to travel en route between
the end points of a fare component.

To determine the applicable MPM, the correct routing type or global indicator must be
established

Ticketed Point Mileage (TPM)

Unlike and MPM, a TPM is the sector mileage between ticketed points. The sum of TPMs within
a component is a compared to the MPM of that component , The fare to be collected is simply
the applicable direct route fare if the following condition is met:

MPM > TPM

EXCEPTION: The Mileage System is not applied to

 Fares assigned only a routing number

 Domestic fare components.
Example of a Mileage Computation
If within a fare component between TC2 and TC3, there is portion with nonstop travel
between Europe and Japan/Korea and there are not ocean crossings. The TS NUC and MPM
must be used between the origin and destination points of this component.

Example:
SITI Y Journey : TPMs:

HKG TYO to PAR is the Trans Siberian sector

1807 X/TYO

6206 PAR

220 LON

Mileage System Construction: Use the HKG to LON TS NUC and MPM

FCP HKG LON

NUC Y 2169.70

RULE NIL
 MPM TS 9632

TPM 1807+6206+220=8233

MPM > TPM : M (within the mileage)

Ticketing Entries :
FROM
Manual Ticketing Sample : TO

HKG FARE CALC

CAR
TYO YY
PAR JL M
LON YY 2169.70
-

The code “M” is used to denote that the sum total of TPMs is found to be within the Maximum
Permitted Mileage.

TPMs with More than One Global Indicator

Important:
if there is more than one TPM given for a sector, use the TPM that conforms to the actual flight
routing.

Example: journey : NYC CC LON BB SEL DD HKG

NYC HKG NUC F 5181.00

Mileages: NYC HKG MPM AT 12063

TPMs Published:
NYC LON 3458 AT
LON SEL 7274 EH
5663 TS
SEL HKG 1295

Which TPM should you use for LON SEL?

The answer lies in the flight itinerary between LON and SEL. If the flight between The Europe
and Korea in nonstop, this is Trans Siberian (TS) sector within a Transatlantic fare component.
Therefore, the correct TPM to use for LON SEL is (TS) 5663.
TPMs 3458 + 5663 (TS) + 1295= Total TPM 10416.

Ticketing Entries:
Manual Ticketing: (SITI)

As the AT MPM 12063 is grater than (>) the total TPM 10416, the applicable direct route fare is
charged and this is represented by the code “M” on the ticket.

The code “TS” is enclosed in parentheses to denote the type of TPM used for one of the sectors.

Automated Ticketing Entry:

NYC BA LON KE(TS)SEL OZ HKG M5181.00 NUC5181.00END ROE 1.00

OR

TPMNYC
Deductions (Extra Mileage
BA LON KE*TS*SEL Allowance
OZ HKG – EMA) ROE 1.00
M 5181.00END

TPM Deduction or Extra Mileage Allowance (EMA) are permitted when travel
takes place via certain intermediate ticketed points. The deduction depends on
the type of routing and the origin/destination points of the fare component
concerned. This EMA is subtracted from the total TPM before a comparison is
made with the MPM. The result will determine whether a surcharge is applicable.

Example: EMA via Mandatory Routing Point(s)

Journey : BUH

714 X/rom

852 IST

2460 ISB

701 KHI

2946 SIN
SITI Fare Construction:

FCP BUH SIN

NUC Y OW 1557.00

RULE NIL

MPM EH 7406

TPM 7673

EMA -700 E/ISBKHI

New TPM 6973

The routing between Bucharest (a point in Europe) and Singapore (a point in TC3)
by way of both Karachi and Islamabad allows a deduction of 700 miles from the
total Ticketed Point Mileages (TPM). The new TPM when compared to the MPM is
now within the mileage as denoted by the code “M”

Manual Ticketing:

The ticketing code to illustrate the use of EMA is “E/” Followed by the city code(s)
of the mandatory routing point(s). this EMA code always appears on the box
immediately above the “M”

Automated Ticketing Entry:

BUH RO X/ROM AZ IST TK E/ISB PK E/KHI SQ SIN M15557.00NUC15557.00END

Don’t forget!

The passenger must have flight coupons to from the mandatory via points
specified in the TPM Deductions table.

Example: EMA Via a non – Mandatory Routing Point(s)

 Journey :

OSL

EH 257 X/STO

EH 1327 REK

SITI Fare Construction:

FCP OSL REK

NUC Y OW 834.85

RULE NIL

MPM EH 1311

TPM 1584

EMA -324 E/XXX

New TPM 1260 miles

EMS M
The routing between Geneva and Bergen by way of any point in Europe permits a
deduction of 43 miles from the total Ticketed Point Mileages (TPM). The new TPM when
compared to the MPM is now within the mileage as denoted by the code “M”
 FROM/TO
OSL CARR. FARE
Manual Ticketing: CALC
X/STO SK E/XXX
The ticketing code to illustrate the use of the EMA is “E/”
/// // M
followed by the city code of the mandatory routing
REK FI 834.85
point(s) however, in the example shown, there is no
mandatory via point. In this case “xxx” represents any
via point.

ROE 6.43222
TOTAL FARE
Automated Ticketing Entry: CALC NUC 834.85

OSL SK X/STO FI REK E/XXX M834.85END ROE6.43222

Don’t forget!

Unlike the TPM Deductions for mandatory via points. The EMA symbol “E/XXX” is shown
at the end of the component immediately preceding the “M” in the Automated Ticketing
Entry.

Excess Mileage Surcharge (EMS)

If the final TPM total exceeds the MPM, a surcharge becomes necessary.

STEPS
1. Divide the total TPM by the listed MPM, using a calculator Set the calculator to
at least four decimal places.
2. Compare the resulting factor with the following table:

Over 1.00000 but not higher than 1.05000 = 5M (5% surcharge)

Over 1.05000 but not higher than 1.10000 = 10M (10% surcharge)
 Over 1.10000 but not higher than 1.15000 = 15M (15% surcharge)
Over 1.15000 but not higher than 1.20000 = 20M (20% surcharge)
Over 1.20000 but not higher than 1.25000 = 25M (25% surcharge)

The highest surcharge is 25%. If the resulting factor is beyond 1.25, a different fare
calculation approach has to be taken. This will be discussed in another section.
3. Surcharge the NUC accordingly.

SITI Fare Construction:

FCP NAN CMB
NUC Y OW 1151.35
RULE NIL
MPM EH 8390
TPM 10807 10107
EMA -700E/DELBOM
The EH routing between points in TC3 via DEL and BOM qualifies for a TPM
Deduction of 700 miles. However, the reduced TPM of 10107 is not within the MPM
of 8390. Therefore, a surcharge becomes necessary.

After dividing the TPM 10107 by 8390, the resulting factor is 1.20 but not higher than
1.25, there is a surcharge of 25%

Specified Routings
Some fares are accompanied by published routings. Check the table of specified routings that
lists those itineraries permitted at the published through fare. Such routings are exempt from
the EMS and HIP check unless otherwise specified in a footnote

If there is a city in the passenger’s itinerary that dose not appear in the specified routing
list, then the routing must be mileaged and any surcharges (EMS/HIP) must be collected

Tariff Extracts
AT Worldwide Rules, Routings, Add-ons and Mileages Book 1-fare Construction Rules

WITHIN AREA 3

BETWEEN AND VIA

 Bangkok Melbourne Manila

Karachi Seoul Bangkok / Manila - Tokyo

These routing apply only in connection with fares between the points specified (Between/And)
and via the points listed

Symbols
- Means AND/OR or AND

/ means OR

Example:

Between Karachi and Seoul via Bangkok/Manila – Tokyo may represent the
following specified routings:

1) KHI 2) KHI 3) KHI

BKK BKK TYO

TYO SEL V.V SEL V.V

SEL V.V

Important:

Intermediate point(s) may be omitted if a more direct routing is used and no

additional point(s) is added.

The formula below summarizes how the mileage system elements are used in the
correct calculation of fares.

Fares Aid – a Key to the Formula and Exercise Sheets

 1. ISI Determine the International Sale Indicator.
2. Journey List all ticketed points of the journey.
3. FCP Fare Construction Points (Fare Break Points)
4. NUC Quote the NUC based on the preferred Class of Travel
5. Rule Read and act upon the conditions of the rule or note and any
6. MPM Note the Maximum Permitted Mileage and apply any
7. TPM Add the Ticketed Point Mileages and compare with
8. EMA Check if a TPM Deduction (or Extra Mileage Allowance)
9. EMS If the EMA is not applicable or insufficient.
10. HIP Look for a Higher Intermediate Point.
11. RULE When using secondary fare levels .
12. AF Determine the Applicable Fare for the component based on
13. CHECK Apply any minimum fare check
14. TOTAL Add the AF and the PLUS-UPS (resulting from step 12)
15. IROE Convert the total NUC at the applicable IATA Rate of Exchange
16. LCF Round off the local currency fare the country

SOTI & SOTO only:

17. BSR Convert at the Bankers Selling Rate into the currency of the
country of payment.
18.CCP Round off the Currency of Country of Payment and show
required number of decimal units.

Special mileage provisions

1. EH MPM Deduction
Area 2 – area 3

For travel between Europe and Japan / Korea, EH MPM must be reduced by
1,000 miles when

 A single flight coupon is issued between such Chinese point and a point
in the People’s Republic of China (PROC); and
  When another single flight coupon is issued between such Chinese point
and a point in Japan/Korea.

Example:

JOURNEY: LIS
PAR one flight coupon
BJS another flight coupon
TYO

Ticketing Entries: Automated Ticketing Entry:

FROM/TO LISS YY PAR YY L/BJS YY TYO
LIS CARR FARE CALC
M2239.39NUC2239.39END ROE173.21813
PAR YY L/BJS
BJS YY M
TYO YY 2239.39

Note:
The EH MPM Deduction also applies if there is more than one enroute ticketed point in China.

Example: LIS
PAR
BJS
SHA
OSA another single flight coupon
between a point in China and Japan

2. Mileage Equalization Rule

Area 1- Rio de Janeiro/Sao Paolo
With regard to routings and fares between RIO/SAO and points in Area 1 the
following shall apply.

2.1 If the fare to or from RIO is within the MPM (M), and the fare for the same
route to or from SAO exceeds the MPM, the fare to and from
SAO need not be surcharged. Similarly , if the fare to or from SAO falls within
the MPM. and the fare for the same route to or from RIO exceeds
the MPM. the fare to and from RIO need not be surcharged.

2.2 If the fare to or from RIO must be surcharged. the fare for the same routing
to or from SAO need not take a higher surcharge (v.v)

Example: Journey # 1 : SITI Fare Construction:

BOG FCP BOG RIO

1177 LIM NUC Y 743.00

2347 RIO MPM 3462

TPM 3524 Equalize with:

EMA NIL B/SAO = 1177

EMS 5M 2137

HIP NIL

CHECK NIL

IROE 1.00

LCF USD 743.00

Manual Ticketing : Ticketing Entries:

The codes/// and// are used to create more space.
FROM TO
These are called Clear Entry Space Symbols. using
BOG CARR FARE CALC
these entries as city and carrier extensions enable
you to insert necessary codes such as the “M” LIM YY B/SAO
under the Fare Calc. Column /// // M
RIO YY 743.00

ROE 1.00
TOTAL FARE NUC 743.00
CALC
Such clear entry spacing can be shown as many times as necessary. It stars immediately above
the last city of the component and then works its way up if more space is required.

Automated Ticketing:

BOG YY LIM YY RIO B/SAO M743.00END

ROE1.00
3. South Atlantic TPM Shortcut
a. For travel between the South Atlantic Area and Europe/middle East
 Where direct services between a point in
Argentina/Brazil/Chile/Paraguay/Uruguay (ABCPU) and
MIA/YMQ/NYC/YTO
 and direct services between MIA/YMQ/NYC/YTO and a point in
Europe OR the Middle East

the mileage for the above two sectors shall be the TPM between
the South Atlantic Gateway on one end and the European
Gateway or Middle East Gateway.

Gateway in this context is used to refer to the last point of

departure of first point of arrival in the areas concerned.

Example:

1) VIE

385 FRA T/NYC

5948 NYC M
RIO AT MPM: 8838
miles 1232 BUE
TPM 7565 miles

The published TPM FRA-RIO (5948) is used instead of the total TPM
of FRA-NYC (3851) + NYC-RIO (4816).
 2) RIO
1526 BEL T/MIA
5178 MIA M
LON

TPM 6704 miles AT MPM : 6913 miles

There is no published TPM between BEL to LON. To obtain a TPM, the MPM of BEL LON (6214) is
divided by 1.20 , i. e.

MPM 6241 + 1.20 = 5178.33 ~ 5178

Tips:

If no TPM exists for the South Atlantic sector, establish the missing TPM by
dividing its MPM by 1.20 . round down to the next lower mile. This facility is
only to be used in connection with this rule!

Furthermore, the routing should have only one of the listed Eastcoast cities to
qualify for this rule.

Basic Checklist
To determine the fare for a sector, use the following checklist:

GI Identify the GLOBAL INDICATOR for the given sector

F/C/Y Match the class of service to be traveled to the fare type.
Reservation Booking Designator: Ticketing Fare Basis Codes:
F (First Class Service) F/P or FI,F2,etc.
C (intermediate / Business Class) C/J or CI,C2, etc.
Y (Economy/ Coach Class Y / S or Y1,Y2, etc.
TRIP OW = One Way using OW NUC
RT = Return Trip using ½ RT NUC
CARR Select applicable carrier . (See next page.)
Carrier coded fares have precedence over IATA (YY) fares
RULE Comply with conditions accompanying the fare selected especially those
concerning the number of stopover and transfers.

Multilevel Normal Fares

There is a growing use of multilevel fares showing two or more levels of fares for the same class
and fare type. For example, a normal Y fare may have a listing of primary and secondary fare
levels such as Y1 and Y2. In some books such the APT, the fare type code for both levels are
shown as Y but with different rule numbers.

More often than not, the primary fare permits unlimited stopover and transfers whereas the
secondary normal fare level has stopover and transfer conditions. Because of these restrictions
the Y2 fare is substantially lower than the primary fare.

Proposed Carrier Fare Selection Criteria

When there are carrier coded fares ,It is important to identify the fares applicable
for the “predominant carrier” . selection depends on the following.

FARE COMPONENT CARRIER

TC 12 (AT) Use fares of the carrier on the sector which crosses one area
TC 23 (EH/TS/FE) to another area.
TC 31 (AT/PA)
TC 23 (AP) Use fares of the carrier on the FIRST sector which crosses one
area to another.
Within TC 1 Use fares of the carrier on the sector which crosses one sub-
Within TC 2 area to another.
(except within Europe)
Within TC 3
Within a subarea Use the fares of the carrier on first international sector.
(except within Europe)
Within Europe Use the LOWEST of
1. The fare for the carrier on the first international
sector, and
2. The fares for the carrier on the sector with the highest TPM
Note: travel within Scandinavia is considered INTERNATIONAL for
this rule.

Fare component : CMB UL HKG CP YVR AA SFO

Question : How much is the CMB – SFO NUC on business class?
Answer : NUC 1184.32 based on:

 GI = PA (Pacific)
 Fare Basis = J
 Trip = OW
 Carr = CP (TC 31 carrier)
 Rule = APT P7917: no restrictions

General Rules
1. For more than crossing for an area/ sub area:

Where travel in a fare component crosses more than one area /sub area the
fares to be applied will be the fares for the carrier who performs the
carriage on the first sector which crosses from one area/sub-are to another.
2. If all the fares of the selected carrier cannot be used, use the YY fares
subject to the selected carrier’s acceptance of such YY fares
3. If a partial structure has been filed as carrier specific fares then the
remainder of the structure will be established using YY fares unless the
carrier has advised that such YY fares will not apply.

REFFERENCE
PAT - General Rules
Resolution
Comp. Reso. 017h - Fare Selection Criteria
(for implementation starting 01 APR 99)

Comp . Reso. 017hh - Fare Selection Criteria – within Europe

(for implementation starting 01 APR 99)

The Higher Intermediate Point Rule (HIP)

The Higher Intermediate Point rule is an integral part of the mileage system formula. It is
a fare component check used for one ways and return trips. This check ensures that the
fare in NUC from the fare component origin to the destination of the component is not
lower than the NUC from/to any intermediate ticketed point in the same component.
Comparison of NUCs must be in the same class of service.

For SITI and SOTI transactions

Check for higher intermediate fares (HIF) following the direction of the fare
component:

1. From fare component origin to any intermediate ticketed stopover point

2. From an intermediate ticketed point to another intermediate stopover point
3. From an intermediate ticketed point to the destination of the component

For SITO and SOTO transactions

For tickets sold outside the country of commencement of travel, check for higher
intermediate fares (HIF) following the direction of the fare component:

1. From fare component origin to any intermediate ticketed point

2. From an intermediate ticketed point to another intermediate ticketed point
3. From and intermediate ticketed point to the destination of the component
 Important:
- Where more than one higher intermediate fare exists, the highest fare must be
used.
- If the routing incurs an EMS , the HIP fare must also be surcharged.

Basic One Country Rule

When tickets are issued in the COC (TI), HIPs are on stopover points only. COC in
this context means
1. Scandinavia shall be considered as one country.
2. Canada and USA shall be considered as one country.

Proposed Carrier Selection for HIP Check

To establish the carrier whose fares are to be performed, the sector will be examined
based on the subrouting within that sector. The sector(s) will be considered as though a
separate ticket is being issued. Additionally, the same criteria previously discussed in
section 15 will also be used

HIP of the Same Fare Type

When comparing normal fares, such fares must be of the ‘same type of service’ i.e

 Sleeper seat fare is compared to sleeper seat fare

 First class fare is compared to first class fare
 Intermediate class fare is compared to intermediate class fae
 Economy class fare is compared to economy class fare

However, in the absence of a HIP in exactly the same fare type, you may use the
next lower normal fare type, i.e

 When looking for a HIP for a sleeper seat fare and there is none published,
compare with first class fare
  When looking for a HIP in first class but there is none published, compare with
intermediate class fare (or next lower class fare)
 When looking for a HIP in intermediate class but there is none published,
compare with economy class fare. Provided that where more than one economy
class fare is published , compare with the highest economy fare
 When looking for a HIP in economy class but there is none published at any level,
use the lowest combination principle (C/)

When comparing normal fares in accordance with the above procedure, the
comparison shall be made in the same direction as the fare component.

Example:

SITI JOURNEY: TYO

1123 SHA

754 HKG

702 MNL

BUSINESS CLASS FARE CONSTRUCTION: Compare TYO-MNL with the following:

FCP TYO MNL TYO SHA C NUC 811.02

NUC C OW 1102.51 TYO HKG C NUC 1082.62

RULE NIL SHA HKG C NUC 261.75

MPM EH 2254 HKG MNL C NUC 201.89

TPM 2579 SHA MNL C NUC none

published

EMA NIL

EMS 15M Therefore, check the next lower type fare,

HIP NIL i.e. Y

AF NUC SHA MNL Y NUC 224.52

Multi-Level Fares for HIP Check
Where more than one normal fare is published for the carrier and the class of service
use, the lower/lowest level may be used for the component.

However, such lower/lowest level may only be quoted after observing the stopover and
transfer limitations of such fare(excluding application of stopover charges)

Example:

Journey: ROM
EH 898 LON

EH 5053 X/BJS
EH 1797 MNL

SITI Fare Construction (Normal Economy Fare) :

FCP ROM MNL HIP Check :

NUC Y OW 1751.68

RULE NIL ROM LON Y OW -

MPM EH 8533 LON MNL Y OW 2108.95

TPM 7751 LON MNL Y2 OW 1124.98 APT Rule V320

EMA NIL

EMS M V320 Special Economy fares

HIP (LON MNL) NIL UK – South East Asia

RULE V320

CHECK BHC NIL 11. Stopovers

TOTAL 1751.68 Not permitted.

IROE 1594.46435 Transfers

As the stopover and transfer limitations of the secondary Y fare are observed in the
itinerary , the lower Y2 fare is used as the basis for the HIP comparison for the sector
LON MNL. This secondary Y fare is lower than ROM MNL Y 1751.68, therefore, the higher
primary LON MNL Y fare need not be applied as the HIP

Additional HIP Rule

For Travel Originating Australia/Ney Zealand
For SITI and SOTI transactions, when travel originates in Australia (except for travel within TC3)
the following additional check shall apply in each international fare component from/to
Australia. The fare for each international fare component shall not be less than the from the
point of unit origin to any ticketed transfer point in the fare component.

Furthermore, this additional HIP check also applies to travel originating from New Zealand.

EC One COC – HIP Rule

EC Member States shall be considered as one country, provided that:
a) Travel is VIA European points
b) All fare construction point(FCP) are in the EC Member States.

However, this definition is not used as a basis for determining the type of ISI

Example:

Sold in TPE Ticketed in LON ISI : SOTO Fare Type: Y

JOURNEY:
EC
Via Europe

EC HIP CHECK:

Origin to Intermediate Stopover Point:

MIL AMS 385.21

Intermediate Stopover Point to another:

none
EXPLANATION: Intermediate stopover to Destination:
AMS BRU
In this example, ZRH BRU would have been considered 147.95
in the SOTO HIP check.
However, as the Place of Ticket Issue and COC are in the EC. This is considered a
“TI” transaction. i.e. Ticketed Insided the Country of Commencement of Travel.

However, even if the EC HIP is based on SOTI. the ISI is still SOTO. Therefore the
entry in the Origin Destination box of the ticket shows SOTO.

REFERENCE
PAT – General Rules : Applications of Tariffs

RESOLUTION
Comp. Reso. 024j Special Construction Rules:

Higher Intermediate Fare

PUC Reso. 017c Construction Rules for Fare Components

Para. 5) Higher Intermediate Fare

Add - ons
To obtain a direct through fare, the following methods may be used:
1. Quote a published fare (found in the AT or APT)
2. Use Add-on Amounts especially if no published fare is found in the main
fares section of the book.

General Description
Add– ons are added to the international fare applicable to the point specified in the
Add-on Section of the tariff manual. The total amount obtained will then be regarded as
a published direct fare for the sector concerned.

Add-ons are also called Proportional Fares, Arbitraries or Basing Fares.

They are generally used to obtain the direct fare to/from a point that is not listed in the
fares pages.

Application
Add – ons may not be sold as sector fares.

More than one add-on may be used in construction of a though fare provided
such fares are not used for consecutive sector i.e.,

A Direct Fare B + Add-on C

A Add-on B + Direct Fare C

A Add-on B + Direct Fare C + Add-on D

Add-ons amounts are generally used to construct through fares. However, there are also
mileage add-ons used to construct MPMs not listed in the main fares section or in the
MPM Book.

 The NUC add-on “VIA” point are not always the same.
 Such “VIA” points are not necessarily ticketed points in the passenger’s journey.
These are just used for fare/mileage construction purposes and the passenger is
not obliged to include them in the actual itinerary.
 In certain cases the NUC ass-on will shown as ‘0.00’ or ‘NIL’. This means that the
fare to the construction point will apply.

Example: Journey : SIN

AMS
BRS

Fare Construction: FCP

SIN BRS
NUC None published in the main fares section.
Refer to Add-on pages under
Bristol(BRS) which is the city or lesser
commercial importance. MPM (EH) None
published in MPM book. Refer to
Mileage Add-ons in Add-on pages.

Tariff Extracts:
If there is a published MPM, the Air Tariff will state “SEE MPM Book”

In the Air Tariff, there are different Add-on Tables depending on the areas of
travel. The sample extract above is for worldwide add-ons other than
Transatlantic ones.

Add-on Combination :

NUC SIN BRS = SIN LON Y (EH) NUC 2065.44

+ LON BRS (NORMAL) AO NUC 73.95
SIN BRS NUC
2139.39
MPM SIN BRS = SIN PAR (EH) MPM8547
PAR BRS AO MPM344
SINBRS MPM
8891

Ticketing Entries :

The combination of direct fare and add-on is shown as a single amount in

the ticket.

Automated Ticketing :

SIN YY FRA YY BRS M2139.39NUC2139.39END ROEI.59239

Don’t forget!

 Add –ons are generally published in local currency and NUCs. If the add-on
is only published in local currency, an NUC can be obtained by dividing the
local currency fare by the IROE of that country.
 The NUC add-on “VIA” point and Mileage Add-on “VIA” point are not
always the same.
 Such “VIA” points are not necessarily ticketed points in the passenger’s
journey. These are just used for fare/mileage Construction purposes and
the passenger is not obliged to include them in the actual itinerary.
 In certain cases the NUC add-on will be shown as ‘0.00’ or ‘NIL’. This means
that the fare to the construction point will apply.
 When there are no add-ons or when the add-on reflected does not apply
to the area concerned, the fare will have to be constructed by combining
sector fares over a ticketed point in the itinerary. (See Lowest Combination
Principle.)

REFERENCE

PAT - Fares Book

Add-on Amounts
Section
Add-ons for Carrier Designated Fares
Background of Carrier Coded Fares
In some tariff manuals such as the passenger Tariff, there are carrier designated fares
published to/from the USA for Transpacific, Transatlantic and also Western Hemisphere
routes. Generally speaking, these fares apply only when the named carrier is providing
the international (or ocean-crossing) transportation Carrier coded fares also supercede
the non-carrier coded IATA fares.

Example:
Journey: IST
LON TK
NYC BA -the transatlantic carrier
CHI AA

In the above example, as the transatlantic carrier is UA, the fares for the entire
component IST to CHI must be those of UA. UA is the carrier from/to US Gateway
(Gateway first or last point of departure or arrival in the USA)

Using Carrier Designated Add-ons

To obtain fares to interior points located in the USA, it is often necessary to use a
combination of direct fares and add-ons .

Assuming that there is no published through fare from IST to CHI in the sample journey
above, the following steps show how to determine the correct add-on based on
Passenger Tariff Add-ons Book.

STEPS
1. Determine the global indicator of the sector and turn to the section on add-ons that
correspond to this routing.

Example: FCP IST CHI

NUC J or C class (AT)
2. Turn to add-ons of the specified US interior point.
Example: CHI is the US interior point in the sector IST-CHI.
3. Identify the applicable carrier code under the ATL/PAC CARRIER column.
BA add-on + BA direct fare.
4. Identify the Fare Type Code identical to the Transatlantic /Transpacific fare.
5. Verity the Area Description for the other point in the sector.
6. Check meaning of other footnotes/reference marks shown beside the fare type.
7. Finally, select the add-on amount shown on the extreme right-hand side of the line

Add this add-on to the corresponding direct fare to /from the specified gateway.

IST NYC J (BA) OW NUC 1850.00

+ NYC CHI J* (BA) AO NUC 309.00

IST CHI J (BA) NUC 2159.00

For more details, read the “How to Use Add-ons” pages of the latest Passenger
Tariff
Types of Surface Sectors
A surface break is a sector in the routing that is not traveled by air. It is also called a
surface gap or an open sector.

There are different types of surface break which are classified according to the location
of the points in the gap.

1. Surface Break at The Turnaround Point

The outward point of arrival and the inward of departure are not the same.

1.1 Different countries (International) 1.2 Same country (Domestic)

E.g. E.g.
MVD
MVD
SAO RIO
X X
ASU
SAO
MVD MVD
2. Surface Break at the Point of Origin
The outward point of departure and inward point of arrival are not the same.

2.1 Different countries (international) 2.1 Same country (Domestic)

E.g. E.g.
BOM BOM
DAC
DAC KHI
DEL
 3. Surface Breaks at both Origin and Destination Points
Both the outward and inward points of arrival and departure are not the same.

3.1 Turnaround & origin points- 3.2 Turnaround & origin points-
different countries same country
E.g. E.g.
SYD
SYD MNL
JKT X
X JKT
DPS AKL
MEL

Don’t forget!
Do not forget the One COC Rule for:

 USA & Canada

 Scandinavia

Gaps within these areas are considered domestic surface breaks

Fare Levels
If the journeys above were calculated based on actual flown routing.

1. Use ½ RT fare for:

- A journey of not more than 2 international fare components with the open
sector in the same country, either at turnaround OR origin point
- A journey of not more than 2 international fare components with an open
sector in the country of turnaround AND an open sector in the country of origin
- A journey originating in Canada or the USA with a surface break permitted
between countries in the Europe sub-area and travel in both directions is via the
Atlantic.
2. Use OW fare for journeys that are not any of the above

Two Ways to Compute for Travel with Surface Sectors

when traveled by air is interrupted by the use of surface transportation between
certain points, the fare should be constructed by whichever of the following methods
produces the lowest fare.

Method 1: Calculate Actual Routing Flown

STEPS:
1. Determine the number and type of surface break to determine the type of fares
(OW or 1/2 RT) and what fare construction formula to use.
2. Apply the Surface Break TPM Check for those journeys with international surface
sectors to determine if separate ticketing is required.
3. Calculate only those sectors actually traveled by air. Exclude the TPM of the
surface sector from the TPM calculation.
4. VOID and detach the flight coupons for the surface sectors.

Surface Break TPM Check

When using Method I , the Surface Break TPM Check (SBTC) is applied to determine
if separate tickets are required for a routing with an international surface sector. It is
used for all types of ISIs.

Condition for Application

The following conditions must be present before applying the STBC:

1. Travel must be based on normal fare level

2. The break must be an international surface sector. (The SBTC does not apply
to domestic surface sectors including those between Canada and USA and
permissible surface sectors)
3. The fare construction method is based on the calculation of actual flown
potion only (Method 1) where the surface sector TPM is not added to the
TPM calculation.

How to Apply the STBC

 1. Determine if the above conditions are met.
2. Compare the TPM of the first international surface break to the total
TPMs from the origin of the journey to the surface break.
 If there is no TPM published for the surface sector, get its MPM
 However, if there is no MPM, use lowest combination of TPMs
3. If the TPM of the surface sector is greater (>) than the TPM from the
origin to start of the surface break, issue separate tickets. Otherwise,
issue on ticket or conjunction tickets as appropriate

Ticket No. 1 : SCR 3784

+ Ticket No. 2 : SCR 6975

Total SCR 10759

Method 2 : Close the Gap

STEPS:

1. Calculate on a through fare basis ignoring the surface break

2. Include the TPM of the surface gap in the mileage calculation unless such
break is a permissible surface sector.
3. Mark the Reservation Boxes “OPEN” on the coupons for the surface
portions and do not detach from the rest of the ticket. Alternatively, such
coupon(s) can also be voided.

Example:

Sold in SEZ Ticketed in SEZ Remember to include PAR LON TPM

ISI : SITI Fare type : Y (220) in the TPM calculation!

JOURNEY: SEZ

4870 PAR
surface Not a permissible
220 LON Surface Sector
Quote the lower LCF To
the passenger
 217 AMS
393 CPH

FARE CONSTRUCTION:

FCP SEZ CPH

NUC Y OW 2083.56

RULE NIL Automated Ticketing Entry:

MPM EH 6072

TPM 5700 SEZ YY PAR/LON YY AMS YY CPH

M2083.56NUC2083.56END
EMA NIL
ROE5.19255
TICKETING ENTRIES:

In this example, Method 2 produced the lowest fare. This will then be ticketed as follows:

FROM/TO
SEZ CARR FARE CALC
PAR HM
LON
AMS KL M
CPN SK 2083.56

ROE 5.19255
TOTAL FARE NUC 2083.56
CALC
FARE SCR 10819

Furthermore, if this method produced the lowest fare, another ticketing alternative is to
provide a flight coupon for the surface sector and give the passenger the option to travel
by air. This is more of a competitive practice as the fare remains the same with or
without voiding the coupon.
 However, if the passenger does not use such flight coupon, the refund value of the
coupon is nil

Permissible Surface Sectors

When applying Method 2 on an itinerary which includes surface transportation between
Intermediate Points listed below, the mileage between such Intermediate Points may be
disregarded when computing sector mileages.

IMPORTANT:

TPM Calculation
When a TPM is required for purposes of closing the surface sector:

- Any intermediate sector travelled by surface WITHIN a fare component must be

included in the sum of TPMs, except for the permitted surface sector listed above.
- In the absence of TPM for an intermediate sector not listed above, a TPM shall be
established by the lowest combination of TPMs over another point.

REFERENCE

PAT - General Rules: Application of Tariff

RESOLUTION

Comp. Reso. 014a - Construction Rules for Passenger Fares

Para. 2) a) iv) bb) Surface Sector TPMs
Para. 4) Other Construction Rules
d) Fare components with a surface
sector (s) Att. D - Surface Sector TPMs
(Filings in Accordance with
Resolution 001z)

Special Fare Conditions

To reduce the risk of having too many passengers switch to low fares instead to full
normal fares, ‘fences’ or conditions are attached to each promotional fare. Each
promotional fare tends to have one or more of the following fences:

1. Validity Restrictions
Most special fares particularly excursion fares have duration limits as expressed by
minimum and maximum stay limitations.

The primary aim of most duration limits is to prevent usage of these fares by normal
business travelers who prefer short trips and avoid weekends away from home.
2. Periods of Application
Some special fares have departure time limitations. It is also common to limit the
availability of many promotional fares to particular time of the day, or days of the
week or seasons.

The aim here is to generate off-peak demand or to try and fill up seats that would
otherwise be expected to remain empty because of the timing or day of particular
flights.
3. Purchase Time Restrictions
In order to be able to direct demand more effectively than can be done with
departure time limitations, restrictions on the timing of purchase have been
introduced especially for Advanced Purchase Fares. These require either advance
reservation and simultaneous full payment a minimum number of days before
departure. Advance payment also reduces airline costs by improving its cash flown.
4. Routing Conditions
 Routing conditions govern limitations concerning:
 Trip type
 Number of stopovers and transfers
 Participating airlines and interlining
 Reservations and penalty fees
 Cancellations and refunds

These conditions are interrelated, i.e. stopover conditions must be read jointly
with routing limitations regarding number of transfers permitted in the journey.

Many promotional fares can only be bought as round-trip fares. In some cases,
the return trip must be booked at the time of reservations and neither the
outward not return booking can subsequently be changed except by forfeiting a
substantial part of the fare.

A number of additional routing restrictions might also be used to reduce the costs of
handing low fare traffic. These include:

 Reduced or no stopovers between the origin and destination.

 Point-to-point restriction which prevents the stopovers and the use of the
mileage system or
 The use of specified routings with restricted interlining.

Finally, some very low fares may preclude interlining; that is they cannot be used by
the passenger except on the airline which issued the ticket. This restriction is shown
on the ticket with the annotation “VALID ONLY ON (Carrier Code)” or ‘NON-
ENDORSABLE / NON-REROUTEABLE’

5. Inclusive tour requirements

There is finally a range of promotional fares which are not always publicly available but
which can be purchased from the airlines by travel agents or tour operators. Such fares are
added to costs of land arrangements and are subsequently packaged holidays which may
include.
- Hotel accommodation car hire
- Tickets for cultural , sports event or passes to amusement parks.
- Breakfast or shuttle to/from the airport, city tours, etc

On some routes there is a single inclusive tour fare while on others there may be a
separate IT fare for individuals and lower fare for groups.

Expressing Validities for Special Fares

Validities may be expressed in days, month or year.

Days -full calendar days, including Sundays and legal holidays

Months -a period of time from the given date in one month to the corresponding date
in a subsequent

Minimum Stay Requirements

Generally speaking, the minimum stay date is the earliest day that the passenger can start his
return travel. This discourages passengers especially business travelers to make overnight stays
using low excurtion fares.

How to determine the minimum stay date

Unless otherwise specified by a special fare rule, apply the following procedure to determine
the minimum stay date:

1. For AT routings : Add the given number of days of minimum stay to the day of
Departure on the outbound transatlantic travel begins.
2. For PA routings : Add the given number of days of minimum stay to the day of
departure on the outbound transpacific sector of the sector of the
pricing unit.
3. for other routings : add the given number of days of minimum stay to the say of
departure on the first outbound international sector of the pricing
unit.

How to Ticket
1) For AT routings : Show this date starting from the coupon with the last stopover
point where return transatlantic travel begins.
2) For PA routings : Show this date starting from the flight coupon with the last
stopover point where return transpacific travel begins
3) For other routings : Show this date starting from the flight coupon with the last
stopover point outside the country of unit origin

Note : The point of turnaround may be included for the purpose

of determining the last stopover point.

Example :

Intinerary Travel dates: NOT VALID NOT VALID

Ticketing Entry:
BEFORE AFTER
STO
AMS (16 MAY)
RIO (18 MAY)
AMS (open-dated) 25 MAY
STO (open-dated) 25 MAY
: coupon 3- start of return At travel :
Minimum Stay Requirement : 7 days
To determine Minimum Stay Date:
AT departure date: 18 MAY
Plus 7 days
= Min. Stay date : 25 MAY to be shown on Coupons 3-4

Maximum Stay Requirements

The maximum stay date is the expiry date of the ticket. It is normally one year from the date of
departure. However, if there is a specified number of days or months of maximum stay shown in
the special fares rule, apply the following procedure:

1. By days : add the number of days of maximum stay to the departure date
from the point of unit origin.
Example: First Departure Date is 11 AUG
Maximum Stay is 45 days.
Equals 56
Less number of days in AUG 31
Maximum Stay Date is 25 SEP
Note: an easier way to arrive at this date is to use the
Validity Indicator for Special Fares
2. By months : Count the number of months from the day of departure.
Example: First Departure Date is 29 AUG
Maximum Stay is 1 month (1M)
Maximum Stay Date is 29 SEP
This maximum stay date may then be shown in the ‘Not Valid After’ boxes of all coupons of the
ticket or on the last coupon only.
Closed Bookings with Penalty Fees
Hewover, if the special fare has cancellation and rebooking penalty fees for changes in reservations,
specify each confirmed travel date in the “Not Valid Before and After” boxes of the relevant flight
coupons.

Quoting Special Fares

In order to quote the correct special fare, examine the travel details of the passenger pertaining to:
 Travel dates (period of travel : outbound and inbound)
 Class of service preferred
 Type of routing and number of stopover/transfers
  Preferred carriers
 Documentation and type of passport.
Steps
Look up the special fares in the Fares Book by using the following steps:
1. Establish the fare construction points of the routing and calculate based on normal fare
first. This is important in order to determine
1.1 HIP sector(s), i.e. unit origin to intermediate point
intermediate point to the break point
1.2 Trip type (OW/RT/CT/OJ)
1.3 CTM sector (if trip type is a CT
These same factors are carried forward to the special fare calculation.
2. Check the special fares listed between such fare construction points/HIP/CTM sectors in
the Fares Book
3. Note the rule numbers quoted against the fares and refer to the Rules Section for the
conditions.
4. Whenever a paragraph is missing in any particular special fare rule:
4.1 Check governing Note for that particular special fare rule.
4.2 Check Standard Conditions for Special Fares found in the beginning of the Rules
section
5. Choose the lowest special fare that suits the passenger’s travel requirements

Ass not all special fares are fixed amounts, some special fares may not be published in the
Fares Pages. In this case, use the following steps:
1. Establish the fare construction points of the routing to determine the geographical
location and global direction under which it may be listed.
2. Check the of special fares Rules at the start of the special fares section. Look up the IATA
geographical location of the fare construction points.
In the PAT, check the survey of Notes/Rules without fares published in the Fares Part. If
not, check the PAT Rules Book for “Carrier Special regulation”. The regulations published
in this section are based on information received from the receptive carrier. You might
find in these pages a special fare applicable on the carrier of the country of unit origin.
Any queries concerning the contents shall be directed to the carrier concerned.
3. Note the rule numbers shown against such special fare type and area description.

Backhaul Check for Special One Way Fares

Apply the BHC when travel is via a Higher Intermediate Stopover Point from the unit origin.
If a HIP Special Fare exists from the unit origin, compare this fare with the unit origin to unit
destination Special Fare.
 Circle Trip Minimum check for Special Fares
Ensure that the CT fare is not less than a RT special fare of the same type from the point of
unit origin to any stopover point on the CT.

When no special direct RT fare is available from the point of unit origin to any higher rated
normal fare stopover point, the total fare will not be less than the direct RT normal economy
class fare from the point of unit origin to such stopover point

Use the same procedure as the flowchart for the HIP Check.

In defining a ‘fare of the same type’ for this section, the comparison shall be limited to the
class of service and
 Late booking fare
 APEX fare, or
 PEX fare, or
 Excursion fare

If there is more than one special fare of the same type on the sector for which the higher
normal fare applies, use the fare with conditions most similar to those of the special fare for the
component.

Open Jaw (OJ) Special Fares

 Open Jaw for Special Fares is travel which is essentially of a RT nature (comprising 2
components), except that:
1. For “Turnaround Open Jaw” the outward point of arrival and the inward point of
departure are different, or
2. For “Origin Open Jaw” the outward point of departure and the inward point of
arrival are different, or
3. For “Single Open Jaw” either 1) or 2) apply, or
4. For “Open Jaw” any combination of the above may apply.
 Unless otherwise specified in the special fare rule, use ½ RT fares for each leg of the
Open Jaw.
 For the last component that ends in the Country of Unit Origin, use the fare applicable
from that country.

EXCEPTION For the last fare component into the country of unit destination, use the
fare from the country of unit destination when the following conditions
are met.
  Travel originates and terminates in Europe
(except for travel wholly within Europe),
 An OJ applies between European points
For the purpose of this rule, the following are considered as one country.
 Scandinavia
 Canada and the USA

Directional Minimum Check

 The special fare DMC applies only to routings using special OW fares.
 In making the DMC, the fares to be used shall be those applicable on the date of
commencement of the outbound transportation; or in the case of seasonal fares, those
applicable on the date which determines the seasonal level to be used. This shall apply
in each component.
 When comparing fares, use fares of the same type.
 Take note of the same DMC exceptions.

Guidelines for Ticketing Stopover Charges

Stopover Charge Entries
 Stopover charge for a Specific Point
EXPLANATION If a specific rule states that each stopover must be paid for, it is
necessary to enter the code(s) of city(s) where stopover charges are
collected. The code “S” stand for stopover Fee for such city.

TAT Entry:

MNL PR HNL S50.00UA X/LAX AA

ELP713.00NUC763.00END ROE1.00

 Stopover Charge for Additional Stops in Excess of Those Allowed by the fare
EXPLANATION If a special fare rule states that a certain number of stopovers are free of charge
but additional stops are to be paid for, then show the code “S” preceded by
the number of such additional stops.

There is no need to identify the city codes ad one of them is free.

TAT Entry :

SEZ HM SIN SQ MNL979.04MH KUL HM SEZ979.04

IS92.68NUC2050.77END ROE5.39792
Local Combination
A local combination is defined as combination of fares between the same points.

When the fare for the outbound and inbound portions of a return trip between 2 points differs because
of a normal and special fare, the total RT fare will consist of

+ ½ RT Applicable NUC for the outbound portion

½ RT applicable NUC for the inbound portion

Example : SITI JOURNEY: JED

LON ½ RT YEE3M (A.T. Rule E416/APT D015)

JED ½ RT C

The passenger wants to buy the lowest possible fare ticket for the above journey that would
allow her stop in London for 1 week and return home with 30 kilos of baggage
allowance.

Solution:

Use local combination of YEE3M and C fare outbound and Inbound as YEE3M rule permits
combination of ½ RT YEE3M with normal First or Business class fares between the same
points

Important

However, this specific YEE3M rule stipulates that this combination is allowed only as long
as the most restrictive apply to the entire journey.

This “most restrictive condition” requirement shall apply to all paragraphs except those
dealing with Children/infant fares, Periods of Application, Routing and transfers.

Therefore, the YEE3M minimum (6 days) and maximum stay (3 month) requirement
applies to the normal inbound fare portion as well
End-on Combination of Special Fares
The conditions of the special fare apply only to the individual pricing unit using that special fare,
therefore, when different special fares are combined end-on, the conditions of each special fare apply
separately.

Moreover, the condition about the use of the most restrictive conditions is applied to Local Combination
of fares if stated in the special fare rule. Otherwise, there is no default rule that states that the most
restrictive conditions apply.

Example:

1. For progressively increasing maximum stay validities

A RT#1: YEE1M B RT#2: YEE3M

The 1 month validity applies to all succeeding return trips if one of the special fare rules that
combinations are allowed provided that the most restrictive conditions apply.

2. For decreasing maximum stay validities

A
RT#1: YEE6M B RT#2: YEE1M

It is not possible to apply the most restriction conditions on Return Trip No.1 . therefore, RT#1 has a 6
month validity and RT#2 follows a 1 month validity.

REFERENCE

PAT - Rules Book Carrier’s Special Regulations

Fares Book Notes.

Lowest Combination Principle (LCP)
General Description
The Lowest Combination of fares in the cheapest addition of published fares in NUCs (for the
class of service involved) along the routing.
It also involves any series of end-on combined pricing units which collectively comprise
the journey being travelled. This permits a mixture of subjourneys assessed as separate pricing
units but ticketed as one. In choosing a fare break point(s) one must remember to use a ticketed
point(s) in the passenger’s itinerary.

When to Apply the LCP

There are many situations that may call for the use of the lowest combination principle such as:

 When the journey has a total TPM that exceeds the MPM from origin to destination
 When there is no published fare or add-on for the fare construction points of a fare
component
 When there is no published MPM for the fare construction points of a fare component
 When used as a competitive fare construction technique to avoid high fares, and reduce
surcharges
 When required by a tariff rule such as those pertaining to limitations on indirect travel
 When foreign airlines are involved in a route subject to Cabotage rules

In the above cases, the LCP is applied by breaking at another ticketed point(s) in the
itinerary an quoting the cheapest fare breakdown.

Example:
 A fare is required for travel TBU-NAN-SYD-SIN but there is none published in the
Main Fares Table. There are also no Add-ons between Tongatapu and Singapore. The
following calculations can be done:

Direct Fare Undercut Check

The direct fare undercut check or DFUC has been devised to ensure the precedence of
published direct fares. It applies to one way as well as end-on combination of return trips.

The fare constructed by means of the lowest combination of fares should not be less than the
published Direct Fare between the terminal points of two or more components. This direct fare
may be the lower level fare in case of a multi-level fare selection, e.g. Y2, and there is no need
to read the stopover and transfer conditions of the fare.

Application
This check is for two or more consecutive OW components. It is applied under all types of ISIs.
SITI/SOTI/SITO/SOTO

STEPS:
The steps outlined below illustrate how the DFUC is applied to 2 Ows:

1. Get the published direct fare from the fare component origin of the first OW to the
fare component destination to the next/subsequent OW
2. Compare this direct fare to the sum of applicable fares. (this sum does not include
any DMC or COM plus up!)
 If the DFUC NUC>total AF NUC:
Deduct the total AF NUC from the DFUC NUC and add the difference (H) back
to the total AF NUC to increase this fare to the same amount as the DFUC
NUC
 If the DFUC NUC<total AF NUC:
Ignore the DFUC NUC and proceed with the next step in the formula.

Tips Direct Fare Undercut Check is applied prior to the DMC and COM check.
Those components which have been raised to an DFUC NUC are
considered as one unified OW component for purpose of subsequent cheeks.

EXCEPTION DFUC Exceptions

The DFUC does not apply to:
  Special fares
 Combination of fares USA: combination of international fares and
normal/special fares within USA provided that any conditions attached to
such fares are complied with; stand-by fares must not be so combined
 Combination of special fares and normal fares.

THE ‘C/’ PRINCIPLE

Another way to be use the Lowest Combination Principle is to construct a fare over an
intermediate ticketed point in the routing without breaking as this point. The constructed fare
resulting from this technique is considered a ‘direct route fare’ and must be shown on the ticket
as ‘C/’

The ‘C/’ method is used for the following cases:

1. When there are no published fares for use in the following checks:
 HIP Check (HIP)
 Backhaul Check (BHC)
 Country of Origin Minimum Check (COM)
 Circle Trip Minimum Check (CTM)
 Directional Minimum Check (DMC)
 Round the World Minimum Check (RWM)
 Country of Payment Check (COP)

NOTE: Do not use the ‘C’ for DFUC purposes!

2. When combining international fares and normal/special US domestic fares to

construct the lowest possible through fare to/from the USA

EXCEPTION: for case #2:

The construction point need not be a ticketed point when constructing
such fare
 The next pages will show examples of how the ‘C/’ is used for some of the checks
listed above

Using ‘C/’ for HIP Purposes

When constructing an unpublished fare for HIP purposes, the fare shall be calculated over an
intermediate ticketed point in the direction of the through fare being checked.

This means that the fare construction point chosen must be a ticketed point in the component
shown between the two points which need a fare.

Example : ISI: SITI Fare Type : Y

JOURNEY : VTE

302 HAN

542 X/HKG

492 TPE

1330 X/TYO

617 PUS

FROM TO
VTE CARR. FARE CALC.
HAN YY
X/HKG YY 5M
TPE YY C/HKG
X/TYO YY HANPUS
PUS YY 785 .97

ROE 1.00
TOTAL FARE NUC 785.97
CALC.

FARE CONTRUCTION :

FCP VTE PUS

NUC Y OW 742.00

RULE NIL

MPM EH 3257

TPM 3283

EMA NIL

EMS 5M

HIP C/HKG

HAN PUS Y OW NUC 748.55

AF NUC 785.97

CHECK BHC NIL

TOTAL NUC 785.97

IROE X 1.00

LCF (N1) USD 786.00

Automated Ticketing Entry:

VTE YY HAN YY X/HKG YY TPE YY X/TYO YY PUS5M C/HKG

HANPUS785.97END ROE1.00

Using ‘C/’ for the Backhaul

When constructing an unpublished fare using ‘C/’ for Backhaul purposes, the fare
shall be calculated over an intermediate ticketed point in the direction of the
through fare being checked. In the example below, if there is no fare from MRU to
KWI , the fare can be calculated over TNR or JIB or JED but not over RUH. RUH is
no longer in the direction of the through fare being checked as it lies beyond KWI

Limitations on Indirect Travel

General Rule
A fare component must not include more than one departure at the fare component
origin or more than one arrival at the fare component destination, or more than one
stopover at any intermediate ticketed point. If the passenger stops at the same
intermediate ticketed point more than once, a side trip would have to be charged.

Transfers at the Terminal Points of the Side Trip

Important!

For the check purposes , when the ticket shows no stopover at both the origin and the
destination point of a side trip (due to transfer connections on both occasions) a
stopover shall be considered to be taken at such point unless the time interval between
the arrival immediately preceding the side trip and the departure immediately following
the side trip does not constitute a stopover.

Fares for Side Trips

It is also possible to calculate side trips based on the provisions of a circle trip, one way
or other type of journey as long as all applicable rules/checks are followed.

OW Side Trips
Simple OW side trips usually involve surface sectors on either the outbound or the
inbound component of the side trip. As there is only one portion which is actually flown,
the there is no need to quote return fare levels.

EXCEPTION:

Combination of one way normal pricing units with international side trip one way pricing
units to or via the country of commencement of transportation shall not be permitted.
Issuing separate tickets is always an option as long as the pertinent fare construction
checks are used. The other option is to maintain only one ticket for the entire journey

However, if the journey above is to be issued in one ticket with a Side OW to a point
located in the COC, it is possible to undercut the fare levels from the country of origin

Additional Limitations on Indirect Travel

1. A fare component within TC1 or within TC3 and 1 (via the Pacific) must not include more
than one arrival and one departure at some ticketed point.
2. A journey on a ticket on a ticket or conjuction ticket at the time of original issue or when
reissued, may not include more than 3 international arrivals and 3 international
departures in one country in Europe.

If more than 3 international arrivals and 3 international departures in one country in

Europe are required, a completely new ticket shall be issued.

As the entire journey contains 4 international departures/arrivals in France, issue two

separate tickets. One possible alternative is to break it up into the following separate
journeys
3. For travel originating in Europe (except for travel wholly Europe) not more that one
international arrival and one international departure is allowed at any ticketed point in
the country where travel originates, per fare component
4. For travel originating in TC1 may include more than one international departure and one
international arrival at any ticketed point the country where travel originates
5. For travel originating in Germany a fare component from/to a point in Germany must
not include more than two domestic sectors

Cabotage Fares
Explanation
Cabotage is the term used to describe the carriage of passengers or cargo, taken on at one point and
discharged at another within the territory of the same Sovereign State.

The points of origin and final destination of the traffic determine whether or not it is Cabotage.

Cabotage traffic cannot be carried by airlines a different country (Foreign Airlines). Such airlines
cannot issue their documents for Cabotage traffic without specific authorization
 The following are the types of Cabotage traffic and the authorized carries.

- British Cabotage (restricted to British carrier such as BA/VS)

journeys between the following territories are British cabotage. Traffic is restricted to British
airlines which have authority to issue tickets on foreign airlines under certain circumstances.
- USA Cabotage (restricted to American based carries, e.g. AA/TW/UA/NW/CO/US)
- French Cabotage (restricted to French carriers such as AF/UT)
- Dutch Cabotage(KL)

Dual Purpose Journeys

When the passenger completing a Cabotage journey makes a stopover in a foreign country, and
it becomes necessary to use a foreign airline, the journey becomes “Dual Purpose”.

Foreign Airlines can only sell tickets and participate in the transportation for the following cases
only:

1. A genuine stopover must be made within the territory of another state between two
cabotage points.
2. The fare must be computed as the sum of the sectoral fares over the stopover point.
Such higher fares between the cabotage points must not be advertised and may only be
quote upon request

REFERENCE

PAT - General Rules

Application of Tariffs

Mixed Class Travel

Mixed class travel is when normal fare travel involves two or more clases of service:

 On a sector(s) within a fare component or,

 In an entire fare component of a journey / subjourney with more than one fare component

Fare Construction Techniques

Within a Fare Component
The fare for mixed class travel is assessed as

1. Sum of through fare in the lowest class of service used to assess the fare plus a class differential
for each sector travelled in a higher class of service
- A Class Differential is the difference between the lowest applicable fare for the Higher
Class used for sector and the lowest applicable fare for the Lowest class used for the
sector concerned
- This differential is assessed in the same direction as the fare used for the lowest class of
service.
- When half round trip fares are used, the differential is assessed using ½ RT fares as well

Don’t Forget! Do not apply any minimum cheeks on the Class Differential.
All minimum checks (e.g. BHC.DMC.COM.CTM.COP.CPM.DFUC)
will be applied in the lowest class of service used

2. Calculation of the entire component using a through fare on the highest class of travel.
This calculation is otherwise known as the Precedence of the Highest Class Fare. It guarantees
that the fare calculation on the highest class of travel is given precedence over the other mixed
class fare quotes if it turns out to be cheaper.
3. Calculation of fares for each portion/sectors flown in different classes of service

Quote the lower fare construction result.

Whole Component on a Higher Class of Service

When the entire fare component is travelled in a higher class of service and other components are in
lower class of service:

1. Calculate the sum of the trough fare for the lowest class of service used and
2. For each sector travelled in a higher class of service, get the difference between the applicable
fares for the lowest and all higher classes
3. Apply fare component checks in the applicable class used for the entire component flown in a
higher class. All minimum checks will be applied in the lowest class of service used.
4. Then add the class differential amount(s) to the resultant fare for the lowest class of service
used.

This case is shown clearly by Calculation #3 in the previous example. However, to emphasize this case
further, here is another example.

Example: Class Differential Construction in an Entire Component

ISI : SITI
EXCEPTION:

Precedence of Intermediate Class Fare Check

Apply the trough intermediate class fare instead of the class differential construction.

1. TC1 and TC2 (AT) : whenever the Transatlantic sector is flown in Intermediate Class (C/J)
and the other sectors are in the same or a lower class of service
2. TC1 and TC3 via Area 2 (AT) : whenever the sector between TC2 and TC3 and the
Transatlantic sector are flown in C/J and other sectors are in the same or a lower class of
service
3. Europe and Japan/Korea :
3.1 Via TC1 (via AP) : whenever the Europe – TC1 and TC1-Japan/Korea sectors are flown
in the same or lower class of service
3.2 Via EH/TS : whenever the Europe-Japan/Korea sector is flown in C/J and other
sectors are in the same or lower class of service
4. Europe and Middle East: whenever the Europe-Middle East sector is flown in C/J and
other sectors are in the same or lower class
5. Europe and Africa(except Libya) : whenever the sector between Europe and Africa is
flown in Intermediate Class and other sectors are in the same or lower class
6. Europe and the South Asian subcontinent: whenever travel on the sector between
Europe and Area 3 is in intermediate class and other sectors on the component are in
the same or lower class of service
7. Europe and South East Asia:
7.1 Via EH: whenever the sector between the last point departure in Europe & the first
point of arrival in South East Asia, or vice versa, is flown in C/J class and other sectors
are in the same or lower class of service
7.2 Via TS: whenever the sector between the last point of departure in Europe and
Japan/Korea, or vice versa, is flown in C/J and other sectors are in the same or lower
class
7.3 Via AP: whenever the sector between the last point of departure in Europe & TC and
between TC1 & the first point of arrival in TC3 are flown in C/J class and other sectors
are flown in the same or lower class of service
8. Europe and the South West Pacific (SWP):
8.1 Via AP: Whenever all sectors between the last point of departure in Europe & the
first point of arrival in TC1 and between the last point of departure in
TC1 & the first point of arrival SWP, or v. v ., are flown in C/J , and
others are in same or lower class
 8.2 Via EH/FE/TS: Whenever all sectors between the last point of departure in Europe &
the first point of arrival in SWP, or v. v., are flown in C/J and
others

One Way Backhaul Check

The Backhaul Check (BHC) must be applied if, in any one way fare component, travel is via a
higher rated intermediate stopover point.

If there is more than a single pricing unit, the one way backhaul check (BHC) must be applied
within each OW pricing unit

Application
This check is applied for all OW fare component/pricing unit under all types of International Sale
Indicator (SITI/SOTI/SITO/SOTO)

STEPS

1. Look for the highest fare from the Fare Component Origin to the Intermediate Stopover
point.
2. Compare this fare to the from the Fare Component Origin to Fare Component
Destination.
3. If the fare from the Fare Component Origin to the Intermediate Stopover point is
higher, then use the following Backhaul formula.
4. Compare the OWM to the AF NUC
 If OWM > AF : deduct the AF from the OWM to obtain the Backhaul
Plus(P). Add this Plus (P) amount to the AF NUC to increase the
constructed fare to the same amount as the One Way Minimum Fare
 If AF > OWM : ignore the OWM and carry on with the original formula

Directional Minimum Check

The Directional Minimum Check or DMC is based on the rule that fare to be charged shall not be
less than the direct route fare for the highest rated pair of points applicable in either direction
for the class of service used between any ticketed points within the fare component Ticketed
points refer to both stopovers and transfers.
Application
The DMC is a fare component check that applies to one way fares or normal open jaw fares with
an ISI of SOTI, SOTO or SITO

STEPS

1. Look for the highest fare between any two ticketed points in any direction within
the fare component
2. Compare this highest fare (DMC NUC) to the fare charged for the component
 If the component was raised to a OW minimum fare (OWM) because of a
Backhaul plus, then compare the DMC NUC to this OWM
 If there is no Backhaul plus, compare the DMC NUC to the applicable fare
(AF NUC)
3. After comparing, apply the following
 If DMC is greater than the fare charged. Deduct the fare charged from the
OWM to obtain the DMC