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BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Notice of IATA Traffic Conference Actions Tentatively Exempted From Filing for Approval Docket OST20120058 NOTICE OF TIER 1 AGREEMENTS FILING BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION 22 January 2013 Communications with respect to this Document should be sent to Douglas Lavin Regional Vice President – North America International Air Transport Association 1201 F Street, NW, Suite 650 Washington, DC 20004 (202) 6289292

BEFORE THE DEPARTMENT IATA - AirlineInfo · BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Notice of IATA Traffic Conference Actions Tentatively Exempted

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BEFORE THE DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C.    

 Notice of IATA Traffic Conference Actions Tentatively Exempted  From Filing for Approval  

  Docket OST‐2012‐0058 

     

NOTICE OF TIER 1 AGREEMENTS FILING BY THE 

INTERNATIONAL AIR TRANSPORT ASSOCIATION          

 22 January 2013    Communications with respect to this Document should be sent to    Douglas Lavin  Regional Vice President – North America  International Air Transport Association 1201 F Street, NW, Suite 650  Washington, DC 20004  (202) 628‐9292  

Summary  DOCKET:  DOT‐OST‐2012‐0058  DOT ORDER:  None Requested 

  Date:  22 January 2013 

Filing fee/IATA Acct:  Waived by Order 2012‐4‐18, Appendix A, Section D 

US/UST involved  No 

Intended effective date:  1 February 2013 (1681) 1 June 2013 (1683) 1 April 2013 (1684) 

Meeting site, date:  PTC Composite Meeting of Passenger Tariff Coordinating Conferences Abu Dhabi, 17 October 2012 

Agreements  PTC COMP Memo 1681 / 1Nov12 PTC COMP Memo 1683 / 1Nov12 PTC COMP Memo 1684 / 1Nov12 

Minutes  PTC COMP Memo 1685 / 1Nov12 

NOTICE OF TIER 1 AGREEMENTS FILING  

 Pursuant to statements submitted by Member airlines of the International Air Transport 

Association (IATA), the undersigned has been constituted to be their attorney‐in‐fact for filing 

with the Department of Transportation copies of agreements adopted by the IATA Traffic 

Conferences. 

On their behalf, and pursuant to the procedures specified in Order 2012‐4‐18 (13 April 

2012), I am filing with the Department, in Docket OST‐2012‐0058, this Notice, the subject 

agreements and supporting documentation.  These agreements are Tier 1 agreements 

tentatively exempted by Order 2012‐4‐18 from Condition #2 to the Department’s approval of 

the Provisions for the Conduct of the IATA Traffic Conferences, which condition requires pre‐

implementation Department review.  The intended effective date of the agreements is 1 August 

2012.  

The subject agreements amend or establish Resolutions and/or Recommended Practices 

that do not address subject areas which the Department has indicated it still chooses to review 

under Condition #2.  The text of the agreements and other conference documentation sent to 

airline Members of IATA accompany this Notice.   The cover pages of the documentation clearly 

identify each affected Resolution and/or Recommended Practice and show whether the subject 

agreements are amendments or new agreements.  Other pages provide the text of each subject 

agreement. Where an affected Resolution or Recommended Practice has previously been 

exempted from Condition #2 by Department action, the cover pages include the appropriate 

- 2 -

docket and order number.  The cover pages include a summary to explain the nature and 

purpose of the subject amendments and/or agreements. 

  Respectfully submitted,      /s/  Douglas Lavin       Douglas Lavin 

 Regional Vice President – North America International Air Transport Association Attorney‐In‐Fact 

  

- 3 -

CERTIFICATE OF SERVICE   A copy of this notice has been served this day by first class or priority mail on the 

following person:   

Chief, Transportation, Energy & Agriculture Section Antitrust Division Department of Justice  Washington, D.C. 20530  

  A copy of this notice has been sent this day by email to John Kiser ([email protected]

and to Della Davis ([email protected]) of the Department of Transportation.           

  /s/ Douglas Lavin       Douglas Lavin    

22 January 2013 Date Served 

International Air Transport Association Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2842 Fax +41 22 770 2896

AS www.iata.org E-Mail: [email protected]

1 November 2012

M E M O R A N D U M

PTC COMP 1681

TO: Members Participating in Tariff Coordinating Conferences

FROM: Manager, Tariffs & Reservation Standards

SUBJECT: Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012 Composite Resolution 024a

Establishing Passenger Fares and Related Charges Expedited Intended Effective Date: 1 February 2013

RESOLUTION - ADOPTED

Attached is the amended Composite Resolution 024a, which was adopted at the above meeting for an expedited intended effective date of sale on/after 1 February 2013.

The filing period for the attached Resolutions ends 15 December 2012. Members are reminded of their obligations under Resolutions 001 and 006 to advise this office by the end of the filing period whether approval by their Government authorities is required and, if so, to accomplish the necessary filing formalities. The effective date will be declared in accordance with Resolutions 001 and 006, when all the known necessary Government approvals have been received.

Alban Sato Manager, Tariffs & Reservation Standards Airline Distribution Standards

RESOLUTION AMENDED AT

COMPOSITE MEETING OF

PASSENGER TARIFF COORDINATING CONFERENCE

ABU DHABI, 17 OCTOBER 2012

EFFECTIVE DATE: 1 FEBRUARY 2013

RESO TITLE COMMENTS RD

024a Establishing Passenger Fares and Related Charges Amending 1

ADOPTED Res Doc : 1 Resolution : 024a Page : 1

PTC COMP 1681 AHU, Oct12

ESTABLISHING PASSENGER FARES AND RELATED CHARGES

PTC1(88)024a Amending PTC2(166)024a PTC3(93)024a PTC12(197)024a PTC23(162)024a PTC31(127)024a PTC123(176)024a Filing Period Begins 15 November 2012 Intended Effectiveness: 1 February 2013 Ends 15 December 2012 Expiry: Indefinite Type A, except Attachment ‘A’ which is Type B

RESOLVED that, Resolution 024a, Attachment A and Attachment B are amended as follows

ATTACHMENT 'A'

Countries for which passenger fares and excess baggage charges are established in US Dollars

Afghanistan Lebanon Angola Liberia Anguilla Madagascar Antigua & Barbuda Malawi Argentina Maldives Bahamas Mexico Bangladesh Mongolia Barbados Montserrat Belize Myanmar Bermuda Nicaragua Bolivia Nigeria Bonaire Palestinian Territory, Brazil Occupied Burundi Panama Cambodia Paraguay Cayman Islands Peru Chile Philippines Colombia Rwanda Congo, Dem. Rep. of Saba Costa Rica Sint Eustatius Cuba St. Kitts and Nevis Dominica St. Lucia Dominican Republic St. Vincent and Ecuador the Grenadines El Salvador Sao Tome and Principe Eritrea Sierra Leone Ethiopia Somalia Gambia Suriname Ghana Tanzania, United Republic of Grenada Timor Leste Guatemala Trinidad and Tobago Guinea Turkmenistan Guyana Uganda Haiti Ukraine Honduras United States and Indonesia US Territories Iraq Uruguay Israel Venezuela Jamaica Viet Nam Kenya Zambia Laos Zimbabwe

ADOPTED Res Doc : 1 Resolution 024a Page : 2

PTC COMP 1681 AHU, Oct12

Rounding for these countries in US Dollars shall be the same as reflected in Resolution 024d Attachment 'A' for the United States

ATTACHMENT 'B'

Countries for which passenger fares and excess baggage charges are established in euro

Albania Armenia Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Cape Verde Croatia Cyprus Estonia Finland France except French Polynesia (including Wallis and Futuna), New Caledonia (including Loyalty Islands) Georgia Germany Greece Ireland Italy Kyrgyzstan Latvia Lithuania Luxembourg Macedonia (FYROM) Malta Moldova, Republic of Monaco Montenegro Netherlands Portugal Romania Russia Serbia Slovakia Slovenia Spain Tajikistan Turkey Turkmenistan Uzbekistan

Rounding for these countries in euros shall be the same as reflected in Resolution 024d Attachment 'A' for the countries whose national currency is the euro

IATA Note:

Current fares will be converted to US Dollar (USD) using the IROE effective 1 January 2013, and the resultant levels rounded in accordance with Resolution 024d.

PTC COMP 1681 AHU, Oct12

Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012

Summary of Agreements

For intended effective date of 1 February 2013, Composite meeting the following changes

• Amend currency in which fares are established from Turkmenistan from euro (EUR) to US Dollars (USD)

• Amend currency in which fares are established from Myanmar from kyat (MMK) to US Dollars (USD)

International Air Transport Association Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2842 Fax +41 22 770 2896

AS www.iata.org E-Mail: [email protected]

1 November 2012

M E M O R A N D U M

PTC COMP 1683

TO: Members Participating in Tariff Coordinating Conferences

FROM: Manager, Tariffs & Reservation Standards

SUBJECT: Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012 Composite Resolutions 012c, 017b Intended Effective Date: 1 June 2013

RESOLUTIONS - ADOPTED

Attached are amended Composite Resolutions 012c and 017b, which were adopted at the above meeting for an intended effective date of 1 June 2013.

The filing period for the attached Resolutions ends 15 December 2012. Members are reminded of their obligations under Resolutions 001 and 006 to advise this office by the end of the filing period whether approval by their Government authorities is required and, if so, to accomplish the necessary filing formalities. The effective date will be declared in accordance with Resolutions 001 and 006, when all the known necessary Government approvals have been received.

Alban Sato Manager, Tariffs & Reservation Standards Airline Distribution Standards

RESOLUTIONS AMENDED AT

COMPOSITE MEETING OF

PASSENGER TARIFF COORDINATING CONFERENCE

ABU DHABI, 17 OCTOBER 2012

EFFECTIVE DATE: 01 JUNE 2013

RESO TITLE COMMENTS RD

012c Fare Construction Acronyms Amending 1

017b Construction Rules for Pricing Units Amending 2

ADOPTED Res Doc : 1 Resolution : 012c

PTC COMP 1683 AHU, Oct12

FARE CONSTRUCTION RULE ACRONYMS

PTC1(88)012c Amending PTC2(166)012c PTC3(93)012c PTC12(197)012c PTC23(162)012c PTC31(127)012c PTC123(176)012c Filing Period Begins 15 November 2012 Intended Effectiveness: 1 June 2013 Ends 15 December 2012 Expiry: Indefinite Type B

RESOLVED that Resolution 012c is amended as follows Acronym Name Resolution/Reference Fares Applicable Fare

CTM Circle Trip Minimum check

017b Section C, 3) NormalSpecial

day of week, seasonality (including blackout dates)

ADOPTED Res Doc : 2 Resolution : 017b

PTC COMP 1683 AHU, Oct12

CONSTRUCTION RULES FOR PRICING UNITS

PTC1(88)017b Amending PTC2(166)017b PTC3(93)017b PTC12(197)017b PTC23(162)017b PTC31(127)017b PTC123(176)017b Filing Period Begins 15 November 2012 Intended Effectiveness: 1 June 2013 Ends 15 December 2012 Expiry: Indefinite Type B

RESOLVED that Resolution 017b is amended as follows SECTION C - CIRCLE TRIP FARES 1) the applicable fare for a circle trip shall be the lowest combination of half round trip fares in the

direction of travel along respective sections involved in the trip, beginning the calculation from the point of unit origin of the trip; provided that for any fare component which terminates in the country of unit origin, the fare applicable to such fare component from the country of unit origin shall be used

2) a) the applicable fare for a circle trip – normal fare (excluding any side trip which has been charged

as a separate pricing unit) shall not be less than the direct route normal or special round trip fare, as appropriate, for the highest rated pair of points applicable to the class of service used from the point of unit origin to any stopover point on the route of travel

b) i) the foregoing provisions shall not apply to local combinations ii) when there are round trip fares with different global indicators from the point of unit origin to any

stopover point, the fare to be used for the check must be that applicable to the flown itinerary (subsequent paragraphs renumbered) ……

e) for round the world travel originating in Australia/New Zealand the provisions of Subparagraphs 2)a) and 2)b) shall not apply

f) when checking the circle trip minimum fare, when special fares are used the comparison shall be as provided in Resolution 017c, Subparagraph 5)b)

g) the foregoing provisions need not be applied for points which have been excluded from the higher intermediate point rule, subject to the same conditions contained in the exclusion

h) special fares only: the foregoing provisions need not be applied for points which have passed the HIP check and have not qualified to be a HIP point

PTC COMP 1683 AHU, Oct12

Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012

Summary of Agreements

For intended effective date of 1 June 2013, Composite meeting adopted the following changes.

• Circle Trip Minimum check deleted for simplification (Resolutions 012c, 017b)

International Air Transport Association Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2842 Fax +41 22 770 2896

AS www.iata.org E-Mail: [email protected]

1 November 2012

M E M O R A N D U M

PTC COMP 1684

TO: Members Participating in Tariff Coordinating Conferences

FROM: Manager, Tariffs & Reservation Standards

SUBJECT: Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012 Composite Resolutions 012, 017f, 024d, 024e, 024k Intended Effective Date: 1 April 2013

RESOLUTIONS - ADOPTED

Attached are Composite Resolutions 012, 017f, 024d, 024e and 024k, which were adopted at the above meeting for an intended effective date of 1 April 2013.

The filing period for the attached Resolutions ends 15 December 2012. Members are reminded of their obligations under Resolutions 001 and 006 to advise this office by the end of the filing period whether approval by their Government authorities is required and, if so, to accomplish the necessary filing formalities. The effective date will be declared in accordance with Resolutions 001 and 006, when all the known necessary Government approvals have been received.

Alban Sato Manager, Tariffs & Reservation Standards Airline Distribution Standards

RESOLUTIONS AMENDED AT

COMPOSITE MEETING OF

PASSENGER TARIFF COORDINATING CONFERENCE

ABU DHABI, 17 OCTOBER 2012

EFFECTIVE DATE: 01 APRIL 2013

RESO TITLE COMMENTS RD

012 Glossary of Terms Amending 1

017f Exchange, Reissues and Refunds Amending 2

024d Currency Names, Codes, Rounding Units and Acceptability of Currencies

Amending 3

024e Rules for Payment of Local Currency Fares Amending 4

024k Currency Related Rules Amending 5

ADOPTED Res Doc : 1 Resolution : 012

PTC COMP 1684 AHU, Oct12

GLOSSARY OF TERMS

PTC1(88)012 Amending PTC2(166)012 PTC3(93)012 PTC12(197)012 PTC23(162)012 PTC31(127)012 PTC123(176)012 Filing Period Begins 15 November 2012 Intended Effectiveness: 1 April 2013 Ends 15 December 2012 Expiry: Indefinite Type B

RESOLVED that Resolution 012 is amended as follows ECAA European Common Aviation Area and related States: Albania Liechtenstein Austria Lithuania Belgium Luxembourg Bosnia and Herzegovina Macedonia FYROM Bulgaria Malta Croatia Montenegro Cyprus Netherlands Czech Republic Norway Denmark Poland Estonia Portugal Finland Romania France Serbia Germany Slovakia Greece Slovenia Hungary Spain Iceland Sweden Ireland Switzerland Italy United Kingdom Latvia

in the event other nations join the European Common Aviation Area the Secretary is authorised to update this list. The Secretary shall circulate such changes and effective dates to all TC Members

Side Trip travel from and/or to an identical enroute point of a fare component

ADOPTED Res Doc : 2 Resolution : 017f

PTC COMP 1684 AHU, Oct12

EXCHANGE, REISSUES AND REFUNDS

PTC1(88)017f Amending PTC2(166)017f PTC3(93)017f PTC12(197)017f PTC23(162)017f PTC31(127)017f PTC123(176)017f Filing Period Begins 15 November 2012 Intended Effectiveness: 1 April 2013 Ends 15 December 2012 Expiry: Indefinite Type B

RESOLVED that Resolution 017f, Section C, Paragraph 2)a) is amended as follows Section C – Totally Unused Tickets 2) Other Voluntary Changes (Reissue)

a) when a passenger requests a change other than as in 1) a) above, the fare for the revised journey shall be assessed based on the fares in effect on the date of original issue and applicable at the time of commencement of transportation. and the IATA rate of exchange applicable at the time of the original transaction and The IATA rate of exchange in effect on the date of original issue shall apply.

ADOPTED Res Doc : 3 Resolution : 024d

PTC COMP 1684 AHU, Oct12

CURRENCY NAMES, CODES, ROUNDING UNITS AND ACCEPTABILITY OF

CURRENCIES

PTC1(88)024d Amending PTC2(166)024d PTC3(93)024d PTC12(197)024d PTC23(162)024d PTC31(127)024d PTC123(176)024d Filing Period Begins 15 November 2012 Intended Effectiveness: 1 April 2013 Ends 15 December 2012 Expiry: Indefinite Type A except Attachment ‘A ‘ which is Type B

RESOLVED that Resolution 024d, Paragraph 4), and Attachment ‘A’ are amended as follows

4) Acceptability of Currencies

a) a currency marked # indicates that acceptance of this currency is restricted to the country in which such currency is the currency of payment concerned

i) traffic documents paid for in a currency marked ‘#’ may be reissued in any country

ii) MCOs for unspecified transportation issued in a currency marked # and totally unused traffic documents paid for in a currency marked # will may only be honoured exchanged in the country in which such currency is the currency of original payment

b) traffic documents paid for in a currency marked ‘#’, whether totally unused or partly used, may only be refunded in the country in which such currency is the currency of payment

c) the Secretary is authorised to update Attachment A by additions and/or deletions to the list of currencies marked with ‘#’ upon notification by the IATA Currency Coordination Working Group. Such changes shall be circulated to all TC Members.

ADOPTED Res Doc : 3 Resolution : 024d Page : 2

PTC COMP 1684 AHU, Oct12

ATTACHMENT 'A'

Rounding Units Country Name

Currency Code Alpha Num

Currency Name

Accept- ability

Local Currency Fares and Related Charges

Other Charges

DecimalUnits

Notes

Benin XOF 952 CFA Franc # 100 100 0 Bosnia and Herzegovina BAM 977 Convertible Mark # (delete) 1 1 0 Burkina Faso XOF 952 CFA Franc # 100 100 0 Cameroon XAF 950 CFA Franc # 100 100 0 Central African Republic XAF 950 CFA Franc # 100 100 0 Chad XAF 950 CFA Franc # 100 100 0 Congo XAF 950 CFA Franc # 100 100 0 Cote d'Ivoire XOF 952 CFA Franc # 100 100 0 Croatia HRK 191 Kuna #(delete) 1 1 0 4 Curacao ANG 532 Antillean Guilder # 1 1 0 Dominican Republic DOP 214 Dominican Peso # 1 1 0 Equatorial Guinea XAF 950 CFA Franc # 100 100 0 Gabon XAF 950 CFA Franc # 100 100 0 Guinea-Bissau XOF 952 CFA Franc # 100 100 0 Haiti HTG 332 Gourde # 1 1 0 Hungary HUF 348 Forint #(delete) 100 100 0 Korea, Republic of KRW 410 Won #(delete) 100 100 0 Madagascar MGA 969 Ariary # 100 100 0 Malawi MWK 454 Kwacha # 1 0.1 2 Mali XOF 952 CFA Franc # 100 100 0 Niger XOF 952 CFA Franc # 100 100 0 Poland PLN 985 Zloty #(delete) 1 0.01 2 Russia RUB 643 Russian Ruble #(delete) 5 1 0 Senegal XOF 952 CFA Franc # 100 100 0 Seychelles SCR 690 Seychelles

Rupee # 1 1 0

Togo XOF 952 CFA Franc # 100 100 0 Venezuela, Bolivarian Republic of

VEF 937 Bolivar Fuerte # 0.01 0.01 2 4

ADOPTED Res Doc : 4 Resolution : 024e

PTC COMP 1684 AHU, Oct12

RULES FOR PAYMENT OF LOCAL CURRENCY FARES

PTC1(88)024e Amending PTC2(166)024e PTC3(93)024e PTC12(197)024e PTC23(162)024e PTC31(127)024e PTC123(176)024e Filing Period Begins 15 November 2012 Intended Effectiveness: 1 April 2013 Ends 15 December 2012 Expiry: Indefinite Type A

RESOLVED that Resolution 024e, Sections B, C and D are amended as follows

SECTION B: PAYMENT IN THE COUNTRY OF COMMENCEMENT OF TRANSPORTATION

1) payment shall be made as follows

a) in the currency of the country of commencement of transportation; or

b) in any currency not marked # in Resolution 024d, provided that the equivalent of the local currency fare is collected at the bankers buying selling rate of exchange in effect on the date of issuance of the transportation document

c) when a transportation document issued outside the country of commencement of transportation is tendered for payment (in total or in part), the provisions of Section C shall apply

SECTION C: PAYMENT OUTSIDE THE COUNTRY OF COMMENCEMENT OF TRANSPORTATION

1) payment shall be made as follows

a) the amount to be paid shall be determined by converting the total amount to be collected, expressed in the currency of the country of commencement of transportation, into the currency of the country of payment at the applicable bankers selling rate of exchange in effect on the date of the transaction

b) payment shall be made either in the currency of the country of payment, or in any currency not marked # in Resolution 024d, provided that the equivalent of the local currency amount of the country of payment established in accordance with Subparagraph a) is collected at the bankers buying selling rate of exchange in effect on the date of the transaction

SECTION D: DETERMINATION OF RATES OF EXCHANGE FOR PAYMENTS ACCORDING TO SECTIONS B AND C

1) if the bankers buying rate is unavailable, then the bankers selling rate may be used

……. (subsequent paragraphs to be renumbered)

ADOPTED Res Doc : 5 Resolution : 024k

PTC COMP 1684 AHU, Oct12

CURRENCY RELATED RULES

PTC1(88)024k Amending PTC2(166)024k PTC3(93)024k PTC12(197)024k PTC23(162)024k PTC31(127)024k PTC123(176)024k Filing Period Begins 15 November 2012 Intended Effectiveness: 1 April 2013 Ends 15 December 2012 Expiry: Indefinite Type A

RESOLVED that Resolution 024k, Paragraphs 2), 3) and 6) are amended as follows

2) Excess Baggage Charges

a) for payment of excess baggage charges filed in a currency other than in local currency of the country of commencement of travel, the amount in local currency shall be converted to the currency of the country of payment at the bankers buying selling rate

b) if payment is in a currency other than that of the country of payment, the equivalent in the currency of payment shall be collected at the bankers selling rate of exchange

3) Other Charges

a) other charges established in local currency amounts to be shown on the ticket shall be converted to the currency of the country of sale at the bankers selling rate

b) if payment is in a currency other than the currency of the country of payment, the equivalent of the local currency amount of the country of payment shall be collected at the bankers buying selling rate of exchange

……

6) if the bankers buying rate is unavailable, then the bankers selling rate may be used

PTC COMP 1684 AHU, Oct12

Composite Passenger Tariff Coordinating Conference

Abu Dhabi, 17 October 2012

Summary of Agreements

For intended effective date of 1 April 2013, Composite meeting adopted the following changes.

• Deleted definition of ‘European Common Aviation Area and related states (ECAA)’ as this was no longer required for fares purposes (Resolution 012)

• Definition of ‘Side Trip’ amended to provide more clarity (Resolution 012) • Wording amended to be more explicit for handling of change request for totally

unused tickets (Resolution 017f) • List of currencies restricted for acceptance updated and aligned with the list provided

by IATA Currency Coordination Working Group to reflect the airline ability to repatriate funds, and clarified the conditions of application for such currencies (Resolution 024d)

• Agreed to use only the Bankers Selling Rate for conversion processing to provide more consistency, uniformity and transparency, as well as for reasons of simplification and that Bankers Buying Rates are often not available (Resolutions 024e, 024k)

1 November 2012

M E M O R A N D U M PTC COMP 1685

TO: Members Participating in Tariff Coordinating Conferences

FROM: Manager, Tariffs & Reservation Standards

SUBJECT: Composite Meeting of Passenger Tariff Coordinating Conferences Abu Dhabi, 17 October 2012

MINUTES

Attached are the Minutes of the Composite Meeting of Passenger Tariff Coordinating Conferences, which was held in Abu Dhabi, 17 October 2012 under the Chairmanship of Mrs. Patricia George. Alban Sato Manager, Tariffs & Reservation Standards

www.iata.org

International Air Transport Association Route de l'Aeroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2878 Email:[email protected]

OUTLINE OF CONTENTS • Opening of Meeting

• Attendance Record

• Determination of Voting Membership

• Examination of Credentials of Accredited Representatives and Alternates

• Approval of Minutes of Previous Meeting

• US DoT and the New Filing/Approval Process

• Introduction of IATA Premium Economy Class Flex Fares

• Introduction of IATA Flex Fares for TC132 Between TC1 and TC2 vi TC3 (PA)

• Report of the Resolution Advisory Working Group (RADWG)

• Report of the Fare Selection Working Group (FSWG)

• Report of the Currency Conversion Working Group (CCWG)

• Fares Currency from Russia

• Fares Currency from Turkmenistan

• Fares Currency from Myanmar

• Elimination of CTM Check for Special Fares

• Totally Unused Tickets – Changes to Subsequent Coupons

• Using Only BSR for Currency Conversion

• Restricted Currencies

• Introduction of Paragraphs 31 and 33 to Specify Voluntary Changes and Voluntary Refunds

• Definition of European Common Aviation Area

• Clarification of Side Trip Definition

• Close of Meeting

Attachment ‘A’: Attendance Record Attachment ‘B’: Terms of Reference - Resolution Implementation Working Group (RIWG) Attachment ‘C’: Fare Selection Criteria Resolution Attachment ‘D’: Resolution 024a - Fares Currency from Turkmenistan and Myanmar Attachment ‘E’: Resolutions 012c, 017b - Elimination of CTM Checks Attachment ‘F’: Resolution 017f – Totally Unused Tickets Attachment ‘G’: Resolutions 024e, 024k – Using Only BSR for Currency Conversion Attachment ‘H’: Resolution 024d – Restricted Currencies Attachment ‘I’ : Terms of Reference – Paragraphs 31/33 Working Group Attachment ‘J’: Resolution 012 – Definition of ECAA, Side Trip Attachment ‘K’: Summary of Agreements

COMPOSITE MEETING OF PASSENGER TARIFF COORDINATING CONFERENCES

Abu Dhabi, 17 October 2012

M I N U T E S

OPENING OF MEETING The Chairman, Mrs. Patricia George, opened the Composite Meeting of Tariff

Coordinating Conferences at 1400 hours on Wednesday, 17 October 2012. The Meeting had been convened by Memorandum PTC COMP 1650, dated 4 November 2011. It comprised the following:

89th Meeting of Passenger Tariff Coordination Conference 1 167th Meeting of Passenger Tariff Coordination Conference 2 94th Meeting of Passenger Tariff Coordination Conference 3

198th Meeting of Passenger Tariff Coordination Conference 12 163rd Meeting of Passenger Tariff Coordination Conference 23

128th Meeting of Passenger Tariff Coordination Conference 31 177th Meeting of Passenger Tariff Coordination Conference 123

As with all traffic conference meetings, this meeting has immunity from US anti-trust laws, on the condition that all agreements are submitted for specific approval by the US authorities. IATA would submit the agreements to the DoT in accordance with this condition. Consistent with this, IATA's Board of Governors has determined that any agreement reached at this meeting must not be put into effect prior to its declaration of effectiveness. This ruling is contained in the Provisions for the Conduct of the IATA Traffic Conferences and must be complied with.

ATTENDANCE RECORD The Attendance Record is at Attachment 'A'. DETERMINATION OF VOTING MEMBERSHIP The Voting Membership for the meeting was determined in accordance with the

Provisions for the Conduct of the IATA Traffic Conferences.

EXAMINATION OF CREDENTIALS OF ACCREDITED REPRESENTATIVES AND ALTERNATES The accreditation received by IATA was examined and found to be in accordance with

the Provisions for the Conduct of the IATA Traffic Conferences. APPROVAL OF MINUTES OF PREVIOUS MEETING The following minutes were approved: Composite Meeting of Passenger Tariff Coordinating Conferences Singapore, 14 October 2011 Memorandum PTC COMP 1656 dated 30 November 2011 GENERAL/NEW ITEMS

• US DOT AND THE NEW FILING/APPROVAL PROCESS The meeting was advised that the DoT, after many years of lobbying and

negotiations, had agreed with the IATA proposal to exempt the vast majority of COMP, PSC and CSC agreements from the obligation to undergo prior US DoT review. However, for COMP, agreements that had been pending approval for many years need to be sorted out. RADWG agreed to establish a working group that will outline the implementation plan for the pending agreements and requested the Composite meeting to endorse the establishment of the working group. Final Result: The meeting endorsed the establishment of the working group. LH and BA volunteered to participate, in addition to KQ TG SK KL HR AF UA CX LY FI who had already agreed to participate. A draft term of reference is in Attachment ‘B’.

• INTRODUCTION OF PREMIUM ECONOMY FLEX FARES

CX proposed that the meeting agree on the concept of introducing IATA Premium Economy Flex fares and establish a working group to review changes required to the Composite resolutions. CX advised that similar requests are being addressed at other IATA working groups. LH JL expressed concern that significant investment be required for IT development. KE questioned how an airline should interline with a premium economy product should interline one without the product. IATA advised that PSC Resolution 728 designates an RBD ‘W’ for the purpose of premium economy product. CX advised that a new designation for a cabin would allow carriers to differentiate the product, which is being introduced by more airlines. Chairman advised the group that the working group will be established to ‘explore’ how such fares product can be introduced, including finding solutions for questions such as the one raised by KE. Chairman further clarified that agreeing to the establishment of the working group will not necessarily commit airlines to agree to the fares product itself.

Final Result:

Meeting agreed to establish a working group to explore how the IATA Premium Economy Fares can be introduced. CX JL SK PR LY volunteered to participate. Concern was expressed that the number of volunteers shows limit interest of the meeting. IATA advised that in consultation with the carriers volunteered, it will develop a terms of reference for the working group with which additional volunteers will be sought.

• INTRODUCTION OF IATA FLEX FARES FOR TC132 BETWEEN TC1 AND TC2 VIA TC3 (PA) Composite meeting was requested to endorse IATA holding an e-Tariff session to introduce Flex fares for the new route which was agreed at the 2011 Composite meeting. Final Result: The meeting agreed for an e-tariff session to be held for the new market. IATA will propose a basic formula on the e-tariff platform, based on which carriers can propose amendments. IATA advised that all Tariff Coordination members are welcome to participate.

RESOLUTION ADVISORY WORKING GROUP (RADWG) REPORT

Meeting was advised that the Resolution Advisory Working Group (RADWG) met twice in 2012 and, though the time was limited as priority was given to other issues, the group agreed on several changes that had been forwarded to the Composite meeting for final approval. In 2013 the working group will meet twice in 2013 as follows and carriers were encouraged to participate.

Date Meeting Venue 11 - 15 March 2013 CCWG, RADWG YMQ 9 - 13 September 2013 CCWG, RADWG GVA

Final Result: RADWG report was noted

FARE SELECTION WORKING GROUP (FSWG) REPORT

A report of the Fare Selection Working Group (FSWG) was presented to the meeting. FSWG was established by the 2011 Composite Conference to address increasing dissatisfaction with the current fare selection logic. The working group was chaired by Alen Ovuka/Air New Zealand and later by Lesa Alexander/Hahn Air and supported by Lisa Schilling/Expedia. The working group met three times to develop a recommendation to the 2012 Composite Conference. Two options were developed by the working group: Option A – MSC + Longest Consecutive International-Domestic TPM

Option B – Longest Consecutive International-Domestic TPM + First International

The airlines in the working group made a great effort to come to an agreement, making compromises every step of the way. Contributions from system providers for this effort were greatly appreciated. While it would have been preferable to present a unified recommendation to the Composite meeting, it was determined that no further progress can be made at FSWG. Further guidance was requested from the Composite meeting, including the proposals below: 1. Note that 017h will be deleted from the Composite Resolutions Manual 2. Vote on Option A and Option B, noting system issues and constraints if hybrid or

any other options are voted 3. Conference to recommend that any further actions to address the issues identified

to be supported within appropriate existing IATA Working Groups 4. Conference to disband the FSWG A straw vote showed that majority of the carriers favored Option A, based on which Chairman took a formal vote on Option A. The vote revealed the following positions: Support: CA JL KE BA LH VA AB SK LO AF KL UA TM KQ AY MH QR HR PR

ME SU Opposed: CX OU FI Carriers opposed were concerned that • Changes to the criteria may require more fare filing and yet give airlines less

control • Option A would limit the carrier’s fares to be priced in some markets • Option A would limit smaller carriers’ fares from being quoted • Option B is more competitive and would provide passengers more options Final Result: Three carriers opposing Option A reluctantly abstained on the vote and Option A was adopted. (Attachment ‘C’) Meeting was advised that the tentative effective date is set for sale(ticketing) on/after 1 June 2013 to ensure that necessary government approvals are obtained and systems to have a solution in place. Airlines requested that three to four months advance notification be issued prior to implementation. IATA advised that an implementation date will be advised at a later date to conform to this request.

Meeting was also advised that Resolution 017hh Fare Selection Criteria within Europe, and 017i Carrier Selection for Fare Construction Checks will be maintained and will be reviewed by RADWG is any further action is needed. The conference noted that:

• Resolution 017h will be taken off the Resolutions manual • FSWG is being disbanded having completed its work

CURRENCY CONVERSION WORKING GROUP (CCWG) REPORT

The meeting was advised that the Currency Conversion Working Group (CCWG), established by the 2011 Composite Conference, met three times in 2012. The group is chaired by Bernard Charrier/ Air France and co-chaired by Marianne Klinkenberg/KLM. The group focused on the following agenda: 1. Using BSR only in currency conversion transactions

(instead of BSR/BBR which is the current procedure) 2. Updating the list of currencies with restrictions on acceptability marked with ‘#’ in

Resolution 024d, Attachment ‘A’ 3. Establishing a singe automated source of exchange rates in Resolution 024e

Agenda Items 1. and 2. above were submitted separately.

The Composite Conference was requested to review the progress made by the CCWG and vote on the following:

1. Endorse the CCWG recommendation of a single automated source of currency exchange rates

2. Provide guidance whether IATA should be the exchange rate provider to manage and maintain the file, similar to the IROE and ICH process. IATA is prepared to develop the file and present at the next CCWG meeting to meet the system requirements.

3. Airlines to advise the deletion of country specific sources in Resolution 024e Attachment A by end-February 2013. IATA will communicate with all airlines whose countries are listed in the attachment.

Some carriers advised that some country-specific source is required due to government requirement. IATA ensured the meeting that endorsement from the Composite Conference will be sought before making the changes, however simplification of the list is required to facilitate automation. Final Result: Meeting endorsed CCWG recommendation for s single automated source provided by IATA. Airlines will provide necessary information to IATA in regards to the source for rates of exchange.

RESOLUTION 024A – ESTABLISHING PASSENGER FARES AND RELATED CHARGES

• Russia In order to simplify business methods and in view of national currency stability, SU proposed to establish fares, related charges and add-ons from Russia in Ruble (RUB).

Although SU advised that the proposal has an endorsement from the Russian authority, UN commented that information has not been received by them. LH/AF questioned if this proposal was government-driven. Final Result: Defeated.

The proposal was opposed by KE LH AF KL CX UN VN QR LY for the reasons that Ruble is still volatile and not stable enough. Some carriers believed that the action should not be taken unless it is a government requirement.

• Turkmenistan In order to provide effective operation of the national air carrier and to simplify interline billing and settlement process, Turkmenistan Airlines proposed to establish fares, related charges and add-ons from Turkmenistan in US Dollar (USD) effective 1 February 2013. Final Result: Adopted for sale on/after 1 February 2013 per Attachment ‘D’ Latest IROE available on 1 January 2013 will be used for the conversion process.

• Myanmar So that airlines have protection from drastic exchange rate fluctuation and aligned for more accurate settlement process, TG proposed to establish fares, related charges and add-ons from Myanmar in US Dollar (USD) effective 1 February 2013. Final Result: Adopted for sale on/after 1 February 2013 per Attachment ‘D’ Latest IROE available on 1 January 2013 will be used for the conversion process.

ELIMINATION OF CTM CHECK FOR SPECIAL FARES 1 JUNE 2013

RADWG meetings in 2012 discussed the application of Circle Trip Minimum (CTM) check for Special fares extensively, however, it was pointed out that the check is rarely applied and may not be necessary. Deletion of the check will simplify the fare construction rules. It has also been pointed out that, even without the check, carriers have control by filing/coding Paragraph/Category 10 accordingly. Composite meeting was requested to agree on the deletion of CTM for Special Fares for effective 1 June 2013.

Final Result: Adopted as shown in Attachment ‘E’ Meeting was advised that the definition of ‘Local Combination’ will be reviewed further at the next RADWG meeting in March 2013.

TOTALLY UNUSED TICKETS – CHANGES TO SUBSEQUENT COUPON 1 APRIL 2013

Resolution 017f Section C does not specifically address a scenario where a totally unused ticket that had a change to subsequent flight coupons (other than the first coupon), requiring that the difference between the old and the new carrier fares will have to be collected, where the new fare is the one valid at the original date of commencement of travel. RADWG agreed to amend the paragraph 2 a) to be more explicit, and the Composite meeting was requested to approve the amendment. Final Result: Adopted as shown in Attachment ‘F’

USING ONLY BSR FOR CURRENCY CONVERSION 1 APRIL 2013

Tasked with simplification and establishment of a uniform cross rate currency

conversion process, CCWG reviewed the necessity of using both the Bankers Selling Rate (BSR) and the Bankers Buying Rate (BBR) in the process. While the group recognized that certain governments, such as US and Philippines, require the use of BBR in certain transactions, there was no strong requirement to use BBR from airlines.

It was also identified that BBR is not often available for certain countries, forcing systems to use BSR instead. A survey to airlines revealed that most airlines support to use only the BSR. Composite meeting was requested to agree to use only BSR for conversion processing and delete references to BBR in Resolutions 024e and 024k Final Result: Adopted as shown in Attachment G.

RESTRICTED CURRENCIES 1 APRIL 2013

The CCWG discussed Restricted Currencies as designated by the ‘#’ sign in Resolution 024d Attachment A. In the past, IATA Passenger Interline Tariffs took direction from the Finance Department on adding or deleting the ‘#’ sign against a currency. The recommended changes were then brought forward to the Composite Conference for voting. There has been no change to the list in several years and currently there is no formal process outlined. The group discussed the survey results which queried carriers on the acceptance of restricted currencies for exchanges and reissues as well as payment for tickets. The survey responses confirmed that carriers look to the IATA Composite Resolutions to determine which currencies are restricted. With the support from IATA Currency Coordination Working Group (ICWG), CCWG developed proposals for the Composite meeting to align restricted currencies with the list of currencies maintained by ICWG that can be repatriated. Proposed Action: Composite meeting was requested to: 1. Agree to align the restricted currencies in Resolution 024d, Attachment ‘A’ to the

current ICWG list 2. Agree to the process of updating the list of restricted currencies 3. Agree to the clarification of the conditions of application of such currencies Final Result: Adopted as shown in Attachment ‘H’

INTRODUCE NEW PARAGRAPHS 31 AND 33 TO SPECIFY VOLUNTARY CHANGES AND VOLUNTARY REFUNDS

Resolutions 100 and 101 currently specify voluntary and involuntary change and refund provisions in Paragraph 16. However, ATPCO’s automated rules product utilizes Voluntary Changes (Category 31) and Voluntary Refunds (Category 33) to distribute comprehensive change and refund data that enables automated change and refund processing. All GDSs process Categories 31 and 33 in their automated products, and airline adoption continues at a fast pace. However, while some airlines use Categories 31 and 33 for their change and refund processing, their revenue accounting systems are set up based on the IATA standards and only evaluate text data in Penalties (Category 16) due to the fact that Resolutions 100 and 101 do not recognize Categories 31 and 33. While carriers are encouraged to ensure data in Category 16 accurately reflects the data in Categories 31 and 33, this is not always possible due to the vast functionality offered in Categories 31 and 33. Revenue accounting systems that only rely on Category 16 may argue a ticket was incorrectly reissued or refunded since these systems are not recognizing the full provisions specified in Categories 31 and 33. This results in disagreements and/or debit memos. Systems contacted ATPCO and indicated they are spending a large amount of time and personnel on this issue. To encourage automation and reduce time and personnel spent to resolve disputes, ATPCO proposed to create Paragraphs 31 and 33 in Resolutions 100 and 101 to specify voluntary change and voluntary refund data, respectively. IATA agreed that the establishment of paragraphs 31 and 33 would be useful for the industry, providing additional standards to promote automation. Introduction of similar paragraphs in IATA fares resolution at the same time will ensure that the automated re-price is supported when YY fares are being applied in a journey, at the same time providing a default processing for carrier filings. An airline expressed concern that ATPCO category 33 texts are not yet available for display, ATPCO advised that there is a business case to publish the texts. Another airline also commented that it is the responsibilities of the airlines to keep category 16, category 31 and any other categories in sync. The group agreed to report to the Composite meeting endorsement of RADWG to introduce Paragraphs 31/33 to support automated reissue and refund with a view to reformat the resolutions to standardize and facilitate automation. Composite meeting was requested to • Composite Meeting to endorse the establishment of the Paragraphs 31_33

Working Group with the terms of reference • Composite Meeting to enlist volunteers for the working group. The volunteers will

need to: prepare for conference call, meetings budget as needed for the meetings

Final Result: Establishment of working group, with terms of reference as shown in Attachment ‘I’ agreed. BA AY MH LH UA LY VN GF FI CX volunteered to participate.

DEFINITION OF EUROPEAN COMMON AVIATION AREA (ECAA) 1 APRIL 2013

European Common Aviation Area (ECAA) has been defined in Resolution 012 to define an area for Tariff Conferences to address a certain regulatory requirement. However, the definition is no longer required as the Flex Fares have been implemented worldwide, and as a result the unique definition is no longer required to address the regulatory issue. In addition ECAA is being considered to be expanded to countries outside Europe, and the continued existence of the definition in the Resolution may be confusing. The meeting agreed to propose to the Composite meeting to delete the definition, and validate beforehand any impact on pricing or tax processing if any. Composite meeting was requested to agree to delete the definition for ‘ECAA - European Common Aviation Area’ as agreed by RADWG Final Result: Adopted as shown in Attachment ‘J’

CLARIFICATION OF SIDE TRIP DEFINITION 1 APRIL 2013

RADWG was advised that the airlines had agreed to amend paragraph 10) of certain YY area fares resolutions, and was requested to review the wording. Systems advised that, while a more data-driven solution is preferable, ‘side trip’ provisions are hard-coded. While the new wording may be clearer, the group agreed that it would not support pricing if embedded in YY fares provisions and recommended that the definition in Resolution 012 to be amended. The group agreed to amend the definition of ‘side trip’ in Resolution 012 as follows: Side Trip travel from and/or to an identical enroute point of a fare component This means that following journey would be permitted, as the side trip returns to the same point B: A – (B – C – B) – D A – (B – C /– B) – D – E A – (B – C /– X – B) – D – E Where as A – (B – C – D) – E – F would not be permitted as it returns to a different point D. Composite meeting was requested to agree to amend the definition for ‘Side Trip’ as follows as agreed by RADWG. Final Result: Adopted as shown in Attachment ‘J’

CLOSE OF MEETING

The Chairman thanked the delegates and IATA staff for their support, cooperation and active participation in the discussion. The Conference expressed gratitude to the Chairman for the very successful meeting. The Composite Meeting was closed at 1730 hours on 17 October 2012.

ATTACHMENT ‘A’

ATTACHMENT ‘B’ Page 1 of 1

Terms of Reference for US DoT and the new Filing/Approval Process Terms of Reference (DRAFT) The Resolution Implementation Working Group (RIWG), reporting to the Composite Conference is a forum whereby IATA Members and IATA Strategic Partners may:

1. Review the list of items pending DoT approval 2. Assess priority according to airline requirements and system capability 3. Measure impact 4. List action items required, i.e. training and communication 5. Draft implementation plan 6. Assess if any changes required

Membership Membership is open to all IATA member airlines and Strategic Partners Procedures

• Meetings will be called as necessary and combined with others where possible • The RIWG will liaise closely with other IATA groups as necessary • Implementation issues will be decided by consensus • Recommendations regarding IATA tariff coordination (TC) resolutions will be agreed

by a simple majority vote for which on IATA TC members may vote. Such recommendations will be forwarded to the RADWG

• Recommendations regarding other IATA resolutions will be forwarded to the appropriate Committee for their consideration

Deliverables: viable update/proposal to the Composite meeting October 2013 Chairman: TBD Co-Chairman: TBD

ATTACHMENT ‘C’ Page 1 of 4

Option A

FARE SELECTION CRITERIA

PTC1 Expiry Indefinite PTC2 PTC3 Type B PTC12 PTC23 PTC31 PTC123

RESOLVED that,

1) for the purposes of fare selection, the fares to be used will be those applicable to the carrier selected. These may be either

a) carrier specific fares, or

b) if all fares of the selected carrier cannot be used, the YY fare (subject to the selected carrier’s acceptance of the use of YY fares), or

c) 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

Examples

1. The carrier only has fares records for carrier specific Normal Fares - the special fares structure for that carrier will be the YY fares

2. The carrier has only a single fares record for a carrier specific PEX fare - the Normal fares and the rest of the special fares for that carrier will be the YY structure

3. The carrier has no fares records for carrier specific fares - the YY structure will apply for that carrier

2) the fares to be applied, in the direction of the fare selection in accordance to 017a, will be the lowest of

a) the fares for the carrier who performs

i. the carriage on the first sector which crosses from one area to another, if none

ii. the carriage on the first sector which crosses from one sub-area to another, if none

iii. the carriage on the first international sector

b) the fares for the carrier who performs the greatest part of consecutive carriage, either wholly international or a combination of international and domestic, measured by TPM

ATTACHMENT ‘C’ Page 2 of 4

EXAMPLES OF FARE COMPONENTS CROSSING AREAS:

1. Journey: PAR-XX-BKK-ZZ-AKL-BB-DXB-XX-PAR ----------------- ---- -------------------- Fare Components:

PAR-AKL the fares to be applied will be the lowest of carrier PAR-BKK (area crossing carrier) and carrier BKK-AKL (longest international carriage)

AKL-PAR the fares to be applied will be the lowest of carrier DXB-AKL (both the longest consecutive carriage and area crossing carrier)

2. Journey: BOM-XX-TYO-ZZ-HNL-BB-SEL-XX-BOM ------------ ---------------

Fare Components:

BOM-HNL the fares to be applied will be the lowest of carrier BOM-TYO (longest international carriage) and carrier TYO-HNL (area crossing carrier)

HNL-BOM the fares to be applied will be carrier SEL-HNL (both the longest consecutive carriage and area crossing carrier)

3. Journey: RIO-XX-NYC-ZZ-LON-BB-WAS-XX-SAO-XX-RIO ----------- ------------------

Fare Components:

RIO-LON the fares to be applied will be the lowest of carrier RIO-NYC (longest international carriage) and carrier NYC-LON (area crossing carrier)

LON-RIO the fares to be applied will be lowest of carrier WAS-LON (area crossing carrier) and the carrier RIO-SAO-WAS (longest consecutive carriage)

4. Journey: YVR-DD-SEL-XX-IST-BB-HKG-ZZ-YVR-ZZ-YTO ------ ----------------- -------------------------------

Fare Components:

YVR-IST the fares to be applied will be the lowest of the carrier YVR-SEL (first area crossing) and carrier SEL-IST (longest international carriage)

IST-YTO the fares to be applied will be lowest of the carrier YVR-HKG (first area crossing carrier) and the carrier YTO-YVR-HKG (longest consecutive carriage)

5. Journey: BKK-XX-VIE-ZZ-YMQ-ZZ-YYC-BB-LON-XX-BKK ------------------------------- ----------------------

Fare Components:

BKK-YYC the fares to be applied will be the lowest of carrier BKK-VIE (first area crossing) and carrier VIE-YMQ-YYC (longest consecutive carriage)

YYC-BKK the fares to be applied will be those of carrier BKK-LON (both the longest consecutive carriage and the first area crossing carrier)

ATTACHMENT ‘C’ Page 3 of 4

EXAMPLES OF FARE COMPONENTS BETWEEN SUB-AREAS:

1. Journey: CAI-XX-ADD-ZZ-JNB-XX-KRT-ZZ-CAI -------------------- --------------------

Fare Components:

CAI-JNB the fares to be applied will be the lowest of carrier CAI-ADD (first sub-area crossing) and carrier ADD-JNB (longest international carriage)

JNB-CAI the fares to be applied will be lowest of carrier KRT-JNB (both the longest consecutive carriage and the first sub-area crossing within Area 2 carrier)

2. Journey: MEL-XX-JKT-DD-TYO-ZZ-MNL-XX-BNE-XX-MEL --------------------- --------------------------------

Fare Components:

MEL-TYO the fares to be applied will be the lowest of carrier MEL-JKT (first sub-area crossing) and carrier JKT-TYO (longest international carriage)

TYO-MEL the fares to be applied will be lowest of carrier BNE-MNL (first sub-area crossing carrier) and carrier MEL-BNE-MNL (longest consecutive carriage)

EXAMPLES OF FARE COMPONENTS WITHIN A SUB-AREA

1. Journey: KUL-XX-BKK-DD-CAN-DD-BJS-ZZ-HKG-XX-KUL --------------------------------- ---------------------

Fare Components:

KUL-BJS the fares to be applied will be the lowest of carrier KUL-BKK (first international) and carrier BKK-CAN-BJS (longest consecutive carriage)

BJS-KUL the fares to be applied will be lowest of carrier KUL-HKG (both the longest consecutive carriage and the first international sector)

2. Journey: SCL-XX-ASU-DD-SAO-DD-RIO-ZZ-ASU-XX-SCL ------------------------------- ----------------------

Fare Components:

SCL-RIO the fares to be applied will be the lowest of carrier SCL-ASU (both the longest consecutive carriage and the first international sector)

RIO-SCL the fares to be applied will be lowest of carrier SCL-ASU (both the longest consecutive carriage and the first international sector)

ATTACHMENT ‘C’ Page 4 of 4

GENERAL

3) surface sectors

a) for the purpose of determining the carrier performing the greatest part of the consecutive international and domestic carriages, surface sectors will not be considered for the calculation of consecutive TPM

Example: SPK-ZZ-TYO xxx OSA-ZZ-HKG-BB-SIN TYO-OSA surface sector is not considered for the calculation of TPM, therefore the comparison would be:

SPK-TYO (carrier ZZ) 510 OSA-HKG (carrier ZZ) 1548 HKG-SIN (carrier BB) 1594

The result is HKG-SIN has the longest consecutive international TPM and carrier BB’s fares will be selected for comparison.

b) if the longest TPM sector is a surface sector, such sector is not considered

c) if the sector for which the selection is to be made is a surface sector, YY fares will be selected

4) for the purpose of this Resolution

a) travel between Canada and USA is not considered as international travel Example: YUL-NYC-MEX first international sector is NYC-MEX

b) travel between Denmark, Norway and Sweden is considered as international travel Example: STO-CPH-LON first international sector is STO-CPH

c)within TC1 when crossing sub-areas, the following applies:

North America Canada, Greenland, Mexico, St. Pierre and Miquelon, USA

Caribbean Anguilla Guadeloupe Antigua and Barbuda (including St.Barthelemy Aruba and Northern St.Martin) Bahamas Haiti Barbados Jamaica Bermuda Martinique Bonaire, Saba, Sint Eustatius Montserrat British Virgin Islands St.Kitts and Nevis Cayman Islands St. Maarten Cuba Saint Lucia Curacao St.Vincent and the Grenadines Dominica Trinidad and Tobago Dominican Republic Turks and Caicos Islands Grenada Suriname Guyana French Guiana Central America Belize Guatemala Costa Rica Honduras El Salvador Nicaragua South America Argentina Panama Bolivia Paraguay Brazil Peru Chile Uruguay Colombia Venezuela Ecuador

ATTACHMENT ‘D’ Page 1 of 2

RESOLUTION 024a ESTABLISHING PASSENGER FARES AND RELATED CHARGES

ATTACHMENT 'A'

Countries for which passenger fares and excess baggage charges are established in US Dollars

Afghanistan Lebanon Angola Liberia Anguilla Madagascar Antigua & Barbuda Malawi Argentina Maldives Bahamas Mexico Bangladesh Mongolia Barbados Montserrat Belize Myanmar Bermuda Nicaragua Bolivia Nigeria Bonaire Palestinian Territory, Brazil Occupied Burundi Panama Cambodia Paraguay Cayman Islands Peru Chile Philippines Colombia Rwanda Congo, Dem. Rep. of Saba Costa Rica Sint Eustatius Cuba St. Kitts and Nevis Dominica St. Lucia Dominican Republic St. Vincent and Ecuador the Grenadines El Salvador Sao Tome and Principe Eritrea Sierra Leone Ethiopia Somalia Gambia Suriname Ghana Tanzania, United Republic

of Grenada Timor Leste Guatemala Trinidad and Tobago Guinea Turkmenistan Guyana Uganda Haiti Ukraine Honduras United States and Indonesia US Territories Iraq Uruguay Israel Venezuela Jamaica Viet Nam Kenya Zambia Laos Zimbabwe

Rounding for these countries in US Dollars shall be the same as reflected in Resolution 024d Attachment 'A' for the United States

ATTACHMENT ‘D’ Page 2 of 2

RESOLUTION 024a ESTABLISHING PASSENGER FARES AND RELATED CHARGES

ATTACHMENT 'B'

Countries for which passenger fares and excess baggage charges are established in euro

Albania Armenia Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Cape Verde Croatia Cyprus Estonia Finland France except French Polynesia (including Wallis and Futuna), New Caledonia (including Loyalty Islands) Georgia Germany Greece Ireland Italy Kyrgyzstan Latvia Lithuania Luxembourg Macedonia (FYROM) Malta Moldova, Republic of Monaco Montenegro Netherlands Portugal Romania Russia Serbia Slovakia Slovenia Spain Tajikistan Turkey Turkmenistan Uzbekistan

Rounding for these countries in euros shall be the same as reflected in Resolution 024d Attachment 'A' for the countries whose national currency is the euro

IATA Note:

Current fares will be converted to US Dollar (USD) using the IROE effective 1 January 2013, and the resultant levels rounded in accordance with Resolution 024d.

ATTACHMENT ‘E’ Page 1 of 1

• Resolution 012c - FARE CONSTRUCTION RULE ACRONYMS

Acronym Name Resolution/Reference Fares Applicable Fare CTM Circle Trip Minimum

check 017b Section C, 3) Normal

Special day of week, seasonality (including blackout dates)

• Resolution 017b - CONSTRUCTION RULES FOR PRICING UNITS

SECTION C - CIRCLE TRIP FARES 1) the applicable fare for a circle trip shall be the lowest combination of half round trip fares

in the direction of travel along respective sections involved in the trip, beginning the calculation from the point of unit origin of the trip; provided that for any fare component which terminates in the country of unit origin, the fare applicable to such fare component from the country of unit origin shall be used

2) a) the applicable fare for a circle trip – normal fare (excluding any side trip which has been

charged as a separate pricing unit) shall not be less than the direct route normal or special round trip fare, as appropriate, for the highest rated pair of points applicable to the class of service used from the point of unit origin to any stopover point on the route of travel

b) i) the foregoing provisions shall not apply to local combinations ii) when there are round trip fares with different global indicators from the point of unit

origin to any stopover point, the fare to be used for the check must be that applicable to the flown itinerary

(subsequent paragraphs renumbered) ……

e) for round the world travel originating in Australia/New Zealand the provisions of Subparagraphs 2)a) and 2)b) shall not apply

f) when checking the circle trip minimum fare, when special fares are used the comparison shall be as provided in Resolution 017c, Subparagraph 5)b)

g) the foregoing provisions need not be applied for points which have been excluded from the higher intermediate point rule, subject to the same conditions contained in the exclusion

h) special fares only: the foregoing provisions need not be applied for points which have passed the HIP check and have not qualified to be a HIP point

ATTACHMENT ‘F’ Page 1 of 1

Resolution 017f - EXCHANGE, REISSUES AND REFUNDS

Section C – Totally Unused Tickets 2) Other Voluntary Changes (Reissue)

a) when a passenger requests a change other than as in 1) a) above, the fare for the revised journey shall be assessed based on the fares in effect on the date of original issue and applicable at the time of commencement of transportation. and the IATA rate of exchange applicable at the time of the original transaction and The IATA rate of exchange in effect on the date of original issue shall apply.

ATTACHMENT ‘G’ Page 1 of 2

Resolution 024e - RULES FOR PAYMENT OF LOCAL CURRENCY FARES

SECTION B: PAYMENT IN THE COUNTRY OF COMMENCEMENT OF TRANSPORTATION

1) payment shall be made as follows

a) in the currency of the country of commencement of transportation; or

b) in any currency not marked # in Resolution 024d, provided that the equivalent of the local currency fare is collected at the bankers buying selling rate of exchange in effect on the date of issuance of the transportation document

c) when a transportation document issued outside the country of commencement of transportation is tendered for payment (in total or in part), the provisions of Section C shall apply

SECTION C: PAYMENT OUTSIDE THE COUNTRY OF COMMENCEMENT OF TRANSPORTATION

1) payment shall be made as follows

a) the amount to be paid shall be determined by converting the total amount to be collected, expressed in the currency of the country of commencement of transportation, into the currency of the country of payment at the applicable bankers selling rate of exchange in effect on the date of the transaction

b) payment shall be made either in the currency of the country of payment, or in any currency not marked # in Resolution 024d, provided that the equivalent of the local currency amount of the country of payment established in accordance with Subparagraph a) is collected at the bankers buying selling rate of exchange in effect on the date of the transaction

SECTION D: DETERMINATION OF RATES OF EXCHANGE FOR PAYMENTS ACCORDING TO SECTIONS B AND C

1) if the bankers buying rate is unavailable, then the bankers selling rate may be used

……. (subsequent paragraphs to be renumbered)

ATTACHMENT ‘G’ Page 2 of 2

Resolution 024k - CURRENCY RELATED RULES

2) Excess Baggage Charges

a) for payment of excess baggage charges filed in a currency other than in local currency of the country of commencement of travel, the amount in local currency shall be converted to the currency of the country of payment at the bankers buying selling rate

b) if payment is in a currency other than that of the country of payment, the equivalent in the currency of payment shall be collected at the bankers selling rate of exchange

3) Other Charges

a) other charges established in local currency amounts to be shown on the ticket shall be converted to the currency of the country of sale at the bankers selling rate

b) if payment is in a currency other than the currency of the country of payment, the equivalent of the local currency amount of the country of payment shall be collected at the bankers buying selling rate of exchange

……

6) if the bankers buying rate is unavailable, then the bankers selling rate may be used

ATTACHMENT ‘H’ Page 1 of 2

Resolution 024d - CURRENCY NAMES, CODES, ROUNDING UNITS AND ACCEPTABILITY OF CURRENCIES

4) Acceptability of Currencies

a) a currency marked # indicates that acceptance of this currency is restricted to the country in which such currency is the currency of payment concerned

i) traffic documents paid for in a currency marked ‘#’ may be reissued in any country

ii) MCOs for unspecified transportation issued in a currency marked # and totally unused traffic documents paid for in a currency marked # will may only be honoured exchanged in the country in which such currency is the currency of original payment

b) traffic documents paid for in a currency marked ‘#’, whether totally unused or partly used, may only be refunded in the country in which such currency is the currency of payment

c) the Secretary is authorised to update Attachment A by additions and/or deletions to the list of currencies marked with ‘#’ upon notification by the IATA Currency Coordination Working Group. Such changes shall be circulated to all TC Members.

ATTACHMENT ‘H’ Page 2 of 2

Resolution 024d - CURRENCY NAMES, CODES, ROUNDING UNITS AND ACCEPTABILITY OF CURRENCY - ATTACHMENT 'A'

Rounding Units Country Name

Currency Code Alpha Num

Currency Name

Accept- ability

Local CurrencyFares and Related Charges

Other Charges

DecimalUnits

Notes

Benin XOF 952 CFA Franc # 100 100 0 Bosnia and Herzegovina

BAM 977 Convertible Mark

# (delete) 1 1 0

Burkina Faso XOF 952 CFA Franc # 100 100 0 Cameroon XAF 950 CFA Franc # 100 100 0 Central African Republic

XAF 950 CFA Franc # 100 100 0

Chad XAF 950 CFA Franc # 100 100 0 Congo XAF 950 CFA Franc # 100 100 0 Cote d'Ivoire XOF 952 CFA Franc # 100 100 0 Croatia HRK 191 Kuna #(delete) 1 1 0 4 Curacao ANG 532 Antillean

Guilder # 1 1 0

Dominican Republic DOP 214 Dominican Peso

# 1 1 0

Equatorial Guinea XAF 950 CFA Franc # 100 100 0 Gabon XAF 950 CFA Franc # 100 100 0 Guinea-Bissau XOF 952 CFA Franc # 100 100 0 Haiti HTG 332 Gourde # 1 1 0 Hungary HUF 348 Forint #(delete) 100 100 0 Korea, Republic of KRW 410 Won #(delete) 100 100 0 Madagascar MGA 969 Ariary # 100 100 0 Malawi MWK 454 Kwacha # 1 0.1 2 Mali XOF 952 CFA Franc # 100 100 0 Niger XOF 952 CFA Franc # 100 100 0 Poland PLN 985 Zloty #(delete) 1 0.01 2 Russia RUB 643 Russian Ruble #(delete) 5 1 0 Senegal XOF 952 CFA Franc # 100 100 0 Seychelles SCR 690 Seychelles

Rupee # 1 1 0

Togo XOF 952 CFA Franc # 100 100 0 Venezuela, Bolivarian Republic of

VEF 937 Bolivar Fuerte # 0.01 0.01 2 4

ATTACHMENT ‘I’ Page 1 of 1

Terms of Reference for Working group to introduce Paragraphs 31 and 33 to specify voluntary changes and voluntary refunds Terms of Reference (DRAFT) The Paragraphs 31/33 Working Group (P31_33WG), reporting to the Composite Conference is a forum whereby IATA Members and IATA Strategic Partners may: 1. Discuss and explore foundational requirements for specification of voluntary

change and voluntary refund process 2. Identify any requirement for alignment and coordination with any other part of the

IATA Composite Resolutions 3. Perform risk versus benefit assessment of introducing Paragraphs 31/33 4. Minimize necessity of carrier exceptions 5. Discuss implementation plan Membership Membership is open to all IATA member airlines and Strategic Partners Procedures

• Meetings will be called as necessary and combined with others where possible • The P31_33WG will liaise closely with other IATA groups as necessary • Implementation issues will be decided by consensus • Recommendations regarding IATA tariff coordination (TC) resolutions will be

agreed by a simple majority vote for which on IATA TC members may vote. Such recommendations will be forwarded to the RADWG

• Recommendations regarding other IATA resolutions will be forwarded to the appropriate Committee for their consideration

Deliverables: viable update/proposal to the Composite meeting October 2013 Chairman: TBD Co-Chairman: TBD

ATTACHMENT ‘J’ Page 1 of 1

Resolution 012 – GLOSSARY F TERMS

ECAA European Common Aviation Area and related States: Albania Liechtenstein

Austria Lithuania

Belgium Luxembourg

Bosnia and Herzegovina Macedonia FYROM

Bulgaria Malta

Croatia Montenegro

Cyprus Netherlands

Czech Republic Norway

Denmark Poland

Estonia Portugal

Finland Romania

France Serbia

Germany Slovakia

Greece Slovenia

Hungary Spain

Iceland Sweden

Ireland Switzerland

Italy United Kingdom

Latvia

in the event other nations join the European Common Aviation Area the Secretary is authorised to update this list. The Secretary shall circulate such changes and effective dates to all TC Members

Side Trip travel from and/or to an identical enroute point of a fare component

Attachment ‘K’ Page 1 of 1

SUMMARY OF AGREEMENT

The Composite meeting met in Abu Dhabi 17 October 2012. The changes are briefly described below.

For Intended Effect 1 February 2013:

• Amended currency in which fares are established from Turkmenistan from euro (EUR) to US Dollars (USD)

• Amended currency in which fares are established from Myanmar from kyat (MMK) to US Dollars (USD)

For Intended Effect 1 April 2013:

• Deleted definition of ‘European Common Aviation Area and related states (ECAA)’ as this was no longer required for fares purposes (Resolution 012)

• Definition of ‘Side Trip’ amended to provide more clarity (Resolution 012) • Wording amended to be more explicit for handling of change request for totally

unused tickets (Resolution 017f) • List of currencies restricted for acceptance updated and aligned with the list provided

by IATA Currency Coordination Working Group to reflect the airline ability to repatriate funds, and clarified the conditions of application for such currencies (Resolution 024d)

• Agreed to use only the Bankers Selling Rate for conversion processing to provide more consistency, uniformity and transparency, as well as for reasons of simplification and that Bankers Buying Rates are often not available (Resolutions 024e, 024k)

For Intended Effect 1 June 2013:

• Circle Trip Minimum check deleted for simplification (Resolutions 012c, 017b) • General guideline established for the fare selection criteria in case on interlining,

which applies a more competitive method, while meeting concerns of certain regulatory bodies and enable systems to implement the solution as it is similar to the criteria method already approved and implemented for markets within Europe (Resolution 017hh)