BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Agreements Adopted by the Traffic 

Conferences of the International Air 

Transport Association 

OST-2011-XXXX

APPLICATION FOR APPROVAL OF AGREEMENTS 

BY THE 

INTERNATIONAL AIR TRANSPORT ASSOCIATION

25 February 2011 

Communications with respect to 

this document should be sent to 

Douglas E. Lavin 

 Regional Vice President – North America 

International Air Transport Association 

1776 K.St. N.W. #12th Floor 

Washington DC 20006 
 1

Summary DOCKET: OST-2011-XXXX US DOT ORDER: pending

Date: 25 February 2011 

Filing fee / IATA Acct: USD 122 / 0000-06 

US/UST involved: No 

End of Government Filing Period: 15 December 2010

Meeting site, date: Geneva, 22 October 2010 

Intended effective date: 1 April 2011 

SUBJECT: Composite Passenger Tariff Coordinating Conference 

 Geneva, 22 October 2010 

 Composite Resolutions 017a, 017c

 Intended Effective Date: 1 April 2011 

 

R1 017a 

R2 017c 
 2

APPLICATION FOR APPROVAL OF AGREEMENT

 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 Sections 41308 and 41309 of Title 49 of the United 

States Code and Parts 303.03, 303.05 and 303.30(c) of Title 14 of the Code of Federal 

Regulations, I am filing with the Department this application for approval of an IATA 

agreement. 

 This agreement and related factual and explanatory material and documentation 

required by 14 C.F.R. 303.31 and Department and Civil Aeronautics Board (CAB) precedent 

are contained in the IATA Traffic Conference documentation summarized above. 

 This agreement arises from the continuing process of Tariff Coordinating Conferences 

and was developed in the context of prior Department and CAB rulings addressing related 

resolutions which reflected regulatory and market conditions then in effect. Thus, the present 

agreement should be viewed as part of a dynamic process of IATA Member airline 

adjustment to governmental and economic factors. 

 On previous occasions, the Department has found such agreements to be consistent 

with the public interest when they do not result in fares or rates that are unlawful or injurious 

to competition in the markets at issue. Approval of the present agreement would not yield 

fares or rates that are unlawful or injurious to competition. Moreover, approval of this 

agreement, which reflects compromises among the differing economic and social 

philosophies of the many nations whose airlines are parties, will advance the public interest 

in maintaining good aviation relations with other countries. 

 We request early approval by the Department of the foregoing agreement, pursuant to 

49 U.S.C. 41309, and the grant of full antitrust immunity, pursuant to 49 U.S.C. 41308. 

 The conferral of full antitrust immunity would be in the public interest and necessary for 

the transaction to proceed. This agreement is a product of the IATA Tariff Coordinating 

Conferences which the Department found to be anticompetitive but nevertheless approved 

and immunized in Order 85-5-32 (May 6, 1985) on foreign policy and comity grounds 

because such action is necessary to achieve the serious transportation need of maintaining 

good aviation relations with other countries and these benefits are not obtainable by 

reasonably available means having materially less anticompetitive effects. 

 This agreement concerns fares or rates between non-U.S. points and thus has at most 

indirect application in foreign air transportation. The U.S. authorities have recognized (e.g, 

Order 79-8-194, 30 August 1979) that the interests of sovereign nations in the conditions 

governing air transportation between them greatly exceed any that the U.S. might have by 

reason of U.S. airline, citizen or shipper participation. This agreement is not adverse to the 

public interest or in violation of the Act and, therefore, should be granted full immunity. 

Respectfully submitted 

___________________________ 

 Douglas Lavin 

 Regional Vice President – North America 

International Air Transport Association 
 3

CERTIFICATE OF SERVICE

 A copy of this application or a summary notice thereof has been served by first class or 

priority mail on the following person 

Chief, Transportation, Energy & Agriculture Section 

Antitrust Division 

Department of Justice 

Washington D.C. 20530 

________________________________ 

 Douglas E. Lavin 

25 February 2011 

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: tariffs@iata.org 

2 November 2010 

MEMORANDUM

PTC COMP 1596 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Manager Interline Tariffs 

SUBJECT: Composite Passenger Tariff Coordinating Conference 

 Geneva, 22 October 2010 

Composite Resolutions 017a, 017c

 Intended Effective Date: 1 April 2011 

RESOLUTIONS - ADOPTED

Attached are Composite Resolutions, which were adopted at the above meeting for an 

intended effective date of 1 April 2011. 

The filing period for the attached Resolutions ends 15 December 2010. 

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, Interline Tariffs 

Passenger Interline Standards
RESOLUTIONS ADOPTED AT 

COMPOSITE MEETING OF 

PASSENGER TARIFF COORDINATING CONFERENCE 

GENEVA, 22 OCTOBER 2010 

INTENDED EFFECTIVE DATE: 1 APRIL 2011 

RESO TITLE COMMENTS RD

017a Construction Rules for Journeys Amending 1 

017c Construction Rules for Fare Components Amending 2 
ADOPTED Res Doc: 1 

Resolution: 017a 

Page: 1

PTC COMP 1596 

GVA, Oct10

CONSTRUCTION RULES FOR JOURNEYS 

PTC1(87)017a Amending 

PTC2(165)017a 

PTC3(92)017a 

PTC12(196)017a

PTC23(161)017a

PTC31(126)017a 

PTC123(175)017a 

Filing Period Begins 15 November 2010 Intended Effectiveness: 1 April 2011 

 Ends 15 December 2010 Expiry: Indefinite 

 Type A 

RESOLVED that, Resolution 017a, Section A, Sub-Paragraph 2) d) and 3 a) are amended as 

follows 

SECTION A - APPLICATION 

2) fares to be assessed for the total journey shall be the applicable fares effective on the date 

of departure on the first sector 

 d) fares shall be assessed in the direction of travel, except that the fare component into 

the country of pricing unit origin shall be in the direction from such country, i.e. not in 

the direction of travel 

 Example 1: Travel FRA-MAD-JNB-MAD-FRA 

 Construction could be 

FRA-JNB RT 1 pricing unit 

or 

FRA-MAD RT 1 pricing unit 

MAD-JNB RT 1 pricing unit 

Total of 2 pricing units 

 • component JNB-MAD must be in the direction from MAD to JNB 

 Example 2: Travel SYD-SIN-BNE-SYD

 Construction could be

SYD-SIN RT 1 pricing unit

or

SYD-SIN 1⁄2 RT )

BNE-SIN 1⁄2 RT ) 1 Pricing unit

BNE-SYD 1⁄2 RT ) 

 Total of 1 circle trip pricing units

• component SIN-BNE must be in the direction from BNE to SIN because the fare

component is back in to country of pricing unit origin
ADOPTED Res Doc: 1 

Resolution: 017a 

Page: 2 

PTC COMP 1596 

GVA, Oct10

3) a) if the routing of a journey is determined as not fulfilling the definition of round trip or 

circle trip, it shall be assessed as follows, subject to the routing 

i) as a one way journey 

ii) as a series of one way subjourneys 

iii) as a round trip, or circle trip journey with the surface sector assumed flown 

iv) as an open jaw using two half round trip fares (subject to Paragraph 2) d) above) 

v) if there is a common point/country - as a mix of one way subjourney and a return 

subjourney (subject to Paragraphs 2)c) and 2)d) above) 

Example: Travel PAR-ATH 

Construction PAR-ATH OW 1 pricing unit 

 • does not qualify for RT, CT or normal fare OJ 

vi) if there is a common point/country - as a mix of side trip and a return subjourney

(subject to Paragraphs 2)c) and 2)d) above)

Example: Travel MAN-LON (/-PAR-LON) NCE-MAN

Construction MAN-NCE RT 1 pricing unit

 PAR-LON OW 1 pricing unit

• does not qualify for RT, CT or normal fare OJ. PAR-LON must be in

the direction PAR to LON as the side trip is considered separate.
ADOPTED Res Doc: 1 

Resolution: 017c 

PTC COMP 1596 

GVA, Oct10

CONSTRUCTION RULES FOR FARE COMPONENTS 

PTC1(87)017c Amending 

PTC2(165)017c 

PTC3(92)017c 

PTC12(196)017c

PTC23(161)017c

PTC31(126)017c 

PTC123(175)017c 

Filing Period Begins 15 November 2010 Intended Effectiveness: 1 April 2011 

 Ends 15 December 2010 Expiry: Indefinite 

 Type A 

RESOLVED that, Resolution 017c Paragraph 5) a) iv) is amended as follows 

iv) when comparing normal fares of the “same class of service” in order to determine if 

there is a higher intermediate fare, the following sequence shall be followed 

sleeper seat is compared with sleeper seat fare; 

if no sleeper seat fare, compare with the highest first class fare, ignoring any fare

rule provisions 

provided that where more than one first class fare is published, compare with the 

highest first class fare

first class fare is compared with first class fare; 

if no first class fare, compare with the highest intermediate/business class fare (or 

next lower class fare) , ignoring any fare rule provisions 

provided that where more than one intermediate/business class fare is published, 

compare with the highest intermediate/business class fare

intermediate/business class fare is compared with intermediate/business class 

fare; 

if no intermediate/business class seat fare, compare with the highest economy 

class fare, ignoring any fare rule provisions 

provided that where more than one economy class fare is published, compare 

with the highest economy class fare

economy class is compared with economy class fare; 

if no economy class fare to compare, no check is required
PTC COMP 1596 

GVA, Oct10

SUMMARY OF AGREEMENT 

 Resolutions 017a, 017c 

Intended Effective Date: 1 April 2011

The Composite meeting met in Geneva 22 October 2010. The agreement contains 

amendments to Composite Resolutions 017a and 017c with an intended effective date of 

1 April 2011. The change is briefly described below. 

• Added an example to 017a Section A, Sub-Paragraph 2) d) to ensure clarity for the 

direction of domestic fares ticketed as a part of an international journey 

• Added an example to 017a Section A, Sub-Paragraph 3) a) to ensure clarity for one 

way (OW) fare in a side trip 

• Amended 017c Paragraph 5), a), vi) to clarify processing for HIP application when no 

comparable fares exist in the same class