# 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

26 March 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: 26 March 2013

Filing fee/IATA Acct: Waived by Order 2012

‐ 4

‐ 18, Appendix A, Section D

US/UST involved Yes

Intended

effective/implementation

date: 1 July 2013

Resolution

Original Memos

Respective Docket Numbers Resolution 011

‐ PTC COMP Memo 1329 / 25Jul06 DN: 2006

‐ 25789

Resolution 011b

‐ PTC COMP Memo 1329 / 25Jul06 DN: 2006

‐ 25789

PTC COMP Memo 1547 / 18Sep09 DN: 2008

‐ 0304

Resolution 012

‐ PTC COMP Memo 1330 / 25Jul06 DN: 2006

‐ 25790

PTC COMP Memo 1547 / 18Sep09 DN: 2008

‐ 0304

PTC COMP Memo 1508 / 21Nov08 DN: 2008

‐ 0304

PTC COMP Memo 1511 / 21Nov08 DN: 2008

‐ 0304

PTC COMP Memo 1595 / 02Nov10 DN: 2010

‐ 0037

Resolution 012c

‐ PTC COMP Memo 1330 / 25Jul06 DN: 2006

‐ 25790

PTC COMP Memo 1532 / 03Jul09 DN: 2008

‐ 0304

Resolution 017a

‐ PTC COMP Memo 1268 / 23Aug05 DN: 2005

‐ 22352

PTC COMP Memo 1596 / 02Nov10 DN: 2011

‐ 0038

PTC COMP Memo 1547 / 18Sep09 DN: 2008

‐ 0304

Resolution 017e

– PTC COMP Memo 1268 / 23Aug05 DN: 2005

‐ 22352

PTC COMP Memo 1547 / 18Sep09 DN: 2008

‐ 0304

# 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 (John.Kiser@dot.gov)

and to Della Davis (Della.Davis@dot.gov) of the Department of Transportation.

/s/ Douglas Lavin

Douglas Lavin

26 March 2013

Date ServedRESOLUTION011MILEAGESANDROUTESFORTARIFFPURPOSES(ATTACHMENTA)Effective1May2013(Tier1)ContentExplanations/NotesOriginalMemoOriginalDocketSHORTEST OPERATED MILEAGESSOMs between the following TC Areas/Countries must be constructed with theshortest operated mileagesover the specified pointsAdoptedinSeptember2009foreffective1April2010,changesmadetoclarifythetechnicalapplicationofroutingRU1329(25JUL06)2006‐25789ROUTINGBETWEENANDGLOBALINDICATOROVERn) Russia Russia (in Europe) South East Asia exceptChina (excluding HongKong SAR and MacaoSAR), Kazakhstan,Kyrgyzstan, Mongolia,Russia in Asia,Tajikistan,Turkmenistan,Uzbekistan),South West PacificRU MoscowandJapanRESOLUTION011bGLOBALINDICATORSEffective1May2013(Tier1)ContentExplanations/NotesOriginalMemoOriginalDocket1) in applying Global Indicators (GI) the following shall applya) if a sector can attract more than oneGlobal Indicator, then the routing of theflights must be used to determine the specific Global Indicator to be appliede.g. SIN-NYC --- options via PA or via AT.b) the comparison of theitinerary of a fare component with a Global Indicatorshall be based on the ticketed points within the fare componentc) fares may only be used for the Global Indicator for which they areestablished. The itinerary within afare component will attract a GlobalIndicator as followsFare ComponentGIRoutingRestrictionWhollyWithinTC1WHWhollyWithinTC2EHWhollyWithinTC3EHBetween TC1 andTC2 via theAtlanticATBetween TC1(exceptArgentina,Brazil, Chile,Paraguay,Uruguay)andTC3 via theAtlanticATBetweenArgentina,Brazil, Chile,andTC3 (exceptSouth EastAsia/SouthATAdoptedinJuly2006foreffective1April2007,changesmadetoclarifyintentthatthefarecomponentshouldbewhollywithintheareaandnotviaotherareas1329(25JUL06)2006‐25789Paraguay,UruguayAsianSubcontinent,Korea (Dem.People’s Rep.of), Korea (Rep.of) via theAtlantic)BetweenArgentina,Brazil, Chile,Paraguay,UruguayandSouth EastAsia/SouthAsianSubcontinent,Korea (Dem.People’s Rep.of), Korea (Rep.of) via theAtlanticATif travel is viaCentral Africa,Southern AfricaIndian OceanIslands then travelmust also be via apoint(s) in TC2outside CentralAfrica, SouthernAfrica, IndianOcean IslandsBetweenArgentina,Brazil, Chile,Paraguay,UruguayandSouth East Asia,South AsianSubcontinent,Korea (Dem.People’s Rep.of), Korea (Rep.of) via theAtlanticSAonlyvia point(s) inSouth East Asia,South AsianSubcontinent,Korea (Dem.People’s Rep. of),Korea (Rep. of),South Atlantic area,Central Africa,Southern Africa,Indian OceanIslandsonlyor viadirecttransatlanticservicesBetween TC1 andTC3 (exceptSouth WestPacific)PAnot applicable forroutings on nonstop servicesbetween Canada /USA and SouthAsian SubcontinentBetween TC1(exceptArgentina,Bolivia, Brazil,Chile, Colombia,Ecuador, FrenchGuiana,andSouth WestPacificPAnot applicable forroutings on nonstop servicesbetween Canada /USA and SouthAsian SubcontinentAdoptedinSeptember2009foreffective1April2010,changesmadetoclarifythetechnicalapplicationofroutingSA1547(18SEP09)2008‐0304Guyana,Panama,Paraguay, Peru,Suriname,Uruguay,Venezuela)BetweenArgentina,Bolivia, Brazil,Chile, Colombia,Ecuador, FrenchGuiana,Guyana,Panama,Paraguay, Peru,Suriname,Uruguay,VenezuelaandSouth WestPacificPAnot via NorthAmerica / applicablefor transpacificroutings that do notqualify as PNBetween TC1(effective01Jun12)AndTC2 via thePacificPA via TC3BetweenArgentina,Bolivia, Brazil,Chile, Colombia,Ecuador, FrenchGuiana,Guyana,Panama,Paraguay, Peru,Suriname,Uruguay,VenezuelaandSouth WestPacificPNmust be via NorthAmerica but not viaTC3 except SouthWest PacificBetween TC2(except Russiain Europe,Ukraine)and TC3 EHnot for routings onnon-stop servicesbetween Europeand Japan, Korea(Dem. People’sRep. of), Korea(Rep. of)Between Russia(in Europe),Ukraineand TC3 EHnot for routings onnon-stop servicesbetween Europeand Japan, Korea(Dem. People’sRep. of), Korea(Rep. of);only for routings viaanother country(ies)in Europe (exceptRussia in Europe,Ukraine) and/orMiddle EastBetween TC2(except Russiain Europe)andTC3exceptChina (excludingHong Kong SARand MacaoSAR)TSonly for routings onnon-stop servicesbetween Europeand Japan, Korea(Dem. People’sRep. of), Korea(Rep. of)Between Russia(in Europe)andTC3exceptChina (excludingHong Kong SARand MacaoSAR)TSonly for routings onnon-stop servicesbetween Europeand Japan, Korea(Dem. People’sRep. of), Korea(Rep. of); viaanother country(ies)in EuropeBetween Russia(in Europe)andTC3exceptChina (excludingHong Kong SARand MacaoSAR),Kazakhstan,Kyrgyzstan,Mongolia,Russia in Asia,Tajikistan,Turkmenistan,Uzbekistan)RUonly for routings onnon-stop servicesbetween Russia (inEurope) and Japan,Korea (Dem.People’s Rep. of),Korea (Rep. of); notvia anothercountry(ies) inEuropeBetween Russia(in Europe),Ukraineand TC3 FEonly for routings onnon-stop servicesbetween Russia (inEurope), Ukraineand TC3 other thanJapan, Korea (Dem.People’s Rep. of),AdoptedinSeptember2009foreffective1April2010,changesmadetoclarifythetechnicalapplicationofroutingsTSandRU1547(18SEP09)2008‐0304Korea (Rep. of)Between TC2 andTC3 via theAtlantic andPacificAP2) if there is no fare with the Global Indicator identified by therouting travelled, thefare shall be constructed in accordance with Resolution 017a Section A)Paragraph 6) (the lowest combination principle)ExampleRouting: ACC-FRA-MOW-TYO-MNLThrough fare: based on fare component ACC-MNL, EH or TS: theitinerary of the fare componentdictates that a TS fareshould be appliedFare Construction: if there is no through TS fare then the fare must bebroken at FRA or MOW or TYO (if a TS fare exists)whichever gives the lower amount3) for purposes of this Resolution, travelvia North and Central Pacific refers toTC31 travel via a point(s) in TC3 excluding South West PacificExampleCCS-ATL-LAX-SYD is considered a PN route not via North and Central Pacific4) IATA is authorised to update this Resolution as and when required based onagreements for fare specification byindividual conference meetingsRESOLUTION012GLOSSARYOFTERMSEffective1May2013(Tier1)ContentExplanations/NotesOriginalMemoOriginalDocketTERM DEFINITIONExchangeTheissuanceofanewticketforatotallyunusedticketnecessitatedbyachangetothecarrier,flight,date,classofserviceorsectorofthefirstflightcouponoftheticketRebookingchangeofreservationand/orotherchangeswhichdonotrequireticketreissuanceachangetothereservationsdatawithoutachangeofticketedpointsReissueTheissuanceofarevisedticketnecessitatedbyachangetootherthanthefirstflightcouponoftheticketorachangetootherthanthecarrier,flight,dateorsectorofthefirstflightcouponofaticket.Reroutingchangeofroutingand/orotherchangeswhichrequireticketreissuanceanychangetoticketedpointsOther ChargesCharges such as taxes/fees/charges, flightrelatedservices,merchandisingrelatedservice,ticketrelatedservicesetc., excluding excess baggage chargesRelated Chargesfarerelatedcharges such as cancellation penalties, nonrefundable amounts, rebooking and rerouting charges,refund/reissueoverrides, stopover charges, weekendsurcharges etc., and excess baggage chargesAmendeddefinitionsof‘Rebooking’and‘Rerouting’forclarityandtobeinlinewithResolution017fExchange,ReissuesandRefunds.Introduceddefinitionsof‘Exchange’and‘Reissue’toclearlydistincttheprocesses.Added‘classofservice’tothedefinitionof‘Exchange’forfurthertechnicalclarityAmendeddefinitionsfor‘OtherCharges’and‘RelatedCharges’toalignwithdefinitionsinthePassengerServicesConferenceRecommendedPractice(RP)1790AdditionalServicestoaccommodatethenewfunctionality1330(25JUL06)1330(25JUL06)1547(18Sep09)1508(21NOV08)2006‐257902006‐257902008‐03042008‐0304TERM DEFINITIONStatusfaresfaresthatareonlyavailabletodesignatedcategoriesofpassengersaftermeetingeligibilityrequirementsaccompaniedbypassengertypedescriptionDeadlinereservations: the minimum/maximum number ofdays/months before the day ofdeparture by which reservations mustbe confirmedticketing: the minimum/maximum number ofdays/months before the day ofdeparture or the minimum/maximumnumber of hours/days afterreservation by which payment andticketing must be completed; issuedate of a PTA constitutes the ticketingdateNotes1) before departure: the definition refers to the firstflight of the pricing unit2) after departure: the definition refers to subsequentflights of the pricing unit3)forthepurposeofdeterminingadeadlineexpressedinmonthsitshallmeanaperiodoftimebeforeagivendateinonemonthtothecorrespondingdateinapreviousmonthExceptionsWherethecorrespondingdatedoesnotexistinashorter,earliermonth,thenthemonth(s)shallmeanfromagivendateinonemonthtothelastdayofsuchshorterearliermonth.Forexample:DepartureDate=30MarchOnemonthbeforedeparture=28/29FebruaryWhenthe'givendate'isthelastdayinonemonth,thenthecorrespondingdateinanearliermonthIntroduceddefinitionfor‘StatusFares’toaccommodatethesplitoftheHIPapplicationforNormalandSpecialfaresExamplesaddedtothedefinitionof‘Deadline’forclarity1511(21NOV08)1547(18SEP09)2008‐03042008‐0304mustbethesamedate,withtheexceptionofearliermonthsthatdonothavethatsamedate.Forexample:DepartureDate=31MarchOnemonthbeforedeparture=28/29FebruaryDepartureDate=28/29FebruaryOnemonthbeforedeparture=28/29JanuaryDepartureDate=30AprilThreemonthsbeforedeparture=30JanuaryDepartureDate=31JulyOnemonthbeforedeparture=30JuneBudget Fare(for travel whollywithin Europe)special economy restricted faresNormal Farea fare established in the Resolution 040/050/060series for intermediate/business, first or economyclass service and any other fare denominated andpublished as a normal fare (e.g. C2, F2, Y2, YIF, CIF,FIF). Children's fares and infants' fares which areestablished as a percentage of the fares referred toabove are also considered to be normal faresLocal CurrencyFaresfares and related charges expressed in the currency ofthe country of commencement of travel; seeResolution 024a for those countries where the USDollar or eurois used for local currencyCountry ofCommencement ofTransportationthe country from which travelon the first internationalsector takes place. If the first international sector is asurface sector, priced asan embedded surface sector,such sector shall constitute“travel” for the purpose ofestablishing the Country of Commencement ofTransportationExcess BaggageChargeCharges applied to baggage checked in excess of freeor paid baggage allowanceDefinitionof‘BudgetFare’deletedwiththecancellationofthefareinlightofintroductionofFlexFaresDefinition‘NormalFares’amendedtoincludefarebasiscodesforFlexFaresDefinition‘LocalCurrencyFares’amendedtoinclude‘euro’currencyfaresapplicationDefinition‘CountryofCommencementofTransportation’amendedtoclarifytechnicalprocessingofcaseswherethefirstinternationalsectorofajourneyisanembeddedsurfacesectorDefinition‘ExcessBaggageCharges’introducedforclarity1547(18SEP09)1547(18SEP09)1547(18SEP09)1595(02NOV10)1595(02NOV10)2008‐03042008‐03042008‐03042010‐00372010‐0037RESOLUTION012cFARECONSTRUCTIONRULEACRONYMSEffective1xxx2013(tobedeterminedwithHIPpackage)(Tier1)ContentExplanations/NotesOriginalMemoOriginalDocketAcronym Name Resolution/Reference Fares Applicable FareBHC One WayBack Haulcheck017c Paragraph 6) NormalSpecialday of week,seasonality(including blackoutdates),flight application,number ofstopovers,number ofandtransferslimitations,routingvalidationCTM Circle TripMinimumcheck017b Section C, 3) NormalSpecialday of week,seasonality(including blackoutdates)EMA ExtraMileageAllowance017c Attachment CEMS ExtraMileageSurcharge017c Paragraph 2) a) i)HIP HigherIntermediatePoint check017c Paragraph 5) a),b)NormalSpecialday of week,seasonality(including blackoutdates), flightapplication,number ofstopovers,number ofandtransferslimitations,routingvalidationClarifiedtheapplicationofstopoverandtransferrulesforthe‘OneWayBackHaulcheck(BHC)’and‘HigherIntermediatePointcheck(HIP)’ReferencestotheHIPapplicationaddedforclarity1330(25JUL06)1532(3JUL09)2006‐257902008‐0304MPM MaximumPermittedMileage011 Section ERWMRound theWorldMinimum017b Section C, 3) same as CTMTPM TicketedPointMileage011 Section DRESOLUTION017aCONSTRUCTIONRULESFORJOURNEYSEffective1xxx2013(tobedetermined)(Tier1)ContentExplanations/NotesOriginalMemoOriginalDocketRESOLVED that,SECTION A - APPLICATION1) a) the fare for a journey (excluding side trips assessed separately) shall be thelowest ofi) a single pricing unit for the journey, orii) any series of end-on combined pricing units which collectively comprisethe journey being travelledb) to determine the fares for Paragraph 1)a) above using normal fares refer tothe flow chart attached hereto2) fares to be assessed for the total journey shall be the applicable fares effectiveon the date of departure on the first sectora) if the routingof the journey is determined as fulfilling the definition of a roundtrip orcircle trip or normal/special fare open jaw tripin Resolution 012, thepricing unit must be assessed as a round trip orcircle trip or normal/specialfare open jaw tripand must use half round trip fares; the use of one way faresis not permitted. For end-on combination of normal and special fares,completely separate the special and normal fare and assess the normal faresubjourney according to the flow chartExample: Travel LON-MIL-STO-LONConstruction LON-MIL 1⁄2 RT )MIL-STO 1⁄2 RT ) 1 pricing unitLON-STO 1⁄2 RT )•OW fares not permitted as travel iscontinuous, circuitous and returns tosame point•CTM check LON-MIL RT and LON-STO RT•last fare component from country of originb) if there is a common point/countryon the routing the journey may be brokeninto more than one pricing unit provided these must be for return subjourneysRemovedreferenceto‘normal/specialfareopenjawtrip’1268(23AUG05)2005‐22352using half round trip faresExample: Travel HEL-BKK-TYO-SEL-TYO-BKK-HELConstruction could beHEL-BKK RT 1 pricing unitBKK-TYO RT 1 pricing unitTYO-SEL RT 1 pricing unitorHEL-TYO RT 1 pricing unitTYO-SEL RT 1 pricing unitorHEL-BKK RT 1 pricing unitBKK-SEL RT 1 pricing unitc) i) a return subjourney only occurs if the fare is broken more than once at thecommon point/country. The fare for travel between such fare break pointsmust be priced as a round trip, circle trip or normal/special fare open jaw,as applicable, and must use half round trip faresExample: Travel NYC-LON-JNB-MAN-NYCConstruction could beNYC-LON 1⁄2 RT )NYC-MAN 1⁄2 RT ) 1 pricing unitLON-JNB 1⁄2 RT )MAN-JNB 1⁄2 RT 1 pricing unit•both subjourneys fall within definition of OJ•(note that above journey could also be constructed as NYC-JNB RT)ii) if travel between such fare break points would require the use of one wayfares, this is not permittedExample: Travel NYC-LON-RIO-JNB-MAN-NYCConstruction couldnotbeNYC-LON 1⁄2 RT) )NYC-MAN 1⁄2 RT) )LON-RIO OW )not possibleRIO-JNB OW )MAN-JNB OW )•travel LON-RIO-JNB-MAN is not within definition of OJ•use of OW fares not permitted•total journey falls within definition of CT and may only be constructedas a single pricing unitd) fares shall be assessed in the direction of travel, except that the farecomponent into the country of pricing unitorigin shall be in the direction fromsuch country, i.e. not in the direction of travelExample 1:Travel FRA-MAD-JNB-MAD-FRAConstruction could beFRA-JNB RT 1 pricing unitorFRA-MAD RT 1 pricing unitMAD-JNB RT 1 pricing unitTotal of 2 pricing units•component JNB-MAD must be in the direction from MAD to JNBExample 2:Travel SYD-SIN-BNE-SYDConstruction could beSYD-SIN RT 1 pricing unitorSYD-SIN1⁄2RT )BNE-SIN1⁄2RT ) 1 pricing unitBNE-SYD1⁄2RT )Total of 1 circle trip pricing units•component SIN-BNE must be in thedirection from BNE to SIN becausethe fare component is back in to country of pricing origin3)a)if the routing ofthe journey is determined asfulfilling the definition of anormal/special fare open jaw trip in Resolution012, the pricing unit shall beassessed as two half round trip fares,provided that, if there is a commonpoint(s) or other points ineither the country of origin or the country ofturnaround or both, the fare may alternatively be assessed as a returnsubjourney from/to the common point(s) or other points and a one waysubjourney(s) for the domestic sector(s)b)in the case of the alternative pricing option the one way pricing unit must beassessed using one way fares and the return subjourney must be assessedusing half round trip faresc)fares shall be assessed in the direction of travel, except that the farecomponent into the country of pricing unit origin shall be inthe direction fromsuch country, i.e. not in the direction of travel43)a) if the routing of a journey is determined as not fulfilling the definition of roundtrip or circle trip or normal/special fare openjaw trip, it shall be assessed asfollows, subject to the routingi) as a one way journeyAddedexampletoensureclarityforthedirectionofdomesticfaresticketedasapartofaninternationaljourneyRemovedtheentireparagraphfor‘normal/specialfareopenjawtrip’Deletedreferenceto‘normal/specialfareopenjawtrip’andaddedassessmentprocessusinghalfroundtripfares1596(02NOV10)1268(23AUG05)1268(23AUG05)2011‐00382005‐223522005‐22352ii) as a series of one way subjourneysiii) as a round trip, or circle tripjourney with the surface sector assumedflowniv) 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 areturn subjourney (subject to Paragraphs 2)c) and 2)d) above)Example: Travel PAR-ATHConstruction PAR-ATH OW 1 pricing unit•does not qualify for RT, CT or normal fare OJvi)ifthereisacommonpoint/country-asamixofsidetripandareturnsubjourney(subjecttoParagraphs2)c)and2)d)above)Example:TravelMAN-LON(/-PAR-LON)NCE-MANConstructionMAN-NCERT1pricingunitPAR-LONOW1pricingunit•doesnotqualifyforRT,CTornormalfareOJ.PAR-LONmustbeinthedirectionPARtoLONasthesidetripisconsideredseparate.Example: Travel PAR-BKK-VIE-ROMConstruction could bePAR-BKKOW1 pricing unitBKK-VIEOW1 pricing unitVIE-ROMOW1 pricing unitorPAR-BKKOW1 pricing unitPARBKK1⁄2RT)BKK-ROMOW1 pricing unitROMBKK1⁄2RT)1pricingunitorPAR-BKK1⁄2RT)VIE-BKK1⁄2RT)1pricingunitVIE-ROMOW1pricingunit* noreturn to country of origin (EuropeinaccordancewithResolutionAddedanexampletotoensureclarityforoneway(OW)fareinasidetripClarifiedthecorrectapplicationbyamendingandaddingexamples.ItdealswiththeEuropeshouldbeconsideredasonecountryforNormalopenjawandthedirectionalityofpricingunits.1596(02NOV10)1547(18SEP09)2011‐00382008‐0304017bSectionD1)a), fares in thedirection of travelfromthecountryoforiginExample: Travel STO-NBO XXX SEZ-NBO-STOConstruction could beSTO-NBO OW1⁄2RT)1 pricing unitSTO-SEZ OW1⁄2RT)1 pricing unit(subjecttointernationalturnaroundsurfacesectorTPMcheckinaccordancewithResolution017bSectionD1)c)iii)aa)orSTO-NBO RT 1 pricing unitSEZ-NBO OW 1 pricing unitorSTO-SEZ RT 1 pricing unitExample 1:Travel KHH-TPE-SIN-TPEConstruction could beKHH-SIN 1⁄2 RT )TPE-SIN 1⁄2 RT ) 1 pricing unitorKHH-TPE OW 1 pricing unitTPE-SIN RT 1 pricing unitwhichever is the lowerExample 2:Travel KHH-TPE-JKT-DPS XXX JKT-TPEConstruction could beKHH-DPS 1⁄2 RT )TPE-JKT 1⁄2 RT ) 1 pricing unitorKHH-TPE OW 1 pricing unitTPE-JKT RT 1 pricing unitJKT-DPS OW 1 pricing unitorKHH-TPE OW 1 pricing unitTPE-DPS 1⁄2 RT )TPE-JKT 1⁄2 RT ) 1 pricing unitorKHH-JKT 1⁄2 RT )TPE-JKT 1⁄2 RT ) 1 pricing unitJKT-DPS OW 1 pricing unitwhichever is the lowerExample 3:Travel GLA MAN ROM LONClarifiedthecorrectapplicationbyamendingandaddingexamples.ItdealswiththeEuropeshouldbeconsideredasonecountryforNormalopenjawandthedirectionalityofpricingunits.1547(18SEP09)2008‐0304Construction could beGLA-ROM 1⁄2 RT )LON-ROM 1⁄2 RT ) 1 pricing unitorGLA-MAN OW 1 pricing unitMAN-ROM 1⁄2 RT )LON-ROM 1⁄2 RT ) 1 pricing unitb) in the case of i), ii) and the oneway subjourney in iv) and v) above, thejourney/subjourney must be assessed using one way fares; the use of halfround trip fares is not permittedc) fares shall be assessed in the direction of travel, except that when a pricingunit for a one way subjourney terminates in a country from which a previouspricing unit has been assessed, the pricing unit for the one way subjourneyinto such country shall be assessed from such country, i.e. not in thedirection of travelExamples:1. Travel ATL-LON-STO-LIS-GLAATL-SEL-SYD-BJS-PUSConstruction ATL-LONATL-SELOW 1 pricing unitLON-STOSEL-SYDOW 1 pricing unitSTO-LISSYD-BJSOW 1 pricing unitGLA-LISPUS-BJSOW 1 pricing unitTotal of 4 pricing unitsfare component LIS-GLABJS-PUSmust be in the direction ofGLA-LISPUS-BJSbecause the termination point (GLAPUS)is in the same country from which a previous pricing unit (LONSTOSEL-SYD) was assessed2.Travel:PARBKKAMS/-BRUNCEConstructionPARBKK1⁄2RT)AMSBKK1⁄2RT)1pricingunitNCEBRUOW1pricingunitTotalof2pricingunitsFarecomponentBRU-NCEmustbeinthedirectionofNCE-BRUbecausetheterminationpoint(NCE)istheunitorigincountryofthepreviouspricing(PAR-BKK-AMS).3.Travel:ZRHCAIMUC/-DXBFRAConstructiona)ZRHCAI1⁄2RT)FRADXB1⁄2RT)1pricingunitCAIMUCOW1pricingunitTotalof2pricingunitsClarifiedthecorrectapplicationbyamendingandaddingexamples.ItdealswiththeEuropeshouldbeconsideredasonecountryforNormalopenjawandthedirectionalityofpricingunits.1547(18SEP09)2008‐0304FarecomponentCAI-MUCmustbeintheactualdirectionoftravelbecausetheterminationpoint(MUC)isnotinthecountryofunitoriginofthepreviouspricingunit(ZRH-CAIsurfaceDXBFRA).Constructionb)ZRHCAI1⁄2RT)MUCCAI1⁄2RT)1pricingunitDXBFRAOW1pricingunitTotalof2pricingunitsFarecomponentDXB-FRAmustbeintheactualdirectionoftravelbecausetheterminationpoint(FRA)isnotinthecountryofunitoriginofthepreviouspricingunit(ZRH-CAI-MUC).4) in applying the provisionsof Subparagraphs 2)d) and 3)c)except for round trippricing units, farecomponents between Canada and USA and betweenDenmark, Norway, Sweden shall be assessed in the direction of travel5) fare construction must be via the itinerary of the passenger. The addition ofpoints not on the passenger'sitinerary is not permittedException: constructions using add-ons6)Unpublished Fareswhen it is necessary to establish a fare between any two ticketed points on ajourney, the following provisions shall apply, subject to Section B, Paragraph 4:a) the fare shall be the lowest combination of sector fares over an intermediateticketed point for the class of service usedb) the fare shall be constructed in thedirection of travel,except that when thefare is for a fare component which terminates in the country of unit origin or ina country from which a previous pricing unit has been assessed, the fareshall be in the direction from the country,i.e. not in the direction of travelc) if the same construction point isused for the outbound and inbound fare, thefare shall be constructed in accordance with Section B, Paragraph 1Example:i A to B to C to D to Aii A to D to C to B to AFares: A to B 50 B to A 45B to C 40 C to B 50C to D 60 D to C 90D to A 90 A to D 50No fare A to C No fare C to AConstruction: i A to B 50 + B to C 40 + C to D 60 + A to D 50 = Total 200Correctedreferenceconsequenttoremovalofaparagraph1268(23AUG05)2005‐22352ii A to D 50 + D to C 90 + C to B 50 + A to B 50 = Total 240d) the fares used must be shown separately on the tickete) for purposes of fare construction checks, a fare need not beconstructed overanother ticketed point when there are nopublished fares to/from/between anintermediate point(s) in the routing.7)Fares Expressed as a Percentagewhen fares are expressed as a percentage of another fare and differentpercentages apply in a pricing unit, the following rule applies:a) apply the percentage to the base fareto establish the fare level as an amountb) use such fare level for the application of all fare construction rulesExample:A - B - C - D - Achildren's fare: A - C 50% of adult fareB - C 67% of adult fareA - D 50% of adult fare* calculate amounts resulting from application of above percentages* apply HIP/CTM etc rules using the resultant levels8) a journey on a ticket or conjunction ticket, at the time of original issue or whenreissued, must not include more than four international arrivals and fourinternational departures in any one country; provided for the counting of arrivalsand departures surface sectors are considered to be flownExample:AMS-CAI-RTM-LON-AMS-DXB-AMS-JNB-AMS-BAHThis journey is not allowed to have five internationaldepartures from the Netherlands9) unless otherwise specified, for the purpose of:Resolution 017a (except Section A Paragraphs 65and 87, Section B Paragraph3)Resolution 017bResolution 017c (except Paragraph 3)Resolution 017f (except Section B Paragraph 1, Section C, Section D)a) Canada and USA shall be considered as one countryCorrectedreferenceconsequenttoremovalofaparagraph1268(23AUG05)2005‐22352b) Scandinavia shall be considered as one countrySECTION B - COMBINATIONS1) a) combinations are only permitted with fares which by their own terms arecombinableException: combinations to/from USAb) fares used in combination are to be shown separately on the ticket2) round the world: one way special faresshall not be used to calculate fares forround the world travel3) combination of one way normal pricing units with international side trip one waypricing units to or via the country of commencement of transportation shall not bepermitted4) combination of fares USA: nothing precludes the combination of internationalfares and normal/special fares within USA provided that any conditions attachedto such fares are complied with; stand-by fares must not be so combinedFlowchart Attachment replaced as attached1268(23AUG05)2005‐22352RESOLUTION017eMIXEDCLASSEffective1May2013(Tier1)ContentExplanations/NotesOriginalMemoOriginalDocketA GENERAL1) mixed class travel is when an itinerary involves travel in two or more classes ofservice2) in assessing the fare for the mixed class transportation, special fares must not beused3) the application of this Resolutionshall not be used to circumvent anystopover/transfer restrictions applicable to the through fare for the lowest class ofservice used4) differentials are assessed in the samedirection as the fare used for the lowestclass of service5) when half round trip fares are used, differentials are assessed using half roundtrip fares.When one way fares are used, differentials are assessed using oneway fares6) class differential calculation is only subject to the HIP check, no further minimumchecks apply7)whencomparingnormalfaresofthe'sameclassofservice',inordertodeterminethefarestobeusedinaclassdifferentialcalculation,thefollowingsequenceshallapplyifnosleeperseatfare,usefirstclassfare;ifnofirstclassfare,useintermediateclassfare;ifnointermediateclassfare,useeconomyclassfare;providedthatwheremorethanoneeconomyclassfareispublished,usethehighesteconomyclassfare;ExampleRouting:SINCLAXFCHIwhencalculatingtheclassdifferentialforLAXtoCHI,ifthereisnointermediateMixedclasscalculationsequenceclarifiedforthefarestobeused1268(23AUG05)2005‐22352classfareforthissector,thehighesteconomyfareshallbeused,i.e.LAX-CHIFY=DB FARE CALCULATION1) establish the fare for the itinerary in the lowest class of service used applying allapplicable fare construction checks;providedthatifnofareisfoundinthelowestclassofserviceused,dropdowntothenextlowerclassofservicecommontoallthefarecomponentsofthepricingunitExample:TYOCSELFTSNCDLCCTYO(sectorfares)whenthereisnoCfareavailableforSELTSN,calculatewithYfarefortheentirepricingunitandapplyCTMcheckusingYfare2) establish whether as a result of1) above the mixed class sector(s)a) apply within a fare component, orb) constitute an entire fare component, orc) constitute anentire pricing unitC MIXED CLASS SECTOR(S) WITHIN A FARE COMPONENT1) if the calculation in the lower class oftravel establishes that the mixed classsector(s) fall within a fare component, thedifferential for the sector(s) travelled ina higher class shall be the lowest of the followinga) the difference between the lower class fare for the sectors flown in the higherclass and the fare for the higher class of travel on those sectorsb) the difference between the applicable fare for the fare component in the lowerclass of service and the applicable fare for the fare component in the higherclass of serviceExampleLON-BKK-HKG-LON class of service Y except BKK-HKG Ffares (half RT in NUC) First EconomyLON-BKK 4626.10 1929.54LON-HKG 4895.92 2188.27BKK-HKG 291.13 207.96the fare shall be assessed in economy class: LON-HKG-LON RT = NUC4376.54the differential shall be the lowest ofa) BKK-HKG F 291.13lessClarifiedtheapplicationofMixedclasstravelbyaddinganexample1547(18SEP09)2008‐0304BKK-HKG Y 207.96 Differential 83.17b) LON-HKG F 4895.92lessLON-HKG Y 2188.27 Differential 2707.65the total fare shall be LON-HKG-LON RT Y 4376.54Plus differential 83.17TOTAL4459.712) for consecutive sectors within a farecomponent travelled in a higher class ofservice, the difference shall be the lower ofa) the difference between the lowest applicable fare for the lowest class ofservice used and the lowest applicablefare for the higher class of serviceused, orb) lowest applicable through fare for the lowest class used for the sectorsconcerned and the lowest applicable through fare for the higher class usedfor such sectorsExampleTravel BKKHKG CSIN FZRH Fsum of the through C fare plus lower differential of the followingCalculation 1HKG-SIN F Fare 876.94HKG-SIN C Fare 741.73difference 135.21SIN-ZRH F2 Fare 2421.28SIN-ZRH C Fare 2122.39Difference 298.89total difference 434.10Calculation 2HKG-ZRH F Fare *3613.68HKG-ZRH C Fare 2566.70difference 1046.98(*subject to mileage rules and HIP check)the differential to be applied shall be 434.10D AN ENTIRE FARE COMPONENT IN A HIGHER CLASSif the calculation in the lower class oftravel establishes that the mixed classsector(s) constitute an entire fare component(s), the differential shall be thedifference between the applicable fare for the lower class of travel for the farecomponent and the applicable fare for the higher class of travel for the farecomponentExampleLON-BKK-HKG-LON Class of service Y except HKG-LON Ffares (half RT in NUC) First EconomyLON-BKK 4626.10 1929.54LON-HKG 4895.92 2188.27BKK-HKG 291.13 207.96the fare shall be assessed in economy classLON-HKG-LON RT Y 4376.54the differential shall beLON-HKG F 4895.92lessLON-HKG Y 2188.27 differential 2707.65TOTAL7084.19E AN ENTIRE PRICING UNIT IN A HIGHER CLASS1) if the calculation in the lower class oftravel establishes that the mixed classsector(s) constitute an entire Pricing Unit, the differential shall be the differencebetween the applicable fare for the lower class of travel for the Pricing Unit andthe applicable fare for the higher class of travel for the Pricing Unit2) in applying this methodology the resultantlevel will only be applied if it gives alower level than other calculationsExampleLON-BKK-HKG-BKK-LONClass of service LON-BKK-LON F BKK-HKG-BKK YFares (RT in NUC) First EconomyLON-BKK 9256.20 3859.08LON-HKG 9791.84 4376.54BKK-HKG 582.26 415.92the fare shall beLON-BKK RT Y 3859.08plus differentialLON-BKK RT F 9256.20lessLON-BKK RT Y 3859.08 5397.12.plusBKK-HKG RT Y 415.92TOTAL9672.12