BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Agreements Adopted by the Traffic Conferences of the International Air Transportation Association Docket DOT-OST-2011-XXXX

APPLICATION FOR EXPANDED EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION

17 March 2011

Communications with respect to this document should be sent to

Douglas Lavin Regional Vice President – North America International Air Transport Association 1776 K. St. N.W. #12 th Floor Washington DC 20006Summary DOCKET: DOT-OST-2011-XXXX US DOT ORDER: pending

Date: 17 March 2011
Filing fee / IATA Acct: USD366 / 0000-62

US/UST involved: Yes

End of Government Filing Period: a) 21 May 2010 b) 2 March 2011
Meeting site, date: a) G eneva, 12-13 April 2010 b) Mail Vote 670

Intended effective date: 1 April 2011

Agreements: a) TC123 North Atlantic Between USA and Korea (Rep. of), Malaysia Flex Fares Resolutions (Memo 0473)

r1 002
r2 111at
r3 046at
r4 056at
r5 066at

b)
TC123 North Atlantic Between USA and Korea (Rep. of), Malaysia Mail Vote 670 - Resolution 111at Flex Fares Package Intended Effective Date: 1 April 2011 (Memo 0482)

r1 111atAPPLICATION FOR EXPANDED EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS
Pursuant to statements submitted by Member airlines of the Internatio nal Air Transport Association (IATA),
the undersigned has been constituted to be their attorney-i n-fact for filing with the Department of Transportation
copies of agreements adopted by the IATA Traffic Conferences.

On their behalf, and pursuant to Sections 40109(c), 41 308 and 41309 of Title 49 of the United States Code

and Sections 302.4, 302.302, 303. 03, 303.05 and 303.30(c) of Titl e 14 of the Code of Federal Regulations, I am filing
with the Department this application for an amendment to t he exemption from condition #2 granted by Order 2006-12-
4 (2 January 2007) and expanded by subsequent Orders. The present application reques ts that such exemption be
further expanded. The subject agreements and related fact ual and explanatory material and documentation required
by 14 C.F.R. 303.31 and Department and Civil Aeronautics Board (CAB) precedent accompany this application.

The subject agreements are IATA Resolutions that together establish the proc edures for establishing
passenger Flex Fares on routes between TC123 North, Mi d, South Atlantic (between USA and Korea (Rep. of),
Malaysia). What is submitted for review and exemption is a process and algorithm for defining fully flexible fare
products for first class, business class and economy cl ass travel on certain routes within these markets.

Prior Department rulings provide the context and prece dent for the present request. By Order 2006-12-24,
the Department exempted the Resolutions establishing the Fl ex Fares system for establishing IATA interline fares
within the European Common Aviation Area (ECAA), futu re amendments to those Resolutions, and fares generated

under the Resolutions from condition #2 imposed on the Provisions for the Cond uct of the IATA Traffic Conferences,
provided that the Resolutions and amendmen ts thereto are limited to the establishment of fares for travel within the
ECAA. IATA subsequently has adopted Resolutions expanding the Flex Fares system to include many other regions.
Orders 2007-9-16 (14 September 2007), 2008-4-45 (5 May 2008), 2008-7-24 (28 July 2008), 2008-11-20 (2
December 2008), and 2009-10-9 (22 October 2009) expand ed the exemption from filin g granted by Order 2006-12-24
to cover other Resolutions providing fo r such Flex Fares in non-U.S. markets, on the ground that fares for travel
within those regions typically present no public interest concerns justifying the D epartment’s pre-implementation
review of agreements limited to such travel. Orders 200 8-7-4 (7 July 2008) and 2010-5-5 (7 May 2010) similarly
exempted Resolutions providing for Flex Fares in specified U.S. markets, on the grounds that the Flex Fares system
is a computer-driven process that involves no direct contact between carriers and that other interline fares are
expected to be available in those markets.IATA requests further expansion of the exemptions granted by those Or ders. The reasons justifying the
present request for expansion of the exemption to includ e the subject Flex Fares Resolutions, future amendments to
those Resolutions, and fares generated under the Resolutions are the same as relied on by those Orders with
respect to prior Flex Fares agreements.

These agreements arise from the c ontinuing process of Tariff Coordinating Conferences and were
developed in the context of prior Department and CAB rulings addressing related resolutions which reflected
regulatory and market conditions then in effect. Thus, t he present agreements should be viewed as part of a dynamic
process of IATA Member airline adjustment to governmental and economic factors. Ther efore, granting the requested
expanded exemption would serve the public interest, and th us, meets the Section 40109( c) standards for exemptions
from filing and approval requirements.

Respectfully submitted

_________________________________ Douglas Lavin Regional Vice President – North America International Air Transport AssociationCERTIFICATE 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 Lavin

17 March 2011 Date ServedInternational 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 BB www.iata.org E-Mail: tariffs@iata.org 19 April 2010

MEMORANDUM
PTC123 0473
TO: Members Participating in Tariff Coordinating Conferences
FROM: Global Head, Passenger

SUBJECT: TC123 North Atlantic Between USA and Korea (Rep. of), Malaysia Flex Fares Resolutions Geneva, 12-13 April 2010 Intended Effective Date: 1 April 2011

R ESOLUTIONS - A DOPTED Attached are the TC123 North Atlantic, between USA and Korea (Rep. of), Malaysia Flex Fares 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 21 May 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 Governm ent 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 IDFS PassengerPTC123 0473 GVA, Apr10 RESOLUTIONS ADOPTED AT

TC123 NORTH ATLANTIC

BETWEEN USA AND KOREA (REP. OF), MALAYSIA

PASSENGER TARIFF COORDINATING CONFERENCE

GENEVA, 12-13 APRIL 2010

EFFECTIVE DATE: 1 APRIL 2011

RESO TITLE COMMENTS RD

002 TC123 North Atlantic Amending Resolution between USA and Korea (Rep. of), Malaysia New 1

111at TC123 Flex Fares between USA and Korea (Rep. of), Malaysia New 2

046at Intermediate/Business Class Flex Fares between USA and Korea (Rep. of), Malaysia via AT New 3

056at First Class Flex Fares between USA and Korea (Rep. of), Malaysia via AT New 4

066at Economy Class Flex Fares between USA and Korea (Rep. of), Malaysia via AT New 5ADOPTED Res Doc : 2 Resolution : 111at Page : 1

PTC123 0473 GVA, Apr10 TC123 NORTH ATLANTIC AMENDING RESOLUTION

PTC123(174) 002 New
Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 Ends 21 May 2010 Expiry Indefinite
Type B
RESOLVED that, the following Resolution in the TC123 North Atlantic subareas between USA and Korea (Rep. of), Malaysia are rescinded and fares deleted effective 1 April 2011
TC123 North Atlantic - between Korea (Rep. of), Malaysia and USA

001a Special Applicability Resolution between USA and Korea (Rep. of), Malaysia 047t Intermediate/Business Class Fares between USA and Korea (Rep. of), Malaysia 057t First Class Fares between USA and Korea (Rep. of), Malaysia 067t Economy Class Fares between USA and Korea (Rep. of), Malaysia 071ay Excursion Fares between USA and Malaysia 073ox APEX Fares between USA and MalaysiaADOPTED Res Doc : 2 Resolution : 111at Page : 3

PTC123 0473 GVA, Apr10 TC123 FLEX FARES

PTC123(174) 111at New
Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 Ends 21 May 2010 Expiry 31 March 2012
Type B
WHEREAS, fully flexible, broadly supported interline fares products provide benefits to consumers, governments, and airlines, and
WHEREAS, it is desirable that such interline fares products should be established to supplement the other products Members and other participating airlines may wish to offer, and
WHEREAS, services between the TC3 and TC1 w ould benefit from the availability of such additional interline products
It is RESOLVED that,

1) Fares governed by Resolutions 046at, 056at, 066at and 071at shall be established and updated by IATA in accordance with the criteria set out in Attachment ‘A’ and ‘B’ to this Resolution.

2) The interline premium referred to in the Attachment shall be 15%

. 3) Any TC Member may advise IATA that it will not allow its services to be included in journeys ticketed at fares in Resolutions 046at, 056at, 066at and 071at. The Member may rescind such notice at any time.

A) The TC Member shall include a date upon which their notice is to come into effect, giving at least 2 weeks notice to the Secretariat. The Secretariat will inform other Participants and third parties to update automated systems.

B) The TC Member will not be entitled to vote on any amendment(s), to this Resolution or to Resolutions 046at, 056at, 066at and 071at.ADOPTED Res Doc : 2 Resolution : 111at Page : 4

PTC123 0473 GVA, Apr10 ATTACHMENT A IATA shall establish and update Flex Fares in Resolutions 046at, 056at and 066at for application between TC3 and TC1 in accordance with the following criteria 1) FLEX FARES APPLICATION A) Round Trip (RT) Flex Fares shall be est ablished for first, intermediate /business and economy class B) One Way (OO) levels will be established at 70% the corresponding Round Trip (RT) fares Exception: for calculation 1 April 2011: from Korea (Rep. of): 65% 2) FLEX FARES A) Fares in Attachments to Resolutions 046at, 056at and 066at will be established as follows: B) IATA shall use TC Member carrier fares available for sale in automated fares data bases C) For each pair of points IATA will select, per cabin: 1) the highest unrestricted RT fare for each carrier. If no RT is available then doublethe highest unrestricted one-way (OW) fare. Where both RT and the doubled oneway (OW) fares are available for a carrier, only the RT fare shall be selected. a) Carrier fares that deviate from the standard conditions in Resolution 101 Paragraphs 1, 5, 6, 7 shall not be selected; in the case of Paragraph 5) this exclusion shall only apply if there is an advance purchase condition b) The following fare types shall not be selected - Coupon Fares c) First class fares filed by carriers that do not have first class service shall not be selected d) Selected fares must be available for sale directly to the public 2) the highest fare, where a carrier has more than one fare D) Once fares have been selected in accordance with B) above, the following procedures shall apply for each pair of points;
1) The ‘Standard Deviation’ principle will be applied to the selected fares 2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ by 1.25

. The resultant amount will be added to and subtracted from the average to create a range. Fares outside the range are excluded Exception: Fares published by national carriers (*1) of the origin or the destination countries are not excluded. (*1) National carrier is defined as a carrier of whose nationality belongs to either the country of departure or destination 3) The remaining fares will be averaged to establish the ‘Average Fare’ 4) The Interline Premium reflected in Paragraph 2) of this Resolution shall be applied to the ‘Average Fare’ to establish the Flex Fare 5) The resultant Flex Fare level shall not be less than the highest fare used in establishing the ‘Average Fare’ADOPTED Res Doc : 2 Resolution : 111at Page : 5

PTC123 0473 GVA, Apr10 6) Where resultant Flex Fare level is lower than the level for the lower cabin, the level shall be established equal to the higher level
3) UPDATING FLEX FARES A) IATA will update Flex Fares once annually, for travel on/after 1 April
B) For city pairs where no Flex Fares are established such city pairs shall be removed from the IATA fare structure C) A voting Member may request an exceptional update, for either a total update, or an update for a pair(s) of points on a from, to or between basis. The voting Member must provide the justification for the request and advise the required ticket/travel dates D) Any change to the Premium in paragraph 2) of this Resolution will be implemented at the next regular Flex Fares update.

IATA Note:

Issue Note

Doubled OW fares Doubled-OW carrier fares are excluded from calculation if RT fares are available

Mode of Transportation If fare is filed where the only available mode of transportation is other than air, such fare will be excluded

Currency Carrier fares filed in currencies other than those specified in the Composite Resolution 024d will not be selected

YY Fares Current YY fares included in the initial calculationADOPTED Res Doc : 2 Resolution : 111at Page : 6

PTC123 0473 GVA, Apr10 ATTACHMENT B IATA shall establish and update Flex Fares in Resolutions 071at for application from Korea (Rep. of) to TC1 in accordance with the following criteria 1) FLEX FARES APPLICATION A) Round Trip (RT) excursion Flex Fares shall be established for economy class 2) FLEX FARES A) Fares in the Attachment to Resolution 071at will be established as follows: B) IATA shall use TC Member carrier fares available for sale in automated fares data bases C) For each pair of points IATA will select: 1) the highest promotional RT fare for each carrier. a) The following fare types shall not be selected - Coupon Fares b) Selected fares must be available for sale directly to the public 2) the highest fare, where a carrier has more than one fare D) Once fares have been selected in accordance with B) above, the following procedures shall apply for each pair of points; 1) The ‘Standard Deviation’ principle will be applied to the selected fares 2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ by 1.25. The resultant amount will be added to and subtracted from the average to create a range. Fares outside the range are excluded Exception: Fares published by national carriers (*1) of the origin or the destination countries are not excluded. (*1) National carrier is defined as a carrier of whose nationality belongs to either the country of departure or destination 3) The remaining fares will be averaged to establish the ‘Average Fare’ 4) The Interline Premium reflected in Paragr aph 2) of this Resolution shall be applied to the ‘Average Fare’ to establish the Flex Fare 5) The resultant Flex Fare level shall not be less than the highest fare used in establishing the ‘Average Fare’ADOPTED Res Doc : 2 Resolution : 111at Page : 7

PTC123 0473 GVA, Apr10 3) UPDATING FLEX FARES A) IATA will update Flex Fares once annually, for travel on/after 1 April B) For city pairs where no Flex Fares are established such city pairs shall be removed from the IATA fare structure C) A voting Member may request an exceptional update, for either a total update, or an update for a pair(s) of points on a from, to or between basis. The voting Member must provide the justification for the request and advise the required ticket/travel dates. D) Any change to the Premium in paragraph 2) of this Resolution will be implemented at the next regular Flex Fares updateADOPTED Res Doc : 3 Resolution : 046at Page : 1

PTC123 0473 GVA, Apr10 TC31 NORTH AND CENTRAL PACIFIC INTERMEDIATE/BUSINESS CLASS FLEX FARES

PTC123(174) 046at New
Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 Ends 21 May 2010 Expiry 31 March 2012
Type B
The following normal fares shall be established, subject to the conditions hereof and of Standard Condition Resolution 101 0) APPLICATION A) 1) Application
Intermediate/business class normal Flex fares a) between North Atlantic, Mid Atlantic, South Atlantic and TC3 via AT b) between South Atlantic and South Asian Subcontinent, South East Asia via SA 2) Fares b) fares shall be established and amended by IATA using the criteria in Resolution 111at c) whenever TC3-TC2 and transatlantic sectors are flown in intermediate/business class and other sectors are in the same class or a lower class, the applicable through intermediate/business class fare shall be applied
1) Eligibility A) 1) Eligibility Exception: unaccompanied infant: not eligible 9) TRANSFER A) Exception: via SA: not permitted in Japan
19) CHILDREN AND INFANT DISCOUNTS A) 1) Children a) accompanied children aged 2-11 years: charge 100% of applicable adult fare b) unaccompanied children aged 2-11 years: charge 100% of applicable adult fareADOPTED Res Doc : 3 Resolution : 046at Page : 1

PTC123 0473 GVA, Apr10 2) Infant a) accompanied infant i) no seat: charge 10% of applicable adult fare ii) booked seat: charge 100% of applicable adult fare b) unaccompanied infant not permitted
20) TOUR CONDUCTOR DISCOUNTS A) not permitted
21) AGENT DISCOUNTS A) not permittedADOPTED Res Doc : 4 Resolution : 056at Page : 1

PTC123 0473 GVA, Apr10 TC123 FIRST CLASS FLEX FARES

PTC123(174) 056at New
Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 Ends 21 May 2010 Expiry 31 March 2012
Type B
The following normal fares shall be established, subject to the conditions hereof and of Standard Condition Resolution 101 0) APPLICATION A) 1) Application
first class normal Flex fares a) between North Atlantic, Mid Atlantic, South Atlantic and TC3 via AT b) between South Atlantic and South Asian Subcontinent, South East Asia via SA 2) Fares b) fares shall be established and amended by IATA using the criteria in Resolution 111at 1) Eligibility A) 1) Eligibility Exception: unaccompanied infant: not eligible 9) TRANSFER A) Exception: via SA: not permitted in Japan 19) CHILDREN AND INFANT DISCOUNTS A) 1) Children a) accompanied children aged 2-11 years: charge 100% of applicable adult fare b) unaccompanied children aged 2-11 years: charge 100% of applicable adult fare 2) Infant a) accompanied infant i) no seat: charge 10% of applicable adult fare Exception: on services of AF: accompanied infant must have a booked seat ii) booked seat: charge 100% of applicable adult fareADOPTED Res Doc : 4 Resolution : 056at Page : 2

PTC123 0473 GVA, Apr10 b) unaccompanied infant not permitted

20) TOUR CONDUCTOR DISCOUNTS A) not permitted 21) AGENT DISCOUNTS A) not permittedADOPTED Res Doc : 5 Resolution : 066at Page : 1

PTC123 0473 GVA, Apr10 TC123 ECONOMY CLASS FLEX FARES

PTC123(174) 066at New
Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 Ends 21 May 2010 Expiry 31 March 2012
Type B
The following normal fares shall be established, subject to the conditions hereof and of Standard Condition Resolution 101 0) APPLICATION A) 1) Application economy class normal Fares a) between North Atlantic, Mid Atlantic, South Atlantic and TC3 via AT b) between South Atlantic and South Asian Subcontinent, South East Asia via SA 2) Fares b) fares shall be established and amended by IATA using the criteria in Resolution 111at 1) Eligibility A) 1) Eligibility Exception: unaccompanied infant: not eligible 9) TRANSFER A) Exception: via SA: not permitted in Japan 19) CHILDREN AND INFANT DISCOUNTS A) 1) Children a) accompanied children aged 2-11 years: charge 75% of applicable adult fare exception: on services of UA: charge 100% of applicable adult fare b) unaccompanied children aged 2-11 years: charge 100% of applicable adult fare 2) Infant a) accompanied infant i) no seat: charge 10% of applicable adult fare ii) booked seat: charge 75% of applicable adult fare exception: on services of UA: charge 100% of applicable adult fareADOPTED Res Doc : 5 Resolution : 066at Page : 2

PTC123 0473 GVA, Apr10 b) unaccompanied infant not permittedADOPTED Res Doc : 5 Resolution : 066at Page : 3

PTC123 0473 GVA, Apr10 20) TOUR CONDUCTOR DISCOUNTS A) not permitted 21) AGENT DISCOUNTS A) not permittedInternational Air Transport Association
Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2834 Fax +41 22 770 2896 AS www.iata.org E-Mail: tariffs@iata.org 21 February 2011

MEMORANDUM
PTC123 0482
TO: Members Participating in Ta riff Coordinating Conferences
FROM: Manager, Interline Tariffs

SUBJECT: Mail Vote 670 - Resolution 111at TC123 North Atlantic between Korea (Rep. of), Malaysia and USA Flex fares Intended Effective Date: 1 April 2011

V OTING R ESULT - A DOPTED As no negative votes were cast during the voting period which expired 1400 hours Geneva time 21 February 2011, Mail Vote 670, as circulated by MV670-1 dated 14 February 2011, is declared adopted on 21 February 2011.
Members are referred to memorandum PTC123 0473 dated 19 April 2010 which circulated the Flex Fares Resolutions between Korea (Rep. of), Malaysia and USA and subsequently amended by PTC123 0476 dated 28 April 2010 for an intended effective date of 1 April 2011.
To ensure approval, it is proposed to amend the Resolution for intended effective date of 1 April 2011 as attached.
The filing period for this Mail Vote ends 2 March 2011 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 StandardsADOPTED Res Doc: 1 Reso: 111at

TC123 NORTH ATLANTIC FLEX FARES BETWEEN KOREA (REP. OF), MALAYSIA AND USA

PTC123(Mail 670) 111at New
Begins 22 February 2011 Intended Effectiveness 1 April 2011 Ends 2 March 2011 Expiry Indefinite
Type B
RESOLVED that, Resolution 111at, Attachment A, Paragraph 2)D)2) and Attachment B, Paragraph 2)D)2) are amended as follows:

ATTACHMENT A 2) FLEX FARES

D) Once fares have been selected in accordance with C) above, the following procedures shall apply for each pair of points;
1) The ‘Standard Deviation’ principle will be applied to the selected fares 2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ by 1.25. The resultant amount will be added to and subtracted from the average to create a range. Fares outside the range are excluded Exception: Fares published by national carriers (*1) of t he origin or the destination countries shall not be excluded. (*1) National carrier is defined as a carrier of whose nationality belongs to either the country of departure or destination 3) The remaining fares will be averaged to establish the ‘Average Fare’

4) The Interline Premium reflected in Paragraph 2) of this Resolution shall be applied to the ‘Average Fare’ to establish the Flex Fare 5) The resultant Flex Fare level shall not be less than the highest fare used in establishing the ‘Average Fare’ 6) Where resultant Flex Fare level is lower than the level for the lower cabin, the level shall be established equal to the higher levelADOPTED Res Doc : 1 Resolution : 111at Page : 2

ATTACHMENT B 2) FLEX FARES D) Once fares have been selected in accordance with C) above, the following procedures shall apply for each pair of points;

1) The ‘Standard Deviation’ principle will be applied to the selected fares 2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ by 1.25. The resultant amount will be added to and subtracted from the average to create a range. Fares outside the range are excluded Exception: Fares published by national carriers (*1) of the origin or the destination countries shall not be excluded. (*1) National carrier is defined as a carrier of whose nationality be longs to either the country of departure or destination 3) The remaining fares will be averaged to establish the ‘Average Fare’ 4) The Interline Premium reflected in Paragraph 2) of this Resolution shall be applied to the ‘Average Fare’ to establish the Flex Fare 5) The resultant Flex Fare level shall not be less than the highest fare used in establishing the ‘Average Fare’