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. #12th Floor 

Washington DC 20006 
Summary 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) Geneva, 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 111at 

 
APPLICATION FOR EXPANDED EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS

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 40109(c), 41308 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 Title 14 of the Code of Federal Regulations, I am filing 

with the Department this application for an amendment to the exemption from condition #2 granted by Order 2006-12-

4 (2 January 2007) and expanded by subsequent Orders. The present application requests that such exemption be 

further expanded. The subject agreements and related factual 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 procedures for establishing 

passenger Flex Fares on routes between TC123 North, Mid, 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 class travel on certain routes within these markets. 

Prior Department rulings provide the context and precedent for the present request. By Order 2006-12-24, 

the Department exempted the Resolutions establishing the Flex Fares system for establishing IATA interline fares 

within the European Common Aviation Area (ECAA), future amendments to those Resolutions, and fares generated 

under the Resolutions from condition #2 imposed on the Provisions for the Conduct of the IATA Traffic Conferences, 

provided that the Resolutions and amendments 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) expanded the exemption from filing granted by Order 2006-12-24 

to cover other Resolutions providing for 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 Department’s pre-implementation 

review of agreements limited to such travel. Orders 2008-7-4 (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 Orders. The reasons justifying the 

present request for expansion of the exemption to include 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 continuing 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, the present agreements should be viewed as part of a dynamic 

process of IATA Member airline adjustment to governmental and economic factors. Therefore, granting the requested 

expanded exemption would serve the public interest, and thus, 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 Association 
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 Lavin 

17 March 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 

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 

RESOLUTIONS - ADOPTED

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 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 

IDFS Passenger 

PTC123 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 5 
ADOPTED 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 Malaysia 
ADOPTED 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 would 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 established 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 double 

the 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 calculation 
ADOPTED 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 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 : 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 update 
ADOPTED 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 fare 
ADOPTED 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 permitted 
ADOPTED 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 fare 
ADOPTED 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 permitted 
ADOPTED 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 fare 
ADOPTED Res Doc : 5 

 Resolution : 066at 

 Page : 2 

PTC123 0473 

GVA, Apr10 

 b) unaccompanied infant 

 not permitted 
ADOPTED Res Doc : 5 

 Resolution : 066at 

 Page : 3 

PTC123 0473 

GVA, Apr10 

20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

21) AGENT DISCOUNTS 

 A) not permitted 
International 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 Tariff 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 

VOTING RESULT - ADOPTED

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 Standards 
ADOPTED 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 the 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 level 
ADOPTED 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 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’