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: USD427 / 0000-62

US/UST involved: No

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 669

Intended effective date: 1 April 2011

Agreements: a) TC123 North, Mid, South Atlantic (except between USA and Korea (Rep. of), Malaysia) Flex Fares Package - Resolutions Intended Effective Date: 1 April 2011 (Memo 0472)

r1 002

r2 111at

r3 046at

r4 056at

r5 066at

r6 071at
TC123 North, Mid, South Atlantic (except between USA and Korea (Rep. of), Malaysia) Minutes (Memo 0474)

b) TC123 North, Mid, South Atlantic (except between USA and Korea (Rep. of), Malaysia) Mail Vote 669 Resolution 111at Flex Fares Package Intended Effective Date: 1 April 2011 (Memo 0481)

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 (except between USA and Korea (Rep.

of), Malaysia). What is submitted fo r review and exemption is a process and al gorithm for defining fully flexible fare

products for first class, business class and economy class tr avel as well as restricted economy class 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 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 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 

### 21 April 2010

MEMORANDUM

PTC31 N&C 0518

PTC123 0474

TO: Members Participating in Tariff Coordinating Conferences

FROM: Global Head, Passenger

SUBJECT: TC31 North & Central Pacific, TC123 Minutes Geneva, 12-13 April 2010 Intended Effective Date: 1 April 2011

M INUTES



### Attached are the Minutes of the TC31 North and Central Pacific and PTC123 Passenger Tariff Coordinating Conference held in Geneva, 12-13 April 2010.

Alban Sato Manager, Interline Tariffs IDFS PassengerPTC31 NC 0518, PTC123 0474, GVA APR101TC31 North & Central Pacific, TC123Minutes Geneva, 12-13 April 2010NoSubjectResults/Notes1Opening of MeetingThe Chairman, Mr. Alban Sato, opened the126thMeeting of Tariff CoordinatingConference TC31 and the 174thMeeting of Tariff Coordinating Conference TC123at9:30 hours on Monday, 12 April 2010. The Meeting had been convened by MemorandumPTC31 N&C 0506 and PTC123 0462, dated 26 January 2010.This meeting, as with all traffic conference meetings, had US anti-trust immunity, granted onthe condition that IATA submits agreements to the US DOT for approval. Agreements may notbe put into effect before being declared effective. This ruling, contained in the Provisions forConduct of IATA Traffic Conferences, must be complied with.Members were reminded that the sole purpose of this meeting was to consider and take actionon IATA multilateral interlineable fares and conditions. Delegates were not to discuss or takeaction to develop on-line fares, surcharges or fees, nor were discussions permissibleconcerning individual airline's costs, pricing strategies, marketing plans or agency commission.In addition, this meeting had no authority to discuss or reach agreement on the allocation ofmarkets, the division or sharing of traffic or revenues, or the number of flights or capacity to beoffered in any market. Delegates were cautioned that any discussion regarding such mattersor concerning any other competitively sensitive topics outside the scope of the agenda, eitheron or off the floor, was strictly prohibited. No action at this meeting should be construed as anobligation for any TC Member in respect of non-IATA fares.2Attendance RecordAttachment A3Determination of MembershipThe Voting Membership for the meeting was determined in accordance with the Provisions forthe Conduct of the IATA Traffic Conferences.4Examination of Credentials of Accredited Representatives andAlternatesThe accreditation received by IATA was examined and found to be in accordance with theProvisions for the Conduct of the IATA Traffic Conferences.5Agenda Subject outlineNoted6Approval of minutesApproved7Status of AreaNoted8Statement of PositionKL advised their position on certain agenda itemsNoted9TC31 Flex Fares PackageNotedPTC31 NC 0518, PTC123 0474, GVA APR10210TC31 Flex Fare Governing ResolutionIATA proposed to introduce Flex Fares in the area1. Implementation date of 1 October 2010Support: UA AF AAOpposition: JL – require 1 April 2011Final Status: agreed for implementation 1 April 2011 with abstentions from AA AF UA2. Maximum Spread of Standard deviation x 1.25Opposition: noneFinal Status: Agreed3. CapSupport: KE TGOpposition: UA – market should be reflected on the YY fares as quickly as possbleFinal Status: Although concerns for large fluctuations remain, KE TG reluctantlyabstained.11TC31 Expiry DateNH propose that no expiry date be established for Flex Fares Resolution111nnSupport: JL NH UAOpposition: CX KE – Resolutions should be packaged and encourage TC members to come toan agreementFinal Status: Agreed to establish no expiry date12TC31 Inclusion of non-TC carrier’s faresNH propose to include only the TC member’s carrier fares in the calculationOpposition: NoneFinal Status: Agreed13TC31 Interline PremiumNH proposed 15%Opposition: JL – can only accept 5%JL’s 5% opposed by CA KE CX TG NH AA UA – require 15%12% opposed by AA JL KE CX TG UAFinal Status: Agreed at 15% with JL abstention14TC31 Normal One way (OO) levelsNH proposes to establish normal one way (OO) levels at 65% of finat roundtrip (RT) levelsOpposition: NoneFinal Status: Agreed15TC31 Normal Intermediate/Business class fares ResolutionIATA proposed to introduce TC31 Normal Intermediate/Business class faresResolutionTG UA proposed to apply 100% of adult fares for children/infant with booked seatOpposition: JL CA CX NH – needed to promote family travelFinal Status: agreed to apply 100% on the services of UA TG only16TC31 Normal First class fares ResolutionIATA proposed to introduce TC31 Normal First class fares ResolutionOpposition: noneFinal Status:Agreed17TC31 Normal Economy class fares ResolutionIATA proposed to introduce TC31 Normal Economy class fares ResolutionUA proposed to apply 100% of adult fares for children/infant with booked seatOpposition: AA JL CA CX KE NH TG– needed to promote family travelFinal Status: agreed to apply 100% on the services of UA only18TC31 Excursion fares ResolutionIATA proposed to introduce TC31 Excursion fares Resolution from Korea(Rep. of)Opposition: UA – did not wish to see any special fares from Korea (Rep. of). If to beestablished, the Resolution should expire in 6 months.KE required the special fares to be established on indefinite basis.Final Status: Agreed to establish special fares for one year until 31 March 2012. UA to reviewstatus at the next e-Traiff session in 2011.19TC31 Cancellatioon of ResolutionsIATA proposed to cancel all current resolutions and replace them with FlexFares ResolutionsOpposition: NoneFinal Status:Agreed20TC31 Deletion of TPM DeductionsIATA proposed to delete TPM deduction between USA/Canada and TC3 viaHawaiiOpposition: NoneFinal Status:AgreedPTC31 NC 0518, PTC123 0474, GVA APR10321TC123 Flex Fares PackageNoted22TC123 Flex Fare Governing ResolutionIATA proposed to introduce Flex Fares in the area1. Implementation date of 1 October 2010Support: UA AF AA LYOpposition: JL – require 1 April 2011Final Status: agreed for implementation 1 April 2011 with abstentions from AA AF UA2. Maximum Spread of Standard deviation x 1.25Opposition: noneFinal Status: Agreed3. CapSupport: KE TGOpposition: UA – market should be reflected on the YY fares as quickly as possbleFinal Status: Although concerns for large fluctuations remain, KE TG reluctantlyabstained.4. Non-exclusion of fares published by national carrierSupport: CXOpposition: AF – if national carriers fares are not to be excluded, same treatmentshould be given to fares published by European carriersFinal Status: Agreed to not exclude national carriers. AF sbatined provided an expirydate of one year is attached to the package.23TC123 Expiry DateNH propose that no expiry date be established for Flex Fares Resolution111atSupport: JL NH UAOpposition: CX KE – Resolutions should be packaged and encourage TC members to come toan agreementFinal Status: Expiry date of 31 March 2012 established in line with an agreement for thenational carrier clause.24TC123 Inclusion of non-TC carrier’s faresNH propose to include only the TC member’s carrier fares in the calculationOpposition: noneFinal Status: Agreed25TC123 Interline PremiumNH proposed 15%Opposition: JL – prefer 5% but abstainFinal Status: Agreed at 15%26TC123 Normal Intermediate/Business class fares ResolutionIATA proposed to introduce TC123 Normal Intermediate/Business class faresResolutionAF LY UA proposed to apply 100% of adult fares for children/infant with booked seatOpposition: JL CA CX NH – needed to promote family travelFinal Status:Agreed to apply 100% with abstentions from JL CA CX NH27TC123 Normal First class fares ResolutionIATA proposed to introduce TC123 Normal First class fares ResolutionOpposition: NoneFinal Status: Agreed28TC123 Normal Economy class fares ResolutionIATA proposed to introduce TC123 Normal Economy class fares ResolutionUA proposed to apply 100% of adult fares for children/infant with booked seatOpposition: JL CA CX NH KE LY TG – needed to promote family travelFinal Status: agreed to apply 100% on the services of UA only29TC123 Excusion fares ResolutionIATA proposed to introduce TC123 Excursion fares Resolution from Korea(Rep. of)Opposition: UA – did not wish to see any special fares from Korea (Rep. of). If to beestablished, the Resolution should expire in 6 months.KE required the special fares to be established on indefinite basis.Final Status: Expiry date of 31 March 2012 established in line with the agreement for thenational carrier clause30TC123 Cancellatioon of ResolutionsIATA proposed to cancel all current resolutions and replace them with FlexFares ResolutionsOpposition: NoneFinal Status:AgreedPTC31 NC 0518, PTC123 0474, GVA APR10431FINAL VOTEVotes were taken for the Packages including the Resolutions belowTC31 North and Central pacific (except between Korea (Rep. of), Malaysia and USA)Effective Date: 1 April 2011RESO TITLE002 TC31 North & Central Pacific (except between Korea (Rep. of), Malaysia and USA) - Amending Resolution017c Construction Rules for Fare Components111nn TC31 North & Central Pacific Flex Fares – Governing Resolution046nn Intermediate/Business Class Flex FaresNorth & Central Pacific (except between Korea (Rep. of), Malaysia and USA)056nn First Class Flex FaresNorth & Central Pacific (except between Korea (Rep. of), Malaysia and USA)066nn Economy Class Flex FaresNorth & Central Pacific (except between Korea (Rep. of), Malaysia and USA)071zn Excursion Flex Faresfrom Korea (Rep. of) to Canada, Caribbean, Mexico, Central America, South AmericaAs there was no opposition to the package, the Chairman declared the TC31North and Central pacific (except between Korea (Rep.of), Malaysia and USA) ResolutionsadoptedTC123 (except between Korea (Rep. of), Malaysia and USA)Effective Date: 1 April 2011RESO TITLE002 TC123 - Amending Resolution111at TC123 Flex Fares (except between Korea (Rep. of), Malaysia and USA)046at Intermediate/Business Class Flex FaresTC123 (except between Korea (Rep. of), Malaysia and USA) via AT056at First Class Flex FaresTC123 (except between Korea (Rep. of), Malaysia and USA) via AT066at Economy Class Flex FaresTC123 (except between Korea (Rep. of), Malaysia and USA) via AT071at Excursion Flex FaresFrom Korea (Rep of) to Mid Atlantic, South Atlantic via ATAs there was no opposition to the package, the Chairman declared the TC123 (except between Korea (Rep. of), Malaysia and USA) Resolutions adoptedPTC31 NC 0518, PTC123 0474, GVA APR105TC31 North and Central Pacific between Korea (Rep. of), Malaysia and USAWith alliance airlines excludingthemselves from the discussion, TGproposed to apply actions agreed for the non-alliance markets to the markets between Korea (Rep. of),Malaysia and USAEffective Date: 1 April 2011RESO TITLE002 TC31 North & Central Pacific between Korea (Rep. of), Malaysia and USA - Amending Resolution111nn TC31 North & Central Pacific Flex Fares – Governing Resolution046nn Intermediate/Business Class Flex Faresbetween Korea (Rep. of), Malaysia and USA056nn First Class Flex Faresbetween Korea (Rep. of), Malaysia and USA066nn Economy Class Flex Faresbetween Korea (Rep. of), Malaysia and USA071zn Excursion Flex Faresfrom Korea (Rep. of) to USAAs there was no opposition to the package, the Chairman declared the TC31 between Korea (Rep. of), Malaysia and USA ResolutionsadoptedTC123 North atlanticbetween USA and Korea (Rep. of), MalaysiaWith alliance airlines excludingthemselves from the discussion, TGproposed to apply actions agreed for the non-alliance markets to the markets between Korea (Rep. of),Malaysia and USAEffective Date: 1 April 2011RESO TITLE002 TC123 North Atlantic Amending Resolutionbetween USA and Korea (Rep. of), Malaysia111at TC123 Flex Faresbetween USA and Korea (Rep. of), Malaysia046at Intermediate/Business Class Flex Faresbetween USA and Korea (Rep. of), Malaysia via AT056at First Class Flex Faresbetween USA and Korea (Rep. of), Malaysia via AT066at Economy Class Flex Faresbetween USA and Korea (Rep. of), Malaysia via ATAs there was no opposition to the package, the Chairman declared the TC123 between Korea (Rep. of), Malaysia and USA Resolutions adoptedPTC31 NC 0518, PTC123 0474, GVA APR106NoSubjectNotes/Results32Description of AgreementsAttachment B33Close of MeetingThe TC31/123 meeting was closed at 1300 hours onTuesday, 13 April 2010.PTC31 NC 0518, PTC123 0474, GVA APR107Attendance Record Attachment ACHAIRMAN: Alban SatoFamily Name First Name Airline AirlineTel. No. / E-MailYAPP, Ian AA +1 817 967 3635 / ian.yapp@aa.comKARAYIANNAKIS, George AA +1 817 9672259/ george.karayiannakis@aa.comPRUNIER-BILLARD, Catherine AF +33 (1) 4156 5353 / caprunier@airfrance.frZHANG, Lulu CA + 86106461766 / zhanglulu@airchina.comHAILONG, Yue CA +86106461721 / yuehailong@airchina.comCHAN, Fanny CX +85227475231 / fanny_yf_chan@cathaypacific.comMIKURIYA, Nobuhiro JL +813 (5460) 3758 / nobuhiro.mikuriya@jal.comGOTO, Yoko JL +813 (5460) 3758 / yoko1.goto@jal.comOK, MinjungKE +82 (2) 2656 7507 / mjok@koreanair.comNOH,JiyoungKE +82 (2 )2656 7417 / (jiynoh@koreanair.comGRINFELD, Linda LY +972-3-9716282 / Lindag@elal.co.ilTOGIYA, Atsuko NH +81 3 6735 1738 / a.togiya@ana.co.jpWASINSOMBUT, Pranee TG +66 (2) 5451890 / pranee.w@thaiairways.comPRAPASSORN, Laivatanapaisan TG +66(2)5451048 / Prapassorn.l@thaiairways.comSWAN, Steven UA +1 3129978596 / Steven.Swan@united.comIATASATO, Alban Manager Interline Tariffs +41227702878 SatoA@iata.orgFLYNN, Colin Senior Legal Counsil +41227702902 FlynnC@iata.orgBASTART, Barbra Assistant Manager Interline Tariffs +41227702834 BastartB@iata.orgPTC31 NC 0518, PTC123 0474, GVA APR108Summary of AgreementsAttachment BTC31 North and Central Pacific, TC123(to/from USA)Effective Date: 1 April 2011The TC31 North and Central pacific and TC123 Conference met 12 – 13 April 2010 in Geneva to develop a Flex Fares package intended effective 1 April 2011.The agreements are summarized below.•Flex fares packages agreed for all markets with conditions as follows;oInterline Premium of 15%oMaximum spread value of 1.25, without excluding national carriers faresoSpecial fares established from Korea (Rep. of) only•Apply 100% of adult fares for Children and infant with booked seat for TC123 Intermediate/Business class fares•TPM deductions applicable between USA/Cabada via Hawaii deleted•All current Resolutions deleted and replaced by Flex Fares ResolutionsInternational 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 0472

TO: Members Participating in Tariff Coordinating Conferences

FROM: Global Head, Passenger

SUBJECT: TC123 North, Mid, South Atlantic (except 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 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 PassengerPTC123 0472 GVA, Apr10 

### RESOLUTIONS ADOPTED AT

TC123

PASSENGER TARIFF COORDINATING CONFERENCE

GENEVA, 12-13 APRIL 2010

EFFECTIVE DATE: 1 APRIL 2011

RESO TITLE COMMENTS RD

002 TC123 Amending Resolution New 1

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

046at Intermediate/Business Class Flex Fares TC123 (except between USA and Korea (Rep. of), Malaysia)) via AT New 3

056at First Class Flex Fares TC123 (except between USA and Korea (Rep. of), Malaysia) via AT New 4

066at Economy Class Flex Fares TC123 (except between USA and Korea (Rep. of), Malaysia) via AT New 5

071at Excursion Flex Fares From Korea (Rep of) to Mid Atlantic, South Atlantic via AT New 6

### ADOPTED Res Doc : 2 Resolution : 111at Page : 1

PTC123 0472 GVA, Apr10 

### TC123 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 subareas are rescinded and fares deleted effective 1 April 2011

Areawide

Resolution Title
001i General Escape Resolution TC123 North Atlantic 115v Meeting Competition Canada/USA-Indonesia/Malaysia/Singapore/Thailand/South Asian Subcontinent



### TC123 North Atlantic (except between US A and Korea (Rep. of), Malaysia)

Resolution Title
001a Special Applicability Resolution between North Atlantic and TC3 047m Intermediate/Business Class Fares between North America and TC3 057m First Class Fares between North America and TC3 067m Economy Class Fares between North America and TC3 071cc Excursion Fares between North America and South Asian Subcontinent 071f Excursion Fares between Canada, USA and Pakistan 071p Excursion Fares between North America and South East Asia 072n Excursion Fares from India, Pakistan to Canada, USA 073aa One Way APEX Fares From Pakistan to Canada, USA 073bb APEX Fares from North America to India 073vv APEX Fares between Canada, USA and South East Asia 074ky PEX Fares from Japan to Mexico 078t PEX Fares from North America to India



### TC123 Mid Atlantic

Resolution Title
001a Special Applicability Resolution between Mid Atlantic and TC3 047n Intermediate/Business Class Fares between Mid Atlantic and TC3 057n First Class Fares between Mid Atlantic and TC3 067n Economy Class Fares between Mid Atlantic and TC3 071x Excursion Fares between Mid Atlantic and TC3 074iy PEX Fares from Japan to Columbia, Venezuela

### ADOPTED Res Doc : 2 Resolution : 111at Page : 2

PTC123 0472 GVA, Apr10 

### TC123 South Atlantic

Resolution Title
001a Special Applicability Resolution between South Atlantic and TC3 047o Intermediate/Business Class Fares between South Atlantic and TC3 via AT, SA 057o First Class Fares between South Atlantic and TC3 via AT, SA 067o Economy Class Fares between South Atlantic and TC3 via AT, SA 071v Excursion Fares between South Atlantic and TC3 via AT, SA 074ny PEX Fares from Japan to South Atlantic via AT 078v PEX Fares between South Atlantic andTC3 via AT, SA 115b Meeting Competition Brazil, Hong Kong-Thailand

### ADOPTED Res Doc : 2 Resolution : 111at Page : 3

PTC123 0472 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 0472 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 one-way (OW) fares are available fo r a carrier, only the RT fare shall be selected. a) Carrier fares that deviate from t he 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 0472 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 0472 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 carrie r 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’

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 0472 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 : 2

PTC123 0472 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 0472 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

### ADOPTED Res Doc : 4 Resolution : 056at Page : 2

PTC123 0472 GVA, Apr10 

### 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 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 0472 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

### ADOPTED Res Doc : 5 Resolution : 066at Page : 2

PTC123 0472 GVA, Apr10 

### 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 b) unaccompanied infant not permitted

20) TOUR CONDUCTOR DISCOUNTS A) not permitted

21) AGENT DISCOUNTS
A) not permitted

### ADOPTED Res Doc : 6 Resolution : 071at Page : 1

PTC123 0472 GVA, Apr10 

### TC123 EXCURSION FLEX FARES FROM KOREA (REP OF) TO MID ATLANTIC, SOUTH ATLANTIC VIA AT

PTC123(174) 071at New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 Ends 21 May 2010 Expiry 31 March 2012

Type B

The following special fares shall be established, subject to the conditions hereof and of Standard Condition Resolution 100 0) APPLICATION A) 1) Application economy class round, circle, single open jaw trip excursion fares from Korea (Rep. of) to Mid, South Atlantic via AT

1) ELIGIBILITY A) 1) Eligibility Exception: unaccompanied infant: not eligible

5) RESERVATIONS AND TICKETING A) 1) Reservations a) can be made at any time before departure A) 2) Ticketing a) must be completed within 7 days of making reservations Exception: reservations made within 10 days before departure: must be completed within 72 hours of making reservations or 3 days before departure, whichever is earlier

6) MINIMUM STAY A) 1) 7 days

7) MAXIMUM STAY A) 6 months

### ADOPTED Res Doc : 6 Resolution : 071at Page : 2

PTC123 0472 GVA, Apr10 

### 8) STOPOVERS A) 1) one permitted in each direction 2) one additional permitted in each direction, each at a charge of KRW 150000

9) TRANSFERS A) 4 permitted in each direction

10) CONSTRUCTIONS AND COMBINATIONS A) 2) Combinations a) i) end-on and side trip combinations only permitted with fares within TC1, TC3

15) SALES RESTRICTIONS A) 2) Extension of Validity not permitted for medical reasons

19) CHILDREN AND INFANT DISCOUNTS A) 1) Children a) accompanied children aged 2-11 years: charge 75% 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 b) unaccompanied infant 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 0481

TO: Members Participating in Ta riff Coordinating Conferences

FROM: Manager, Interline Tariffs

SUBJECT: Mail Vote 669 - Resolution 111at TC123 North, Mid, South Atlantic (except between USA and Korea (Rep. of), Malaysia) 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 669, as circulated by MV669-1 dated 14 February 2011, is declared adopted on 21 February 2011.

Members are referred to memorandum PTC123 0472 dated 19 April 2010 which circulated the TC123 North, Mid, South Atlantic (except between USA and Korea (Rep. of), Malaysia) Flex Fares Resolutions and subsequently amended by PTC123 0475 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 FLEX FARES

PTC123(Mail 669) 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 nationalit y 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’