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

23 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: 23 March 2011

Filing fee / IATA Acct: USD427 / 0000-28

US/UST involved: Yes

End of Government Filing Period: a) 30 June 2010 b) 18 March 2011

Meeting site, date: a) MV639 b) MV672

Intended effective date: 1 April 2011

Agreements: a)
TC3 between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands Flex Fares Resolutions MV639 Intended Effective Date: 1 April 2011 (Memo 1393)
r1 002

r2 111rr
r3 045rr
r4 055rr
r5 065rr r6 071ry b) TC3 Flex Fares between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands Mail Vote 672 Intended Effective Date: 1 April 2011 (Memo 1423)

r1 111rrAPPLICATION 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 TC3 Korea (Rep. of), Malaysia and Guam, Northern Mariana Islands.
What is submitted for review and exemptio n is a process and algorithm for defining fully flexible fare products for first
class, business class and economy class travel 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 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

23 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 LO www.iata.org E-Mail: tariffs@iata.org 8 June 2010

MEMORANDUM
PTC3 1393
TO: Members Participating in Ta riff Coordinating Conferences
FROM: Global Head, Passenger

SUBJECT: Mail Vote 639 – Flex Fares Package TC3 between Korea (Rep. of), Malaysia and Guam, Northern Mariana Islands Intended Effective Date: 1 April 2011

M AIL V OTE - A DOPTED
As no negative votes were cast during the voting period which expired 1400 hours Geneva time 8 June 2010, MV639-1 dated 31 May 2010 is declared adopted.
It is proposed that the area between Korea (Rep. of), Malaysia and Guam, Northern Mariana Islands package be aligned with the rest of TC3. Consequently, existing Resolutions are to be deleted.
The filing period for this Mail Vote ends 30 June 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.

Leonor Oliveira Assistant Manager, Interline Tariffs IDFS PassengerTC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS

PASSENGER TARIFF COORDINATING CONFERENCE

INTENDED EFFECTIVE DATE: 1 APRIL 2011

RESO TITLE COMMENTS RD
002 TC3 between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands - Amending Resolution New 1

111rr TC3 between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands Flex Fares – Governing Resolution New 2

045rr TC3 Intermediate/Business Class Flex Fares between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands New 3

055rr TC3 First Class Flex Fares between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands New 4

065rr TC3 Economy Class Flex Fares between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands New 5

071ry TC3 Excursion Flex Fares between Korea (Rep. of). Malaysia and Guam, Northern Mariana Islands New 6ADOPTED Res Doc: 

### 1 Resolution: 002 Page: 1

MV639 TC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS AMENDING RESOLUTION

PTC3(MV639) 002 New

Filing Period Begins 8 June 2010 Intended Effectiveness 1 April 2011 Ends 30 June 2010 Expiry Indefinite
Type B RESOLVED that, the following Resolutions in the TC3 between Korea (Rep. of), Malaysia and Guam, Northern Mariana Islands subareas are rescinded and fares deleted effective 1 April 2011

JAPAN/KOREA-SOUTH EAST ASIA

Resolution Title 001a Special Applicability Resolution between Korea (Rep. of) and Guam, Northern Mariana Islands 043m Intermediate/Business Class Fares between Korea (Rep. of) and Guam, Northern Mariana Islands 053m First Class Fares between Korea (Rep. of) and Guam, Northern Mariana Islands 063m Economy Class Fares between Korea (Rep. of) and Guam, Northern Mariana Islands 070u Excursion Fares between Korea (Rep. of) and Guam, Northern Mariana Islands 076bb PEX Fares from Korea (Rep. of) to Guam, Northern Mariana Islands 084dd GIT Fares between Korea (Rep. of) and Guam, Northern Mariana Islands 311L Excess Baggage Charges between Korea (Rep. of) and Guam, Northern Mariana Islands

WITHIN SOUTH EAST ASIA

Resolution Title 001a Special Applicability Resolution from Malaysia to Guam 043k Intermediate/Business Class Fares from Malaysia to Guam 053k First Class Fares from Malaysia to Guam 063k Economy Class Fares from Malaysia to GuamADOPTED Res Doc: 2 Resolution: 0111rr Page: 1

MV639 TC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS FLEX FARES

PTC3(MV639) 111rr New

Filing Period Begins 8 June 2010 Intended Effectiveness 1 April 2011 Ends 30 June 2010 Expiry Indefinite
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 Member airlines may wish to offer, and
WHEREAS, services within TC3 would benefit from the availability of such additional interline products
It is RESOLVED that,
1) Fares governed by Resolutions 045rr, 055rr and 065rr shall be established and updated by IATA in accordance with the criteria set out in Attachment ‘A’ to this Resolution. 2) Fares governed by Resolutions 071ry shall be established and updated by IATA in accordance with the criteria set out in Attachment ‘B’ to this Resolution.

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

.ADOPTED Res Doc: 2 Resolution: 0111rr Page: 2

MV639 ATTACHMENT A
IATA shall establish and update Flex Fares in Resolutions 045rr, 055rr and 065rr for application in accordance with the following criteria
1) FLEX FARES APPLICATION
A) Round Trip (RT) Flex Fares shall be es tablished for first, intermediate/business and economy class B) One Way (OO) levels will be established at 65% of the corresponding Round Trip (RT) fares exception: for 2011: from Korea (Rep. of), One Way (OO) levels will be established at 60% of the corresponding Round Trip (RT) fares
2) FLEX FARES
A) Fares in Attachment ‘A’ to Resolution 045rr, 055rr and 065rr 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 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 a advance purchase condition
b) The following fare types shall not be selected - Coupon Fares c) First class fares published 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 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 est ablished by multiplying the ‘Standard Deviation’ by 1.50.ADOPTED Res Doc: 2 Resolution: 0111rr Page: 3

MV639 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 3) 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) For the calculations 2011 and 2012 the resultant Flex Fare level shall not be less than 85% nor greater than 115% of the fares specified in corresponding normal fare Resolutions
7) Where resultant Flex Fare level is lower than the level for the lower cabin, the level shall be established equal to the higher level
8) Where resultant Flex fare level is lower than the level for the Excursion/PEX Flex fare level, 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 3) of this Resolution will be implemented at the next regular Flex Fares update.ADOPTED Res Doc: 2 Resolution: 0111rr Page: 4

MV639 ATTACHMENT B
IATA shall establish and update Flex Fares in Resolution 071ry in accordance with the following criteria
1) FLEX FARES APPLICATION
A) Round Trip (RT) Excursion/PEX Flex Fa res shall be established for economy class
2) FLEX FARES
A) Fares in Attachment ‘A’ to Resoluti on 071ry 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 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 1.50. 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 3) 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) For the calculations 2011 and 2012, the resultant Flex Fare level shall not be less than 85% nor greater than 115% of the fares specified in corresponding special fare ResolutionsADOPTED Res Doc: 2 Resolution: 0111rr Page: 5

MV639 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 3) of this Resolution will be implemented at the next regular Flex Fares update

IATA Note:

Issue Note Inclusion of YY Fares Current YY fares to be included in the initial calculation Doubled OW fares Doubled-OW carr ier 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 selectedADOPTED Res Doc: 3 Resolution: 045rr Page: 1

MV639 TC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS INTERMEDIATE/BUSINESS CLASS FLEX FARES

PTC3(MV639) 045rr New

Filing Period Begins 8 June 2010 Intended Effectiveness 1 April 2011 Ends 30 June 2010 Expiry Indefinite
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 fares
2) Fares
b) fares shall be established and amended by IATA using the criteria in Resolution 111rr
19) CHILDREN AND INFANT DISCOUNTS
A) 1) Children a) accompanied children
aged 2-11 years: charge 100% of applicable adult fare
Exception: from Japan: 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 100% of applicable adult fare Exception: from Japan: charge 75% of applicable adult fare b) unaccompanied infant not permittedADOPTED Res Doc: 3 Resolution: 045rr Page: 2

MV639 20) TOUR CONDUCTOR DISCOUNT A) not permitted 21) AGENTS DISCOUNT A) not permittedADOPTED Res Doc: 4 Resolution: 055rr Page: 1

MV639 TC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS FIRST CLASS FLEX FARES

PTC3(MV639) 055rr New

Filing Period Begins 8 June 2010 Intended Effectiveness 1 April 2011 Ends 30 June 2010 Expiry Indefinite
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 fares
2) Fares b) fares shall be established and amended by IATA using the criteria in Resolution 111rr
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 ii) booked seat: charge 100% of applicable adult fare b) unaccompanied infant not permitted 20) TOUR CONDUCTOR DISCOUNT A) not permitted 21) AGENTS DISCOUNT A) not permittedADOPTED Res Doc: 5 Resolution: 065rr

MV639 TC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS ECONOMY CLASS FLEX FARES

PTC3(MV639) 065rr New

Filing Period Begins 8 June 2010 Intended Effectiveness 1 April 2011 Ends 30 June 2010 Expiry Indefinite
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
2) Fares
b) fares shall be established and amended by IATA using the criteria in Resolution 111rr
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 permitted
20) TOUR CONDUCTOR DISCOUNT A) not permitted 21) AGENTS DISCOUNT A) not permittedADOPTED Res Doc: 6 Resolution: 071ry 

### Page: 1

MV639 TC3 BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS EXCURSION FLEX FARES

PTC3(MV639) 071ry New

Filing Period Begins 8 June 2010 Intended Effectiveness 1 April 2011 Ends 30 June 2010 Expiry Indefinite
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, open jaw trip excursion faresWithin South East Asia, Within South Asian Subcontinent, South East AsiaSouth Asian Subcontinent, Between Korea and South East Asia, South Asian Subcontinent

2) Fares d) fares shall be established and amended by IATA using the criteria in Resolution 111rr B) 1) Types of Trip
Exception: origin open jaw: open jaw sector must be in country of unit origin

6) MINIMUM STAY A) 1) 3 days 7) MAXIMUM STAY A) 3 months 8) STOPOVERS A) one permitted in each direction 9) TRANSFERS A) 1) one permitted in each direction 2) one additional permitted in Korea (Rep. of) in each direction 3) one additional permitted in TC3 in each direction 10) CONSTRUCTIONS AND COMBINATIONS A) 1) Constructions only permitted with add-ons in Korea (Rep. Of), PhilippinesADOPTED Res Doc: 6 Resolution: 071ry 

### Page: 2

MV639 16) PENALTIES A) 1) Cancellation, No-Show, Upgrading a) before departure : i) cancellation: refund the fare paid less USD40 ii) no-show: charge USD40 Exception: from Philippines: charge USD50 iii) upgrading: permitted b) after departure : i) cancellation: refund the difference between the fare paid and the applicable fare for the transportation used less USD40 ii) no-show: charge USD40 Exception: from Philippines: charge USD50 iii) upgrading: permitted c) the non-refundable amount may be used as credit towards payment of any higher applicable fare. The original non-refundable amount remains non-refundable; the new ticket and any subsequent reissues must be annotated ‘NONREF/EXC’ Exception: to/from Korea (Rep. Of): a), b) and c) do not apply 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 permitted 21) AGENT DISCOUNTS A) permitted10 March 2011

MEMORANDUM
PTC3 1423
TO: Members Participating in Ta riff Coordinating Conferences
FROM: Manager, Interline Tariffs

SUBJECT: Mail Vote 672 - Resolutions 111rr TC3 between Korea (Rep. of), Malaysia and Guam, Northern Mariana Islands 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 10 March 2011, Mail Vote 672, as circulated by MV672-1 dated 1 March 2011, is declared adopted on 10 March 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 18 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 Resolution : 111rr Page : 1

TC3 FLEX FARES BETWEEN KOREA (REP. OF), MALAYSIA AND GUAM, NORTHERN MARIANA ISLANDS

PTC3(Mail 672) 111rr Amending
Intended Effectiveness 1 April 2011 Expiry Indefinite
Type B
RESOLVED that, Resolution 111rr, 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 1.5. 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 exc luded. (*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 3) 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) For the calculations 2011 and 2012 the resultant Flex Fare level shall not be less than 85% nor greater than 115% of the fares specified in corresponding normal fare Resolutions
7) Where resultant Flex Fare level is lower than the level for the lower cabin, the level shall be established equal to the higher level
8) Where resultant Flex fare level is lower than the level for the Excursion/PEX Flex fare level, the level shall be established equal to the higher levelADOPTED Res Doc : 1 Resolution : 111rr 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 1.5. 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 car rier 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 3) 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) For the calculations 2011 and 2012, the resultant Flex Fare level shall not be less than 85% nor greater than 115% of the fares specified in corresponding special fare Resolutions