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. #12th Floor 

Washington DC 20006 
Summary 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 111rr 

 
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 TC3 Korea (Rep. of), Malaysia and Guam, Northern Mariana Islands. 

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 as well as restricted 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 

23 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 

LO www.iata.org E-Mail: tariffs@iata.org 

 

8 June 2010 

MEMORANDUM 

PTC3 1393 

TO: Members Participating in Tariff 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 

MAIL VOTE - ADOPTED

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 Passenger 

 

TC3 

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 6 

ADOPTED 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 Guam 

ADOPTED 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 established 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 established 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 Fares shall be established for economy class 

2) FLEX FARES 

A) Fares in Attachment ‘A’ to Resolution 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 Resolutions 
ADOPTED 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 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 

ADOPTED 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 permitted 

 
ADOPTED Res Doc: 3 

 Resolution: 045rr 

 Page: 2 

MV639 

 20) TOUR CONDUCTOR DISCOUNT 

 A) not permitted 

21) AGENTS DISCOUNT 

 A) not permitted 
ADOPTED 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 permitted 

ADOPTED 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 permitted 

ADOPTED 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 fares 

Within 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), Philippines 
ADOPTED 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) permitted 
10 March 2011 

MEMORANDUM

PTC3 1423 

TO: Members Participating in Tariff 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 

VOTING RESULT - ADOPTED

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 Standards 

ADOPTED 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 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 

ADOPTED 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 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 Resolutions