## BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Notice of IATA Traffic Conference

Actions Tentatively Exempted

From Filing for Approval Docket OST

‐ 2012

‐ 0058

NOTICE OF TIER 1 AGREEMENTS FILING

BY THE

INTERNATIONAL AIR TRANSPORT ASSOCIATION

24 June 2013

Communications with respect to this

Document should be sent to

Douglas Lavin

Regional Vice President

– North America

International Air Transport Association

1201 F Street, NW, Suite 650

Washington, DC 20004

(202) 628

‐ 9292

## Summary DOCKET: DOT

‐ OST

‐ 2012

‐ 0058 DOT ORDER: None Requested

Date: 24 June 2013

Filing fee/IATA Acct: Waived by Order 2012

‐ 4

‐ 18, Appendix A, Section D

US/UST involved Yes

Intended effective date: 1 August 2013

Implementation date: 1 October 2013

Resolution /Original Memos: Resolution 017c

‐ PTC COMP Memo 1262 16Aug05

PTC COMP Memo 1268 23Aug05

PTC COMP Memo 1329 25Jul06

PTC COMP Memo 1511 22Nov08

PTC COMP Memo 1532 03Jul09

PTC COMP Memo 1555 01Dec09

PTC COMP Memo 1596 02Nov10

## NOTICE OF TIER 1 AGREEMENTS FILING

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 the procedures specified in Order 2012

‐ 4

‐ 18 (13 April

2012), I am filing with the Department, in Docket OST

‐ 2012

‐ 0058, this Notice, the subject

agreements and supporting documentation. These agreements are Tier 1 agreements

tentatively exempted by Order 2012

‐ 4

‐ 18 from Condition #2 to the Department’s approval of

the Provisions for the Conduct of the IATA Traffic Conferences, which condition requires pre

‐

implementation Department review. The intended effective date of the agreements is 1 August

2012.

The subject agreements amend or establish Resolutions and/or Recommended Practices

that do not address subject areas which the Department has indicated it still chooses to review

under Condition #2. The text of the agreements and other conference documentation sent to

airline Members of IATA accompany this Notice. The cover pages of the documentation clearly

identify each affected Resolution and/or Recommended Practice and show whether the subject

agreements are amendments or new agreements. Other pages provide the text of each subject

agreement. Where an affected Resolution or Recommended Practice has previously been

exempted from Condition #2 by Department action, the cover pages include the appropriate

## docket and order number. The cover pages include a summary to explain the nature and

purpose of the subject amendments and/or agreements.

Respectfully submitted,

/s/ Douglas Lavin

Douglas Lavin

Regional Vice President

– North America

International Air Transport Association

Attorney

‐ In

‐ Fact

## CERTIFICATE OF SERVICE

A copy of this notice has been served this day by first class or priority mail on the

following person:

Chief, Transportation, Energy & Agriculture Section

Antitrust Division

Department of Justice

Washington, D.C. 20530

A copy of this notice has been sent this day by email to John Kiser (John.Kiser@dot.gov)

and to Della Davis (Della.Davis@dot.gov) of the Department of Transportation.

/s/ Douglas Lavin

Douglas Lavin

24 June 2013

Date Served

### 24 June 201 3

MEMORANDUM

PTC COMP 1720

TO: Members Participating in Tariff Coordinating Conferences

FROM: Manager, Tariffs & Reservation Standards

SUBJECT: Composite Passenger Tariff Coordinating Conference

Composite Resolution 017c

Intended Effective Date: 1 August 2013

Implement ation Date: sale on/after 1 October 2013



## - N OTIFICATION OF 

## F ILING



## -

A MENDMENTS TO 

## C OMPOSITE 

## R ESOLUTIONS THAT HAD BEEN PENDING 

## D O 

## T A CTION



## Please be advised that amendments to the Composite Resolutions adopted and

circulated b y the Memoranda listed below have been filed to US DoT for intended

effect 1 August 2013 and for implementation for sale on/after 1 October 2013.

Resolutions Memo Number Date of Issuance

Resolution 0 17c PTC COMP Memo 1262 16Aug05

PTC COMP Memo 1268 23Aug05

PTC COMP Memo 1329 25Jul06

PTC COMP Memo 1511 22Nov08

PTC COMP Memo 1532 03Jul 09

PTC COMP Memo 1555 01Dec09

PTC COMP Memo 1596 02Nov10



## Amendments shown in the attached document will be declared effective for

1 August 2013 after the 3 0

- day notification period to US DoT.

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

www.iata.org E

- Mail: tariffs @ i ata .org

## Background Information

At the Composite meeting in Abu Dhabi 17

- 18 October 2012, Members were

advised that after years of lobbying and negotiations, the US DoT had agreed with

the IATA proposal to exempt the vast m ajority of COMP agreements from the

obligation to undergo prior US DoT review. This means that we can start

implementation after providing 30 days’ notice, as outlined in the DoT order 2012

-

4

- 18, as opposed to waiting months (or years) for the governmenta l review

process.

Prior to the DoT agreement, however, numerous filings for resolution cha nges had

already been pending Do T action. Those filings pending approvals had to be

withdrawn and re

- filed in accordance with the new filing process.

IATA and syste m provider members of the Resolution Advisory Working Group

(RADWG) reviewed all of the pending filings and established a schedule for

implementing the changes.

RADWG agreed at the meeting held 12

- 15 March 2013 in Montreal that changes

requiring two week s of development effort as attached will be implemented on

1 July 2013. A memo to declare the changes effective will be issued at the end of

April.

T hose requiring major efforts, such as the HIP pac kage, will be implemented on

1 October 2013. Memos to d eclare those changes effective will be issued two

months prior to the implementation date.

Alban Sato

Manager, Tariffs & Reservation Standards

Airline Distribution Standard

P TC COMP 1720

### RESOLUTION 017c CONSTRUCTION RULE S FOR FARE COMPONENTS

Effective 1 August 2013 for Implementation 1 October 2013

(Tier 1)

Content Explanations/ Notes Original Memo Original

Docket

1) APPLICATION

the provisions of this Resolution must be used to calculate the fare for a fare

component in one class of service; if different classes are used the fare shall be

calculated as per Resolution 017e

2) FARES

the fare shall not be less than the lower amount obtained by either of the

following principles

a) Mileage Principl e

i) aa) total TPMs shall be compared with the MPM for the fare component

bb) routings within MPM

where the sum of the TPMs does not exceed the comparable MPM,

apply the applicable direct route fare. S uch comparison must be

made using TPMs, MPMs and fares with the same global indicator

provided that, to ascertain the applicable MPM between TC2 and

TC3, the sector flown between TC2 and TC3 shall determine the

global indicator;

if within a fare component there is more than one sector that transits

between TC2 and TC3 the sector attracting the highest TPM will be

used to determine the MPM

cc) routings exceeding MPM

– where the sum of the TPMs is in excess of the MPM: divide the

sum of TPMs by the MPM, and surcharge in accordance with the

table below. When dividing the sum of TPMs by the MPM the

result of the calculation shall be truncated at 5 dec imals; the

result indicates the mileage percentage to be applied

if the result is

over up to and

including the fare shall be not less

than

the direct route fare plus

1.00 1.05 5% 

### Deleted redundant wording as

Resolution 011b already shows how

to establish global indicators 1329(25JUL06) 2006

- 257891.05 1.10 10%

1.10 1.15 15%

1.15 1.20 20%

1.20 1.25 25%

over

1.25 lowest combination

dd) notwithstanding Paragraphs bb) and cc) above, for travel wholly

within TC1 which originates, terminates or has a fare construction

point in Rio de Janeiro or Sao Paulo and neither city is an

intermediate ticketed point on such fare component

1) if the fare to or from Rio de Janeiro falls within the MPM, and the

fare for the same route to or from Sao Paulo exceeds the MPM,

the fare to and from the latter point need not be surcharged

2) if the fare to or from Sao Paulo falls within the MPM, and the fare

for the same route to or from Rio de Janeiro exceeds the MPM,

the fare to and from the latter point need not be surcharged

3) if the fare to or from Rio de Janeiro must be surcharged, the fare

for the same rout ing to or from Sao Paulo need not take a higher

surcharge (or vice versa)

ee) notwithstanding Paragraphs bb) and cc) above,

• for travel between Iguassu Falls and Europe/Middle

East/Africa via the Atlantic

• for travel between Iguassu Falls and South West Pacific via

the Pacific

• for travel within TC1

where the fare component originates or terminates in Iguassu

Falls

1) if the fare to or from Iguazu is within the MPM, and the fare for

the same route to or from Iguassu Falls exceeds the MPM, the

fare to or from the latter point need not be surcharged

2) if the fare to or from Iguazu must be surcharged, and the fare for

the same routing to or from Iguassu Falls need not take a higher

surcharge

ii) Specified Routings

when the fare component coincides with the routing in Attachment 'A', the

direct route fares apply disregarding Subparagraph i) above

, and

Paragraph s 5) and 6) , provided that an intermediate point(s) may be

omitted if a more direct routing is used and no additional point(s) is ad ded 

### Amended to disregard Back haul

check in case routing specified 1268(23AUG05) 2005

- 22352iii) MPM Deductions

mileages specified in Attachment 'B' must be deducted from the MPM

before the comparison with the sum of TPMs is made. These MPM

reductions only apply when the fare component and the global indicator

coincide with the provisions in the Attachment

iv) TPM Exceptions

aa) TPM Deductions

mileages specified in Attachment 'C' must be deducted from the total

TPM before comparison with the MPM is made

– these TPM deductions only apply when the fare component

includes intermediate ticketed points shown in the applicable

routing in the Attachment; provided additional intermediate

ticketed points may be added to the routing

– only one TPM deduction per fare component is permitted

bb) Surface Sector TPMs

any int ermediate sector(s) travelled by surface within a fare

component must be included in the sum of TPMs, except for

intermediate sectors specified in Attachment 'D'. In the absence of a

TPM for an intermediate sector not listed in Attachment 'D', a TPM

shall be established by a combination of TPMs

cc) South Atlantic TPMs

1) TC12

for transportation between Argentina, Brazil, Chile, Paraguay,

Uruguay and Middle East where a passenger travels on a direct

single flight coupon service from a point in Argenti na, Brazil,

Chile, Paraguay, Uruguay to Miami or Montreal or New York or

Toronto and on a direct single flight coupon service from such

point (i.e. arrival and departure city in North America must be the

same) to a point in Middle East or vice versa, the m ileage for

these two sectors shall be deemed to be equal to the ticketed

point mileage between the last point of departure in Argentina,

Brazil, Chile, Paraguay, Uruguay to the first point of arrival in

Middle East or vice versa

2) TC123

for transportation between Argentina, Brazil, Chile, Paraguay,

Uruguay and TC3 where a passenger travels on a direct single

flight coupon service from a point in Argentina, Brazil, Chile,

Paraguay, Uruguay to Atlanta or Miami or Montreal or New York

or Toronto or Washin gton and on a direct single flight coupon

service from such point (i.e. arrival and departure city in North

America must be the same) to a point in TC3 or vice versa, the

mileage for these two sectors shall be deemed to be equal to theticketed point milea ge between the last point of departure in

Argentina, Brazil, Chile, Paraguay, Uruguay to the first point of

arrival in TC3 or vice versa

Note : If a ticketed point mileage is not published for these sectors,

calculate the mileage by dividing the maximum permitted mileage by

1.20

The following example illustrates the application of the above

Example: RIO

- NYC

- KHI

- HKG

Maximum permitted mileage RIO

- HKG is 14077

Ticketed point mileages are

TPM

RIO

- NYC )

NYC

- KHI ) 9013 *

KHI

- HKG 2980

_____ Total 11993

* RIO

- KHI maximum permitted mileage

of 10816 divided by 1.20

– no mileage

surcharge applicable

b) Lowest Combination Principle

except as provided in Resolution 017a, Section B, Paragraph 4, the lowest

combination of fares over a ticketed point on t he itinerary

3) LIMITATIONS ON INDIRECT TRAVEL

a fare component must not include more than one departure from fare

component origin or more than one arrival at fare component destination or more

than one stopover at any one intermediate ticketed point. Additionally

a) a fare component within TC1 or wit hin TC31 must not include more than one

arrival and one departure at any ticketed point

b) for a journey originating in TC1 no fare component within TC1 may include

more than one international departure and one international arrival at any

ticketed point in the country where travel originates

Example:

POA- BUE -SAO

- NYC

– through fare not permitted

because of two international

departures from Brazilc) Except for journeys wholly within South America

for a pricing unit originating in Brazil, a fare compo nent from a point in Brazil

must not include more than 2 domestic sectors in Brazil

Examples: 1. BSB- RIO

- NYC at a through fare BSB

NYC is permitted

2. POA- RIO -SSA

- LIS at a through fare

POA- LIS is not permitted. The

international fare component must be

assessed from RIO and POA

- RIO

charged separately

3. FLN

- X/CWB

- IGU -X/SAO

- LON at a

through fare FLN

- LON is not permitted.

The first international fare component

must be assessed from IGU CWB and

FLN

- CWB

- 

### IGU charged separately

d) for a pricing unit originating in Germany a fare component from/to a point in

Germany must not include more than two domestic sectors in Germany

e) a fare component from/to /via a point in Japan must not include more than

three domestic sectors in Japan

4) FARE COMPONENTS WITH A SU RFACE SECTOR(S)

a) apply the through fare or the sum of fares over the sectors actually flown,

whichever is lower

b) in the case of normal fare travel, where the mileage for an international

surface break is greater than the ticketed point mileage over t he routing

travelled from origin of the journey up to the point of commencement of the

surface break when normal fares are on both sides of the surface break and

the surface break is not included in the through fare, travel from origin of the

journey up to the surface break will be ticketed separately, the remainder of

the journey being assessed in accordance with Resolution 024e

Example : Travel NYC

- LON

- PAR xxx FRA

- LON

- NYC

Construction could be

NYC

- LON RT 1 pricing unit

LON -PAR OW 1 pricing unit

FRA

- LON OW 1 pricing unit

• notwithstanding separate PUs, the TPMs NYC

- LON plus LON

- PAR are

added together and the resulting sum is compared to the TPM of the

surface break PAR

- FRA

c) in the application of Subparagraph b), the surface break shall be measured 

### Changed the examples to reflect an

agreement to increase the number of

domestic sectors in Brazil from one to

two domestic sectors

Dealt by 1545(8SEP09) 1262(16AUG05) 2005

- 22205using ticketed point mileages; if no ticketed point mileage exists for the points

concerned, the shortest operated mileage shall be used (i.e. MPM divided by

1.20); provided that in the event there is no shortest operated mileage, the

ticketed point mileage shal l be established by a combination of ticketed point

mileages. For the purpose of this rule, surface breaks in Attachment 'D' and

between Canada and USA may be ignored

5) HIGHER INTERMEDIATE POINT (HIP) CHECK

a) Normal Fares

i) if in any routing otherwise permissible at the direct route normal fare there

is a direct route normal fare(s) of the same class of service involving

stopover points from

aa) fare component origin to each intermediate stopover point

bb) each intermediate stopover point to each subsequent intermediate

stopover point

cc) each intermediate stopover point to the subsequent fare break point

which is higher than the direct route normal fare between the fare

construction points, the fare shall be not less than the highest fare

referred to above (HIP). In the case of fares that are established by

seasonality (including blackout dates), or day of week or flight application,

the check will be based on the applicable fare (by seasonality including

blackout dates, or by day of week or by flight application)

ii) if in any indirect routing otherwise permissible at the direct route normal

fare plus a percentage (EMS), there is a direct route normal fare(s) of the

same class of service involving stopover points as specified in i) aa), bb)

and cc) above which is higher than the direct route normal fare between

the fare construction points, the fare for the indirect route shall be not less

than the highest fare referred to above (HIP), and the surcharge

percentage (EMS) applicable to the thr ough fare shall be applied to such

higher intermediate fare

iii) when comparing normal fares of the 'same class of service' in order to

determine if there is a higher intermediate fare, the following sequence

shall be followed

sleeper seat is compared with sleeper seat fare;

if no sleeper seat fare, compare with the highest first class fare

, ignoring

any fare rule provisions 

### Clarification of the HIP process

Clarified comparison process 1511(21NOV08)

superseded by

1532(23JUL09)

1329(25JUL06)

superseded by

1596(02NOV10) 2008

- 0304

2008

- 0304

2006

- 25789

2011

- 0038provided that where more than one first class fare is published, compare

with the highest first class fare

first class fare is c ompared with first class fare;

if no first class fare, compare with the highest intermediate/business

class fare (or next lower class fare)

, ignoring any fare rule provisions

provided that where more than one intermediate/business class fare is

published , compare with the highest intermediate/business class fare

intermediate/business class fare is compared with intermediate/business

class fare;

if no intermediate/business class seat fare, compare with the highest

economy class fare

, ignoring any fare rule provisions

provided that where more than one economy class fare is published,

compare with the highest economy class fare

economy class is compared with economy class fare;

if no economy class fare to compare, no check is required

iv) when comparing normal fares in accordance with the foregoing, the

comparison shall be made in the same direction as the fare component.

When using half round trip fares the comparison shall be made using half

round trip fares. When using one way fares the comparison shall be made

using one way fares

v) where more than one normal fare is published for the carrier and the class

of service used the lower/lowest level may be used subject to any

stopover, transfer, seasonality (including blackout dates), flight

ap plication, routing validation, day of week limitations of the lower/lowest

fare (excluding application of stopover charges

vi) when the ticket shows no stopover at both the unit origin and the unit

destination point of a side trip which has been charged separately (due to

transfer connections on both occasions) a stopover shall be considered to

be taken at such point unless the time interval between the arrival

immediately preceding the side trip and the departure immediately

following the side trip do es not constitute a stopover as defined in

Resolution 012

vii) when there is an imbedded surface sector the HIP check applies to the

point of arrival by air immediately preceding the surface sector and to the

point of departure immediately following the surface sector, unless the

time interval between the arrival and the departure does not constitute a

stopover as defined in Resolution 012, however, such check shall not

apply between the terminal points of the unflown sector 

### Clarification added for HIP in case of

embedded sector 1268(23AUG05) 2005

- 22352viii) when there is a far e construction surface sector, the HIP check applies to

the point of such surface sector that is not the fare construction point

unless the time interval between the arrival and departure at such point

does not constitute a stopover as defined in Resoluti on 012 ; however,

such check shall not apply between the terminal points of the unflown

sector

ix) notwithstanding the above

aa) for journeys originating in Western Africa, the HIP check in each fare

component shall be applied on all ticketed points in Western Africa

bb) for journeys originating in Malawi, the HIP checks in each fare

component shall be applied on all ticketed points in Malawi

dd) except TC12 Mid and South Atlantic

for journeys originating in the Republic of Yemen, the HIP check in

each fare component shall be applied on all ticketed points in the

Republic of Yeme n

x) day

- of

- week application: in establishing the day

- of

- week fare level to be

used for the HIP check the rule for the application of the day

- of

- week

fares shall be applied solely to the sector(s) for which the check is being

made. The day of travel on such sector(s) shall be used to determine the

day of week fare level to be used for the HIP check

Example :

Routing: A

– B

– C

– D

- A First fare component (A to C)

• fare A

- C is a fare established using the day of the week of the

first international sector A -B

• fare A

- B is a non

- day

- of

- week fare

• there are day

- of

- week fares B

- C with the rule that the first

international sector determines the day of week fare to be

applied

• to establish the day

- of

- week fare level to be used for the HIP

check on the sector B

- C the date of travel B to C will be

used

• second fare component (fare in the direction from A to C)

• fare A

- C is a fare established using the day of week of the first

international sector A

- D

• fare A

- D is a non

- day

- of

- week fare

• there are day

- of

- we ek fares D

- C with the rule that the first

international sector determines the day

- of

- week fare to be

applied

• to establish the day

- of

– week fare level to be used for the HIP

check on the sector C

- D the date of travel C to D will be

used

Routing: GVA- FR A- CAI -AMS-GVA

First fare component (GVA- CAI) 

### Removed HIP exception

Clarification of the HIP process for

day

- of

- week application with new

examples 1268(23AUG05)

1511(21NOV08)

superseded by

1532(23JUL09) 2005

- 22352

2008

- 0304

2008

- 0304• fare GVA

- CAI is established using the day of the week of the first

international sector GVA- FRA

• fare GVA- FRA is a non

- day

- of

- week fare

• there are day

- of

- week fares FRA

- CAI with the rule that the first

international sector determines the day of week fare to be applied

• to establish the day

- of

- week fare level to be used for the HIP check

on the sector FRA

- CAI the date of travel FRA

- CAI will be used

Second fare component (fare in the direction from GVA- CAI)

• fare GVA- CAI is established using the day of the week of the first

international sector GVA-AMS.

Note: the first international sector is taken in the direction of the fare

component.

• fa re GVA-AMS is a non

- day

- of

- week fare

• there are day

- of

- week fares AMS- CAI with the rule that the first

international sector determines the day

- of

- week fare to be applied

• to establish the day

- of

– week fare level to be u sed for the HIP check

on the sector C AI -AMS the date of travel CAI to AMS will be used

xi) in establishing the seasonal fare level to be used for the HIP check the

rule for the application of the seasonal fares shall be applied solely to the

sector(s) for which the check is being made. The seasonal rule for such

sector shall be used to determine the seasonal fare level to be used for

the HIP check.

Where reference in a seasonal rule is to a specific segment of travel e.g.

first international sector, the specific segment shall be assessed within the

sector(s) for which the HIP level is being established

Example

Routing A

– B

– C

– B

– A

First fare component (A to C)

• fare A

- C is a non seasonal fare

• fare A

- B is a non

- seasonal fare

• there are seasonal fares B

- C with the rule that the first international

sector determines the seasonal fare to be applied

• to establish the seasonal fare level to be used for the HIP check on

the sector B

- C the date of travel B to C will be used

Second fare component (fare in the direction from A to C)

• fare A

- C is a non seasonal fare

• fare A

- B is a non

- seasonal fare

• there are seasonal fares B

- C with the rule that the first international

sector determines the seasonal fare to be applied

• to establish the seasonal fare level to be used for the HIP check on

the sector C

- B the date of travel C to B will be usedb) Special Fares

i) having established an applicable special fare for a pricing unit, such

special fare may be applied subject to the following if in any routing

otherwise permissible at the direct route special fare there is a direct route

special fare(s) of the same class of service from

aa) Compare special fare of the pricing unit to applicable special fares

for the same fare type fare component origin to each intermediate

stopover point

bb) Compare special fare of the pricing unit to applicable special fares

within the same fare type group from fare component origin to each

intermediate stopover point, from an intermediate stopover point to

the fare component destination each intermediate sto pover point to

fare component destination

which is higher than the direct route special fare between the fare

construction points, the fare shall be not less than the highest applicable

special fare referred to above (HIP)

1) if there is no applicable speci al fare within the same fare type

group on the sector concerned, the fare shall not be less than the

lowest of any applicable special fares within the next higher fare

type group shown in subparagraph (b). Continue to the next

grouping only if an applicable special fare is not found

.

Note: Where more than one special fare is published within the

same fare type group the lower/lowest level may be used subject

to any stopover, transfer, seasonality (including blackout dates),

flight application, routing validation, day of week limitatio ns of the

lower/ lowest fare (excluding application of stopover charges)

2) if the lowest applicable fare from fare component origin to each

intermediate stopover point or from intermediate stopover point

to fare component destination within the same fare type group is

less than or equal to the through special fare, the special fare for

the component may be applied

ii) if in any indirect routing otherwise permissible at the direct route special

fare plus a percentage (EMS), there is a direct route special fare(s) of the

same class of service involving points as specified in i) aa) and bb)

above, which is higher than the direct route special fare between the fare

construction points, the fare for the indirect route shall be not less than the

highest appli cable special fare referred to above (HIP), and the surcharge

percentage (EMS) applicable to the through fare shall be applied to such

higher intermediate fare

iii) the sequence described below shall be followed for each sector indicated 

### Clarification of the Special Fare HIP

process 1511(21NOV08)

superseded by

1532(23JUL09 2008

- 0304

2008

- 0304in i) aa) and bb) abo ve

1) the special fare of the fare component shall not be less than the

lower/lowest applicable special fare of the same fare type

2) if there is no matching applicable special fare of the same type, the

special fare of the fare component shall not be less than the

lower/lowest applicable special fare within the same fare type group

3) if there is no applicable special fare within the same fare type group,

the special fare of the fare component shall not be less than the

lower/lowest applicable s pecial fare within the next higher fare type

group. Continue to the next group only if there is no applicable

special fare found

4) if there is no applicable special fare within any higher fare type

group, the direct route special fare, surcharged if necessary, should

be used

Note: The conditions which define ‘applicable fare’ are listed in resolution

012c (HIP). Any stopover/transfer charges which apply to an

intermediate stopover point are excluded

.

iv) in defining a ‘special fare of the same fare type group, the comparison

shall be from the lowest to the highest of t he following fare type groups:

Fare Type Groups

Column 1 Column 2 Column 3 Column 4

(a) APEX

fare, or (a)GIT fare,

or Public Group

Fare

Note: HIP

check not

applicable Status Fares

(b) Instant

Purchase/

PEX fare, or (b) Individual

IT fare, Note: If no

status fare of

the same fare

type is found,

no HIP will

apply.

(c) Excursion

fare, or

(d) All other

individual

special

fares(except

Status, IT

fares)

v) all conditions attached to the special fare for the component apply

FLOW CHART for SPECIAL FARES

(when no matching applicable special fare type is found)

See attached

vi) when comparing special fares in accordance with the foregoing, comparison

shall be made with the following provisions

aa) in the same direction as the fare component.

bb) half round trip fare compared to half round trip fare; one way fares

compared to one way fares.

cc) limited to the same class of service

• first class fare is compared with first class fare;

• intermediate/business class fare is compared with

intermediate/business class fare;

• economy class fare is compared with economy class fare

vii) when the ticket shows no stopover at both the unit origin and the unit

destination point of a side trip which has been charged separately (due to

transfer connections on both occasions) a stopover shall be considered to be

taken at such point unless the time interval between the arrival immediately

preceding the side trip and the departure immediately following the side trip

does not constitute a stopover as defined in Resolution 012

viii) when there is an imbedded surface sector the HIP check applies to the point

of arrival by air immediately preceding the surface s ector and to the point of

departure immediately following the surface sector, unless the time interval

between the arrival and the departure does not constitute a stopover as

defined in Resolution 012

, however, such check shall not apply between the

termin al points of the unflown sector

ix) when there is a fare construction surface sector, the HIP check applies to the

point of such surface sector that is not the fare construction point unless the

time interval between the arrival and departure at such p oint does not 

### Clarification added for HIP in case of

embedded sector 1268(23AUG05) 2005

- 22352constitute a stopover as defined in Resolution 012; however, such check shall

not apply between the terminal points of the unflown sector.

x) notwithstanding the above

aa) for journeys originating in Western Africa, the HIP check in each fare

component shall be applied on all ticketed points in Western Africa

bb) for journeys between Kilimanjaro and Nairobi, the HIP check in each

fare component shall be applied on all ticketed points

cc) for journeys originating in Malawi, the HIP ch eck in each fare

component shall be applied on all ticketed points in Malawi

xi) day

- of

- week application: in establishing the day

- of

- week fare level to be

used for the HIP check the rule for the application of the day

- of

- week

fares shall be applied solel y to the sector(s) for which the check is being

made. The day of travel on such sector(s) shall be used to determine the

day of week fare level to be used for the HIP check

Example :

Routing: GVA- FRA

- CAI -AMS-GVA

First fare component (GVA- CAI)

• fare GVA- CAI is established using the day of the week of the first

international sector GVA- FRA

• fare GVA- FRA is a non

- day

- of

- week fare

• there are day

- of

- week fares FRA

- CAI with the rule that the first

international sector determines the day of week fare to be applied

• to establish the day

- of

- week fare level to be used for the HIP check

on the sector FRA

- CAI the date of travel FRA

- CAI will be used

Second fare component (fare in the direction from GVA- CAI)

• fare GVA- CAI is established using the day of the w eek of the first

international sector GVA-AMS.

Note: the first international sector is taken in the direction of the fare

component.

• fare GVA-AMS is a non

- day

- of

- week fare

• there are day

- of

- week fares AMS- CAI with the rule that the first

international sec tor determines the day

- of

- week fare to be applied

• to establish the day

- of

– week fare level to be used for the HIP check

on the sector CAI -AMS the date of travel CAI to AMS will be used

Routing A

– B

– C

– B

– A

First fare component (A to C)

• fare A- C is a non

- day

- of

- week fare

• fare A

- B is a non

- day

- of

- week fare

• there are day

- of

- week fares B

- C with the rule that the first

international sector determines the seasonal fare to be applied 

### Clarification of the Special fare HIP

process for day

- of

- week application

with new examples 1511(21NOV08)

superseded by

1532(23JUL09 2008

- 0304

2008

- 0304• to establish the day

- of

- week fare level to be used for the H IP check

on the sector B

- C the date of travel B to C will be used

Second fare component (fare in the direction from A to C)

• fare A

- C is a non

- day

- of

- week l fare

• fare A

- B is a non

- day

- of

- week fare

• there are day

- of

- week fares B

- C with the rule that th e first

international sector determines the seasonal fare to be applied

• to establish the day

- of

- week fare level to be used for the HIP check

on the sector C

- B the date of travel C to B will be used

ix) xii) seasonality application: in establishing the s easonal fare level to be

used for the HIP check the rule for the application of the seasonal fares

shall be applied solely to the sector(s) for which the check is being

made. The seasonal rule for such sector shall be used to determine

the seasonal fare l evel to be used for the HIP check.

Where reference in a seasonal rule is to a specific segment of travel

e.g. first international sector, the specific segment shall be assessed

within the sector(s) for which the HIP level is being established

Example

Routing A

– B

– C

– B

– A GVA

– PAR

– CAI

– PAR

- GVA

First fare component (A to C)

• fare GVA

- CAI A-C is a non seasonal fare

• fare GVA

– PAR A-B is a non

- seasonal fare

• there are seasonal fares PAR

– CAI B-C with the rule that the first

international sector determines the seasonal fare to be applied

• to establish the seasonal fare level to be used for the HIP check on

the sector PAR

– CAI B-C the date of travel B PAR to C CAI will be

used

Second fare component (fare in the direction from A to C)

• fare GVA

- CAI A-C is a non seasonal fare

• fare GVA

– PAR A-B is a non

- seasonal fare

• there are seasonal fares B-C PAR

– CAI with the rule that the first

international sector determines the seasonal fare to be ap plied

• to establish the seasonal fare level to be used for the HIP check on

the sector C -B CAI -PAR the date of travel C CAI to B PAR will be

used

6) ONE WAY BACKHAUL RULE (BHC)

a) this Paragraph does not apply

i) for journeys pricing units wholly within TC1 

### Deleted application of One Way

Backha ul Rule on special fares 1555(01DEC09) 2009

- 0334ii) for journeys pricing units wholly between Argentina, Brazil, Chile,

Paraguay, Uruguay and TC2

iii) for pricing units wholly within Europe

iv) for pricing units between Europe and the Middle East/Africa

v) for pricing units wh olly within Africa

b) this Paragraph applies only when using normal one way fares and special

one way fares pricing units

c) if in any fare component travel is via a higher rated intermediate stopover

point, the fare for such fare component shall be the higher of:

i) the applicable fare between the fare construction points, or

ii) the fare from fare component origin to the highest rated intermediate

stopover point plus the difference between such fare and the direct route

fare between the fare constru ction points

Example: A

– B

– C

– D

Fares A to B NUC 50

A to C 150

A to D 140

B to C 175

B to D 160

Fare to be charged is

B to C NUC 175

or

A to C NUC 150

plus the difference between

A to C and A to D 10

TOTAL NUC 160

whichever is higher

the one way backhaul rule check need not be applied for points which have

been excluded from the provisions of this Resolution, subject to the same

conditions contained in the exclusionFLOW CHART for SPECIAL FARES

(when no matching applicable special fare type is found)

Is an applicable special fare(s) found for the same class of service within the same fare type group from fare

component origin to intermediate stopover point(s) and from an intermediate stopover point(s) to fare

component destination?

No Yes

Is an applicable special fare(s) found in a higher

fare type group(s)? Is the lowest applicable fare within this

group higher than the special fare for the

component

No

| Yes

| No

| Yes

|

Apply the special fare for

the component

(surcharge if necessary) Is the lowest applicable

fare within this group

higher than the special

fare for the component? Apply the special fare

for the component

(surcharge if

necessary)

│ │

No Yes │

│ │ │

Apply the special fare for the

component (surcharge if necessary). Raise the fare to such higher special fare (surcharge if necessary).017c

ATTACHMENT 'A'

SPECIFIED ROUTINGS

Between And Via Note

TC1

Asuncion Bogota/Guayaquil/

Mexico/Quito Buenos Aires/Rio de Janeiro/

Sao Paulo

Brasilia Atlanta/Baltimore/Boston/

Chicago/Mexico/Miami/Montreal/

New York/Philadelphia/

Ottawa/Toronto/Washington Rio de Janeiro/Sao

Paulo/Bogota

Buenos Aires Guayaquil/Quito/San Jose Rio de Janeiro/Sao Paulo

Cancun a point in

Colombia/Quito/Guayaquil Mexico City/Miami

Montevideo Guayaquil/Quito/San Jose Rio de Janeiro/Sao Paulo

Quito Aruba Caracas

Quito Rio de Janeiro/Sao Paulo Caracas/Bogota

Salvador Baltimore/Montreal/New York/

Ottawa/Philadelphia/

Washington Rio de Janeiro/Sao Paulo

Quebec City/Rouyn Noranda/

Sept

- Iles/Val d'Or Bermuda Montreal

- Toronto

A point in

New Brunswick/

Nova Scotia/

Prince Edward Island Antigua/Bahamas/

Barbados/Bermuda/Cuba/

Dominican Republic/French

Antilles/Haiti/Jamaica/

St. Lucia/Trinidad and Tobago i) Montre al

- Toronto

ii) Halifax

- Montreal

- TorontoA point in

Newfoundland and Labrador Antigua/Bahamas/

Barbados/Bermuda/Cuba/

Dominican Republic/French

Antilles/Haiti/Jamaica/

St. Lucia/Trinidad and Tobago St Johns

- Halifax

- Montreal

Toronto

Montreal/Ottawa Bermuda Halifax/Toronto

a point in Canada Asuncion/Montevideo i) Toronto

- Rio de Janeiro

ii) Toronto

- Sao Paulo

a point in Canada a point in Argentina i) Toronto

- Rio de Janeiro/

Buenos Aires

ii) Toronto

- Sao Paulo/

Buenos Aires

iii) Toronto

- Mexico City

- Buenos

Aires

iv) Toronto

- Bogota

- Buenos

Aires

a point in Canada a point in Chile i) Toronto

- Rio de Janeiro/

Santiago

ii) Toronto

- Sao Paulo/

Santiago

iii) Toronto

- Mexico City

Santiago

iv) Toronto

- Bogota

- Santiago

a point in Canada Lima Toronto

- Mexico City

iv) Toronto

- Bogota

TC2 Middle East

Cairo Dammam Riyadh

- Jeddah

Jeddah

- Riyadh

Cairo Riyadh Jeddah

Dubai Zahedan Tehran

Hofuf Cairo/Damascus Riyadh

Riyadh Amman/Beirut/Damascus DammamTC2 Africa

Blantyre Harare/Johannesburg Lilongwe No stopover permitted

Francistown Johannesburg Gaborone

Johannesburg Mombasa Nairobi

Kilimanjaro Mombasa Nairobi

TC3

Beijing Fukuoka Shanghai

Beijing Sendai Shanghai -Osaka Only one stopover permitted at

Shanghai/Osaka

Beijing Osaka Shanghai

- Nagasaki Only one stopover permitted at

Shanghai/Nagasaki

Beijing Tokyo Shanghai

- Nagasaki

- Osaka Only one stopover permitted at

Shanghai/Nagasaki/Osaka

Colombo Lahore Karachi

Delhi Nagoya/Osaka/Tokyo Bangkok

Hong Kong Kathmandu Bangkok

Hong Kong Kuala Lumpur Kota Kinabalu/Manila

Hong Kong Singapore Manila

Karachi Seoul Bangkok/Manila

- Tokyo

Kolkata Hong Kong/Taipei Bangkok

Kota Kinabalu Taipei Hong Kong

Sapporo Seoul Nagoya/Tokyo

Tokyo Faisalabad/Karachi/

Islamabad/Lahore/

Multan/Peshawar Bangkok

- Manila

Manila

- BangkokTC12 North Atlantic Canada

- Europe

Montreal/Ottawa Bologna/Florence/

Genoa/Trieste/Turin/

Venice/Verona Toronto

- Rome

TC23

Cairo Tokyo Bangkok

- Manila

Cairo/Sanaa Beijing Bangkok

Japan/Korea(Dem.

People’s Rep. of), Korea

(Rep. of)/China

(excluding Hong Kong

SAR, Macao SAR), Hong

Kong SAR, Macao SAR Mashad Tehran EH

Lahore Tehran Karachi

Peshawar Tehran Karachi

Tehran Guangzhou/

Taipei/

Bangkok/

Hong Kong Kuala Lumpur

Tokyo Kuwait Bangkok/Manila

TC31 North/Central Pacific

Seattle Japan Los Angeles/San Francisco

Key to Symbols

"

- " means "and/or"

" / " means "or"017c

ATTACHMENT 'B'

M P M DEDUCTIONS

MPMs between the following TC Areas/Countries must be reduced by the following amounts, dependent upon the global direction of the passenger's itinerary

Currently there are no TC Areas/Countries listed in Attachment B017c

ATTACHMENT 'C'

T P M DEDUCTIONS

Between And Miles Applicable Routing

TC1

Buenos Aires/Montevideo Canada/Mexico/USA 510 Rio de Janeiro

- Sao Paulo with no stopover at

either point

Caracas Buenos Aires/Montevideo 400 wholly within the South America Sub

- area

TC2 Europe

- Middle East

Europe Iran (except Tehran) 100 via Tehran

Budapest Middle East 100 via a point in Europe other than Hungary

TC3

TC3 TC3 700 via both Mumbai and Delhi or

except when travel is to/from Mumbai via Delhi; or

wholly within Afghanistan, to/from Delhi via Mumbai; or

Bangladesh, Bhutan, via both Islamabad and Karachi; or

Maldives, Pakistan, to/from Karachi via Islamabad; or

India, Nepal and Sri Lanka to/from Islamabad via Karachi

Osaka/Tokyo Denpasar Bali 70 via Jakarta with no stopover

no additional intermediate points between

Jakarta and Denpasar Bali017c

ATTACHMENT 'C'

Between And Miles Applicable Routing

TC12 North Atlantic

Alberta/British Europe 400 via St.Johns

- Halifax

- Montreal

- Ottawa

- Toronto

Columbia/Yukon

Cancun Europe 550 via Mexico City

Merida Europe 150 via Mexico City

New Brunswick/ Europe 1500 via Boston

- Montreal

- Ottawa

- Toronto

Newfoundland and Labrador/

Nova Scotia/

Prince Edward Island

Newfoundland and Labrador Europe 700 via Halifax

New Brunswick/Nova Scotia/ Israel 500 via Halifax

- Montreal

- Toronto

Prince Edward Island

Newfoundland and Labrador Israel 1600 via St.Johns

- Halifax

- Montreal

- Toronto

South Africa Canada/Mexico/USA 660 via Tel Aviv

TC23

Europe South Asian Subcontinent 700 via both Mumbai and Delhi or

to/from Mumbai via Delhi; or

to/from Delhi via Mumbai

Middle East TC3 (except South West 700 via both Mumbai and Delhi or

Pacific) to/from Mumbai via Delhi; or

to/from Delhi via Mumbai; or

via both Islamabad and Karachi; or

to/from Karachi via Islamabad; or

to/from Islamabad via Karachi017c

ATTACHMENT 'D'

SURFACE SECTOR TPMs

– FILINGS IN ACCORDANCE WITH RESOLUTION 001z

Between And

Alghero IT Olbia IT

Alicante ES Murcia ES

Alicante ES Valencia ES

Almeria ES Malaga ES

Amman JO Jerusalem

Amritsar IN Lahore PK

Amsterdam NL Rotterdam NL

Antwerp BE Brussels BE

Arica CL Tacna PE

Barcelona ES Gerona ES

Barcelona ES Reus ES

Basle CH Mulhouse FR

Beijing CN Tianjin CN

Berlin DE Dresden DE

Berlin DE Leipzig Halle DE

Berne CH Geneva CH

Berne CH Zurich CH

Bilbao ES San Sebastian ES

Bilbao ES Santander ES

Bilbao ES Vitoria ES

Bologna IT Florence IT

Brazzaville CG Kinshasa CD

Bremen DE Hamburg DE

Bremen DE Munster DE

Brownsville US Matamoros MXCatania IT Palermo IT

Ciudad Juarez MX El Paso TX

Cologne DE Dusseldorf DE

Cologne DE Munster DE

Curitiba BR Joinville BR

Cuzco PE La Paz BO

Detroit US Windsor CA

Dresden DE Leipzig Halle DE

Dubai AE Sharjah AE

Dusseldorf DE Munster DE

Florence IT Pisa IT

Between And

Granada ES Malaga ES

Guatemala GT Tapachula MX

Guayaramerin BO Porto Velho BR

Hamburg DE Hanover DE

Hamburg DE Munster DE

Hanover DE Munster DE

Hilo US Kona US

Hong Kong HK Macao MO

Hong Kong HK Shenzhen CN

Hong Kong HK Zhuhai CN

Iguassu Falls BR Iguazu AR

Jerez de la

Frontera ES Seville ES

Kabul AF Peshawar PK

Krabi TH Phuket TH

La Coruna ES Santiago de

Compostela ES

Laredo US Nuevo Laredo MXLarnaca CY Paphos CY

Leticia CO Tabatinga BR

Livingstone ZM Victoria Falls ZW

Livramento BR Rivera UY

Ljubljana SI Zagreb HR

McAllen US Reynosa MX

Milan IT Turin IT

Munich DE Nuremberg DE

Nagoya JP Osaka JP

Paso de Los

Libres AR Uruguaiana BR

Podgorica CS Tivat CS

Puerto Montt CL San Carlos de

Bariloche AR

San Diego US Tijuana MX

Santiago de

Compostela ES Vigo ES

Split HR Zadar HR

Stockholm SE Vasteraas SE

Swakopmund NA Walvis Bay NA

Venice IT Verona IT