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 2013

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

Implementation Date: sale on/after 1 October 2013

- NOTIFICATION OF FILING -

AMENDMENTS TO COMPOSITE RESOLUTIONS THAT HAD BEEN PENDING DOT ACTION

Please be advised that amendments to the Composite Resolutions adopted and 

circulated by 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 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

Amendments shown in the attached document will be declared effective for 

1 August 2013 after the 30-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@iata.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 majority 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 governmental review 

process.

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

already been pending DoT action. Those filings pending approvals had to be 

withdrawn and re-filed in accordance with the new filing process. 

IATA and system 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 weeks 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.

Those requiring major efforts, such as the HIP package, will be implemented on

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

months prior to the implementation date. 

Alban Sato

Manager, Tariffs & Reservation Standards

Airline Distribution Standard

PTC COMP 1720
RESOLUTION 017c CONSTRUCTION RULES 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 Principle

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. Such 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 decimals; 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) 2006-25789
1.05 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 routing 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

Paragraphs 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 added

Amended to disregard Back haul 

check in case routing specified

1268(23AUG05) 2005-22352
iii) 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 intermediate 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 Argentina, 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 mileage 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 Washington 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 the 
ticketed point mileage 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 the 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 within 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 Brazil
c) Except for journeys wholly within South America

for a pricing unit originating in Brazil, a fare component from a point in Brazil 

must not include more than 2 domestic sectors in Brazil

Examples: 1. BSB-RIO-NYC at a through fare BSBNYC 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 SURFACE 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 the 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) 2005-22205
using 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 shall 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 through 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

2011-0038
provided that where more than one first class fare is published, compare 

with the highest first class fare

first class fare is compared 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 

application, 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 does 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) 2005-22352
viii) 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 point

does not constitute a stopover as defined in Resolution 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 Yemen

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-week 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-FRA-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.

• 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 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 CAI-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 used
b) 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 stopover 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 special 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 limitations 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 applicable 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

2008-0304
in i) aa) and bb) above

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 special 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 the 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 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

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 point does not 

Clarification added for HIP in case of 

embedded sector

1268(23AUG05) 2005-22352
constitute 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 check 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 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: 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 week 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 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 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 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-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 the 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 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 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 applied

• 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 

Backhaul Rule on special fares

1555(01DEC09) 2009-0334
ii) 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 wholly 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 construction 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 exclusion
FLOW 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) Montreal-Toronto

ii) Halifax-Montreal-Toronto
A point in

Newfoundland and Labrador

Antigua/Bahamas/

Barbados/Bermuda/Cuba/

Dominican Republic/French 

Antilles/Haiti/Jamaica/

St. Lucia/Trinidad and Tobago

St Johns-Halifax-MontrealToronto

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 CitySantiago

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 Dammam
TC2 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-Bangkok
TC12 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 B
017c

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 Bali
017c

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 Karachi
017c

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 MX 
Catania 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 MX 
Larnaca 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