BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Agreements Adopted by the Traffic 

Conferences of the International Air 

Transport Association 

OST-2012-XXXX

APPLICATION FOR APPROVAL OF AGREEMENTS 

BY THE 

INTERNATIONAL AIR TRANSPORT ASSOCIATION

11 April 2012 

Communications with respect to 

this document should be sent to 

Douglas E. Lavin 

 Regional Vice President – North America 

International Air Transport Association 

1776 K.St. N.W. #12th Floor 

Washington DC 20006 
 1

Summary DOCKET: OST-2012-XXXX US DOT ORDER: pending

Date: 11 April 2012 

Filing fee / IATA Acct: USD 61 / 0000-06 

US/UST involved: No 

End of Government Filing Period: 18 April 2012

Meeting site, date: MV704 

Intended effective date: 1 May 2012 

Agreement: Mail Vote 704 - Resolution 012 

 Glossary of Terms 

 Intended Effective Date 1 May 2012 

 (Memo 1670) 

 

R1 012 
 2

APPLICATION FOR APPROVAL OF AGREEMENT

 Pursuant to statements submitted by Member airlines of the International Air Transport 

Association (IATA), the undersigned has been constituted to be their attorney-in-fact for filing 

with the Department of Transportation copies of agreements adopted by the IATA Traffic 

Conferences. 

 On their behalf, and pursuant to Sections 41308 and 41309 of Title 49 of the United 

States Code and Parts 303.03, 303.05 and 303.30(c) of Title 14 of the Code of Federal 

Regulations, I am filing with the Department this application for approval of an IATA 

agreement. 

 This agreement and related factual and explanatory material and documentation 

required by 14 C.F.R. 303.31 and Department and Civil Aeronautics Board (CAB) precedent 

are contained in the IATA Traffic Conference documentation summarized above. 

 This agreement arises from the continuing process of Tariff Coordinating Conferences 

and was developed in the context of prior Department and CAB rulings addressing related 

resolutions which reflected regulatory and market conditions then in effect. Thus, the present 

agreement should be viewed as part of a dynamic process of IATA Member airline 

adjustment to governmental and economic factors. 

 On previous occasions, the Department has found such agreements to be consistent 

with the public interest when they do not result in fares or rates that are unlawful or injurious 

to competition in the markets at issue. Approval of the present agreement would not yield 

fares or rates that are unlawful or injurious to competition. Moreover, approval of this 

agreement, which reflects compromises among the differing economic and social 

philosophies of the many nations whose airlines are parties, will advance the public interest 

in maintaining good aviation relations with other countries. 

 We request early approval by the Department of the foregoing agreement, pursuant to 

49 U.S.C. 41309, and the grant of full antitrust immunity, pursuant to 49 U.S.C. 41308. 

 The conferral of full antitrust immunity would be in the public interest and necessary for 

the transaction to proceed. This agreement is a product of the IATA Tariff Coordinating 

Conferences which the Department found to be anticompetitive but nevertheless approved 

and immunized in Order 85-5-32 (May 6, 1985) on foreign policy and comity grounds 

because such action is necessary to achieve the serious transportation need of maintaining 

good aviation relations with other countries and these benefits are not obtainable by 

reasonably available means having materially less anticompetitive effects. 

 This agreement concerns fares or rates between non-U.S. points and thus has at most 

indirect application in foreign air transportation. The U.S. authorities have recognized (e.g, 

Order 79-8-194, 30 August 1979) that the interests of sovereign nations in the conditions 

governing air transportation between them greatly exceed any that the U.S. might have by 

reason of U.S. airline, citizen or shipper participation. This agreement is not adverse to the 

public interest or in violation of the Act and, therefore, should be granted full immunity. 

Respectfully submitted 

___________________________ 

 Douglas Lavin 

 Regional Vice President – North America 

International Air Transport Association 
 3

CERTIFICATE OF SERVICE

 A copy of this application or a summary notice thereof has been served by first class or 

priority mail on the following person 

Chief, Transportation, Energy & Agriculture Section 

Antitrust Division 

Department of Justice 

Washington D.C. 20530 

________________________________ 

 Douglas E. Lavin 

11 April 2012 

Date Served 
International Air Transport Association 

ute de l’Aéroport 33 

PO Box 416 

CH - 1215 Geneva 15 Airport 

Switzerland 

Tel: +41 22 770 2842 

Fax +41 22 770 2896 

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

10 April 2012 

MEMORANDUM

PTC COMP 1670 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Manager, Tariffs and Reservation Standards 

SUBJECT: Mail Vote 704 - Resolution 012 

Glossary of Terms 

Intended Effective Date 1 May 2012 

MAIL VOTE - ADOPTION

As no negative votes were cast during the voting period which expired 10 April 2012, 1400 

hours Geneva time, Mail Vote 704 as circulated by MV704-1 dated 30 March is declared 

adopted. 

1. The Resolution Advisory Working Group (RADWG) meeting held 9 March 2012 in Beijing 

reviewed the definition of Circle Trip Fares previously agreed upon at the 2010 RADWG 

and determined that the necessary action had not been taken to amend the definition in 

line with the adoption of the amendments to 012 Local Combination. The Working Group 

recommended that a mail vote be issued to adopt the change so that the definitions are 

aligned at the earliest. 

2. In reviewing the definition of ‘Local Combination’ in the exercise above, the Working 

Group found that the term “fare type” is not clearly defined, leading to different 

interpretations among the pricing systems on what is meant by “fare type”: 

 It was proposed to amend the definition of the ‘Local Combination’ in Resolution 012 to 

add clarity. 

The filing period for this Mail Vote ends 18 April 2012. Members are reminded of their 

obligations under Resolutions 001 and 006 to advise this office by the end of the filing period 

whether approval by their Government authorities is required and, if so, to accomplish the 

necessary filing formalities. The effective date will be declared in accordance with 

Resolutions 001 and 006, when all the known necessary Government approvals have been 

received. 

Alban Sato 

Manager, Tariffs and Reservation Standards 

IDFS Passenger 
ADOPTED Res Doc: 1 

 Resolution: 012 

RESOLUTION 012 – GLOSSARY OF TERMS

PTC1 (Mail 704) 012 Amending 

PTC2 (Mail 704) 012

PTC3 (Mail 704) 012

PTC12 (Mail 704) 012

PTC23 (Mail 704) 012

PTC31 (Mail 704) 012

PTC123 (Mail 704) 012 

 

Filing period Begins 11 April 2012 Intended Effectiveness 1 May 2012

Ends 18 April 2012 Expiry Indefinite 

Type B 

RESOLVED that, Resolution 012 is amended as follows: 

TERM DEFINITION 

Circle Trip – Normal Fares travel from a point and return thereto by a continuous, 

circuitous air route, including travel comprising two fare 

components but which do not meet the conditions of the 

round trip definition 

Circle Trip - Special Fares travel from a point and return thereto by a continuous, 

circuitous air route, comprising only two international 

fare components which do not meet the conditions of the 

round trip definition

Local Combination combination of two or more fare components (normal 

and special fares or two or more different special fares

of different fare types groups) to create a single pricing 

unit - provided the last fare component returns to the 

country of origin of the first fare component 

PTC COMP1665 

MV702 Feb12