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

1 February 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: 1 February 2013

Filing fee/IATA Acct: Waived by Order 2012‐4‐18, Appendix A,

Section D

US/UST involved Yes

Intended effective date: 1 June 2013  

Meeting site, date: PTC Composite Meeting of Passenger

Tariff Coordinating Conferences

Abu Dhabi, 17 October 2012

Agreements Composite Resolution 017ha

(Memo PTC COMP 1682)
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
- 2 - 

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
- 3 - 

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

1 February 2013

Date Served
International Air Transport Association 

Route de l’Aéroport 33 

PO Box 416 

CH - 1215 Geneva 15 Airport 

Switzerland 

Tel: +41 22 770 2842 

Fax +41 22 770 2896 

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

1 November 2012 

MEMORANDUM

PTC COMP 1682 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Manager, Tariffs & Reservation Standards 

SUBJECT: Composite Passenger Tariff Coordinating Conference 

 Abu Dhabi, 17 October 2012 

Composite Resolution 017ha

 Intended Effective Date: 1 June 2013 

RESOLUTION - ADOPTED

Attached is Composite Resolution 017ha, which was adopted at the above meeting for an 

intended effective date of 1 June 2013. 

Implementation date will be advised at a later date. 

The filing period for the attached Resolutions ends 15 December 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 & Reservation Standards 

Airline Distribution Standards 
RESOLUTION ADOPTED AT 

COMPOSITE MEETING OF 

PASSENGER TARIFF COORDINATING CONFERENCE 

ABU DHABI, 17 OCTOBER 2012 

EFFECTIVE DATE: 01 JUNE 2013 

RESO TITLE COMMENTS RD 

017ha Fare Selection Criteria New 1
ADOPTED Res Doc : 1 

 Resolution : 017ha 

 Page : 1 

PTC COMP 1682 

AHU, Oct12 

FARE SELECTION CRITERIA 

PTC1(88)017ha New 

PTC2(166)017ha 

PTC3(93)017ha 

PTC12(197)017ha

PTC23(162)017ha

PTC31(127)017ha 

PTC123(176)017ha 

Filing Period Begins 15 November 2012 Intended Effectiveness: 1 June 2013 

 Ends 15 December 2012 Expiry: Indefinite 

 Type B 

RESOLVED that, 

1) for the purposes of fare selection, the fares to be used will be those applicable to 

the carrier selected. These may be either 

 a) carrier specific fares, or 

 b) if all fares of the selected carrier cannot be used, the YY fare (subject to the 

selected carrier’s acceptance of the use of YY fares), or 

 c) if a partial structure has been filed as carrier specific fares then the remainder 

of the structure will be established using YY fares unless the carrier has 

advised that such YY fares will not apply 

Examples

 1. The carrier only has fares records for carrier specific Normal Fares - the 

special fares structure for that carrier will be the YY fares 

 2. The carrier has only a single fares record for a carrier specific PEX fare - the 

Normal fares and the rest of the special fares for that carrier will be the YY 

structure 

 3. The carrier has no fares records for carrier specific fares - the YY structure will 

apply for that carrier 

2) the fares to be applied, in the direction of the fare selection in accordance to 

017a, will be the lowest of 

 a) the fares for the carrier who performs 

 i. the carriage on the first sector which crosses from one area to another, if 

 none 

 ii. the carriage on the first sector which crosses from one sub-area to another, 

 if none 

 iii. the carriage on the first international sector 
ADOPTED Res Doc : 1 

 Resolution : 017ha 

 Page : 2 

PTC COMP 1682 

AHU, Oct12 

 b) the fares for the carrier who performs the greatest part of consecutive carriage, 

either wholly international or a combination of international and domestic, 

measured by TPM 

EXAMPLES OF FARE COMPONENTS CROSSING AREAS: 

1. Journey: PAR-XX-BKK-ZZ-AKL-BB-DXB-XX-PAR 

 ----------------- ----Æ Å-------------------- 

Fare Components: 

 PAR-AKL the fares to be applied will be the lowest of carrier PAR-BKK (area 

crossing carrier) and carrier BKK-AKL (longest international carriage) 

 AKL-PAR the fares to be applied will be the lowest of carrier DXB-AKL (both the 

longest consecutive carriage and area crossing carrier) 

2. Journey: BOM-XX-TYO-ZZ-HNL-BB-SEL-XX-BOM 

 ------------Æ Å--------------- 

 Fare Components: 

 BOM-HNL the fares to be applied will be the lowest of carrier BOM-TYO (longest 

international carriage) and carrier TYO-HNL (area crossing carrier) 

 HNL-BOM the fares to be applied will be carrier SEL-HNL (both the longest 

consecutive carriage and area crossing carrier) 

3. Journey: RIO-XX-NYC-ZZ-LON-BB-WAS-XX-SAO-XX-RIO 

 -----------Æ Å------------------ 

 Fare Components: 

 RIO-LON the fares to be applied will be the lowest of carrier RIO-NYC (longest 

international carriage) and carrier NYC-LON (area crossing carrier) 

 LON-RIO the fares to be applied will be lowest of carrier WAS-LON (area crossing 

carrier) and the carrier RIO-SAO-WAS (longest consecutive carriage) 

4. Journey: YVR-DD-SEL-XX-IST-BB-HKG-ZZ-YVR-ZZ-YTO 

 ------ -----------------Æ Å------------------------------- 

 Fare Components: 

 YVR-IST the fares to be applied will be the lowest of the carrier YVR-SEL (first 

area crossing) and carrier SEL-IST (longest international carriage) 

 IST-YTO the fares to be applied will be lowest of the carrier YVR-HKG (first area 

crossing carrier) and the carrier YTO-YVR-HKG (longest consecutive 

carriage) 

5. Journey: BKK-XX-VIE-ZZ-YMQ-ZZ-YYC-BB-LON-XX-BKK 

 -------------------------------Æ Å---------------------- 

 Fare Components: 

 BKK-YYC the fares to be applied will be the lowest of carrier BKK-VIE (first area 

crossing) and carrier VIE-YMQ-YYC (longest consecutive carriage) 
ADOPTED Res Doc : 1 

 Resolution : 017ha 

 Page : 3 

PTC COMP 1682 

AHU, Oct12 

YYC-BKK the fares to be applied will be those of carrier BKK-LON (both the longest 

consecutive carriage and the first area crossing carrier) 

EXAMPLES OF FARE COMPONENTS BETWEEN SUB-AREAS: 

1. Journey: CAI-XX-ADD-ZZ-JNB-XX-KRT-ZZ-CAI 

 --------------------Æ Å-------------------- 

 Fare Components: 

 CAI-JNB the fares to be applied will be the lowest of carrier CAI-ADD (first subarea crossing) and carrier ADD-JNB (longest international carriage) 

 JNB-CAI the fares to be applied will be lowest of carrier KRT-JNB (both the longest 

consecutive carriage and the first sub-area crossing within Area 2 carrier) 

2. Journey: MEL-XX-JKT-DD-TYO-ZZ-MNL-XX-BNE-XX-MEL 

 ---------------------Æ Å-------------------------------- 

 Fare Components: 

 MEL-TYO the fares to be applied will be the lowest of carrier MEL-JKT (first subarea crossing) and carrier JKT-TYO (longest international carriage) 

 TYO-MEL the fares to be applied will be lowest of carrier BNE-MNL (first sub-area 

crossing carrier) and carrier MEL-BNE-MNL (longest consecutive 

carriage) 

EXAMPLES OF FARE COMPONENTS WITHIN A SUB-AREA 

1. Journey: KUL-XX-BKK-DD-CAN-DD-BJS-ZZ-HKG-XX-KUL 

 ---------------------------------Æ Å--------------------- 

 Fare Components: 

 KUL-BJS the fares to be applied will be the lowest of carrier KUL-BKK (first 

international) and carrier BKK-CAN-BJS (longest consecutive carriage) 

 BJS-KUL the fares to be applied will be lowest of carrier KUL-HKG (both the 

longest consecutive carriage and the first international sector) 

2. Journey: SCL-XX-ASU-DD-SAO-DD-RIO-ZZ-ASU-XX-SCL 

 -------------------------------Æ Å---------------------- 

 Fare Components: 

 SCL-RIO the fares to be applied will be the lowest of carrier SCL-ASU (both the 

longest consecutive carriage and the first international sector) 

 RIO-SCL the fares to be applied will be lowest of carrier SCL-ASU (both the 

longest consecutive carriage and the first international sector) 
ADOPTED Res Doc : 1 

 Resolution : 017ha 

 Page : 4 

PTC COMP 1682 

AHU, Oct12 

GENERAL 

 3) surface sectors 

 a) for the purpose of determining the carrier performing the greatest part of the 

consecutive international and domestic carriages, surface sectors will not be 

considered for the calculation of consecutive TPM 

 Example: SPK-ZZ-TYO xxx OSA-ZZ-HKG-BB-SIN 

TYO-OSA surface sector is not considered for the calculation of TPM, 

therefore the comparison would be: 

 SPK-TYO (carrier ZZ) 510 

 OSA-HKG (carrier ZZ) 1548 

 HKG-SIN (carrier BB) 1594 

The result is HKG-SIN has the longest consecutive international TPM and carrier 

BB’s fares will be selected for comparison. 

b) if the longest TPM sector is a surface sector, such sector is not considered 

c) if the sector for which the selection is to be made is a surface sector, YY fares will be 

selected 

 4) for the purpose of this Resolution 

a) travel between Canada and USA is not considered as international travel 

Example: YUL-NYC-MEX 

 first international sector is NYC-MEX 

b) travel between Denmark, Norway and Sweden is considered as international travel 

Example: STO-CPH-LON 

 first international sector is STO-CPH 

c )within TC1 when crossing sub-areas, the following applies: 

North America Canada, Greenland, Mexico, St. 

Pierre and Miquelon, USA 

Caribbean Anguilla Guadeloupe 

 Antigua and Barbuda (including St.Barthelemy 

 Aruba and Northern St.Martin) 

 Bahamas Haiti 

 Barbados Jamaica 

 Bermuda Martinique 

 Bonaire, Saba, Sint Eustatius Montserrat 

 British Virgin Islands St.Kitts and Nevis 

 Cayman Islands St. Maarten 

 Cuba Saint Lucia 

 Curacao St.Vincent and the Grenadines 

 Dominica Trinidad and Tobago 

 Dominican Republic Turks and Caicos Islands 

 Grenada Suriname 

 Guyana 

 French Guiana 

 

Central America Belize Guatemala 

 Costa Rica Honduras 

 El Salvador Nicaragua 

 
ADOPTED Res Doc : 1 

 Resolution : 017ha 

 Page : 5 

PTC COMP 1682 

AHU, Oct12 

South America Argentina Panama 

 Bolivia Paraguay 

 Brazil Peru 

 Chile Uruguay 

 Colombia Venezuela 

 Ecuador 
PTC COMP 1682 

AHU, Oct12 

Composite Passenger Tariff Coordinating Conference 

Abu Dhabi, 17 October 2012 

Summary of Agreements 

For intended effective date of 1 June 2013, Composite meeting adopted a new Fare 

Selection Criteria Resolution that would provide: 

• General guideline for the fare selection criteria in case on interlining, which 

• Applies a more competitive method, while 

• Meeting concerns of certain regulatory bodies and 

• Enable systems to implement the solution as it is similar to the criteria method 

already approved and implemented for markets within Europe (Resolution 017hh)