BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Agreements Adopted by the Traffic 

Conferences of the International Air 

Transportation Association 

Docket DOT-OST-2011-XXXX 

APPLICATION FOR EXPANDED EXEMPTION FROM FILING 

AND APPROVAL OF AGREEMENTS 

BY THE 

INTERNATIONAL AIR TRANSPORT ASSOCIATION

17 March 2011 

Communications with respect to 

this document should be sent to 

Douglas Lavin 

Regional Vice President – North America 

International Air Transport Association 

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

Washington DC 20006 
Summary DOCKET: DOT-OST-2011-XXXX US DOT ORDER: pending

Date: 17 March 2011 

Filing fee / IATA Acct: USD427 / 0000-58 

US/UST involved: Yes

End of Government Filing Period: a) 21 May 2010 

b) 2 March 2011 

Meeting site, date: a) Geneva, 12-13 April 2010 

b) Mail Vote 668 

Intended effective date: 1 April 2011 

Agreements: a) 

TC31 North & Central Pacific 

Between Korea (Rep. of), Malaysia and USA 

Flex Fares Resolutions 

Geneva, 12-13 April 2010 

Intended Effective Date: 1 April 2011 

(Memo 0517) 

r1 002 

r2 111nn 

r3 046nn 

r4 056nn 

r5 066nn 

r6 071zn 

b) 

TC31 North and Central Pacific 

between Korea (Rep. of), Malaysia and USA 

Mail Vote 668 - Resolution 111nn 

Flex Fares Package 

Intended Effective Date: 1 April 2011 

(Memo 0529) 

r1 111nn 

 
APPLICATION FOR EXPANDED EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS

Pursuant to statements submitted by Member airlines of the International Air Transport Association (IATA), 

the undersigned has been constituted to be their attorney-in-fact for filing with the Department of Transportation 

copies of agreements adopted by the IATA Traffic Conferences. 

On their behalf, and pursuant to Sections 40109(c), 41308 and 41309 of Title 49 of the United States Code 

and Sections 302.4, 302.302, 303.03, 303.05 and 303.30(c) of Title 14 of the Code of Federal Regulations, I am filing 

with the Department this application for an amendment to the exemption from condition #2 granted by Order 2006-12-

4 (2 January 2007) and expanded by subsequent Orders. The present application requests that such exemption be 

further expanded. The subject agreements and related factual and explanatory material and documentation required 

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

 The subject agreements are IATA Resolutions that together establish the procedures for establishing 

passenger Flex Fares on routes between TC31 North & Central Pacific (between Korea (Rep. of), Malaysia 

and USA). What is submitted for review and exemption is a process and algorithm for defining fully flexible fare 

products for first class, business class and economy class travel as well as restricted economy class travel on certain 

routes within these markets. 

Prior Department rulings provide the context and precedent for the present request. By Order 2006-12-24, 

the Department exempted the Resolutions establishing the Flex Fares system for establishing IATA interline fares 

within the European Common Aviation Area (ECAA), future amendments to those Resolutions, and fares generated 

under the Resolutions from condition #2 imposed on the Provisions for the Conduct of the IATA Traffic Conferences, 

provided that the Resolutions and amendments thereto are limited to the establishment of fares for travel within the 

ECAA. IATA subsequently has adopted Resolutions expanding the Flex Fares system to include many other regions. 

Orders 2007-9-16 (14 September 2007), 2008-4-45 (5 May 2008), 2008-7-24 (28 July 2008), 2008-11-20 (2 

December 2008), and 2009-10-9 (22 October 2009) expanded the exemption from filing granted by Order 2006-12-24 

to cover other Resolutions providing for such Flex Fares in non-U.S. markets, on the ground that fares for travel 

within those regions typically present no public interest concerns justifying the Department’s pre-implementation 

review of agreements limited to such travel. Orders 2008-7-4 (7 July 2008) and 2010-5-5 (7 May 2010) similarly 

exempted Resolutions providing for Flex Fares in specified U.S. markets, on the grounds that the Flex Fares system 

is a computer-driven process that involves no direct contact between carriers and that other interline fares are 

expected to be available in those markets. 
IATA requests further expansion of the exemptions granted by those Orders. The reasons justifying the 

present request for expansion of the exemption to include the subject Flex Fares Resolutions, future amendments to 

those Resolutions, and fares generated under the Resolutions are the same as relied on by those Orders with 

respect to prior Flex Fares agreements. 

These agreements arise from the continuing process of Tariff Coordinating Conferences and were 

developed in the context of prior Department and CAB rulings addressing related resolutions which reflected 

regulatory and market conditions then in effect. Thus, the present agreements should be viewed as part of a dynamic 

process of IATA Member airline adjustment to governmental and economic factors. Therefore, granting the requested 

expanded exemption would serve the public interest, and thus, meets the Section 40109(c) standards for exemptions 

from filing and approval requirements. 

Respectfully submitted 

_________________________________ 

Douglas Lavin 

Regional Vice President – North America 

International Air Transport Association 
CERTIFICATE OF SERVICE

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

following person 

Chief, Transportation, Energy & Agriculture Section 

Antitrust Division 

Department of Justice 

Washington, D.C. 20530 

_________________________________ 

Douglas Lavin 

17 March 2011 

Date Served 
International Air Transport Association 

Route de l’Aéroport 33 

PO Box 416 

CH - 1215 Geneva 15 Airport 

Switzerland 

Tel: +41 22 770 2842 

Fax +41 22 770 2896 

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

19 April 2010 

MEMORANDUM

PTC31 N&C 0517 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Global Head, Passenger 

SUBJECT: TC31 North & Central Pacific 

Between Korea (Rep. of), Malaysia and USA

Flex Fares Resolutions 

 Geneva, 12-13 April 2010 

 Intended Effective Date: 1 April 2011 

RESOLUTIONS - ADOPTED

Attached are the TC31 North & Central Pacific Flex Fares Resolutions between Korea (Rep. 

of), Malaysia and USA which were adopted at the above meeting for an intended effective 

date of 1 April 2011. 

The filing period for the attached Resolutions ends 21 May 2010. Members are reminded of 

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

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

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

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

received. 

Alban Sato 

Manager, Interline Tariffs 

IDFS Passenger 

RESOLUTIONS ADOPTED AT 

TC31 NORTH AND CENTRAL PACIFIC, 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PASSENGER TARIFF COORDINATING CONFERENCE 

GENEVA, 12-13 APRIL 2010 

EFFECTIVE DATE: 1 APRIL 2011 

RESO TITLE COMMENTS RD 

002 TC31 North & Central Pacific 

between Korea (Rep. of), Malaysia and USA 

Amending Resolution 

New 1 

111nn TC31 North & Central Pacific Flex Fares – Governing 

Resolution 

Amending 2 

046nn Intermediate/Business Class Flex Fares 

between Korea (Rep. of), Malaysia and USA 

New 3 

056nn First Class Flex Fares 

between Korea (Rep. of), Malaysia and USA 

New 4 

066nn Economy Class Flex Fares 

between Korea (Rep. of), Malaysia and USA 

New 5 

071zn Excursion Flex Fares 

from Korea (Rep. of) to USA 

New 6 

ADOPTED Res Doc : 1 

 Resolution : 002 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

AMENDING RESOLUTION 

PTC31(126)002 New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

RESOLVED that, 

the following Resolution in the TC31 North and Central Pacific subareas between Korea 

(Rep. of), Malaysia and USA are rescinded and fares deleted effective 1 April 2011 

Between Korea (Rep. of), Malaysia and USA 

Resolution Title 

001a Special Applicability Resolution between Korea (Rep. of), Malaysia and USA 

046a Intermediate/Business Class Fares between Korea (Rep. of), Malaysia and USA 

056a First Class Fares between between Korea (Rep. of), Malaysia and USA 

066a Restricted Economy Class Fares between Korea (Rep. of), Malaysia and USA 

066c Economy Class Fares between Korea (Rep. of) and USA 

070o Excursion Fares from Korea (Rep. of) to USA 

070py Excursion Fares from USA to Korea (Rep. of), Malaysia 

073g APEX Fares from USA to Korea (Rep. of), Malaysia 

073i One Way APEX Fares from USA to Korea (Rep. of), Malaysia 

073w APEX Fares from Malaysia to USA 

073z One Way APEX Fares from Malaysia to USA 

076ay One Way PEX Fares from Korea (Rep. of) to USA 

084pp GIT Fares Fares from Malaysia to USA 

084q GIT Fares Fares from Korea (Rep. of) to USA 

ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)111nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

WHEREAS, fully flexible, broadly supported interline fares products provide benefits to 

consumers, governments, and airlines, and 

WHEREAS, it is desirable that such interline fares products should be established to 

supplement the other products Member airlines may wish to offer, and 

WHEREAS, services between the TC3 and TC1 would benefit from the availability of such 

additional interline products 

It is RESOLVED that, 

1) Fares governed by Resolutions 046nn, 056nn and 066nn shall be established and 

updated by IATA in accordance with the criteria set out in Attachment ‘A’ to this 

Resolution. 

2) Fares governed by Resolutions 071zn shall be established and updated by IATA in 

accordance with the criteria set out in Attachment ‘B’ to this Resolution. 

3) The interline premium referred to in the Attachment shall be 15%. 
ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 2 

PTC31 N&C 0517 

GVA, Apr10 

ATTACHMENT A 

IATA shall establish and update Flex Fares in Resolutions 046nn, 056nn and 066nn for 

application between TC3 and TC1 in accordance with the following criteria 

1) FLEX FARES APPLICATION 

A) Round Trip (RT) Flex Fares shall be established for first, intermediate /business and 

economy class 

B) One Way (OO) levels will be established at 65% of the corresponding Round Trip 

(RT) fares 

2) FLEX FARES 

A) Fares in Attachments to Resolutions 046nn, 056nn and 066nn will be established as 

follows: 

B) IATA shall use TC Member carrier fares available for sale in automated fares data 

bases 

C) For each pair of points IATA will select, per cabin: 

1) the highest unrestricted RT fare for each carrier. If no RT is available then 

double the highest unrestricted one-way (OW) fare. Where both RT and the 

doubled one-way (OW) fares are available for a carrier, only the RT fare shall 

be selected. 

a) Carrier fares that deviate from the standard conditions in Resolution 101 

Paragraphs 1, 5, 6, 7 shall not be selected; in the case of Paragraph 5) 

this exclusion shall only apply if there is an advance purchase condition 

b) The following fare types shall not be selected 

- Coupon Fares 

c) First class fares filed by carriers that do not have first class service shall 

not be selected 

d) Selected fares must be available for sale directly to the public 

2) the highest fare 

D) Once fares have been selected in accordance with B) above, the following 

procedures shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard 

Deviation’ by 1.25. The resultant amount will be added to and subtracted from 

the average to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded. 

(*1) National carrier is defined as a carrier of whose nationality belongs to 

either the country of departure or destination 

3) The remaining fares will be averaged to establish the ‘Average Fare’ 
ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 3 

PTC31 N&C 0517 

GVA, Apr10 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 

6) Where resultant Flex Fare level is lower than the level for the lower cabin, the 

level shall be established equal to the higher level 

3) UPDATING FLEX FARES

A) IATA will update Flex Fares once annually, for travel on/after 1 April

B) For city pairs where no Flex Fares are established such city pairs shall be removed 

from the IATA fare structure 

C) A voting Member may request an exceptional update, for either a total update, or an 

update for a pair(s) of points on a from, to or between basis. The voting Member must 

provide the justification for the request and advise the required ticket/travel dates 

D) Any change to the Premium in paragraph 3) of this Resolution will be implemented at 

the next regular Flex Fares update. 

IATA Note: 

Issue Note 

Doubled OW fares Doubled-OW carrier fares are excluded from calculation if RT fares are 

available 

Mode of Transportation If fare is filed where the only available mode of transportation is other 

than air, such fare will be excluded 

Currency Carrier fares filed in currencies other than those specified in the 

Composite Resolution 024d will not be selected 

YY Fares Current YY fares included in the initial calculation 
ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 4 

PTC31 N&C 0517 

GVA, Apr10 

ATTACHMENT B 

IATA shall establish and update Flex Fares in Resolutions 071zn for application from Korea 

(Rep. of) to TC1 in accordance with the following criteria 

1) FLEX FARES APPLICATION 

A) Round Trip (RT) excursion Flex Fares shall be established for economy class 

2) FLEX FARES 

A) Fares in the Attachment to Resolution 071zn will be established as follows: 

B) IATA shall use TC Member carrier fares available for sale in automated fares data 

bases 

C) For each pair of points IATA will select: 

1) the highest promotional RT fare for each carrier. 

a) The following fare types shall not be selected 

- Coupon Fares 

b) Selected fares must be available for sale directly to the public 

2) the highest fare, where a carrier has more than one fare 

D) Once fares have been selected in accordance with B) above, the following procedures 

shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ 

by 1.25. The resultant amount will be added to and subtracted from the average 

to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded. 

(*1) National carrier is defined as a carrier of whose nationality belongs to either 

the country of departure or destination 

3) The remaining fares will be averaged to establish the ‘Average Fare’ 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 

3) UPDATING FLEX FARES 

A) IATA will update Flex Fares once annually, for travel on/after 1 April 

B) For city pairs where no Flex Fares are established such city pairs shall be removed 

from the IATA fare structure 

C) A voting Member may request an exceptional update, for either a total update, or an 

update for a pair(s) of points on a from, to or between basis. The voting Member must 

provide the justification for the request and advise the required ticket/travel dates. 

D) Any change to the Premium in paragraph 3) of this Resolution will be implemented at 

the next regular Flex Fares update 
ADOPTED Res Doc : 3 

 Resolution : 046nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

INTERMEDIATE/BUSINESS CLASS 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)046nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

The following normal fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 101 

0) APPLICATION 

 A) 1) Application

 Intermediate/business class 

normal Flex fares 

 2) Fares 

 b) fares shall be established and amended by IATA using the criteria in 

Resolution 111nn 

19) CHILDREN AND INFANT DISCOUNTS 

 A) 1) Children

 a) accompanied children 

 aged 2-11 years: charge 75% of applicable adult fare 

exception: on services of TG UA: charge 100% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 75% of applicable adult fare 

exception: on services of TG UA: charge 100% of applicable adult 

fare 

 b) unaccompanied infant 

 not permitted 

 20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

 21) AGENT DISCOUNTS 

 A) not permitted 

ADOPTED Res Doc : 4 

 Resolution : 056nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

FIRST CLASS 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)056nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

The following normal fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 101 

0) APPLICATION 

 A) 1) Application

 first class 

normal Flex fares 

 2) Fares

 b) fares shall be established and amended by IATA using the criteria in 

Resolution 111nn 

19) CHILDREN AND INFANT DISCOUNTS 

 A) 1) Children

 a) accompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 100% of applicable adult fare 

 b) unaccompanied infant 

 not permitted 

 20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

 21) AGENT DISCOUNTS 

 A) not permitted 

ADOPTED Res Doc : 5 

 Resolution : 066nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

ECONOMY CLASS 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)066nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

The following normal fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 101 

0) APPLICATION 

 A) 1) Application

 economy class 

normal Fares 

 2) Fares

 b) fares shall be established and amended by IATA using the criteria in 

Resolution 111nn 

19) CHILDREN AND INFANT DISCOUNTS 

1) Children 

 a) accompanied children 

 aged 2-11 years: charge 75% of applicable adult fare 

exception: on services of UA: charge 100% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 75% of applicable adult fare 

exception: on services of UA: charge 100% of applicable adult fare 

 b) unaccompanied infant 

 not permitted 
ADOPTED Res Doc : 5 

 Resolution : 066nn 

 Page : 2 

PTC31 N&C 0517 

GVA, Apr10 

 20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

 21) AGENT DISCOUNTS 

 A) not permitted 
ADOPTED Res Doc : 6 

 Resolution : 071zn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

EXCURSION FLEX FARES 

FROM KOREA (REP. OF) TO 

USA 

PTC31(126)071zn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry 31 March 2012 

 Type B 

The following special fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 100 

0) APPLICATION 

 A) 1) Application 

 economy class 

round, circle, single open jaw trip 

excursion fares 

from Korea (Rep. of) 

to North America, Caribbean, Central America, South America 

1) ELIGIBILITY 

 A) 1) Eligibility 

 Exception: unaccompanied infant: not eligible 

 B) 1) Types of Trip 

 Exception: open jaw: origin open jaw sectors must be in country of origin 

6) MINIMUM STAY 

 A) 1) 7 days 

7) MAXIMUM STAY 

 A) 6 months 

8) STOPOVERS 

 A) 1) one permitted in each direction 

 2) one additional permitted in each direction, each at a charge of 

KRW 89000 

9) TRANSFERS 

 A) 4 permitted in each direction 

15) SALES RESTRICTIONS 

 A) 2) Extension of Validity 

 not permitted for medical reasons 
ADOPTED Res Doc : 6 

 Resolution : 071zn 

 Page : 2 

PTC31 N&C 0517 

GVA, Apr10 

19) CHILDREN AND INFANT DISCOUNTS 

 A) 1) Children 

 a) accompanied children 

 aged 2-11 years: charge 75% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 75% of applicable adult fare 

 b) unaccompanied infant 

 not permitted 

 B) governing Resolution 

 Composite Resolution 201 (Children and Infants) 

 Exception to Paragraph 3): charges in Paragraph 16)A)2): children pay 

applicable adult amount
International Air Transport Association 

Route de l’Aéroport 33 

PO Box 416 

CH - 1215 Geneva 15 Airport 

Switzerland 

Tel: +41 22 770 2834 

Fax +41 22 770 2896 

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

21 February 2011 

MEMORANDUM

PTC31 N&C 0529 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Manager, Interline Tariffs 

SUBJECT: Mail Vote 668 - Resolution 111nn

TC31 North and Central Pacific 

between Korea (Rep. of), Malaysia and USA 

Flex fares 

Intended Effective Date: 1 April 2011 

VOTING RESULT - ADOPTED

As no negative votes were cast during the voting period which expired 1400 hours Geneva 

time 21 February 2011, Mail Vote 668, as circulated by MV668-1 dated 14 February 2011, is 

declared adopted on 21 February 2011. 

Members are referred to memorandum PTC31 N&C 0517 dated 19 April 2010 which circulated 

the Flex Fares Resolutions between Korea (Rep. of), Malaysia and USA and subsequently 

amended by PTC31 N&C 0520 dated 28 April 2010 for an intended effective date of 1 April 

2011. 

To ensure approval, it is proposed to amend the Resolution for intended effective date of 1 

April 2011 as attached. 

The filing period for this Mail Vote ends 2 March 2011 Members are reminded of their 

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

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

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

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

received. 

Alban Sato 

Manager, Interline Tariffs 

Passenger Interline Standards 

ADOPTED Res Doc: 1 

 Reso: 111nn 

TC31 

NORTH AND CENTRAL PACIFIC 

FLEX FARES 

PTC31(Mail 668)111nn New 

 Begins 22 February 2011 Intended Effectiveness 1 April 2011 

 Ends 2 March 2011 Expiry Indefinite 

 Type B 

RESOLVED that, Resolution 111nn, Attachment A, Paragraph 2)D)2) and Attachment B, 

Paragraph 2)D)2) are amended as follows: 

ATTACHMENT A 

2) FLEX FARES 

D) Once fares have been selected in accordance with C) above, the following 

procedures shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard 

Deviation’ by 1.25. The resultant amount will be added to and subtracted from 

the average to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded.

(*1) National carrier is defined as a carrier of whose nationality belongs to 

either the country of departure or destination

3) The remaining fares will be averaged to establish the ‘Average Fare’ 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 

6) Where resultant Flex Fare level is lower than the level for the lower cabin, the 

level shall be established equal to the higher level 
ADOPTED Res Doc : 1 

Resolution : 111nn 

Page : 2 

ATTACHMENT B 

2) FLEX FARES 

D) Once fares have been selected in accordance with C) above, the following procedures 

shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ 

by 1.25. The resultant amount will be added to and subtracted from the average 

to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded.

(*1) National carrier is defined as a carrier of whose nationality belongs to either

the country of departure or destination

3) The remaining fares will be averaged to establish the ‘Average Fare’ 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 
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 

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

19 April 2010 

MEMORANDUM

PTC31 N&C 0517 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Global Head, Passenger 

SUBJECT: TC31 North & Central Pacific 

Between Korea (Rep. of), Malaysia and USA

Flex Fares Resolutions 

 Geneva, 12-13 April 2010 

 Intended Effective Date: 1 April 2011 

RESOLUTIONS - ADOPTED

Attached are the TC31 North & Central Pacific Flex Fares Resolutions between Korea (Rep. 

of), Malaysia and USA which were adopted at the above meeting for an intended effective 

date of 1 April 2011. 

The filing period for the attached Resolutions ends 21 May 2010. Members are reminded of 

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

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

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

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

received. 

Alban Sato 

Manager, Interline Tariffs 

IDFS Passenger 

RESOLUTIONS ADOPTED AT 

TC31 NORTH AND CENTRAL PACIFIC, 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PASSENGER TARIFF COORDINATING CONFERENCE 

GENEVA, 12-13 APRIL 2010 

EFFECTIVE DATE: 1 APRIL 2011 

RESO TITLE COMMENTS RD 

002 TC31 North & Central Pacific 

between Korea (Rep. of), Malaysia and USA 

Amending Resolution 

New 1 

111nn TC31 North & Central Pacific Flex Fares – Governing 

Resolution 

Amending 2 

046nn Intermediate/Business Class Flex Fares 

between Korea (Rep. of), Malaysia and USA 

New 3 

056nn First Class Flex Fares 

between Korea (Rep. of), Malaysia and USA 

New 4 

066nn Economy Class Flex Fares 

between Korea (Rep. of), Malaysia and USA 

New 5 

071zn Excursion Flex Fares 

from Korea (Rep. of) to USA 

New 6 

ADOPTED Res Doc : 1 

 Resolution : 002 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

AMENDING RESOLUTION 

PTC31(126)002 New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

RESOLVED that, 

the following Resolution in the TC31 North and Central Pacific subareas between Korea 

(Rep. of), Malaysia and USA are rescinded and fares deleted effective 1 April 2011 

Between Korea (Rep. of), Malaysia and USA 

Resolution Title 

001a Special Applicability Resolution between Korea (Rep. of), Malaysia and USA 

046a Intermediate/Business Class Fares between Korea (Rep. of), Malaysia and USA 

056a First Class Fares between between Korea (Rep. of), Malaysia and USA 

066a Restricted Economy Class Fares between Korea (Rep. of), Malaysia and USA 

066c Economy Class Fares between Korea (Rep. of) and USA 

070o Excursion Fares from Korea (Rep. of) to USA 

070py Excursion Fares from USA to Korea (Rep. of), Malaysia 

073g APEX Fares from USA to Korea (Rep. of), Malaysia 

073i One Way APEX Fares from USA to Korea (Rep. of), Malaysia 

073w APEX Fares from Malaysia to USA 

073z One Way APEX Fares from Malaysia to USA 

076ay One Way PEX Fares from Korea (Rep. of) to USA 

084pp GIT Fares Fares from Malaysia to USA 

084q GIT Fares Fares from Korea (Rep. of) to USA 

ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)111nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

WHEREAS, fully flexible, broadly supported interline fares products provide benefits to 

consumers, governments, and airlines, and 

WHEREAS, it is desirable that such interline fares products should be established to 

supplement the other products Member airlines may wish to offer, and 

WHEREAS, services between the TC3 and TC1 would benefit from the availability of such 

additional interline products 

It is RESOLVED that, 

1) Fares governed by Resolutions 046nn, 056nn and 066nn shall be established and 

updated by IATA in accordance with the criteria set out in Attachment ‘A’ to this 

Resolution. 

2) Fares governed by Resolutions 071zn shall be established and updated by IATA in 

accordance with the criteria set out in Attachment ‘B’ to this Resolution. 

3) The interline premium referred to in the Attachment shall be 15%. 
ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 2 

PTC31 N&C 0517 

GVA, Apr10 

ATTACHMENT A 

IATA shall establish and update Flex Fares in Resolutions 046nn, 056nn and 066nn for 

application between TC3 and TC1 in accordance with the following criteria 

1) FLEX FARES APPLICATION 

A) Round Trip (RT) Flex Fares shall be established for first, intermediate /business and 

economy class 

B) One Way (OO) levels will be established at 65% of the corresponding Round Trip 

(RT) fares 

2) FLEX FARES 

A) Fares in Attachments to Resolutions 046nn, 056nn and 066nn will be established as 

follows: 

B) IATA shall use TC Member carrier fares available for sale in automated fares data 

bases 

C) For each pair of points IATA will select, per cabin: 

1) the highest unrestricted RT fare for each carrier. If no RT is available then 

double the highest unrestricted one-way (OW) fare. Where both RT and the 

doubled one-way (OW) fares are available for a carrier, only the RT fare shall 

be selected. 

a) Carrier fares that deviate from the standard conditions in Resolution 101 

Paragraphs 1, 5, 6, 7 shall not be selected; in the case of Paragraph 5) 

this exclusion shall only apply if there is an advance purchase condition 

b) The following fare types shall not be selected 

- Coupon Fares 

c) First class fares filed by carriers that do not have first class service shall 

not be selected 

d) Selected fares must be available for sale directly to the public 

2) the highest fare 

D) Once fares have been selected in accordance with B) above, the following 

procedures shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard 

Deviation’ by 1.25. The resultant amount will be added to and subtracted from 

the average to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded. 

(*1) National carrier is defined as a carrier of whose nationality belongs to 

either the country of departure or destination 

3) The remaining fares will be averaged to establish the ‘Average Fare’ 
ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 3 

PTC31 N&C 0517 

GVA, Apr10 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 

6) Where resultant Flex Fare level is lower than the level for the lower cabin, the 

level shall be established equal to the higher level 

3) UPDATING FLEX FARES

A) IATA will update Flex Fares once annually, for travel on/after 1 April

B) For city pairs where no Flex Fares are established such city pairs shall be removed 

from the IATA fare structure 

C) A voting Member may request an exceptional update, for either a total update, or an 

update for a pair(s) of points on a from, to or between basis. The voting Member must 

provide the justification for the request and advise the required ticket/travel dates 

D) Any change to the Premium in paragraph 3) of this Resolution will be implemented at 

the next regular Flex Fares update. 

IATA Note: 

Issue Note 

Doubled OW fares Doubled-OW carrier fares are excluded from calculation if RT fares are 

available 

Mode of Transportation If fare is filed where the only available mode of transportation is other 

than air, such fare will be excluded 

Currency Carrier fares filed in currencies other than those specified in the 

Composite Resolution 024d will not be selected 

YY Fares Current YY fares included in the initial calculation 
ADOPTED Res Doc : 2 

 Resolution : 111nn 

 Page : 4 

PTC31 N&C 0517 

GVA, Apr10 

ATTACHMENT B 

IATA shall establish and update Flex Fares in Resolutions 071zn for application from Korea 

(Rep. of) to TC1 in accordance with the following criteria 

1) FLEX FARES APPLICATION 

A) Round Trip (RT) excursion Flex Fares shall be established for economy class 

2) FLEX FARES 

A) Fares in the Attachment to Resolution 071zn will be established as follows: 

B) IATA shall use TC Member carrier fares available for sale in automated fares data 

bases 

C) For each pair of points IATA will select: 

1) the highest promotional RT fare for each carrier. 

a) The following fare types shall not be selected 

- Coupon Fares 

b) Selected fares must be available for sale directly to the public 

2) the highest fare, where a carrier has more than one fare 

D) Once fares have been selected in accordance with B) above, the following procedures 

shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ 

by 1.25. The resultant amount will be added to and subtracted from the average 

to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded. 

(*1) National carrier is defined as a carrier of whose nationality belongs to either 

the country of departure or destination 

3) The remaining fares will be averaged to establish the ‘Average Fare’ 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 

3) UPDATING FLEX FARES 

A) IATA will update Flex Fares once annually, for travel on/after 1 April 

B) For city pairs where no Flex Fares are established such city pairs shall be removed 

from the IATA fare structure 

C) A voting Member may request an exceptional update, for either a total update, or an 

update for a pair(s) of points on a from, to or between basis. The voting Member must 

provide the justification for the request and advise the required ticket/travel dates. 

D) Any change to the Premium in paragraph 3) of this Resolution will be implemented at 

the next regular Flex Fares update 
ADOPTED Res Doc : 3 

 Resolution : 046nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

INTERMEDIATE/BUSINESS CLASS 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)046nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

The following normal fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 101 

0) APPLICATION 

 A) 1) Application

 Intermediate/business class 

normal Flex fares 

 2) Fares 

 b) fares shall be established and amended by IATA using the criteria in 

Resolution 111nn 

19) CHILDREN AND INFANT DISCOUNTS 

 A) 1) Children

 a) accompanied children 

 aged 2-11 years: charge 75% of applicable adult fare 

exception: on services of TG UA: charge 100% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 75% of applicable adult fare 

exception: on services of TG UA: charge 100% of applicable adult 

fare 

 b) unaccompanied infant 

 not permitted 

 20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

 21) AGENT DISCOUNTS 

 A) not permitted 

ADOPTED Res Doc : 4 

 Resolution : 056nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

FIRST CLASS 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)056nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

The following normal fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 101 

0) APPLICATION 

 A) 1) Application

 first class 

normal Flex fares 

 2) Fares

 b) fares shall be established and amended by IATA using the criteria in 

Resolution 111nn 

19) CHILDREN AND INFANT DISCOUNTS 

 A) 1) Children

 a) accompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 100% of applicable adult fare 

 b) unaccompanied infant 

 not permitted 

 20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

 21) AGENT DISCOUNTS 

 A) not permitted 

ADOPTED Res Doc : 5 

 Resolution : 066nn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

NORTH AND CENTRAL PACIFIC 

ECONOMY CLASS 

FLEX FARES 

BETWEEN KOREA (REP. OF), MALAYSIA AND USA 

PTC31(126)066nn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry Indefinite 

 Type B 

The following normal fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 101 

0) APPLICATION 

 A) 1) Application

 economy class 

normal Fares 

 2) Fares

 b) fares shall be established and amended by IATA using the criteria in 

Resolution 111nn 

19) CHILDREN AND INFANT DISCOUNTS 

1) Children 

 a) accompanied children 

 aged 2-11 years: charge 75% of applicable adult fare 

exception: on services of UA: charge 100% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 75% of applicable adult fare 

exception: on services of UA: charge 100% of applicable adult fare 

 b) unaccompanied infant 

 not permitted 
ADOPTED Res Doc : 5 

 Resolution : 066nn 

 Page : 2 

PTC31 N&C 0517 

GVA, Apr10 

 20) TOUR CONDUCTOR DISCOUNTS 

 A) not permitted 

 21) AGENT DISCOUNTS 

 A) not permitted 
ADOPTED Res Doc : 6 

 Resolution : 071zn 

 Page : 1 

PTC31 N&C 0517 

GVA, Apr10 

TC31 

EXCURSION FLEX FARES 

FROM KOREA (REP. OF) TO 

USA 

PTC31(126)071zn New

Filing Period Begins 23 April 2010 Intended Effectiveness 1 April 2011 

 Ends 21 May 2010 Expiry 31 March 2012 

 Type B 

The following special fares shall be established, subject to the conditions hereof and of 

Standard Condition Resolution 100 

0) APPLICATION 

 A) 1) Application 

 economy class 

round, circle, single open jaw trip 

excursion fares 

from Korea (Rep. of) 

to North America, Caribbean, Central America, South America 

1) ELIGIBILITY 

 A) 1) Eligibility 

 Exception: unaccompanied infant: not eligible 

 B) 1) Types of Trip 

 Exception: open jaw: origin open jaw sectors must be in country of origin 

6) MINIMUM STAY 

 A) 1) 7 days 

7) MAXIMUM STAY 

 A) 6 months 

8) STOPOVERS 

 A) 1) one permitted in each direction 

 2) one additional permitted in each direction, each at a charge of 

KRW 89000 

9) TRANSFERS 

 A) 4 permitted in each direction 

15) SALES RESTRICTIONS 

 A) 2) Extension of Validity 

 not permitted for medical reasons 
ADOPTED Res Doc : 6 

 Resolution : 071zn 

 Page : 2 

PTC31 N&C 0517 

GVA, Apr10 

19) CHILDREN AND INFANT DISCOUNTS 

 A) 1) Children 

 a) accompanied children 

 aged 2-11 years: charge 75% of applicable adult fare 

 b) unaccompanied children 

 aged 2-11 years: charge 100% of applicable adult fare 

 2) Infant

 a) accompanied infant 

 i) no seat: charge 10% of applicable adult fare 

 ii) booked seat: charge 75% of applicable adult fare 

 b) unaccompanied infant 

 not permitted 

 B) governing Resolution 

 Composite Resolution 201 (Children and Infants) 

 Exception to Paragraph 3): charges in Paragraph 16)A)2): children pay 

applicable adult amount
International Air Transport Association 

Route de l’Aéroport 33 

PO Box 416 

CH - 1215 Geneva 15 Airport 

Switzerland 

Tel: +41 22 770 2834 

Fax +41 22 770 2896 

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

21 February 2011 

MEMORANDUM

PTC31 N&C 0529 

TO: Members Participating in Tariff Coordinating Conferences 

FROM: Manager, Interline Tariffs 

SUBJECT: Mail Vote 668 - Resolution 111nn

TC31 North and Central Pacific 

between Korea (Rep. of), Malaysia and USA 

Flex fares 

Intended Effective Date: 1 April 2011 

VOTING RESULT - ADOPTED

As no negative votes were cast during the voting period which expired 1400 hours Geneva 

time 21 February 2011, Mail Vote 668, as circulated by MV668-1 dated 14 February 2011, is 

declared adopted on 21 February 2011. 

Members are referred to memorandum PTC31 N&C 0517 dated 19 April 2010 which circulated 

the Flex Fares Resolutions between Korea (Rep. of), Malaysia and USA and subsequently 

amended by PTC31 N&C 0520 dated 28 April 2010 for an intended effective date of 1 April 

2011. 

To ensure approval, it is proposed to amend the Resolution for intended effective date of 1 

April 2011 as attached. 

The filing period for this Mail Vote ends 2 March 2011 Members are reminded of their 

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

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

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

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

received. 

Alban Sato 

Manager, Interline Tariffs 

Passenger Interline Standards 

ADOPTED Res Doc: 1 

 Reso: 111nn 

TC31 

NORTH AND CENTRAL PACIFIC 

FLEX FARES 

PTC31(Mail 668)111nn New 

 Begins 22 February 2011 Intended Effectiveness 1 April 2011 

 Ends 2 March 2011 Expiry Indefinite 

 Type B 

RESOLVED that, Resolution 111nn, Attachment A, Paragraph 2)D)2) and Attachment B, 

Paragraph 2)D)2) are amended as follows: 

ATTACHMENT A 

2) FLEX FARES 

D) Once fares have been selected in accordance with C) above, the following 

procedures shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard 

Deviation’ by 1.25. The resultant amount will be added to and subtracted from 

the average to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded.

(*1) National carrier is defined as a carrier of whose nationality belongs to 

either the country of departure or destination

3) The remaining fares will be averaged to establish the ‘Average Fare’ 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’ 

6) Where resultant Flex Fare level is lower than the level for the lower cabin, the 

level shall be established equal to the higher level 
ADOPTED Res Doc : 1 

Resolution : 111nn 

Page : 2 

ATTACHMENT B 

2) FLEX FARES 

D) Once fares have been selected in accordance with C) above, the following procedures 

shall apply for each pair of points; 

1) The ‘Standard Deviation’ principle will be applied to the selected fares 

2) A ‘Maximum Spread’ will be established by multiplying the ‘Standard Deviation’ 

by 1.25. The resultant amount will be added to and subtracted from the average 

to create a range. Fares outside the range are excluded 

Exception: Fares published by national carriers (*1) of the origin or the 

destination countries shall not be excluded.

(*1) National carrier is defined as a carrier of whose nationality belongs to either

the country of departure or destination

3) The remaining fares will be averaged to establish the ‘Average Fare’ 

4) The Interline Premium reflected in Paragraph 3) of this Resolution shall be 

applied to the ‘Average Fare’ to establish the Flex Fare 

5) The resultant Flex Fare level shall not be less than the highest fare used in 

establishing the ‘Average Fare’