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Basic Passenger Tariff Training

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Basic Passenger Tariff Training

Basic Passenger Tariff Training


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  • 1. Basic Passenger Tariff Training
    Presented By : James Mathew
  • 2. Lesson Plan
    • Traffic Conference Areas ( TC )
    • 3. Exercise – TC Areas
    • 4. Global Indicators
    • 5. Exercise – Global Indicators
    • 6. Routings and Fares
    • 7. Types of Routings & Fares
    • 8. Factors influencing Fares
    a. Type of Intermediate Stops
    b. Routing
    c. Mileage Principles
    d. NUC
    e. IROE
    f. Certain Checks
    • Basic Fare Construction – One Way Steps and Applications
    • 9. Basic Fare Construction – Return and Circle Trip Steps and Applications
    • 10. Exercise 1 – One Way Fare Construction without BHC
    • 11. Exercise 2 – One Way Fare Construction with BHC
    • 12. Exercise 1 – RT/CT Fare Construction without CTM
    • 13. Exercise 2 – RT/CT Fare Construction with CTM
    • 14. Discussion & Questions
  • Traffic Conference Areas
  • 15.
  • 16. IATA Areas ( Traffic Conference Areas )
    The Eastern Hemisphere and the Western Hemisphere which are the two parts of the world as per the elementary geography is further divided by IATA into 3 traffic conference areas called IATA Areas or TC1, TC2 and TC3 which comprise of further sub areas
    TC1 comes under Western Hemisphere ( WH )
    TC2 & TC3 comes under Eastern Hemisphere ( EH )
  • 17. Global Indicators
  • 18. Global Indicators
  • 19. Routings & Fares
  • 20. Type of Routings/Fares
    Main Routings/Fares
    One Way Fares - Some fares are published as one-way fares,
    which you may use to travel in one direction ( Point A
    to Point B )
    Round Trip Fares- Many fares are published as round trip fares.  Often a
    round trip fare costs less than twice a one-way fare,
    and indeed, often less than a single one-way
    fare.  Round trip fares generally have more restricted
    fare rules ( Point A to Point B and back again )
  • 21. Type of Routings/Fares
    Main Routings/Fares
    The Open Jaw - An open-jaw flight is one that, in the simplest terms, flies
    from Point A to Point B, then from Point C to Point A. Points
    B and C are often neighboring airports, or at least in the
    same TC ( Traffic Conference ) area. A sample open-jaw
    itinerary might be a flight from DOH – DXB - - MCT – DOH
    Another open-jaw scenario is to fly into and out of the same
    destination city, but your starting and finishing points are
    different, thus: Fly Point A to Point B; then fly Point B to
    Point C.
  • 22. Type of Routings/Fares
    Main Routings/Fares
    4.Circle Trip - A circle itinerary typically begins and ends in the same city, but
    includes at least three separate flights that take you to two or
    more different cities without the overland portions of the open
    jaw.
    Example: Fly from DOH to DXB, then DXB to MCT, then MCT to
    DOH ( can add Points D, E, F and beyond, but the start and end
    should be at the origin city – DOH in this example.)
  • 23. Factors Influencing Fares
    Type of Intermediate Stops:
    Stopover (> 24 hrs) or Transfer
    Routing
    Global Indicator
    Mileage Principles
    MPM :Maximum Permitted Mileage
    TPM: Ticketed Point Mileage ( Actual Flown )
    ( If TPM > MPM a surcharge must be paid )
    EMA: Extra Mileage Allowance
    EMS:Excess Mileage Surcharge ( % )
    • NUC - Neutral Unit of Construction ( Virtual Currency )
    • 24. IROE -IATA Rate Of Exchange
    Certain Checks:
    HIP : Higher rated intermediate points
    BHC : One Way Backhaul Minimum Check
    CTM : Circle Trip Minimum Check
  • 25. Basic Fare Construction
    One Way – Steps and Application
    FCP – Establish the Fare Construction Point or Fare Break Points
    2. NUC – Take the OW Neutral Unit of Construction from the origin to the destination of the fare component using the correct Global Indicator ( check the fare rules and ensure that the itinerary satisfies all conditions, collect stopover/transfer charge –if any )
    3. SR – Check out if the fare component qualifies as a Specified Routing. If it is, ignore the mileage system and take the NUC as the Applicable Fare ( AF )
    MPM – Establish the Maximum Permitted Mileage between the fare construction points of the fare component following the same Global Indicator as that used in the NUC ( refer PAT – Passenger Air Tariff )
  • 26. Basic Fare Construction
    One Way – Steps and Application
    TPM – Add up the Ticketed Point Mileage of each sector and compare the total TPM to the MPM ( refer PAT – Passenger Air Tariff )
    EMA – Deduct the Extra Mileage Allowance, if any, from the total TPM ( refer PAT – Passenger Air Tariff )
    7. EMS – if the EMA is insufficient or not applicable, determine the Excess Mileage Surcharge ( % ) by dividing the TPM by the MPM. Take the result up to 5 decimals ( refer PAT – Passenger Air Tariff )
  • 27. Basic Fare Construction
    One Way – Steps and Application
    EMS - Excess Mileage Surcharge ( % )
  • 28. Basic Fare Construction
    One Way – Steps and Application
    HIP – Look for the Higher Intermediate Point fare from –
    1. Unit origin to intermediate stopover point
    2. Intermediate stopover point to another
    3. Intermediate stopover point to the unit destination
    ( check the rules to ensure that the fare qualifies as an HIP, do not collect
    any additional stopover/transfer charges )
    Get the applicable One Way ( OW ) through fare in NUC using above steps
  • 29. Basic Fare Construction
    One Way – Steps and Application
    BHC – Apply the Backhaul Check when there is a fare from unit origin to
    intermediate stopover point is higher than the fare from unit origin to unit
    destination
    Calculation:
    HI Fare - Unit origin to intermediate stopover point
    Less ( - ) LO Fare - Unit origin to unit destination
    Equal ( = ) BHD - Backhaul Difference
    Plus ( + ) HI Fare - Unit origin to intermediate stopover point
    Equal ( = ) OWM - OW Minimum fare
    ( check the rules to ensure that the fare qualifies as an HI Fare )
  • 30. Basic Fare Construction
    One Way – Steps and Application
    STOPOVER/TRANSFER CHARGE ( S ) – Collect Stopover/transfer charge.
    Select the charge published in the currency of the country of fare component origin. Convert this into NUC at the applicable IROE
    Surcharges ( Q ) – Collect Security Surcharges, if any. Convert into NUC at applicable IROE
    Total – Add up all the NUC’s to get the sum total
    IROE – Multiply the total NUC by the IATA Rate Of Exchange based on the country of commencement of travel.
    LCF – Round the resulting Local Currency Fare ( refer the required number of decimal units for the currency )
  • 31. Basic Fare Construction
    RT/CT – Steps and Application
    The Round Trip/Circle Trip steps are same as One Way Routing except for the HIP
    and the check ( CTM )
  • 32. Basic Fare Construction
    RT/CT – Steps and Application
    HIP – Look for the Higher Intermediate Point fare from –
    1. Unit origin to intermediate stopover point
    2. Intermediate stopover point to another ( not applicable to special fare
    HIP check )
    3. Intermediate stopover point to the unit destination
    ( check the rules to ensure that the fare qualifies as an HIP, do not collect
    any additional stopover/transfer charges )
    Get the applicable ½ RT through fare in NUC using the above steps
  • 33. Basic Fare Construction
    RT/CT – Steps and Application
    CTM – For CT pricing units only. Look for the direct route RT fare from unit origin to
    the highest rated stopover point. Compare this RT fare to the sum of all of
    the fare components
  • 34. Examples
    Exercise:1 One Way Fare Construction without HIP and BHC
    FCP :
    NUC :
    SR:
    MPM :
    TPM:
    EMA:
    EMS:
    HIP : ------------
    BHC : ------------
    Stopover/Transfer Charge ( S ) :
    Surcharges ( Q ) :
    Total:
    IROE:
    LCF:
  • 35. Examples
    Exercise:2 One Way Fare Construction with HIP and BHC
    FCP :
    NUC :
    SR:
    MPM :
    TPM:
    EMA:
    EMS:
    HIP :
    BHC :
    Stopover/Transfer Charge ( S ) :
    Surcharges ( Q ) :
    Total:
    IROE:
    LCF:
  • 36. Examples
    Exercise:1 RT/CT Fare Construction without CTM
    FCP :
    NUC :
    SR:
    MPM :
    TPM:
    EMA:
    EMS:
    HIP :
    CTM : --------------
    Stopover/Transfer Charge ( S ) :
    Surcharges ( Q ) :
    Total:
    IROE:
    LCF:
  • 37. Examples
    Exercise:2 RT/CT Fare Construction with CTM
    FCP :
    NUC :
    SR:
    MPM :
    TPM:
    EMA:
    EMS:
    HIP :
    CTM :
    Stopover/Transfer Charge ( S ) :
    Surcharges ( Q ) :
    Total:
    IROE:
    LCF:
  • 38. THANK YOU