Basic Passenger Tariff Training

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Basic Passenger Tariff Training

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Basic Passenger Tariff Training

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