Basics Of Airline Fares

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Basics Of Airline Fares

  1. Basics of Airline Fares General Introduction
  2. Types of Fares <ul><li>Normal Fares </li></ul><ul><ul><li>No restrictions, different classes possible </li></ul></ul><ul><li>Special Fares </li></ul><ul><ul><li>Restrictions, only in Economy class </li></ul></ul><ul><li>Normal Fares are higher </li></ul><ul><li>Normal Fares are the same with every IATA member airline </li></ul>
  3. Factors Influencing Fares <ul><li>Type of Intermediate Stops: </li></ul><ul><ul><li>Stopover (> 24 hrs) or Transfer </li></ul></ul><ul><li>Routing </li></ul><ul><ul><li>Global Indicator </li></ul></ul>
  4. Global Indicators
  5. Other Factors: <ul><li>Maximum Permitted Mileage (MPM) compared with: </li></ul><ul><li>Ticketed Point Mileages (TPM): Actual Flown </li></ul><ul><li>If TPM > MPM a surcharge must be paid </li></ul><ul><li>NUC: Virtual Currency and IROE </li></ul><ul><li>Certain Checks: </li></ul><ul><ul><li>HIP: Higher rated intermediate points </li></ul></ul><ul><ul><li>BHC: One Way Backhaul Minimum Check </li></ul></ul><ul><ul><li>CTM: Circle Trip Minimum Check </li></ul></ul>
  6. Type of Journeys <ul><li>One Way </li></ul><ul><li>Return Journey: </li></ul><ul><ul><li>Round Trip </li></ul></ul><ul><ul><li>Circle Trip </li></ul></ul><ul><li>Open Jaw </li></ul><ul><li>Round-the-World Journey </li></ul>
  7. Open Jaws Open Part must be domestic!
  8. Two Pricing Concepts: <ul><li>Journey Concept </li></ul><ul><li>Pricing Unit Concept (PUC): </li></ul><ul><ul><li>Journey may be divided into series of sub-journeys </li></ul></ul><ul><ul><li>Possible when there are common points and/or countries in a journey </li></ul></ul><ul><li>Slicing and Dicing: dividing a journey into sub-journeys </li></ul><ul><li>Why: PUC gives sometimes lower fares </li></ul>
  9. Slicing and Dicing Slice and dice the following journey: Madrid – Lisbon – Cairo – Johannesburg – Surface – Capetown – Cairo - Lisbon - Barcelona BCN MAD LIS CAI JNB CPT
  10. Madrid – Lisbon – Cairo – Johannesburg – Surface – Capetown – Cairo - Lisbon - Barcelona 1. Open Jaw MAD – LIS - BCN BCN MAD LIS CAI JNB CPT 2. Return LIS - CAI 3. Open Jaw CAI – JNB - - - CPT - CAI
  11. Fare Manuals <ul><li>PAT: </li></ul><ul><li>Passenger Air Tariff </li></ul><ul><li>Various Volumes: </li></ul><ul><ul><li>Fares (per hermisphere) </li></ul></ul><ul><ul><li>Rules </li></ul></ul><ul><ul><li>Maximum Permitted Mileages </li></ul></ul>
  12. How to Read Fares <ul><li>Headline city + Code </li></ul><ul><li>Fares / Class </li></ul><ul><ul><li>Normal Print: OW </li></ul></ul><ul><ul><li>Bold Print: Return </li></ul></ul><ul><li>Special Fare </li></ul><ul><li>Carrier Code </li></ul><ul><li>MPM </li></ul><ul><li>GI </li></ul><ul><li>Rule </li></ul><ul><li>Amount in Local and NUC </li></ul><ul><li>Local Currency </li></ul><ul><li>Specified Routing </li></ul>
  13. Read this fare
  14. How to Read Fares: TPM <ul><li>Ticketed Point Mileages (TPM): </li></ul><ul><li>Departure City (Aalborg) & Arrival City (Billund) </li></ul><ul><li>Country Code </li></ul><ul><li>Miles to Arrival City </li></ul><ul><li>Global Indicator </li></ul>
  15. Basic Fare Construction <ul><li>Determine FCP’s </li></ul><ul><li>NUC (GI & Type) </li></ul><ul><li>Rule (if any) </li></ul><ul><li>Note MPM </li></ul><ul><li>Calculate TPM </li></ul><ul><li>EMA (if TPM > MPM) </li></ul><ul><li>EMS (See table) </li></ul><ul><li>8. HIP </li></ul><ul><li>Rule </li></ul><ul><li>AF: Applicable Fare </li></ul><ul><li>Check: </li></ul><ul><ul><li>OW: BHC </li></ul></ul><ul><ul><li>CT: CTM </li></ul></ul><ul><li>13. Total </li></ul><ul><li>14. IROE </li></ul><ul><li>15. LCF: Local Curency Fare </li></ul>

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