Basic Passenger Tariff Training

Basic Passenger Tariff TrainingPresented By : James Mathew

Lesson PlanTraffic Conference Areas ( TC )

Exercise – Global Indicators

Factors influencing Fares a. Type of Intermediate Stops b. Routing c. Mileage Principles d. NUC e. IROE f. Certain ChecksBasic Fare Construction – One Way Steps and Applications

Basic Fare Construction – Return and Circle Trip Steps and Applications

Exercise 1 – One Way Fare Construction without BHC

Exercise 2 – One Way Fare Construction with BHC

Exercise 1 – RT/CT Fare Construction without CTM

Exercise 2 – RT/CT Fare Construction with CTM

Discussion & QuestionsTraffic Conference Areas

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 )

Type of Routings/FaresMain Routings/FaresOne 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 )

Type of Routings/FaresMain Routings/FaresThe 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 – DOHAnother 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.

Type of Routings/FaresMain Routings/Fares4.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.)

Factors Influencing FaresType of Intermediate Stops: Stopover (> 24 hrs) or TransferRouting Global IndicatorMileage PrinciplesMPM :Maximum Permitted MileageTPM: Ticketed Point Mileage ( Actual Flown )( If TPM > MPM a surcharge must be paid )EMA: Extra Mileage AllowanceEMS:Excess Mileage Surcharge ( % ) NUC - Neutral Unit of Construction ( Virtual Currency )

IROE -IATA Rate Of Exchange Certain Checks: HIP : Higher rated intermediate pointsBHC : One Way Backhaul Minimum CheckCTM : Circle Trip Minimum Check

Basic Fare ConstructionOne Way – Steps and ApplicationFCP – Establish the Fare Construction Point or Fare Break Points2. 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 )

Basic Fare ConstructionOne Way – Steps and ApplicationTPM – 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 )

Basic Fare ConstructionOne Way – Steps and ApplicationEMS - Excess Mileage Surcharge ( % )

Basic Fare ConstructionOne Way – Steps and ApplicationHIP – 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

Basic Fare ConstructionOne Way – Steps and ApplicationBHC – 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 destinationCalculation: HI Fare - Unit origin to intermediate stopover pointLess ( - ) LO Fare - Unit origin to unit destinationEqual ( = ) BHD - Backhaul DifferencePlus ( + ) HI Fare - Unit origin to intermediate stopover pointEqual ( = ) OWM - OW Minimum fare( check the rules to ensure that the fare qualifies as an HI Fare )

Basic Fare ConstructionOne Way – Steps and ApplicationSTOPOVER/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 IROESurcharges ( Q ) – Collect Security Surcharges, if any. Convert into NUC at applicable IROETotal – Add up all the NUC’s to get the sum totalIROE – 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 )

Basic Fare ConstructionRT/CT – Steps and ApplicationThe Round Trip/Circle Trip steps are same as One Way Routing except for the HIPand the check ( CTM )

Basic Fare ConstructionRT/CT – Steps and ApplicationHIP – 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

Basic Fare ConstructionRT/CT – Steps and ApplicationCTM – 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

ExamplesExercise:1 One Way Fare Construction without HIP and BHCFCP :NUC :SR: MPM :TPM:EMA:EMS: HIP : ------------BHC : ------------Stopover/Transfer Charge ( S ) :Surcharges ( Q ) :Total:IROE:LCF:

ExamplesExercise:2 One Way Fare Construction with HIP and BHCFCP :NUC :SR: MPM :TPM:EMA:EMS: HIP :BHC :Stopover/Transfer Charge ( S ) :Surcharges ( Q ) :Total:IROE:LCF:

ExamplesExercise:1 RT/CT Fare Construction without CTMFCP :NUC :SR: MPM :TPM:EMA:EMS: HIP : CTM : --------------Stopover/Transfer Charge ( S ) :Surcharges ( Q ) :Total:IROE:LCF:

ExamplesExercise:2 RT/CT Fare Construction with CTMFCP :NUC :SR: MPM :TPM:EMA:EMS: HIP :CTM :Stopover/Transfer Charge ( S ) :Surcharges ( Q ) :Total:IROE:LCF:

Basic Passenger Tariff Training

Basic Passenger Tariff Training

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