Basic Passenger Tariff Training

Presented By : James Mathew

Basic Passenger Tariff Training

Lesson Plan

Traffic Conference Areas ( TC ) Exercise – TC Areas Global Indicators Exercise – Global Indicators Routings and Fares

Types of Routings & Fares Factors influencing Fares

a. Type of Intermediate Stopsb. Routingc. Mileage Principlesd. NUCe. IROE f. Certain Checks

Basic 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 & Questions

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 )

IATA Areas ( Traffic Conference Areas )

Global Indicators

Global Indicators

Routings & Fares

Type of Routings/Fares

Main Routings/Fares

1. 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 )

2. 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 )


Main Routings/Fares

3. 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.


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.)

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 ) • IROE - IATA Rate Of Exchange • Certain Checks:

HIP : Higher rated intermediate points

BHC : One Way Backhaul Minimum Check

CTM : Circle Trip Minimum Check

Basic Fare Construction

One Way – Steps and Application

1. 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 )

4. 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 )



5. TPM – Add up the Ticketed Point Mileage of each sector and compare the total TPM to the MPM ( refer PAT – Passenger Air Tariff )

6. 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 )



EMS - Excess Mileage Surcharge ( % )

If the result is over Up to and including The fare shall be not less than the direct route fare plus

1.00,000 1.05,000 05% 5M X 1.05

1.05,000 1.10,000 10% 10M X 1.10

1.10,000 1.15,000 15% 15M X 1.15

1.15,000 1.20,000 20% 20M X 1.20

1.20,000 1.25,000 25% 25M X 1.25

Over 1.25,000 Use highest combination (25M)



8. 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



9. 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 )



10. 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

11. Surcharges ( Q ) – Collect Security Surcharges, if any. Convert into NUC at applicable IROE

12. Total – Add up all the NUC’s to get the sum total

13. IROE – Multiply the total NUC by the IATA Rate Of Exchange based on the country of commencement of travel.

14. LCF – Round the resulting Local Currency Fare ( refer the required number of decimal units for the currency )


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 )



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



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

Exercise:1 One Way Fare Construction without HIP and BHC

1. FCP :

2. NUC :

3. SR :

4. MPM :

5. TPM :

6. EMA :

7. EMS :

8. HIP : ------------

9. BHC : ------------

10. Stopover/Transfer Charge ( S ) :

11. Surcharges ( Q ) :

12. Total :

13. IROE :

14. LCF :

Examples

Exercise:2 One Way Fare Construction with HIP and BHC

1. FCP :

2. NUC :

3. SR :

4. MPM :

5. TPM :

6. EMA :

7. EMS :

8. HIP :

9. BHC :



12. Total :

13. IROE :

14. LCF :

Examples

Exercise:1 RT/CT Fare Construction without CTM

1. FCP :

2. NUC :

3. SR :

4. MPM :

5. TPM :

6. EMA :

7. EMS :

8. HIP :

9. CTM : --------------



12. Total :

13. IROE :

14. LCF :

Examples

Exercise:2 RT/CT Fare Construction with CTM

1. FCP :

2. NUC :

3. SR :

4. MPM :

5. TPM :

6. EMA :

7. EMS :

8. HIP :

9. CTM :



12. Total :

13. IROE :

14. LCF :

Examples

THANK YOU

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Basic Passenger Tariff Training

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