BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Agreements Adopted by the Traffic Conferences of the International Air Transport Association Docket OST-2008-0304 Exemption Under 49 U.S.C. 40109 from the Conditions of CAB Order 68-7-55 for Passenger Tariff Coordinating Conference Action APPLICATION FOR EXPANSION OF EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION 28 November 2008 Communications with respect to this document should be sent to Douglas Lavin Regional Vice President – North America International Air Transport Association 601 Pennsylvania Avenue, NW Suite 300 - North Building Washington, D.C. 20004 +(202) 628-9292 12663154.1
Transcript
BEFORE THE DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
Agreements Adopted by the Traffic Conferences of the International Air Transport Association
Docket OST-2008-0304
Exemption Under 49 U.S.C. 40109 from the Conditions of CAB Order 68-7-55 for Passenger Tariff Coordinating Conference Action
APPLICATION FOR EXPANSION OF EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS
BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION
28 November 2008 Communications with respect to this document should be sent to Douglas Lavin
Regional Vice President – North America International Air Transport Association 601 Pennsylvania Avenue, NW Suite 300 - North Building Washington, D.C. 20004 +(202) 628-9292
12663154.1
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Summary DOCKET: OST-2008-0304 US DOT ORDER: pending
Date: 28 November 2008 US/UST involved: Yes End of Government Filing Period: 12 December 2008 Meeting site, date: Geneva, 9-10 October 2008 Intended Effective Date: 1 April 2009 / 1 June 2009 Agreement 1: Composite Resolutions Intended Effective Date: 01APR09 (Memo 1508) r1 012 r2 017b r3 024d Agreement 2: Composite Resolutions Intended Effective Date: 01JUN09 (Memo 1511) r1 012 r2 017c Minutes: Composite Meeting of Passenger Tariff Coordinating
Conferences (Memo 1494)
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APPLICATION FOR EXPANSION OF EXEMPTION FROM FILING AND APPROVAL OF AGREEMENTS
Pursuant to statements submitted by Member airlines of the International Air
Transport Association (IATA), the undersigned has been constituted to be their attorney-
in-fact for filing with the Department of Transportation copies of agreements adopted by
the IATA Traffic Conferences.
On their behalf, and pursuant to Sections 40109(c) and 41309 of Title 49 of the
United States Code and Sections 302.4,302.302, 303.03, 303.05 and 303.30(c) of Title
14 of the Code of Federal Regulations, I am filing with the Department this application
for an amendment of the exemption from condition #2 imposed on IATA as contained in
the Provisions for the Conduct of the IATA Traffic Conferences, Agreement 1175, as
amended by Order 68-7-55 (the “Provisions”), to the extent that IATA need not file the
Resolutions listed in the Appendix hereto for review and approval by the Department
prior to a declaration of effectiveness by IATA and implementation by IATA members,
subject, as applicable, to conditions previously imposed.
On November 21, 2008, the Department issued an Order which exempted
expedited changes to Composite Passenger Tariff Coordinating Conference Resolutions
024a and 024d from condition #2 contained in the Provisions. The changes to
Resolutions 024a and 024d contained in the current docket were adopted at the October
9-10 Composite Passenger Tariff Coordinating Conference held in Geneva. After
consultation with the Department, IATA now seeks to expand the scope of the
November 21, 2008 Order granting such exemption to include the attached changes to
Resolutions 012, 017b, 017c and 024d which were also adopted at the October 9-10
Composite Passenger Tariff Coordinating Conference held in Geneva. These
Resolutions, marked to show the proposed changes, as well as summaries of the
agreements are attached.
12663154.1
The reasons justifying the requested broadened exemption are substantially the same
as relied on by the November 21, 2008 Order and similar exemption Orders granted by
the Department in recent years concerning IATA Traffic Conference Agreements. The
Resolutions at issue, including the proposed changes, do not raise competitive issues
and are designed solely to facilitate the efficient operation of interline service offered by
airlines to passengers around the world. Granting the broadened exemption would be
consistent with actions the Department has taken on other IATA agreements that
similarly do not present significant issues under U.S. antitrust laws, for example, the
agreements produced by the IATA Passenger and Cargo Services and Passenger and
Cargo Agency Conferences. For these reasons, granting the requested expanded
exemption would serve the public interest, and thus, meets the Section 40109(c)
standards for exemptions from filing and approval requirements.
Respectfully submitted _________________________________ Douglas Lavin Regional Vice President – North America International Air Transport Association
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1
CERTIFICATE OF SERVICE
A copy of this application or a summary notice thereof has been served by first class or priority mail on the following person
Chief, Transportation, Energy & Agriculture Section Antitrust Division Department of Justice Washington D.C. 20530
________________________________ Douglas Lavin
28 November 2008 Date Served
International Air Transport Association Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2525 Fax +41 22 770 2128
TO: Members Participating in Tariff Coordinating Conferences (SP-5710)
FROM: Director, Passenger
SUBJECT: Composite Passenger Tariff Coordinating Conference Geneva, 9-10 October 2008 Composite Resolutions Intended Effective Date: 1 April 2009
RESOLUTIONS - ADOPTED
Attached are Composite Resolutions, which were adopted at the above meeting for an intended effective date of 1 April 2009.
The filing period for the attached Resolutions ends 12 December 2008.
Members are reminded of their obligations under Resolutions 001 and 006 to advise this office by the end of the filing period whether approval by their Government authorities is required and, if so, to accomplish the necessary filing formalities. The effective date will be declared in accordance with Resolutions 001 and 006, when all the known necessary Government approvals have been received.
Lars Sellstedt Manager, Tariff Meetings Passenger Tariffs
RESOLUTIONS AMENDED AT
COMPOSITE MEETING OF PASSENGER TARIFF COORDINATING CONFERENCE
GENEVA, 9-10 OCTOBER 2008
EFFECTIVE DATE: 1 APRIL 2009
RESO TITLE COMMENTS RD
012 Glossary of Terms Amending 1
017b Construction Rules for Pricing Units Amending 2
024d Currency Names, Codes, Rounding Units and Acceptability of Currencies
Amending 3
ADOPTED Res Doc: 1 Resolution: 012
PTC COMP 1508 GVA, Oct08
GLOSSARY OF TERMS
PTC1(85)012 (amended) Amending PTC2(160)012 (amended) PTC3(87)012 (amended) PTC12(191)012 (amended) PTC23(155)012 (amended) PTC31(123)012 (amended) PTC123(171)012 (amended) Filing Period Begins 24 November 2008 Intended Effectiveness: 1 April 2009 Ends 12 December 2008 Expiry: Indefinite Type B
RESOLVED that,
1 The following definition is amended
TERM DEFINITION
Other Charges
Charges such as taxes/fees/charges, flight related services, merchandising related service, ticket related services etc., excluding excess baggage charges
Related Charges
fare related charges such as cancellation penalties, non-refundable amounts, rebooking and rerouting charges, refund/reissue overrides, stopover charges, weekend surcharges etc., and excess baggage charges
ADOPTED Res Doc: 2 Resolution: 017b
PTC COMP 1508 GVA, Oct08
CONSTRUCTION RULES FOR PRICING UNITS
PTC1(85)017b (amended) Amending PTC2(160)017b (amended) PTC3(87)017b (amended) PTC12(191)017b (amended) PTC23(155)017b (amended) PTC31(123)017b (amended) PTC123(171)017b (amended) Filing Period Begins 24 November 2008 Intended Effectiveness: 1 April 2009 Ends 12 December 2008 Expiry: Indefinite Type A
RESOLVED that, Resolution 017b, Sections D is amended as follows
SECTION D - OPEN JAW FARES
c) Turnaround Open Jaw (paragraphs ii and iii) bb deleted 01Jun08)
iii ii) when the surface sector is an international sector
aa) the distance of such surface sector must not be greater than the flown distance of the shorter of the two fare components (measurement of the surface sector shall be in accordance with Resolution 017c, Paragraph 4) c)
Exception: for travel originating in Canada or USA, the surface break may be permitted between countries in the Europe Sub-area; provided travel in both directions is via the Atlantic
ADOPTED Res Doc: 3 Resolution: 024d Page: 1
PTC COMP 1508 GVA, Oct08
CURRENCY NAMES, CODES, ROUNDING UNITS
AND ACCEPTABILITY OF CURRENCIES
PTC1(85)024d (amended) Amending PTC2(160)024d (amended) PTC3(87)024d (amended) PTC12(191)024d (amended) PTC23(155)024d (amended) PTC31(123)024d (amended) PTC123(171)024d (amended) Filing Period Begins 24 November 2008 Intended Effectiveness: 1 April 2009 Ends 12 December 2008 Expiry: Indefinite Type A, except Attachment 'A' which is Type B
RESOLVED that, Resolution 024d is amended as follows 1 Paragraph 6) is amended
6) Other Charges
a) other charges to be shown in the tax/fee/charge box(es) shall be separately converted to the currency of payment and rounded in accordance with Paragraph 2) above
b) when showing local currency amounts imposed by Government and/or airport authorities and which are not subject to conversion rounding, in the ‘tax/fee/charge’, ‘tax on MCO’ and/or ‘tax on MPD’ box(es) of the traffic document, such amounts shall not be rounded in accordance with Paragraph 2) above, unless otherwise shown in the Note(s). Such local currency amounts shall be shown on traffic documents without application of the rounding rules shown in the ‘Other Charges’ column
2 Attachment A is amended
ATTACHMENT 'A' Rounding Units
Country Name
Currency Code Alpha Num
Currency Name
Accept- ability
Local Currency Fares and Related Charges
Other Charges
Decimal Units
Notes
PTC COMP 1508 GVA, Oct08
SUMMARY OF AGREEMENT
Intended Effective Date: 1 April 2009
The Composite meeting held in Geneva 9-10 October 2008, agreed certain amendments to Composite Resolutions for an intended effective date of 1 April 2009. These changes are briefly described below.
• Resolution 012 Glossary of Terms
Resolution 024d Currency Names, Codes, Rounding and Acceptability With the adoption of PSC Recommended Practice 1790 Additional Services, minor changes to the definitions of Other Charges and Related Charges were required to accommodate the new functionality.
• Resolution 017b Construction Rules for Pricing Units.
This is a technical clean-up to delete the redundant AT exception in 1)c)ii)aa following the 2007 Composite agreement on changes to Resolution 017b Section D paragraph 1)a)v) being recently delared effective.
International Air Transport Association Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2525 Fax +41 22 770 2128
TO: Members Participating in Tariff Coordinating Conferences (SP-5713)
FROM: Director, Passenger
SUBJECT: Composite Passenger Tariff Coordinating Conference Geneva, 9-10 October 2008 Composite Resolutions Intended Effective Date: 1 June 2009
RESOLUTIONS - ADOPTED
Attached are Composite Resolutions 012 and 017c, which were adopted at the above meeting for an intended effective date of 1 June 2009. The HIP package has an amended intended effective date in order to provide enough lead time for system providers to implement this change at a common date.
The filing period for the attached Resolutions ends 12 December 2008.
Members are reminded of their obligations under Resolutions 001 and 006 to advise this office by the end of the filing period whether approval by their Government authorities is required and, if so, to accomplish the necessary filing formalities. The effective date will be declared in accordance with Resolutions 001 and 006, when all the known necessary Government approvals have been received.
Lars Sellstedt Manager, Tariff Meetings Passenger Tariffs
RESOLUTIONS AMENDED AT
COMPOSITE MEETING OF PASSENGER TARIFF COORDINATING CONFERENCE
GENEVA, 9-10 OCTOBER 2008
EFFECTIVE DATE: 1 JUNE 2009
RESO TITLE COMMENTS RD
012 Glossary of Terms Amending 1
017c Construction Rules for Fare Components Amending 2
ADOPTED Res Doc: 1 Resolution: 012
PTC COMP 1511 GVA, Oct08
GLOSSARY OF TERMS
PTC1(85)012 (amended) Amending PTC2(160)012 (amended) PTC3(87)012 (amended) PTC12(191)012 (amended) PTC23(155)012 (amended) PTC31(123)012 (amended) PTC123(171)012 (amended) Filing Period Begins 24 November 2008 Intended Effectiveness: 1 June 2009 Ends 12 December 2008 Expiry: Indefinite Type B
RESOLVED that,
1 The following definition is added
TERM DEFINITION
Status fares fares that are only available to designated categories of passengers after meeting eligibility requirements accompanied by passenger type description
ADOPTED Res Doc: 2 Resolution: 017c Page: 1
PTC COMP 1511 GVA, Oct08
CONSTRUCTION RULES FOR FARE COMPONENTS
PTC1(85)017c (amended) Amending PTC2(160)017c (amended) PTC3(87)017c (amended) PTC12(191)017c (amended) PTC23(155)017c (amended) PTC31(123)017c (amended) PTC123(171)017c (amended) Filing Period Begins 24 November 2008 Intended Effectiveness: 1 June 2009 Ends 12 December 2008 Expiry: Indefinite Type A
RESOLVED that, Resolution 017c, is amended as follows
1 Paragraph 5) a) Normal Fares is amended 5) HIGHER INTERMEDIATE POINT (HIP) CHECK
a) Normal Fares
i) if in any routing otherwise permissible at the direct route normal fare there is a direct route normal fare(s) of the same class of service between any two ticketed involving stopover points which is higher than the direct route normal fare between the fare construction points, the fare shall be not less than the highest fare referred to above (HIP). In the case of fares that are established by seasonality (including blackout dates), or day of week or flight application, the check will be based on the applicable fare (by seasonality including blackout dates, or by day of week or by flight application)
ii) if in any indirect routing otherwise permissible at the direct route normal fare plus a percentage, there is a direct route normal fare(s) of the same
class of service between any two ticketed involving stopover points which is higher than the direct route normal fare between the fare construction points, the fare for the indirect route shall be not less than the highest fare referred to above (HIP), and the surcharge percentage applicable to the through fare shall be applied to such higher intermediate fare
iii) in applying the above HIP check, the sectors to be checked shall be
aa) from fare component origin to each intermediate stopover point
bb) from each intermediate stopover point to each subsequent intermediate stopover point
cc) from each intermediate stopover point to the subsequent fare break point
iv) when comparing normal fares of the 'same class of service' in order to determine if there is a higher intermediate fare, the following sequence shall be followed
ADOPTED Res Doc: 2 Resolution: 017c Page: 2
PTC COMP 1511 GVA, Oct08
sleeper seat fare is compared with sleeper seat fare; if no sleeper seat fare, compare with first class fare provided that where more than one first class fare is published, compare with the highest first class fare
first class fare is compared with first class fare; if no first class fare, compare with intermediate/business class fare (or next lower class fare) provided that where more than one intermediate/business class fare is published, compare with the highest intermediate/business class fare
intermediate/business class fare is compared with intermediate/business class fare; if no intermediate class fare, compare with economy class fare; provided that where more than one economy class fare is published, compare with the highest economy class fare
economy class fare is compared with economy class fare v) when comparing normal fares in accordance with the foregoing, the
comparison shall be made in the same direction as the fare component. When using half round trip fares the comparison shall be made using half round trip fares. When using one way fares the comparison shall be made using one way fares
vi) where more than one normal fare is published for the carrier and the class of service used the lower/lowest level fare for the carrier and the class of service may be used subject to any stopover, transfer, seasonality (including blackout dates), flight application, routing validation, day of week limitations of the lower/lowest fare (excluding application of stopover charges)
vii) when the ticket shows no stopover at both the unit origin and the unit destination point of a side trip which has been charged separately (due to transfer connections on both occasions) a stopover shall be considered to be taken at such point unless the time interval between the arrival immediately preceding the side trip and the departure immediately following the side trip does not constitute a stopover as defined in Resolution 012
Note: other paragraphs in 5 a) remain unchanged
2 Paragraph 5) b) Special Fares is amended
b) Special Fares
i) having established an applicable special fare for a pricing unit, such special fare may be applied subject to the following
aa) price the fare as a normal fare in accordance with Paragraph 5)a) Compare special fare of the pricing unit to applicable special fares for the same fare type
ADOPTED Res Doc: 2 Resolution: 017c Page: 3
PTC COMP 1511 GVA, Oct08
bb) establish the lowest applicable level If none, Compare special fare of the pricing unit to applicable special fares within the same fare type group from fare component origin to each intermediate stopover point, from an intermediate stopover point to the fare component destination
1) if there is no HIP between either fare construction point of the special fare and an intermediate ticketed point, the special fare may be applied if there is no applicable special fare within the same fare type group on the sector concerned, the fare shall not be less than the lowest of any applicable special fares within the next higher fare type group shown in subparagraph (b). Continue to the next grouping only if an applicable special fare is not found
Note: Where more than one special fare is published within the same fare type group the lower/lowest level may be used subject to any stopover, transfer, seasonality (including blackout dates), flight application, routing validation, day of week limitations of the lower/ lowest fare (excluding application of stopover charges)
2) if there is a HIP between either fare construction point of the special fare and an intermediate ticketed point, the special fare shall be not less than such higher fare, except if the lowest applicable fare from fare component origin to each intermediate stopover point or from intermediate stopover point to fare component destination within the same fare type group is less than or equal to the through special fare, the special fare for the component may be applied
a) if there is a special fare of the same type at the same level or a lower level on the sector for which the normal fare applies, the special fare for the component may be applied, or
b) if there is a special fare of the same type at a higher level on the sector for which the higher normal fare applies, the special fare for the component shall be not less than such higher special fare, or
c) if there is no special fare of the same type on the sector for which the higher normal fare applies, the fare shall be not less than the lowest of any higher type of special fare within the same column shown in Subparagraph d)
d) in defining a 'fare of the same type', the comparison shall be limited to the class of service and
Fare Type Groups (from lowest to highest):
Column 1 Column 2 Column 3 Column 4 late booking fare, or GIT fare, or Public Group fare,
or RT first/intermediate class special fare
OO fare only
APEX fare, or Individual IT fare, or
rsion fare OW APEX fare, or
PEX fare, or Excursion fare OW PEX fare, or
Excursion fare, or All other individual OW special fares (except Status fares)
ADOPTED Res Doc: 2 Resolution: 017c Page: 4
PTC COMP 1511 GVA, Oct08
Budget fare (for travel wholly within Europe) All other individual special fares (except Status, IT fares)
• In applying the HIP check for GIT fares, if no GIT or IT fare is found on
the sectors being checked, no HIP will apply
• In applying the HIP check for IT fares, if no IT fare is found on the sectors being checked, no HIP will apply
• When status fares are being charged the HIP check will only look at the same status fare for the sectors being checked; if there is no same status fare then no HIP is applied. In this respect status fares are fares that are only available to designated categories of passengers e.g. students, teachers, missionaries, seamen
• When public group fares are being charged no HIP check will apply
e) if there is more than one special fare of the same type on the sector for which the higher normal fare applies, the fare with conditions most similar to those of the special fare for the component shall be used for comparison
ii) all conditions attached to the special fare for the component apply
ADOPTED Res Doc: 2 Resolution: 017c Page: 5
PTC COMP 1511 GVA, Oct08
FLOW CHART (for Special Fares)
Was an applicable special fare found for the same class of service within the same fare type group from fare component origin to intermediate stopover point(s)?
No Yes
Is a higher applicable fare found within a higher fare type group?
Is the lowest applicable fare within this group higher than the special fare on the component
No Yes No Yes
Apply special fare for the component (surcharge if necessary)
Apply the lowest of any applicable special fares found within a higher fare type group* (surcharge if necessary)
Apply special fare for the component (surcharge if necessary)
Raise the fare to such higher special fare (surcharge if necessary)
Is there between either of the fare construction points and any intermediate ticketed point a higher normal fare for the same class of service than the normal fare between the fare construction points?
No Yes
Apply special fare for the component surcharge if necessary)
Is there a special fare of the same type or this sector?
No Yes
Is there any higher type of special fare? Is this fare higher than the special fare on the component
No Yes No Yes
Apply normal higher intermediate point fare (surcharge if necessary)
Apply the lowest of any higher special fare type (surcharge if necessary)
Apply special fare for the component (surcharge if necessary)
Raise the fare to such higher special fare (surcharge if necessary)
iii) when comparing special fares in accordance with this Paragraph, comparison shall be made in the same direction as the fare component. When using half round trip fares the comparison shall be made using half round trip fares. When using one way fares the comparison shall be made using one way fares
iv) when the ticket shows no stopover at both the unit origin and the unit destination point of a side trip which has been charged separately (due to transfer connections on both occasions) a stopover shall be considered to be taken at such point unless the time interval between the arrival immediately preceding the side trip and the departure immediately
ADOPTED Res Doc: 2 Resolution: 017c Page: 6
PTC COMP 1511 GVA, Oct08
following the side trip does not constitute a stopover as defined in Resolution 012
v) when there is an imbedded surface sector the HIP check applies to the point of arrival by air immediately preceding the surface sector and to the point of departure immediately following the surface sector, unless the time interval between the arrival and the departure does not constitute a stopover as defined in Resolution 012, however, such check shall not apply between the terminal points of the unflown sector
vi) when there is a fare construction surface sector, the HIP check applies to the point of such surface sector that is not the fare construction point
vii) notwithstanding the above
aa) for journeys originating in Western Africa, the HIP check in each fare component shall be applied on all ticketed points in Western Africa
bb) for journeys wholly between Kilimanjaro and Nairobi, the HIP check in each fare component shall be applied on all ticketed points
cc) for journeys originating in Malawi, the HIP check in each fare component shall be applied on all ticketed points in Malawi
viii) day-of-week application: in establishing the day-of-week fare level to be used for the HIP check the rule for the application of the day-of-week fares shall be applied solely to the sector(s) for which the check is being made. The day of travel on such sector(s) shall be used to determine the day of week fare level to be used for the HIP check
Example Routing A – B – C – B – A First fare component (A to C) • fare A-C is a non-day-of-week fare • fare A-B is a non-day-of-week fare • there are day-of-week fares B-C with the rule that the first international sector
determines the seasonal fare to be applied • to establish the day-of-week fare level to be used for the HIP check on the sector
B-C the date of travel B to C will be used Second fare component (fare in the direction from A to C) • fare A-C is a non-day-of-week l fare • fare A-B is a non-day-of-week fare • there are day-of-week fares B-C with the rule that the first international sector
determines the seasonal fare to be applied • to establish the day-of-week fare level to be used for the HIP check on the sector
C-B the date of travel C to B will be used
ix) seasonality application: in establishing the seasonal fare level to be used for the HIP check the rule for the application of the seasonal fares shall be applied solely to the sector(s) for which the check is being made. The seasonal rule for such sector shall be used to determine the seasonal fare level to be used for the HIP check.
ADOPTED Res Doc: 2 Resolution: 017c Page: 7
PTC COMP 1511 GVA, Oct08
Where reference in a seasonal rule is to a specific segment of travel e.g. first international sector, the specific segment shall be assessed within the sector(s) for which the HIP level is being established
Example Routing A – B – C – B – A First fare component (A to C) • fare A-C is a non seasonal fare • fare A-B is a non-seasonal fare • there are seasonal fares B-C with the rule that the first international sector
determines the seasonal fare to be applied • to establish the seasonal fare level to be used for the HIP check on the sector B-
C the date of travel B to C will be used Second fare component (fare in the direction from A to C) • fare A-C is a non seasonal fare • fare A-B is a non-seasonal fare • there are seasonal fares B-C with the rule that the first international sector
determines the seasonal fare to be applied • to establish the seasonal fare level to be used for the HIP check on the sector C-
B the date of travel C to B will be used
PTC COMP 1511 GVA, Oct08
SUMMARY OF AGREEMENT
Intended Effective Date: 1 June 2009
The Composite meeting held in Geneva 9-10 October 2008, agreed certain amendments to Composite Resolutions for an intended effective date of 1 June 2009. These changes are briefly described below.
• Resolutions 012 Glossary of Terms.
New definition of Status fares has been added to accommodate the split of the HIP application for Normal and Special fares.
• Resolution 017c Construction Rules for Fare Components.
To make the HIP check more relevant the Conference agreed to remove the link to normal fares when the HIP for special fares is applied. The new process on how to do the check will assist Members and systems to achieve a more consistent approach. It will also simplify the HIP check for GIT, IIT, Group and Status fares and provide lower fare quotes to consumers.
International Air Transport Association Route de l’Aéroport 33 PO Box 416 CH - 1215 Geneva 15 Airport Switzerland Tel: +41 22 770 2525 Fax +41 22 770 2684
TO: Members Participating in Tariff Coordinating Conferences
FROM: Director, Passenger
SUBJECT: Composite Meeting of Passenger Tariff Coordinating Conferences Geneva, 9-10 October 2008
MINUTES
Attached are the Minutes of the Composite Meeting of Passenger Tariff Coordinating Conferences which was held in Geneva, 9-10 October 2008 under the Chairmanship of Mrs Patricia George.
Lars Sellstedt Manager, Tariff Meetings IDFS Passenger
PTC COMP 1494 GVA, Oct08
OUTLINE OF CONTENTS
Page OPENING OF MEETING 1 ATTENDANCE RECORD 1 DETERMINATION OF VOTING MEMBERSHIP 1 EXAMINATION OF CREDENTIALS OF ACCREDITED REPRESENTATIVES AND ALTERNATES 1 STATUS OF COMPOSITE RESOLUTIONS 2 APPROVAL OF MINUTES OF PREVIOUS MEETING 2 US DOT DEVELOPMENTS ON IMMUNITY FOR TARIFF CONFERENCES 2 BASIS FOR DISCUSSION 2
Amendments to Manual 2 PASSENGER TARIFF CONFERENCES STEERING GROUP (PSG) 3
Report 3 Election and Composition of New PSG 3
RESOLUTION ADVISORY PANEL 1 APRIL 2009 3 EXPEDITED 1 DECEMBER 2008 4 RESOLUTION 024d – CURRENCY NAMES, CODES, ROUDING UNITS AND ACCEPTABILITY OF CURRENCIES 4
RESOLUTIONS 300/301/302 1 APRIL 2010 4 NEW INTERLINE BAGGAGE PROVISIONS PROCESS 4 RESOLUTION 302 5
Definition of MSC Domestic Sectors crossing two areas 6 Operating versus Marketing carrier in a code share scenario 6 Resolution 302 – Paragraph 2) b) Step 2 6
RESOLUTION 017b – CONSTRUCTION RULES FOR PRICING UNITS 8 RESOLUTION 017c – CONSTRUCTION RULES FOR FARE COMPONENTS 9
OTHER RESOLUTIONS 1 APRIL 2008 9 RESOLUTION 024d – CURRENCY NAMES, CODES ROUDING UNITS AND ACCEPTABILITY OF CURRENCY 9 VOTE OF THANKS 10 CLOSE OF MEETING 10 Attachment ‘A’ - Attendance Record Attachment ‘B’ – PSG Report
1
PTC COMP 1494 GVA, Oct08
COMPOSITE MEETING OF PASSENGER TARIFF COORDINATING CONFERENCES
Geneva, 9-10 October 2008
M I N U T E S
OPENING OF MEETING 1 The Chairman, Mrs.Patricia George, opened the Composite Meeting of Tariff
Coordinating Conferences at 1400 hours on Thursday, 9th October 2008. The Meeting had been convened by Memorandum PTC COMP 1450, dated 12 February 2008. It comprised the following:
85th Meeting of Passenger Tariff Coordination Conference 1 160th Meeting of Passenger Tariff Coordination Conference 2 87th Meeting of Passenger Tariff Coordination Conference 3
191st Meeting of Passenger Tariff Coordination Conference 12 155th Meeting of Passenger Tariff Coordination Conference 23
123rd Meeting of Passenger Tariff Coordination Conference 31 171st Meeting of Passenger Tariff Coordination Conference 123
2 As with all traffic conference meetings, this meeting had immunity from US anti-trust laws, on the condition that all agreements were submitted for specific approval by the US authorities. IATA would submit the agreements to the DoT in accordance with this condition. Consistent with this, IATA's Board of Governors had determined that any agreement reached at this meeting must not be put into effect prior to its declaration of effectiveness. This ruling was contained in the Provisions for the Conduct of the IATA Traffic Conferences and must be complied with.
3 As mentioned in Transmittals, Members are reminded that the sole purpose of this
meeting is to consider and take action on IATA multilateral interlineable fares and conditions. Delegates are not to discuss or take action to develop on-line fares, surcharges or fees, nor are discussions permissible concerning individual airline's costs, pricing strategies, marketing plans or agency commission. In addition, this meeting has no authority to discuss or reach agreement on the allocation of markets, the division or sharing of traffic or revenues, or the number of flights or capacity to be offered in any market. Delegates are cautioned that any discussion regarding such matters or concerning any other competitively sensitive topics outside the scope of the agenda, either on or off the floor, is strictly prohibited. No action at this meeting shall be construed as an obligation for any TC Member in respect of non-IATA fares.
ATTENDANCE RECORD 4 The Attendance Record is at Attachment 'A'. DETERMINATION OF VOTING MEMBERSHIP 5 The Voting Membership for the meeting was determined in accordance with the
Provisions for the Conduct of the IATA Traffic Conferences.
EXAMINATION OF CREDENTIALS OF ACCREDITED REPRESENTATIVES AND ALTERNATES 6 The accreditation received by IATA was examined and found to be in accordance with
the Provisions for the Conduct of the IATA Traffic Conferences.
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STATUS OF COMPOSITE RESOLUTIONS 7 The Status of Composite Resolutions was noted and in addition IATA advised of the
following amendments following latest Government Approval received: • Hong Kong removed from PTC COMP Memos 1171, 1331, 1446, 1459 • Korea (Rep. of) removed from PTC COMP 1409, 1410
APPROVAL OF MINUTES OF PREVIOUS MEETING 8 The following minutes were approved: Composite Meeting of Passenger Tariff Coordinating Conferences Bangkok, 16-19 July 2007 Memorandum PTC COMP 1411 dated 4 September 2007 9 Approval was also received in respect of the Minutes/Reports listed below which could
not be approved by the respective area/sub-area meetings in the absence of a quorum:
Passenger Tariff Coordinating Conference TC3 Within South West Pacific, South West Pacific – TC3 Bangkok, 25-26 June 2008 Memorandum PTC3 1224 dated 11 July 2008
Passenger Tariff Coordinating Conference TC3 Bangkok, 12 – 19 November 2007 Memorandum PTC3 1157 dated 25 January 2008
US DOT DEVELOPMENTS ON IMMUNITY FOR TARIFF CONFERENCES 10 An update on recent regulatory developments impacting IATA Traffic Conferences,
including the Passenger Tariff Coordinating Conferences was provided by the Legal Department of IATA.
BASIS FOR DISCUSSION Amendments to Manual 11 The following amendments have been made to the Passenger Composite
Resolutions Manual since its annual print in April 2008
PTC COMP 1465 27Apr08 012b / 024d Trinidad and Tobago – rouding and minor units 01Jun08
PTC COMP 1472 15Aug08 024e Att A New source for Syria 20Aug08
PTC COMP 1473 15Aug08 024e Att A Amended source for Kazakhstan 15Aug08
PTC COMP 1476 1Sep08 012b / 024d Zimbabwe Dollar ZWR Change of currency name and number
1Sep08
PCT COMP 1478 9Sep08 024e New Source for Rates of Exchange for Singapore
Immediate
12 The manual together with these amendments formed the basis for discussion at the
meeting and any resultant changes.
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PASSENGER TARIFF CONFERENCES STEERING GROUP (PSG) Report 13 Ms Karen Evans, IATA Assistant Director Passenger Tariff Conferences, presented
the PSG Report covering the 22nd Meeting on the 8th of October 2008. Highlights of the report were as follows. Details are reflected in Attachment B
• Flex Fares and e-Tariffs – Where are they today. PSG was updated on the
current status of Flex Fares and e-Tariffs including regulatory situation • Flex Fares and e-Tariffs – Have they addressed the issues • Composite Update. PSG Members were given un update on current baggage
Resolutions 300 and 301 status and proposed new Resolution 302. • Revamped Tariff Products and Services • Proposed Conferecence Schedule for 2009
14 The regular PSG will continue to meet in conjunction with the Composite meeting to facilitate participation and reduce travel time and costs. Special meetings would be called if required in the interim period.
Election and Composition of New PSG 15 The Composite Meeting was required to elect the Members who would constitute the
Passenger Tariff Conferences Steering Group for the next two year period. The Composite meeting also endorsed the recommendation to reduce Membership for Europe from seven to four delegates to create a better balance between the regions.
16 Based on nominations received, the following Members were elected by the
Composite meeting.
Area Name Airline TC1 TC1 USA Donna Maple AA Rest of TC1 Luis Moreno LA Rest of TC1 Julio Ordonez AV TC2 Africa Rose Wang-ui KQ Africa Dorcas Aketch VK Middle East Linda Grinfeld LY Middle East Saeid Nassiri IR Europe Jerry Foran (Chairman) BA Europe Nobuhiko Yamanouchi (Vice Chairman) LH Europe Evelien Ran KL Europe Tina Papadimitriou OA TC3 TC3 Keiko Hatta JL TC3 Jimmy Cheng CX TC3 Chunhuan Li CZ TC3 Estrelita Inoturan PR
RESOLUTION ADVISORY PANEL 1 APRIL 2009 17 The RAP Report was presented by Mr. Lars Sellstedt who had chaired the last RAP
Meeting. Aside from the RAP proposals which are presented in separate agenda items the following topics were also addressed by the last two RAP meetings:
• Status of Composite Agreements • Application of Minimum checks on status fares • Mixed Class Travel “Premium” First Class Fares
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• Circle Trip Minimum (CTM) • Resolution 017h – Fare Selection Criteria (not applicable to/from
USA/US territories) • Resolution 024d – Calculation of TFC’s • Resolution 012 – Stopover definition • PSC 737 – Involuntary Refund • Resolution 017f – Exchange, Reissues and Refunds • Update on EARWG Netting Working Documents
18 The Chairman endorsed Mr Sellstedt’s comments and expressed her thanks to the
RAP for their efforts in trying to resolve industry problems. 19 The new date and venue of the Fall meeting was confirmed to be from 3-7 November
2008 in Montreal. The Fall RAP will be asked to evaluate the option to have the RAP meeting in TC3 the Fall of 2009.
EXPEDITED 1 DECEMBER 2008 RESOLUTION 024d – CURRENCY NAMES, CODES, ROUDING UNITS AND ACCEPTABILITY OF CURRENCIES 20 BT proposed
Amending the rounding of the Latvian Currency in Other Charges paragraph to the nearest 0.01 LVL. Additional Note 8 to be added to the Resolution.
Absent opposition, this was adopted with QF abstaining. Resultant levels will be rounded in accordance with Resolution 024d.
21 OK proposed Conversion of all fares, related charges and add-ons from Slovakia from SKK to EUR. Conversion shall be made using the agreed fixed conversion rate of EUR1=SKK
30.1260. This will facilitate the official conversion to EUR 1 January 2009. Absent opposition, this was adopted with QF abstaining. Resultant levels will be
rounded in accordance with Resolution 024d. RESOLUTIONS 300/301/302 1 APRIL 2010 NEW INTERLINE BAGGAGE PROVISIONS PROCESS 22 Since the Composite meeting in 2007 IATA have held two TCBWG and one RAP
meeting to discuss and develop a draft recommendation for a new Interline Baggage process. This includes a new process called the Most Significant International Operating Carrier (MSIOC). The TCBWG was established by the 2007 Composite meeting in Bangkok with the objective to review current business practises and procedures around the process of interline baggage and also recommend the best way forward. During the discussions at the working groups it was agreed that it was critical to understand the views of important regulators and to learn the best approach the industry should be taking to achieve solutions that could be approved and implemented expeditiously.
23 IATA had an informal meeting with a key regulator in July to discuss some of the
ideas of the TCBWG including the MSIOC. They were knowledgeable of the issues, and the challenges being encountered by airlines. IATA’s conclusions from this meeting are that • They continued to believe that the pricing aspects of baggage agreements
could be anti-competitive. Any revisions to the existing rules would have to be analysed carefully and this could be a lengthy process.
• They believed IATA should seek solutions that didn’t require immunity from anti-trust laws.
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• They are of the view that the MSIOC process for determining which market-based rule or charges are to be applied would likely not need immunity, and could be acted on fairly quickly.
24 In mid-August and early September, IATA held two telephone conference calls with the
TCBWG members, PSG members were also invited to participate in the first call. In these calls IATA set out its view that minor changes, or even a simple revalidation, of the current rules, would not likely be acted on quickly. Given the previously stated positions of certain members it was also unlikely that a proposal to revalidate Resolutions 300/301 would achieve the required unanimous votes. In other words it appeared probable that unless consensus could be built we could lose all Tariff Conference rules for interline baggage.
IATA proposed to the TCBWG members that they should consider abandoning work
seeking improvements to the current Resolutions and focus on the development of the MSIOC process ensuring that Members would have the necessary processes in place to facilitate the carriage of interline baggage.IATA proposed that Members continue to work on the development of the MSIOC process:
25 Conclusions
The key conclusions were • the industry would face a difficult task in gaining acceptance from regulators for
the recommendation developed by the TCBWG as it’s necessary to move away from rule and price setting to a more technical process solution
• regulators would favour a process that can exist without anti-trust immunity • piecemeal changes to Resolutions 300/301 are unlikely to be accepted by
regulators • Members require a speedy approach to be addressed at this Composite meeting. • some members will oppose the revalidation of Resolutions300/301 beyond the
current expiry date of 31 March 2009 •
RESOLUTION 302 26 After a short power point presentation the New Resolution 302 was displayed for
Member revision and discussion 27 Members had several issues and the questions were of the following nature:
BA: believes there is total anarchy in baggage regulation. Carriers file their own rules unilaterally, seeking government approvals. Consequently, check-in staff are at odds on how to preceed when through checking interline baggage at the airports with airlines that do not belong to alliances and for which there is no regulation published. BA urges the conference to find a solution and better serve costumers
AV: expressed concerns on how to deal with the transparency in a code share scenario
QF: was in support of BA’s comments and shares the same concerns when it comes to
passenger services and compensation related to baggage handling problems. QF was also concerned about the financial payment to carriers who have no regulation on this issue
SU: expressed concern with the implicateion that Russian carriers, whose domestic
flights cross from TC2 to TC3 or v.v., would not be considered the Most Significant Carrier in these cases. They suggested “International” be deleted from MSIOC.
CX: was concerned about automation of interline baggage provisions and government
filing requirements for baggage rules
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PTC COMP 1494 GVA, Oct08
UA KE JL: and other members were concerned about the automation of Resolution 302. They were looking for more accurate deadlines when automation could be ready to support the new process. Dealing with this manually could be a challenge.
LH: had concerns to revalidate the current Resolutions 300 and 301.
28 Questions and concerns were addressed by the secretariat that reminded members that this new process is an attempt to create a Resolution that can also be be used as a guideline while an automated system solution is being finalized. Most relevant issues where members had negative positions were:
Definition of MSC Domestic Sectors crossing two areas 29 Concerns expressed by SU and were addressed and taken into consideration with the
deletion of “International” from Resolution 302. Examples were also updated accordingly.
Delayed Automated solution for the handling of Interline baggage 30 Even if members are ready to implement the new process the conference had learnt
that the system provider of the new Automated solution for baggage handling is not yet ready and does not have a fixed implementation schedule. Because if this technical delay members favored to have consistency until the new process can be implemented. The recommendation is to revalidate the existing Resolutions 300 and 301 untl 31 March 2010.
31 Members could agree to a delayed effective date of Resolution 302 of 1 April 20110 but
they also acknowledged that the Industry needs regulators to act quickly in order to provide impetus to the IT world to develop and fast-track the necessary solutions.
Operating versus Marketing carrier in a code share scenario 32 After discussions on the issue the chair took a straw vote to see if there was support for
clarifying if, in case of code share flights it was the Marketing carrier’s rule rather than the Operating carrier’s rules which should apply. The vote showed that more than 15 members (for example LH KL PR AY JL AA SU KE BA IR LO RJ) were oppossed to explicitly stating that it would be the marketing carriers rule, in a code share scenario, which would apply. Reasons given were: • In many cases this is controlled by the actual codeshare agreement between carriers
and these varied from agreement to agreement and sometimes route by route. • Any aircraft constraints would normally be related to the operating carrier • If two carriers that have a code share contract. The marketing carrier is paying he
operating carrier for the cost of a seat, this cost includes insurance, fuel and all costs related. As costs are paid by the operating carrier and, in case of additional baggage allowance to standard rules (IATA RESO 300/301) additional costs are still paid by the operating carrier (fuel, extra work for employees, less room in hold), thus this is consistent and fair that the baggage policy is decided by the carrier that meets expenses.
• The Industry will also have to enhance the way this could be made transparent to the travelling public. Using ticket notices and enhancing the way this automatically could be indicated on for example the itinerary receipt are important action items.
It was finally agreed to include in the new Resolution that, if not stated to the contrary in the published baggage rule, the operating carriers rule would apply. However if an airline chose, or was required, to apply the rule of the marketing carrier this could take precedence. As a result of this change it was agreed to delete “Operating” from MSIOC.
Resolution 302 – Paragraph 2) b) Step 2
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33 CX expressed concerns with the principle behind Resolution 302 2)b. and 2c, where another airline’s baggage policy and rules would be imposed on them., To remove their negative vote CX suggested that an airline be permitted to opt-in of these two paragraphs or that the Resolution be amended to require airlines to concur before these paragraphs applied to interline journeys. They proposed the following wording to be added to the Resolution:
In 2b: Immediately after Carrier add: “provided a concurrence agreement exists from
one carrier to permit the assessment of another carrier’s baggage provision in which the controlling carrier participates.”
34 CX further explained that they required this to be included in the Resolution, and not
merely minuted. They argued that carriers settle disputes not by what are shown in the Minutes but by the wording in the Resolution CX was concerned about having to accept baggage from members with very liberal free baggage allowance and excess baggage charges, in particular where their return was less than adequate. These amendments were opposed by several members, for example BA KL, LH.
35 The Chairman reminded CX that it would be possible in the future to file with ATPCO a
way to settle this commercial situation rather than in the Resolutions. The Chairman also reminded that CX, that given automation delays, this would not likely be put into effect before April 2010 and this implementation date would need be confirmed by next years Composite meeting.. By the time the meeting was held, all the inputs from ATPCO and the WG will be made available. The Chairman was sure that this was not only a CX concern but also other carriers as well
36 CX believed IATA and ATPCO issues are two different areas. They believed they
needed an IATA document to be the basis of the ATPCO programming. 37 The Chairman reiterated that this is already provided for in “unless otherwise agreed”
of the Preamble of Resolution 302. This Resolution will be the last default in no other valid and legal agreement exists.
38 After internal side consultations with IATA Secretariat, the Chair shared the following
proposed draft Minute in order to accommodate the concerns expressed by CX: As provided for in the preamble to Resolution 302 (unless otherwise agreed the following baggage provisions selection process should apply for interline journeys) ”it was confirmed that should a carrier not wish to accept another carrier’s baggage provisions (as per Steps 2 and 3 of paragraph 2 of Resolution 302), that carrier may decide to bypass Steps 2 and 3 and progress directly to Step 4”. 39 While CX was considering this new proposal, JL declared they would be ready to
abstain albeit reluctantly and that they will monitor ATPCO developments and submit a proposal next year to the Conference to further improve the process if necessary
40 Reverting back to the CX issue, CX counter proposed the following for 2b after MSC: “will apply among the agreed carriers.” Also this amendment were opposed by several
members, for example BA, KL, LH. 41 The Chairman once again suggested that the Minutes might be a better option.
Chair reminded CX that carrier preferences and special requirements will in the future be able to be handled through ATPCO.
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42 The Chairman reminded that most of the CX demands have been met and asked them to reconsider their position . The alternative would be that the Industry would have no Interline rule as of 1 Apr 2009 when the existing Resolutions 300 and 301 expire. The proposed package solution would be the following: • Resolution 302 effectiveness 01APR2010 and • Revalidation of 300/301 until March 31, 2010 and • The enhanced Conference Minutes • Next 2009 Conference will decide on the implementation date • Closer cooperation with system providers to facilitate the automation process. This
also included a review of the current Resolutions 300 and 301 to see if any relevant information still required could be moved to the IATAPassenger Service side.
43 After more internal discussions and sidebars, the Chairman returned to the floor and
once again she reiterated what has been acceded so far (see above bulleted points). She assured CX that the Conference will re-examine Resolution 302 next year
44 AA concurred with the Chairman and stressed that the Conference will do a reality
check when they come 2009 Comp Conference. The Chairman said there will be a whole year during which she will personally ensure that carriers work with ATPCO so that there will be answers to the questions and concerns raised by CX
45 CX finally reluctantly abstained and stated that it would follow the development closely and would be prepared to rescind the Resolution next year if the automation process has not progressed satisfactory.
46 The Chairman acknowledged this as CX’s right and she strongly believes that
concessions and compromises were made by many members at this Conference. 47 With all issued discussed and dealt with a formal and final vote was called on:
• Amended Resolution 302 with an intended effectiveness of 01APR2010 • Revalidation of 300/301 until March 31, 2010 • The 2009 Conference will revise and confirm the implementation date • Closer cooperation with ATPCO on the implementation schedule
48 The opposing carriers CX LH BR JL were able to change their negative votes to
abstentions. Additional abstaining carriers were KE and QF. The Chairman thanked the delegates for their abstensions and could now declared the new amended Resolution 302 adopted.
RESOLUTION 017b – CONSTRUCTION RULES FOR PRICING UNITS 49 A proposal was forwarded by IATA to delete the redundant AT exception in 1)c)ii)aa
following the 2007 Composite agreement on changes to Resolution 017b Section D paragraph 1)a)v) being recently delared effective
c) Turnaround Open Jaw (paragraphs ii and iii) bb deleted 01Jun08)
iii ii) when the surface sector is an international sector
aa) the distance of such surface sector must not be greater than the flown distance of the shorter of the two fare components (measurement of the surface sector shall be in accordance with Resolution 017c, Paragraph 4) c)
Exception: for travel originating in Canada or USA, the surface break may be permitted between countries in the Europe Sub-area; provided travel in both directions is via the Atlantic
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50 Absent opposition, this amendment was adopted with QF abstaining RESOLUTION 017c – CONSTRUCTION RULES FOR FARE COMPONENTS Background 51 The Secretariat recapped proposed changes forwarded at the Spring 2008 RAP
meeting related to the Higher Intermediate Point check as presented by the Composite Resolution Review Group last year. The proposed options were: • Option 1: Delete special fare HIP check entirely. • Option 2: Retain HIP but split normal and special fare HIP check: Remove
intermediate-to-intermediate point HIP check from normal fares
52 Following RAP recommendation the split of HIP normal and special fares was suggested.This includes both Normal and Special Fares but its primarily changes to the special fare application.
53 Amendments forwarded to the Composite conference for discussion included the
following changes: • Normal Fares: delete wording in paragraph 5)a)i) and iii) “(…) between any two
ticketed” and replace with “involving stopovers”. Delete wording in paragraph 5)a)vi) “where more than one normal fare is published for the carrier and the class of service used”
• Special Fares: To make the check more relevant divorce the link to normal fares when HIP for special fares are done. Adopt a process on how to do the check that will assist members and systems to get better consistency. Simplify the HIP check for GIT, IIT, Group and Status fares.
54 A few members such as BA, LH, QF expressed some concern of technical nature
related to the fare type codes and the possibilities to protect local markets fares. racy and sufficient information provided to GDS’s. Lars Stellstedt stressed that these changes are necessary to help the Industry to obtain consistency and continue the simplification process of the current fare construction rules.
CX requested further amendments to paragraph vi) on Normal Fares for clarification
purpose, but they agreed that if this would be necessary it could be raised at a later RAP.
After these clarifications the Chairman took the package to a final vote and with the
abstentions from BA, KL, LH, and QF the original recommended amendments were adopted.
OTHER RESOLUTIONS 1 APRIL 2008 RESOLUTION 024d – CURRENCY NAMES, CODES ROUDING UNITS AND ACCEPTABILITY OF CURRENCY 55 With the adoption of the PSC Recommended Practice 1790 Additional Services,
minor changes were needed to Resolution 024d and Resolution 012 to accommodate the new functionality. Amendements were proposed as follows: Part A - Resolution 024d
6) Other Charges
a) other charges to be shown in the tax/fee/charge box(es) shall be separately converted to the currency of payment and rounded in accordance with Paragraph 2) above
b) when showing local currency amounts imposed by Government and/or airport authorities and which are not subject to conversion rounding, in the ‘tax/fee/charge’, ‘tax on MCO’ and/or ‘tax on MPD’ box(es) of the traffic
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document, such amounts shall not be rounded in accordance with Paragraph 2) above, unless otherwise shown in the Note(s). Such local currency amounts shall be shown on traffic documents without application of the rounding rules shown in the ‘Other Charges’ column
The Rounding Units header in attachment ‘A” of Resolution 024d further clarified by the following amendment:
024d
ATTACHMENT 'A'
Rounding Units Country Name
Currency Code Alpha Num
Currency Name
Accept- ability
Local Currency Fares and Related Charges
Other Charges
Decimal Units
Notes
Part B - Resolution 012- Glossary of Terms Other Charges Charges such as taxes/fees/charges, flight related services, merchandising related service, ticket related services etc., excluding excess baggage charges Related Charges fare related charges such as cancellation penalties, non-refundable amounts, rebooking and rerouting charges, refund/reissue overrides, stopover charges, weekend surcharges etc., and excess baggage charges
56 Absent opposition, this was adopted. VOTE OF THANKS 57 The Chairman thanked the delegates and IATA staff for their support, cooperation and
active participation in the discussions. This support was much appreciated considering it was her first time to chair a Composite Conference.
CLOSE OF MEETING 58 The Composite Meeting was closed at 1600 on 10 October 2008.
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ATTACHMENT ‘A’
ATTENDANCE RECORD
CHAIRMAN: Patricia George Company (Country)
CODE Name Telephone / Fax E-mail
Aeroflot SU Natalia Prokudina + +7-495-628-88-56 +7-495-628-76-07
ATTACHMENT ‘B’ PASSENGER STEERING GROUP (PSG) Report from 22nd Regular Meeting held in Geneva
1. The 22nd regular PSG meeting was held on Wednesday 8 October 2008 at 1600 under
the Chairmanship of Jerry Foran (BA) 2. The PSG meeting was called in Memo PTC COMP 1450 dated 12 February 2008. The
meeting agenda was circulated in message PSG 0036 dated 30 September 2008. In accordance with the Rules & Regulations of the PSG this message was also circulated to all TC Accredited Representatives.
3. PSG Members were reminded that they were there to assist the IATA Secretary in the
development of future plans and activities for Passenger TC and to represent the needs of the industry in this regard, and not individual airlines.
4. Composition of PSG [Agenda Item 1]
PSG Members endorsed the proposal to reduce current PSG Membership from seven to four in the TC2 Within Europe area.
5. Approval of Previous Minutes [Agenda Item 2] Approved.
6. Flex Fares & e-Tariffs – Where are They Today [Agenda Item 3]
PSG was updated on the current status of Flex Fares and e-Tariffs including the regulatory situation. By the end of 2008 IATA will have held about 10 e-Tariff meetings. E-Tariffs is being used where possible and it’s proving very effective in increasing participation. The system has recently been enhanced and it’s now a very efficient tool for users and managers.
7. With the scaling back of anti-trust immunity in certain jurisdictions, the industry has been
very successful in transitioning Flex Fares into the marketplace to meet all of the regulatory deadlines so far. Last one was 30 June 2008. Flex Fares has now been adopted in 18 regions and is currently implemented in approximately 15 regions around the world. IATA congratulated the industry on their success in achieving this difficult and complex objective and thanked Members for their cooperation, hard work and efforts throughout the transition process.
8. Flex Fares & e-Tariffs – Have They addressed the Issues [Agenda Item 4]
The following summarises the key points from PSG discussions: • PSG believes e-Tariffs is working very well and provides a great deal of flexibility.
Some regions may encounter technical difficulties and certain Members had yet to experience the system first hand so were unable to comment fully. However the majority of Members recommended its usage be extended as much as possible to capitalise on its obvious benefits of reducing costs and increasing meeting attendance.
• The majority of PSG Members believe Flex Fares is a valuable product, that it addresses the regulatory concerns and satisfies industry requirements. Flex Fares provides a product that permits carriers to extend their market reach and maximise revenues. Furthermore the automated concept minimises travel time and costs.
• Although some Members felt it was still more effective to hold a face to face meeting where possible, most PSG Members endorsed the recommendation that Flex Fares be transitioned to regions where no regulatory mandate currently exists, working closely with the carriers concerned.
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PTC COMP 1494 GVA, Oct08
• As Flex Fares is a relatively new product in some markets, a few Members raised concerns with technical issues. IATA has advised that it will study the usage of Flex Fares and undertake some research to collect the IF data.
• Where outstanding government approvals prevent the new Flex Fares from being implemented in the marketplace, the PSG recommends that action continue to be taken on a case by case basis by area.
• PSG endorsed the increased usage of Mail Votes as a cost effective and efficient means for the industry to adopt changes.
9. Composite Update [Agenda Item 5]
Current baggage rules in Resolutions 300 and 301 are expiring on 31 March 2009 and there is opposition from some carriers to revalidate them. PSG Members agree they could move forward with proposed new Baggage conditions contained in Resolution 302. In view of the latest regulatory information, the majority of PSG Members could support the marketing carrier option, although some had concerns regarding possible technical issues. All PSG Members stressed the importance of finding a solution for baggage at this meeting, otherwise the industry will be left with nothing for interline baggage.
10. Items from RAP [Agenda Item 6]
PSG had previously endorsed the Report from RAP and ensuing documentation. 11. PSG Membership [Agenda Item 7] PSG nominations have been received and placed on the Composite agenda for voting. 12. Other Business [Agenda Item 8]
The PSG was briefed on the following additional items:
• Tariff Products and Services PSG were briefed on recent changes to Tariff products and services.
An improved version of the e-Composite (electronic Resolutions manual) reflecting government approvals was launched on 1 October. A revamp of on-line library was undertaken to improve content and make it more user friendly.
IATA will deliver brief presentations on these products during the conference breaks and will be seeking Membership feedback to further improve the quality, value and efficiency of TC services for the industry.
• Passenger Week
Composite is now part of the first Passenger Week bringing it together with Agency and Services. The aim is to promote a more coordinated and efficient approach across the three key Passenger disciplines and nuture the exchange of best practices across the industry.
Surveys have been circulated to Members to gather feedback on the event. An
electronic survey will also be forwarded to participants from all three disciplines following Passenger Week to gather additional comments so IATA can work with Members to make it an even better event in 2009.
• Proposed Conference Schedule for 2009
PSG reviewed and endorsed this item. Official details will be circulated to Membership shortly.
• Date and place of next meeting
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PTC COMP 1494 GVA, Oct08
PSG agreed the meeting should continue to be held in conjunction with the Composite meeting to facilitate participation and reduce travel time and costs.
13. PSG completed its business at 1900. Detailed Minutes will be circulated shortly.
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