AIR FARES AND TICKETING

BOOK –2

PARTICIPANT HANDBOOK
Commercial Training 2004-05

STEPS
THE TRAVEL MANAGEMENT SCHOOL
BOOK 2 : INTERNATIONAL AIR FARES
Contents:
1. Introduction – Difference between Domestic and
International Air Fares
2. Types of Air Fares & Nett Nett Fare concept
3. Introduction to PAT
4. Types of Journey
0 Anatomy of Terms
1 One- Way Journey
2 Round Trip & Circle Trip
3 Normal Open Jaw
i) Turnaround Open Jaw
ii) Origin Open Jaw
 The Round The world Journey

5. Fare Fundamentals – TC Area, GI, ISI & Currency

conversion
6. IUFF ( IATA UFTAA Fare Formula) summary
7. IUFF for SITI One-Way Journeys
8. IUFF for SITI Return Journeys
9. IUFF for SITI NOJ Journeys
10. Limitations of Indirect Travel
11. One Way Journey – Fare Calculation with BHC
12. Secondary Fare usage & Carrier based Fares
13. Return Journey – Fare Calculation with CTM
14. NOJ Journey – Fare Calculation
15. Add-Ons
16. Mixed Class Journey - OW, RT & CT
17. Special Fares – Concept and Types
-- SC100,GR, HIP Rule, Calculations
18. Taxes
19. Ticketing—Types. Boxes and its meaning &
Issuance
20. MCO/MPD – Types, Boxes and its meaning &
Issuance
21. UATP & Credit Card
22. Billing and Settlement Plan
 Chapter - 1
Introduction – Difference between Domestic and International Air
Fares

Domestic Airfares: means Airfares for traveling by any scheduled Airlines

within boundary of a country. The process of Calculation is
very simple as it has a concept called Sector based .In a
sector based concept, Airfare is pre determined by an
airline for travel between that point.
If a passenger is traveling multiple sector in one or more
conjunction Air Ticket, the calculation remains very simple
i.e. take fare for each sector and add the total to get the
total ticket value.

International Airfares: means Airfares for traveling by any scheduled

Airlines between two or more states / country. The process
of Calculation is very simple in case of Direct travel
between any two international points, it is same as
domestic called Sector fare.
If a passenger is traveling multiple sectors in one or more
conjunction Air Ticket, the calculation becomes little
complex as it involves mileage concept.
In a mileage concept IATA has formulated a formula known
as IATA UFTAA Fare formula by which fare for indirect travel
is calculated.
The shortest distance between any two points by air in
miles is known as TPM.
The maximum distance in mileage allowed between any
two points is known as MPM.
Besides mileage check we need to do various other
checks , details of which we will be discussing in future
chapters.
The other important point is strength of the currency of
country of commencement of journey.
e.g. Singapore to Sydney Fare will be higher than Dhaka to
Sydney even though the distance between Dhaka Sydney
is more than the distance between Singapore and Sydney.
The reason is Singapore Dollar is more stronger than
Bangladesh Taka.
.
 Chapter – 2
Types of Air Fares & Nett Nett Fare concept

AIR FARES

NORMAL SPECIAL
0 Unrestricted 0 Generally from restricted to very restricted
1 Endorsable 1 Generally non endorsable
2 Refundable 2 Generally non refundable
3 Reroute able 3 Generally non reroute able
4 Changes any where any 4 Sometimes changes attract penalty and sometimes no
time changes allowed at all.
PRIMARY SECONDAR Public Inclusiv Public Reduce
1.Unlimite Y Special e Tour Group d Fare Miscel
d 1.Limitation Fares Fares Fares for laneo
stopovers s on IT GV Specif us
and Stopovers ECONOMY E.CLASS E.CLASS c Fares
Transfers and CLASS Catego
Transfers ry of
Person
F.F1 F2,F3 Late Group Commo
booking n
FIRST fare interest
CLASS FIRST group
CLASS
J,J1 J2,J3 AP/AB Individu Incentiv
Advanced al e group
BUSINESS BUSINESS purchase
CLASS CLASS excursion
fare
Y,Y1 Y2,Y3 PX/SX Non
affinity
ECONOMY ECONOMY Pex fares group
CLASS CLASS
EE affinity
Excursion group
fares

NETT FARE CONCEPT: An extracts of Singapore Airline Fare Sheet;

 Chapter – 3
Introduction to PAT

Passenger Air Tarif

The PAT came into existence in April 1999,with carrier specific fares & rules. A
combination of the Air Tariff and the Air Passenger Tariff, both of which are now
obsolete with the entry of the PAT.

It is a joint publication of IATA (International Air Transport Association) and

SITA( Societe Internationale the Telecommunications Aeronautique ).

It is used to identify / fnd fares, rules & mileage.

The fare is the most salient part in any sales transaction and therefore being able
to provide a quick and appropriate answer will clinch the deal for you. A
miscalculation in fares can also leave your Company liable for heavy penalties by
IATA, due to lack of acceptance of the document by other participating carriers. It
is thus essential to be familiar with all the aspects and sections of the PAT, to
imbue a sense of confidence in your client.

Different Editions - A PAT set consists of the following:

a) Worldwide Edition - Code WW
0 Eastern & Western Hemisphere Fares book- monthly
0 Eastern & Western Hemisphere Fares Rules book- quarterly
 Worldwide General Rules book – quarterly
 Maximum Permitted Mileage book - annually
b) Eastern Hemisphere Edition - Code EH
0 Eastern Hemisphere Fares book –monthly
1 Eastern Hemisphere Fare Rules book –quarterly
2 Worldwide General Rules book – quarterly
3 Maximum Permitted Mileage book -annually
c) Western Hemisphere Edition – Code WH
 Western Hemisphere Fares book – monthly
 Western Hemisphere Fares Rules book – quarterly
 Worldwide General Rules book – quarterly
 Maximum Permitted Mileage book - annually

Where to fnd what –

Contents of each book, common to all:
0 The Participating carriers, is printed on the inside Cover page, those who use
the PAT as a source of Reference for Air Fares. The publication is also for use by
their agent.
0 The first page is the general contents page.
 The second and the third pages are ‘how to subscribe’ .
0 The fourth page is intentionally left blank.
1 The fifth & sixth page is the Editorial’s, it is a must read before consulting the
information contained therein
 The seventh page is the ‘Stop press section’, section which is important as the
name itself suggests, it is the information that arrived too late to be included in
the correct slots but is still a consideration while quoting fares.
The Eighth page is for your notes.
 An Excess Mileage Table is printed usually on the inside of the back cover of all
travel tariff publications. The table is used to determine the percentage of
surcharge applicable to a fare component. There is however a shorter method
to determine % of surcharge. i.e. Total ticketed point mileage divided by
maximum permitted mileage.

Fares books, for both hemispheres (EH & WH ) :

i) The first section is devoted to Editorials & Stop Press, as Explained earlier.

ii) The second section is the IATA Rate of Exchange or the Currency
conversion rates, stated
country wise in Alphabetical order .

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instruction manual on quoting fares from the PAT , eg. if you
were
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0 DEL to LON the sequence of the columns will be :-
1) Fare type – RT printed in bold, OW & Y2 in light print
2) Local Currency
3) NUC (Neutral Unit of Construction)
4) Carrier Code
5) Rule
6) GI (Global Indicator), MPM (Maximum Permitted Mileage ] and
Routing
1 The principle of quoting the correct fare from the PAT will always be in the
actual direction of travel, therefore the fare will be from city of origin to city of
destination.

iv) The next section is devoted to Fare Class/Type Codes; this is further
subdivided into the following categories viz.
A) Class codes B) season codes C) Part of week Codes
D) Part of Day Code E) Fare and Passenger Type Codes
F) Fare Level Identifier G) Global Indicators.

0 This section is devoted to Fares :

0 Eastern Hemisphere : - I) Normal & Special Fares

II) Inclusive Tour Fares
b) Western Hemisphere : - I) Normal & Special Fares
( Including to/ fromWH )
II) Inclusive Tour Fares
( Including to/ from WH )

vi) The second last section is on Add – ons : -

a) Eastern Hemisphere: - I) Industry add-ons

II) Rules
III) Special Combination Fares
IV) Industry add-on amounts
b) Western Hemisphere: - I) Industry add-ons
II) Rules
III) Definition of Geographical Zones
IV) US cities in Geographical Zones.
V) Geographical Zone Add-on Amounts.
 VI) Industry add-on amounts

Vii) Carrier Add-ons specific to Western Hemisphere only : -

I) Carrier add-ons
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North Atlantic carrier add-on info.
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Pacific carrier add-on info.
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Hemisphere (within WH only) Carrier A/O
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North Atlantic carrier A/O amounts.
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‫؁‬葞Ũ葠‫ﺘ‬䩏䩑⡯Ā뜀ǰЀĀĀༀ1030 VI) Pacific carrier A/O
amounts.
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‫؁‬葞Ũ葠‫ﺘ‬䩏䩑⡯Ā뜀ǰЀĀĀༀ1031 VII) W. Hemisphere carrier
A/O amounts.

Fare Rules Book (WH) :

Section I: Editorial & Stop press
Section II: Index of WH Fare Rules(orange pages)
a) Fare Rules governed by Standard Condition A, B & C

b) Industry Fares Rules Governed by SC 100 / SC 101

Section III: Routings (white pages)
Section IV: Validity Indicator for Special fares
Section V: Excess Mileage Table
Fare Rules Book (EH):

Section I: Editorial & Stop press

Section II: Index of EHFare Rules (orange page)
Section III: Carrier Fare Rules Governed by
Standard Conditions A, B and C.
Section IV: Carrier Fare Rules Governed by Passenger Air Tariff Standard
Condition
Section V: Industry Fare Rule Governed by SC 100 / SC 101.
Section VI: Routings (white pages)
Section VII: Validity Indicator for Special Fares
Section VIII: Excess Mileage Table

General Rules Book :

Section I: How to contact us, Product Information, Subscription Form for the PAT.
Section II: Editorial & Stop press
Section III: Alphabetical Index
Section IV: Country Codes.
Section V: City names/ Codes
Section VI: Rules
Section VII: Carriers special Regulations
Section VIII:Ticketed Point Mileages
Section IX: Round The World Fares
Section X: Validity Indicator for Special Fares
 Chapter – 4
Types of Journey
TERMINOLGY

JOURNEY Travel undertaken/performed.

ITINERARY The cities to be covered during the course of travel.
ORIGIN The first city from which travel commences, as reflected on the
ticket.
SECTOR Travel from point A to point B and is usually a part of a long
travel plan.

INTERMEDIATE The cities in between origin and destination in one way journey
and POINTS for return journey between origin and Turnaround point and
again between
Turnaround point and Destination.

TRANSFERS Of two Kinds: -

Online – A change in aircraft of the same airline.
Interline - A change in aircraft & carrier.

TRANSIT Any city on the itinerary used only for connection purposes;
generally
Less than 24 hrs.

TICKETED All points on the itinerary including the origin and the
destination.
POINTS

SURFACE An interruption of a journey entirely by air.

DESTINATION The city where a traveler wishes to end his journey, as shown on
the ticket.

POINT OF The point where one portion of the journey is completed and the
second or
TURN AROUND return portion commences.

STOPOVER The intermediate point where a Passenger intends to stay, for more than 24 hours,
with the Carriers’ Prior consent.
FARE That portion of the journey for which the fare shall be computed.
COMPONENT

0 OUTBOUND FC The city from which the journey originates upto the fare break
point
.
B) INBOUND FC The return journey from the point of turn around to the
destination is referred
 to as the inbound fare component.
0 INTERM EDIATE FC The part of the journey that lies between the O/B & the I/B
journey’s, if and
When a journey has more has more than two fare
components.

FLOW CHART OF JOURNEY’S:

JOURNEY
Origin & Destination Same City Origin &
Destination
Diferent City
RT CT RTW TOJ ONE WAY ORIGIN
OPEN JAW
1.100% by 1.100% by 1.Crossing 1. O/B Origin & Origin &
Air Air both Atlantic Point of destinatio destination
2. Only two 2. Two or & Pacific Arrival & n must in the
Fare more Fare oceans. I/B point of Have to same
Component Component 2.The departure be in country
s s journey Are different
3. NUC 3. NUC Should be different Countries
O/B = I/B O/B /= I/B continuous cities but
eastbound In the
or same
westbound country
travel
3. There
must be
Stopovers in
all three
Areas.

Classifcation of Journey
ONE WAY RETURN NORMAL OPEN JAW
1. Origin & Destination 1.Origin and Destination 1.Domestic surface break
have to be in different same cities either at the origin or at
Countries 2. Entire itinerary by air the country of Turn around.

OW with OW with ROUN CIRCLE ROUND ORIGIN TURN DOUBLE

one more than D TRIP TRIP THE OPEN AROUND OPEN
Fare one Fare WORLD JAW OPEN JAW
component Component/ JAW
RT CT RTW OOJ TOJ DOJ
/ PU PU

DEFINATIONS
Journey
One way OW : A journey that is commences in a city of one Country and
terminates in a city of another Country, a journey that in itself is complete As
having satisfied the traveling needs of the passenger. The fare type used to
determine the fare for this type of Journey is OW NUC’s. The fare to be charged is
always in the direction of travel even in the case of two or more fare components.

Round trip RT: A round trip is that journey where travel Originates and
terminates at the same Point and the normal half RT fare is
Applicable, the outbound and inbound NUC & fare components are equal to each
other. The fare for the O/B fare component is to be Taken in the
direction of travel and for the I/B fare component in the reverse direction.

Circle Trip CT: A circle trip is essentially a roundtrip journey but where no two
fare components or NUC’s are equal. A circle trip unlike a round Trip may have
more than two fare components. The fares are to be charged in ½ RT’s and the
same methodology as the as the RT applies.

Round the world Journey:

0 Continuous eastbound or westbound travel
1 Crossing both atlantic and pacific ocean and
2 Intermediate stopover in Area 1,2 & #

Normal Open Jaw Journeys :

A) Turn around Journey (TOJ): The point where the outbound journey
terminates and the city
from where the inbound trip commences are
different.

B) Origin open Jaw (OOJ): The city of commencement of travel and the
city of final

destination i.e. return is not the same but in the

same Country.
C) Single open Jaw (SOJ): A journey which has only one surface sector, either a
TOJ or a OOJ.

1 Double open Jaw ( DOJ): A journey that has two

surface sectors, a TOJ & a SOJ.

Chapter 5
Fare Fundamentals – TC Area, GI, ISI & Currency conversion

IATA TRAFFIC CONFERENCE AREA

IATA for the convenience of its members and associates has divided the World at
large into three (3) Traffic Conference Areas namely:-

TC1: North, Central & South America and the adjoining Is..
TC2: Europe, Russia west of the Urals, Middle East, Africa and the adjoining
Islands.
TC3: Asia excluding Middle East, Australia and the neighboring Islands.

Please refer to the PAT ; General Rules book , the chapter heading Abbreviations &
Definitions under section 1.2.2.

FLOW CHART FOR THE TRAFFIC CONFERENCE AREAS.

 TC1 TC2 TC3
Sub Sub Areas Sub Areas Sub Areas
Areas
N. America N.Atlantic Europe South Asian Sub
Continent
C. America Mid Atlantic Middle East Japan & Korea
Caribbean South Africa Region South East Asia
Atlantic
S. America Central South West Pacific
Eastern
Western
Southern
Libya
Indian Ocean
Islands

Chapter 5 (Contd.)
Fare Fundamentals – TC Area, GI, ISI & Currency conversion

Global Indicators (GI)

AT:- Travel via Atlantic ocean i.e. between Area I & Area II v.v. or between
Area I & Area III via Area II or v.v.
SA:- Travel via direct South Atlantic services, to/ from Central Africa,
South Africa & Indian ocean Islands.
PA:- Travel via Pacific ocean i.e. between Area I and Area III or
between Area II & I via Area III.
PN:- Travel via Pacific & North America.
AP:- Travel via Atlantic and Pacific both.
WH:- Travel wholly within the Western hemisphere i.e. Area I.
EH:- Travel wholly within the Eastern hemisphere, except for TS
& FE routings.
RU: A Russia- Japan & Korea routing
TS:- Travel within a fare component which involves A nonstop flight
between Europe Japan/Korea i.e. between Area II & III or v.v.;
except :
A Russia- Japan & Korea routing b) A Europe- China / SASC routing
FE:- Travel wholly via points in Area III and the
Russian Federation west of the Urals, excluding any TS
routings.

International Sale Indicator

What is ISI ? It is determined prior to commencement of fare construction.It is
determined in relation to the country of commencement of Transportation.
Where is the Ticket Sold ? Where is the Payment Received? Where is the Ticket
Issued?
These are the essential questions required to be answered at the time of
determining an International Sale Indicator. Presently the fares are guided by the
principle of “The country that has a convertible (strong) currency the fares from
that country will therefore be that much higher. Similarly, in the case of a country
having a weaker currency that country’s fare will be that much cheaper.”
The correct ISI must always be mentioned in the origin destination box to facilitate
the correct interpretation of the document.

There are in all four types of ISI’s :-

SITI:- Sold Inside ( The country of Commencement of journey)
Ticketed inside ( The country of commencement of journey).
SITO:- Sold Inside ( The COC of Journey)
Ticketed Outside ( The COC of journey).
SOTI:- Sold outside ( The COC of journey )
Ticketed Inside ( The COC of journey).
SOTO :- Sold outside ( The country of COC of Journey)
Ticketed outside ( The country of COC of journey ).
One country Rule :-
The following geographical areas considered as one COC.
 USA & Canada
 Norway Sweden & Denmark

Chapter 5 (Contd.)
Fare Fundamentals – TC Area, GI, ISI & Currency conversion

Currency
Currency is the mode by which we make payments, for the items we wish to
purchase.
Incidentally, if a person were to wish to buy a ticket and he would naturally pay
with his national (local) currency. In this context we would like to bring to your
notice that there exists a concept of convertible and non convertible currencies.
The strength of the economy of every country in the world is not equal. The
acceptance of the local currency of some countries is limited. There also exist
partially convertible currencies. In the cases where the country’s currency is weak
the transactions are conducted with any freely convertible currency, namely the
U.S.Dollar; a freely accepted/acceptable currency.
In the case of travel where a passenger travels through more than two to three
countries it is difficult to establish the price that he needs to pay and that which
should be charged to him, as there is more than one currency involved and no two
currencies are equal. Therefore IATA for the sake of convenience of its members
and associates has derived what is called the ‘Neutral Unit of Construction’.
The neutral unit of construction is equal to one US Dollar and all fares are
published in this neutral unit of construction. The neutral unit of construction is
then converted to the local currency with the help of the IATA Rate of Exchange
(IROE). The IROE is established once every three months viz. January, April, July,
and October. The rate of exchange remains constant for a period of three months
unless there has been a fluctuation of more than 6% in Currency value.
A standard formula is IROE X NUC = LCF OR LCF/IROE = NUC.
At the time of establishing a fare the IROE also known as the NUC conversion
factors should be referred to from the country of commencement of travel.
The IROE table in the PAT and in the other travel publications reflects the
rounding of units for local currency fares & other charges, the decimal units to
be requirements of the fare box.
The rounding off factor is crucial to any fare calculation, e.g. There are two types of
rounding
0 rounding off to the next higher unit, which will be denoted by the rounding
off unit preceded by the alphabet ‘H’.
1 The second type being that the rounding unit will be preceded by the
alphabet ‘N’. Both these adjustments are also called full & half adjustments
respectively. Two points are to be always kept in mind while rounding off, they are
0 Footnotes/notes mentioned in the column following the round off/ decimal
factors will always be read before commencing/completing any round off of any
currency. The footnote will have precedence over any thing mentioned in the IROE
table.
1 The number of decimal points to be reflected on any fare box, Equivalent
fare paid box will be taken into account before the round off is completed. For
instance if the round off is to the nearest, you will first consider the decimal,
whether it is more half (.5) or less. If it is more then you will round to the next
higher and if it is less then you will round down the whole figure.
 Chapter 6
IUFF ( IATA UFTAA Fare Formula) summary

STEPS DESCRIPTION

1. FCP Determine fare break point for each fare component.

2. NUC Determine the NUC ( or local currency ) and GI , if any,

between origin and FCP , OW or 1 / 2 RT as per type of
journey.
3. RULE
Check the rule applicable , if any , write the rule no.
4. MPM
Note the MPM as per correct GI, and the route no. if any
5. TPM
Add the ticketed point mileages and compare the sum with
6. EMA MPM

If the sum of TPMs exceeds MPM , check if any EMA is

7. EMS permitted or not.

If the EMA is inapplicable or insufficient , determine the

percentage of surcharge as per following rule :
Divide TPM by MPM and if the result is
Over 1.00000 but less than 1.05000 = 5M
Over 1.05000 but less than 1.10000 = 10M
Over 1.10000 but less than 1.15000 = 15M
Over 1.15000 but less than 1.20000 = 20M
Over 1.20000 but less than 1.25000 = 25M
8. HIP Over 1.25000 - change FCP

That is any point in the itinerary which is higher than

Origin destination
(O–D)
There are three possibilities
9. RULE a) Origin to Intermediate Stopover ( O- S)
b) Intermediate Stopover to Destination ( S-D)
c) Intermediate Stopover to another Intermediate Stopover (
S-S)

Check the rule applicable for the HIP sector, if any , write
the rule no.
 Chapter 6
IUFF ( IATA UFTAA Fare Formula) summary (Contd.)
10. AF 0 If there is no EMS , no HIP in the itinerary than NUC
(O-D) becomes AF
1 If EMS exists but there is no HIP in the itinerary than
surcharge NUC (O-D) for AF
2 If no EMS exists but HIP is there than HIP becomes AF
3 If EMS and HIP coexists than surcharge HIP for AF
Get the total of the Outbound and Inbound Applicable fares
in NUCs

11.SUB TOTAL
0 Applicable in OW fares only
1 Only when if there is HIP from origin.
12.a BACK HAUL
CHECK BHC formula
Step 1 : O/S - O/D = Difference
Step 2 : O/S + Difference = BHM ( Back haul
Minimum)
Step 3 : compare BHM and sub total
If sub total is higher ignore BHM
If BHM is higher raise subtotal to BHM level
12.b CIRCLE TRIP
MINIMUM CHECK
1. Applicable in CT fares only
2. Only when if there is HIP from origin
CTM formula
Step1: Highest HIP from origin ( O/S) X 2 = CTM
Step2: compare CTM and sub total
If sub total is higher ignore CTM
13. TOTAL NUC If CTM is higher raise subtotal to CTM level

14.a ROE Sub total plus any check adjustments

14.b LCF
Convert the total NUC at the applicable IATA Rate of
Exchange.
Round off the local currency as per PAT currency conversion
Table
15. TICKETING

Complete all the relevant boxes of the ticket.

 Chapter 7

IUFF for SITI One-Way Journeys

CALCULATION IUFF
1. TPM CALCULATION
FCP:

NUC:

RULE:

MPM:

2. HIP TABLE IN NUC TPM:

CCU CCU EMA:

EMS:
BKK BKK
HIP:
SIN SIN
RULE:

JKT JKT AF:

SYD BACK HAUL CHECK :

1.

2.

3.

TOTAL FARE CALCULATION:

IROE

LCF
 Chapter 8

IUFF for SITI Return Journeys

CALCULATION IUFF
TPM CALCULATION OUTBOUND INBOUND
OUT BOUND INBOUND FCP:

NUC:

RULE:
HIP TABLE IN NUC OUTBOUND I/2 RT
MPM:
CCU CCU

TPM:

BKK BKK EMA:

SIN SIN EMS:

HIP:
JKT JKT

RULE:
SYD
AF:
HIP TABLE IN NUC INBOUND I/2 RT
SUBTOTAL: NUC
CCU CCU
CIRCLE TRIP MINIMUM CHECK :

BKK BKK CTM NUC

HKG SIN SUBTOTAL NUC

P NUC
BNE JKT

TOTAL FARE CALCULATION:

SYD

IROE

LCF
 Chapter 9

IUFF for SITI Return Journeys

CALCULATION IUFF
 TPM CALCULATION OUTBOUND INBOUND
OUT BOUND INBOUND FCP:

NUC:

RULE:
HIP TABLE IN NUC OUTBOUND I/2 RT
MPM:
CCU CCU

TPM:

BKK BKK EMA:

SIN SIN EMS:

HIP:
JKT JKT

RULE:
SYD
AF:
HIP TABLE IN NUC INBOUND I/2 RT
SUBTOTAL: NUC
CCU CCU
CIRCLE TRIP MINIMUM CHECK :

BKK BKK CTM NUC

HKG SIN SUBTOTAL NUC

P NUC
BNE JKT

TOTAL FARE CALCULATION:

SYD

IROE

LCF

Chapter 10
Limitations on indirect travel

General limitations:
a) One departure from the origin,
e.g. BOM SYD
 DEL CBR
BOM X/SYD
LON SIN
NYC LON

NOT PERMITTED
REASON : Two departures from origin

b) One arrival at destination,

e.g. TYO TYO
BKK TPE
X/BOM X/SIN
DEL KUL
BOM SIN

NOT PERMITTED
REASON : Two arrivals at destination

c) One stopover at any one Ticketed point, within one Fare component
e.g. LON JKT
BOM SIN
DEL KUL
BOM SIN
BLR LON

NOT PERMITTED
REASON : Twice stopover at the same intermediate point within one Fare Component

There are Additional limitations also which are Area, Region and Country based for details refer to PAT
General Rule Book

Chapter 11

FARE CONSTRUCTION OF A ONE WAY JOURNEY SITI

A one way journey is best described as travel from one city to another, sometimes via another city or a couple of
cities. The city of origin/country of commencement of travel and the destination / where the journey finally
terminates are naturally two different countries.
The fare to be charged will be keeping in mind all the fare construction principles, a OW NUC as there will be a
single fare component only.
In the case that there is more than one fare component, the fare for the second fare component will be charged in
the direction of travel but will again be the OW NUC only.
The through fare to be charged will be determined by the basic principles of the Mileage system and fare
checks which are applicable for a journey:
a) MPM or Maximum Permitted Mileage
b) TPM or Ticketed Point Mileages
c) EMA or Extra Mileage Allowance
d) EMS or Excess Mileage Surcharge
e) Fare checks to be applied are: i) Higher Intermediate point ii) Backhaul for an OW journey.

The Backhaul check is a simple formula, if the origin destination fare is less than any fare from the origin to any
stopover then a backhaul check is applicable. The elementary essence is that the passenger should not avail of any
benefit that is detrimental to the well being of the airline i.e. he should not be able to visit a lower fare point after
a higher fare point and still pay the lower fare. The lower fare level has to be raised to the higher fare level.

ROUTING: CCU –BA-LON-BA-PAR Y ECONOMY CLASS OW

FARE CONSTRUCTION FCP CCU- PAR

CCU NUC Y/OW 1025.87
LON 4985 RULE NONE
PAR 220 MPM 6650
------- TPM 5205
5205 EMA N/A
EMS NONE
HIP TABLE HIP CCU-LON Y/OW 1092.43
CCU CCU RULE NIL
LON 1092.43 LON AF 1092.43
PAR 1025.87 - PAR BHC 1092.43-1025.87 = 65.56
1092.43 + 65.56 = 1158.99
Compare
BHM : 1158.99
AF : 1092.43
Backhaul adj. (P) 65.56
TOTAL 1158.99
From/To IROE
CCU Carr Fare Calculation 42.442020
LCF INR
LON BA M 49190 ( ROF – H5)
/// // CCULON
PAR BA 1092.43
Explanation :
0 --- LON is a higher intermediate stopover point and therefore the fare
For the component must be constructed using the three
CCULON steps as shown
above.
1 CCUPAR The fare to be charged is the OW BHM fare, which is higher than the mileage
constructed fare.
2
P 65.56 CCU-LON is shown above the fare to indicate that, that fare has been charged.
3 The ‘M’ is shown above this city pair to indicate that the mileage principle is used.
4 However, the OW BH construction produces a minimum fare which is higher than the
constructed fare.
ROE 42.442020
Total Fare NUC 1158.99
Construction
5 To indicate that this fare has been charged, the entries CCU-LON & CCU-PAR are reflected.
6 These city pairs indicate the points between which the BH applies and the entry “P 65.56” is the amount which must be added to
the constructed fare in order to raise it to the OW minimum
7 Three oblique (///) in the “From/To” column and two obliques (//) In the “Carrier” column shall be entered on the line above. The
fare calculation point to create the space necessary to show all details required in the “Fare Calculation” Col.

AUTOMATED TICKET ENTRY:

CCU BA LON BA PAR M CCULON 1092.43 P CCULON CCUPAR 65.56

NUC1158.99END ROE 42.442020

EXCEPTIONS TO THE BACKHAUL CHECK (I.E.WHEREVER BHC NOT REQUIRED) :

 JOURNEYS WHOLLY BETWEEN SOUTH ATLANTIC AREA AND EUROPE / AFRICA
 JOURNEYS WHOLLY WITHIN TC 1
 FARE COMPONENT WHOLLY WITHIN EUROPE

EVALUATION :

1.ROUTING : CCU TG BKK BA LON BA FRA

CLASS : BUSINESS
STOPOVER : A) ALL
B) WITHOUT STOPOVER IN LON

2.ROUTING : SYD JL TYO JL PRG RO BUH

CLASS : CLUB
STOPOVER : A) STOPOVER IN TYO ONLY
B) STOPOVER AT ALL TICKETED POINTS.

3.ROUTING : CCU SQ SIN SQ SYD SQ BNE

CLASS : ECONOMY
STOPOVER : AT ALL TICKETED POINTS.

Chapter 12

Secondary Fare usage & Carrier based Fares

Secondary Fare usage : To be able to use Y2/J2/F2 NUC while

calculating fares we must refer to rule. Generally speaking secondary fares do not
permit stopover, if in the itinerary between two points stopover is not there we
may take advantage of secondary fares, same rule apply when we are taking NUCs
for HIP Table.
For CTM purpose Secondary fares may be used without checking the rules.
Carrier based Fares
1 FOR AT/ PA ROUTINGS

The outbound carrier on the transatlantic/ transpacific sector determine the carrier for outbound fare
component, similarly the inbound carrier on the transatlantic/ transpacific sector determine the carrier
for the inbound fare component.
e. g. :
MAD
PAR IB
NYC AF
BOS UA
LON BA
MAD IB

2. FOR WHOLLY WITHIN EUROPE

The carrier with highest TPM or the first international carrier fare can be chosen for the entire journey.

3. FOR ALL OTHER JOURNEY

The first international sector carrier can be chosen as the main carrier.

Chapter 13

Return Journey
RT Fare Calculation-SITI
A Round trip is that fare which has only two fare components, that are equal to each in all respects and
aspects. The fare used to calculate a RT is always ½ RT fare or in some instances as you will learn in due
course a Y2 fare may be applicable, where there is no stopover in a fare component between the origin
and the destination.

There will be no interruption of the continuous air journey i.e. no surface elements, the origin and the
destination will be the same country, in the same city and the inbound and outbound NUC will also be
the same.
The important factor in determining a RT will be the fare break / construction point and how
stopovers and transfer points will affect your fare calculation.

The fare for the outbound fare component will be charged in the direction of travel, from the country of
origin to the fare break point and for the inbound or return leg in the reverse direction i.e. from the
country of destination to the fare break point.

How to determine a Fare construction point :

0 Observe the criteria of Limitations of indirect travel.
1 Always obtain the highest MPM from the origin to any ticketed point.
2 There will be instances when the highest MPM will not give a competitive fare in which instance
you may also use the city that has the highest NUC and sufficient MPM.

E.g.
ROUTING : CCU BI DXB EK ROM AF PAR AF LON KL AMS KL BOM 9W CCU
CLASS : NORMAL ECONOMY RT
FARE CONSTRUCTION :
TPM O/B TPM I/B MPM :
CCU CCU CCU - AMS: 6709 EH
DXB 2094 BOM 1035 - ROM:5835 EH
ROM 2689 AMS 4262 - PAR: 6650 EH
PAR 687 LON 217 - LON:6883 EH
LON 220 6883
6690

HIP O/B Y ½ RT
O/B I/B
CCU CCU FCP CCU-LON CCU-LON
ROM 797.32 ROM NUC Y 1/2RT 993.00 Y 1/2RT 993.00
PAR 932.44 ------ PAR RULE Y131 Y131
MPM 6883 EH 6883 EH
LON 993.00 ------ ----- LON TPM 6690 6883
EMA N/A N/A
EMS N/A N/A
HIP NIL NIL
CCU CCU RULE NIL NIL
BOM ------- BOM AF 993.00 993.00
AMS 932.44 ------ AMS SUBTTL 993.00 + 993.00 = 1986.00
LON 993.00 ------ ------ LON
 CHECK Since it is a RT fare, no check is applic.
TTL AF 1986.00
IROE 42.442020
LCF INR 84290/= (ROF H5)

From/To
Explanation :
CCU Carr Fare
8 The outbound and inbound components of the journey are within MPM of CCU-LON and
Calculation
have no HIP’s, hence permitting the use of a RT fare of NUC 1986.00
9 X/ DXB BI As LON is the FCP, the ½ RT fare NUC 993.00 is entered opposite LON.
10 ROM EK The other ½ RT fare is entered opposite CCU.
11 The ‘M’ is entered in both cases to indicate that the mileage principle has been used.
PAR AF M Automated Ticket Entry
LON AF 993.00
AMS KL CCU BI X/ DXB EK ROM PAR AF LON M993.00 KL
BOM KL M AMS KL BOM 9W CCU M993.00NUC 1986.00END
CCU 9W 993.00 ROE42.442020
------

ROE 42.44202
Total Fare NUC 1986.00
Construction

Chapter 13 (Contd.)

Return Journey

CT Fare Calculation-SITI with CTM

A circle trip CT is essentially a round trip but with a few minor differences. A circle may have more
than two fare components. The NUC’s of the outbound and inbound fare component are inequal. There
will be no interruption of the journey with a surface sector. The process for calculating a CT fare is the
same as that of a RT fare, except in the case of a CT fare; a Circle Trip Minimum CTM check will
have to be conducted.

A CTM check is, in a continuous, circuitious air route; the fare from the origin to any stopover point on
the journey i.e. highest direct return fare should not be undermined in a circle trip fare, discounting any
side trips.

The origin and the destination are the same city and ½ RT fares and Y2 fares are used for establishing
the fare, the fare for the outbound component will be in the direction of travel, and for the return fare
component in the reverse direction of travel. In case there is a third fare component in that event the fare
to be charged in the actual direction of travel.

The other aspects like limitations of indirect travel, determining a fare construction point remains the
same.

EXCEPTION TO THE CTM CHECK RULE :

0 TRAVEL ORIGINATING FROM AUTRALIA / NEW ZEALAND, THE CTM CHECK IS
FROM ORIGIN TO TICKETED POINTS, EXCEPT BETWEEN AREA 3.
E.g.

ROUTING : ROM AZ SIN PR MNL PR TPE TG BKK TG ROM

CLASS : NORMAL ECONOMY RT
ROM ROM FARE CONSTRUCTION :
TPM O/B TPM I/B MPM :
SIN 1491.22 SIN ROM ROM ROM- MNL :
MNL 1651.28 ------ MNL 8533 EH
SIN 6237 BKK 5491 -
SIN : 7755 EH
MNL 1476 TPE 1555 -
TPE : 8296 EH
7713 MNL 731 -
BKK : 7005 EH
7777
ROM ROM
BKK 1438.25 BKK
TPE 1738.63 ------ TPE
MNL 1651.28 ------ ----- MNL

HIP O/B Y ½ RT
O/B I/B
FCP ROM-MNL ROM-MNL
NUC Y1/2RT 1651.28 Y 1/2RT 1651.28
RULE Y146 Y146
MPM 8533 EH 8533 EH
TPM 7713 7777
EMA N/A N/A
EMS N/A N/A
HIP NIL ROM-TPEY1/2RT1738.63
HIP I/B Y ½ RT RULE NIL NIL
AF 1651.28 1738.63
SUBTTL 1651.28 + 1738.63 = 3381.91
CHECK Since it is a CT fare, a CTM
Check is applicable.
O/S HIP ROM-TPE YRT = 3477.26
SUB TOTAL IS = 3381.91
CTM ADJUSTMENT = 95.35
TTL AF 3477.26
IROE 42.442020
LCF INR 1,47570/=(ROF H5)
 From/To Explanation :
12 ‘M’ is entered above the ROM-MNL fare to indicate that the mileage principle is used.
13 ROM Carr Fare Calculation ‘M’ is again entered above the city pair “ROM-TPE” to indicate the mileage system is
used on the second component.
14 SIN AZ M “ROM TPE” is entered above the inbound fare to show that the fare has been raised to the
HIP ROM – TPE level.
15 MNL PR 1651.28 “ ROM TPE” is entered under the itinerary in the fare calculation together with the ‘P’
TPE PR M and the amount 95.35 on the succeeding line to show the fare has been raised to the circle
trip minimum ROM-TPE.
BKK TG ROM-TPE AUTOMATED TICKET ENTRY
ROM TG 1738.63
--------
ROM-TPE ROM AZ SIN PR MNL M1651.28PR TPE TG BKK TG ROM M
ROM TPE 1738.63P ROM TPE 95.35 NUC 3477.26END
P 95.35 ROE42.442020

RO 42.442020
E
Total Fare NUC 3477.26
Construction

Chapter 13 (Contd.)
USING SECONDARY FARE LEVELS / CARRIER BASED FARES
If for any sector more than one fare of the same class and same airline is published then the lowest fare
may be charged. For a CTM check the stopover/ transfer conditions of the fare need not be observed.
LAX LAX
E.g.
TYO 1019.00 TYO ROUTING : LAX JL TYO JL HKG CX TPE KE SEL KE LAX
H CLASS : NORMAL ECONOMY RT
K FARE CONSTRUCTION :
G TPM O/B TPM I/B LAX –
HKG 8672 PA
9 LAX LAX -
2 TYO 6541 PA
4 TYO 5451 SEL 5952 -
. TPE 8130 PA
2 HKG 1807 TPE 920 -
8 SEL 7142 PA
-
-
7258 6872
- HIP O/B Y ½ RT
- O/B I/B
- FCP LAX-HKG LAX-HKG
- NUC Y2 924.28 Y2 924.28
H RULE P0102 P0102
K MPM 8672 PA 8672 PA
G TPM 7258 6872
EMA N/A N/A
HIP I/B Y ½ RT EMS N/A N/A
HIP LAX- TYO LAX - SEL
LAX LAX RULE P0102 P0118
SEL 1023.00 SEL
AF 1019.00 1023.00
SUBTTL 1091.00 + 1023.00 = 2114.00
TPE 778.00 ------ TPE CHECK Since it is a CT fare, a CTM Check is applicable
O/S HIP LAX-SEL Y2 = 2046.00
HKG 924.28 ------ ----- HKG THE SUBTOTAL = 2114.00 NO CTM
TTL AF 2114.00
IROE 42.442020
LCF INR 89725/= (ROF H5)

From/To

LAX Carr Fare

Calculation Explanation :
TYO JL M 16 ‘M’ is entered above the LAX-TYO fare to indicate that the mileage principle is used.
HKG JL LAX TYO 17 ‘M’ is again entered above the city pair “LAX-SEL” to indicate the mileage system is
TPE CX 1019.00 used on the second component.

SEL KE M 18 “LAX TYO” is entered above the outbound fare to show that the fare has been raised to
/// // LAX SEL the HIP LAX – TYO level.
LAX KE 1023.00
19 “ LAX SEL” is entered above the inbound fare to show that the fare has been raised to
-------- the HIP LAX – SEL level.

20 Three obliques (///) in the “From/To” column and two obliques (//) in the
ROE 42.442020 “Carrier” column shall be entered on the line above the fare calculation point to create
the space necessary to show all details required in the “Fare Calc.”
TTl. Fare NUC 2114.00 Column.
Construct
ion

Chapter 16
Mixed Class Journey - OW, RT & CT
FARE CONSTRUCTION FOR MIXED CLASS JOURNEY’s
A journey travelled in different classes of service of the same or varied carriers, for a one way or return
trip is commonly referred to as a mixed class journey.
A mixed class fare is calculated in three steps.
a) The through fare for the lowest class of the journey based on fare calculation and mileage principles
subject to the checks applicable to that particular fare type e.g. a OW fare will be subject to the BHM
check and a CT will be subject to the CTM check. The
class differential of the sector/s traveled in a higher class of service will be added back to the fare
calculated in the lowest class of service.
b) The fare shall be calculated for the entire journey in the differing classes of travel of each portion.
c) The fare shall be calculated in the highest class of service for the entire journey, this is also known as
the precedence of Highest class fare.
d)The lowest fare resulting from the calculation by the above three methods shall be charged. No one
step shall be ignored in the process of determining the lowest applicable fare.
e) The second method of calculating the fare for each portion in the different class of service travelled, is
presently under consideration because it is as yet undecided as to which should be the fare construction
checks applicable to such a method of establishing a fare.
Points to be remembered at the time of constructing a mixed class fare :
0 Only Normal fares may be used in constructing a Mixed class journey, unless specified otherwise
by the special fare rule.
1 The fare calculation is subject to the normal mileage principle i.e. surcharge wherever
applicable / required.
2 Class difference will be assessed, in the direction of travel / fare used; within each fare
component.
3 The same level of fare, i.e. the level of fare used at the time of calculating the fare in the lowest
class, will be used for calculating the subsequent higher class/es of fares. E.g. When OW NUC’s are
used in the lower class of fare construction, similarly the OW NUC will be considered again at the time
of the higher class fare construction. The same is applicable for RT and ½ RT NUC’s.
4 The class differential fare component too will be subject to the Higher intermediate point fare
being charged.
5 The fare construction principle checks i.e. the BHM & CTM will be applicable only to the fare
components in all the classes of travel for a through fare construction and not to the Class Diffrential
C.D. sector.
The fare for an entire journey with different classes of travel, will be determined by the highest class of
travel and not by any intermediate class. I.e. if there are two classes “F” & “C” of travel besides “Y” on
a routing, then the fare that will be calculated for the entire journey will be on the Through First class
basis.

E.g.
ROUTING : BOM AI Y ROM AZ F PAR AF Y LON BA Y ROM GF F BAH AI Y BOM
CLASS : NORMAL ECONOMY / FIRST RT
FARE CONSTRUCTION :
TPM O/B TPM I/B BOM – ROM 4833 EH
BOM BOM - PAR 5630 EH
ROM 3840 BAH 1500 - LON 5863 EH
PAR 688 ROM 2413 - BAH 1800 EH
LON 220 LON 898
4748 4811
HIP O/B Y ½ RT
O/B I/B
BOM BOM FCP BOM-LON BOM-LON
ROM 692.00 ROM NUC Y ½ RT 893.74 Y ½ RT2 893.74
PAR 829.60 579.64 PAR
RULE Y131 Y131
LON 893.74 -------- ------ LON
MPM 5863 EH 5863 EH
TPM 4748 4811
HIP I/B Y ½ RT EMA N/A N/ A
EMS N/A N/ A
BOM BOM HIP NIL NIL
BAH ------- BAH RULE
ROM 692.00 ------ ROM
LON 893.74 ------ ----- LON
 AF 893.74 893.74
SUBTTL 893.74 + 893.74 = 1787.49
CHECK Since it is a CT fare, check for CTM
But there is no check applicable.
TTL AF 1787.49
CLASS DIFFERENTIAL
0 O/B ROM- PAR F ½ RT 634.00
Y ½ RT 579.64
55.00
1 BAH-ROM
TOTAL MIXED CLASS FARE
I ROE 42.442020
LCF INR 89725/= (ROF H5)