INTERNATIONAL FARES AND always involve a change of planes.
TICKETING Country of Unit Origin- The country in which the
REVIEWER
1. Journey Concept , Pricing Concept and Fare
Terms
      The fare calculation formula is determined by the
type of journey being traveled. We have to determine
if the journey can be calculated as a single pricing
unit- the Journey Concept of pricing a ticket .
Otherwise, we have to slice and dice  the journey ,
assess the pricing units separately and combine  to
come up with the lowest fare , this is the Pricing Unit
Concept. Eventually this two methods of pricing a
ticket were integrated.  It is important to have a good
understanding of fare terminologies as used in the
context of air fare calculations and ticketing to
understand the fare construction rules.
FARE TERMS
Fare Component-  A portion of an itinerary between
two consecutive fare construction points.
Direct Route- The shortest all year route operated by a
carrier in both directions between ticketed points at
which it exervises traffic rights.
Direct Fare- For fare construction purposes, a fare
between two points without the application of fare
construction calculations.
Fare Construction Points- The terminal points of a
fare component ( also termed as fare break points).
Origin- Initial starting point and the first ticketed point
in the routing. It is also a fare construction point.
Destination- Ultimate stopping place of the journey
and as a terminal point, it is considered as a fare
construction point.
Sectors - A portion of the journey comprised of legs or
segments, mostly used in reference to fare
construction. A single sector involves a pair of points.
Ticketed Point- Point shown in the' good for passage'
section of a passenger ticket.
Intermediate Points -Ticketed points in between
consecutive fare construction points and may also be
called transfer points.
Intermediate stopover point- A point where the
passenger breaks his journey and is not scheduled to
depart within 24hours of arrival . A stopover is
specified in the passenger ticket.
Intermediate NO-stopover point (aka Connecting
Point or Transfer Point) -  a point where the
passenger arrives  and departs within 24 hrs. It is also
known as transfer or a connecting point.
Note: Transfer points are not the same as transit
points. Unlike transfer points, transit points do not
unit origin is situated.
Journey - Origin to destination of the entire ticket.
Pricing Unit- A journey or part of a journey which is
priced as a separate entity.
Unit Destination- The ultimate stopping place of a
pricing unit .
Unit Origin- The ultimate starting point of a pricing
unit.
One Way Sub Journey- Part of a journey wherein
travel from one country does not return to such country
and for which the fare is assessed as a single pricint
unit using one way fares.
Return Sub journey -Part of a journey wherein travel
is from a point/country and return thereto and for
which the fare is assessed as a single pricing unit using
half round trip fares such as  Round Trip (RT) and
Circle Trip (CT) .
JOURNEY CONCEPT - method  of pricing a ticket
In fare computation, the Journey Concept  is a method
of pricing a ticket by taking  the entire journey a single
unit and apply the fare construction rules to the entire
routing. 
Journey Concept  Example:
   
In  the Pricing Unit Concept ,  the journey fare is
calculated by breaking it into the lowest combination
of stand-alone Pricing units.
The Pricing Unit Concept  Example:
Here  two  ticketed points  SIN-HKG and HKG-SYD
are priced separately  ,but the cheapest  total price will
still be applied for the whole journey. The country of
origin is applied as basis for the final local currency
fare. 
    The lowest  fare is based on a single pricing unit for
the whole journey, or by breaking the itinerary into
stand along pricing units - units which can be priced
separately, while applying the the fare construction
rules to the entire routing.
 
Let us study the following  journey : 
KUL/X/BWN/TPE/JKT/SIN  
KUL  is the origin of the entire journey.  This is how the example itinerary
Origin - is the very first city  where the route starts.
Aside from being the initial ticketed point is also a fare
construction point (FCP).
SIN  is the Destination city, the last city  of the entire
route, it is  also the other end of the fare construction
point (FCP).
Fare Construction Points (FCP) , also known as the
terminal points of a fare component ( also termed as
fare break points).
So in this  journey , to calculate the single unit price 
fare , we initially check the direct fare (NUC Value) 
of the journey - KUL/45SIN, regardless of the stops in
between these two terminal points.
Intermediate Points   are BWN, TPE and JKT
BWN , which has an X/ before the City code implies
connection. BWN is a connecting point ,  it is an
intermediate ticketed point where a passenger transfer
flights within 24hours of arrival.
TPE and JKT are both Stopover Points - passenger
arrives and will not depart within 24hours of arrival.
Under the Pricing Concept, the passenger may cut and
dice the journey into stand alone fare construction
points, each unit is a Pricing Unit , it can be issued
separately or combined in one ticket on end-on
pricings. The pricing units may also be called sub-
journeys.  direction, meaning we will take the half Roundtrip fare
The two concepts is to be integrated as the Pricing
Unit Concept,  to be able to arrive at the lowest  fare
for the entire journey.
If we are to price separately the three possible sub
journeys , or three ticketed points are the following:
KUL/XBWN/TPE  [KUL-TPE]  is Pricing Unit 1
(PU1) , TPE-JKT is Pricing Unit 2 (PU2), and JKT-
SIN is Pricing Unit 3 (PU3).
Since the final destination is not from the same country
of the origin city, this will be assessed as OneWay
(OW) journey.
For this module, we will apply and focus on single-
price unit  pricing method - the Journey Concept. Thus
, we will  calculate the fare of this journey
by initially getting the direct (NUC) fare of  the
Origin-Destination , which is our Fare Construction
points = KUL-SIN and apply the mileage principle
thereafter. We will learn more about this process in the
coming chapters.
Learning  the different types of journey , will enlighten
us how to determine the fare components and the
corresponding  direction of travel and the direction of 
fare component.
KUL/XBWN/JKT/TPE/SIN  will look like if we slice
and dice into 3 pricing unit subjourneys:
Note :   Return Subjourneys (RT, CT, OJ) usually
apply the reverse direction of travel from the Point of
Turnaround , or when a fare component terminates in
the country of origin, we use fare applicable from the
country of origin.  If the journey  will go back in the
final destination to the country of origin, say  same
point - KUL , making the Itinerary  as
KUL/XBWN/TPE/JKT/KUL , we take the farthest
point which is TPE, and price the journey as  return
subjourney , where the return ticketed points- 
TPE/JKT/KUL will be assessed in the reverse
of KUL/TPE instead of TPE/KUL.  You will learn
more about this in the coming chapters.
2. One-Way Subjourney
One Way subjourney or OW is the part of a journey
wherein travel from one country does not return to the
same country, and for which the fare is assessed as a
single pricing unit using one way (OW) fares.
A one way is a trip in a continuous direction from the
origin to the final destination without a return to the
origin.
Ex. MNL/KUL/SIN where the Origin is MNL,
Philippines , and final Destination is SIN,
Singapore. The Fare constructed points (FCP) is
MNL/SIN , it did not return to the same country
and pricing unit to be used is MNL/SIN OW fare.
3. Return Subjourneys
Return Subjourney Part of a journey wherein travel
from point/country and return thereto and for which
the fare is assessed as a single pricing unit using half
round tip fares such as Round Trip (RT) and Circle
Trip (CT).
3.1. Round Trip
Round Trip  A pricing unit entirely traveled by air
from a point to another point and return to the original
point. It has two fare components of equal normal
fares.
 typically have two fare components, the
outbound and inbound component
 the outbound normal fare is equal with
inbound normal fare
 the origin and destination points are the same
For fare calculation , use the actual direction of travel
except for the fare component that ends in the pricing
unit origin(inbound), where you assess fares from such
country in the reverse direction of travel.
The fare breakpoint used is the point of turnaround,
which is the farthest geographical fare break.
Example: MNL/HKG/LON/HKG/MNL
The farthest point is LON, this is the fare break point,
to calculate you are to check the through fare - MNL-
LON under Round Trip. OUTBOUND NUC 1/2
RoundTrip of MNL/LON fare plus INBOUND 1/2
RoundTrip  MNL/LON fare  to arrive at the Round
Trip fare MNL/LON/MNL. ( assuming that
MNL/HKG/LON is within mileage )
3.2. Circle Trip
A circle trip is a travel from a point and return thereto
by a continuous, circuitous air route, including travel
comprising two fare components but which do not
meet the conditions of the round trip definition. The
origin and final destination of a CT are the same but
the outbound and the inbound fares are not equal.
 CT may have two or more fare components
unless used for special fares
 Fare components that end in the country of
pricing unit origin, use the fares in the reverse
direction of travel
 For those fare components between
Canada/USA and components within
Scandinavia, assess fares in the direction of
travel.
 the CTM applies to a circle trip pricing unit
Example itinerary:  MNL / DEL/ LON/ HKG/
MNL 
Farthest point or Point of TurnAround is LON
Outbound route - MNL/DEL/LON  Fare Direction  
MNL-LON Fare is 1/2 roundtrip of MNLLON
Inbound route - LON/HKG/MNL    Fare Direction 
MNL-LON Fare is 1/2 roundtrip of MNLLON 
(inbound follows reverse Fare)
This route goes back to MNL but outbound and
inbound stops at different cities , the Outbound fare
plus Inbound will give total circle trip fare.
4. Open Jaw
An open jaw  journey may have only two international
fare components and may contain domestic surface
sectors. Such journeys use 1/2RT fares.
An open jaw is a trip of a round-trip or circle-trip
nature except it is “interrupted” by a surface or non-
air segment in the itinerary.  In reservations, a surface
segment is inserted in an itinerary and means Arrival
Unknown or ARunk or ARNK.
An open jaw occurs when any of the following
happens:
1.  The passenger’s outward destination is different
from the departure city for the return trip (the trip is
“open-ended” on the outbound portion of the trip).
2.  The passenger departs from the origin city and
returns to a different city (the trip is “open-ended” at
the return portion of the trip).
The following are the types of Open Jaw journey:
1.  SINGLE OPEN JAW  -contains one surface
sector
a) Turnaround Open Jaw - the outward point of
arrival and the Inward or inbound point of departure
are different
Example:  MNL/PER//SYD/MNL  Origin is from
MNL  ,Destination PER, upon arrival in Australia 
passenger decides to go by land going to Sydney, and
returns back to MNL from Sydney. There is an open
jaw, an Arunk from Perth to Sydney, Australia, this is Since the Origin and the final destination are from
the open segment at the point of turnaround. Scandinavia, they are treated as One country , so
therefore instead of treating the journey as OneWay
b) Origin Open Jaw - the outward or outbound point we are looking at an Origin Open jaw , and the point of
of departure and the inward or inbound point of arrival turnaround is LON. We can apply the 1/2 round trip
are different.  In this journey LAX/LON/NYC fare for the Outbound and the Inbound
we take the 1/2 roundtrip fare of CPH/LON and add
Passenger origin is LAX destination is LON, but upon the 1/2 round trip fare of OSL/LON (Inbound fare at
return , the passenger does not go back to Los Angeles, the reverse as it is treated as a return subjourney). This
but arrives in New York instead. As we know, LAX effectively lowers the fare for the whole jourmey.
and NYC are both in USA, but there is an Arunk 1. Fare Construction Terms
segment or no flight coupon from New York to Los
Angeles in his return, thus we say that there is a gap in
the Origin.
2. DOUBLE OPEN JAW
-contains two surface sectors, one at the origin point
and the other at the turnaround point. Take a look at
this route: MNL/JKT/-SUB/CEB
The Origin city is MNL, Destination is JKT,
Indonesia, but passenger does not have a flight from
Jakarta to Surabaya, passenger goes by land to
Surabaya-there is a gap in the Destination country, and
going back to the Philippines , instead of going back to
the Origin- MNL , passenger arrives at CEB instead
and there is no link flight from Cebu to Manila, so
there is also a gap in the country of Origin.  There is
gap at both ends - in the Origin and at the point of
turnaround-this is an example of a Double Open Jaw.
When a fare component terminates in the country of
origin, use the fare applicable from the country of
origin.
4.1. Exception
One COC (country of commencement) rule applies:
 Scandinavia shall be considered as one country. In
IATA division , Scandinavia is composed of
Denmark, Norway, and Sweden. ( Finland is not
part of IATA Scandinavia)
 Canada and USA, is considered as one country.

This means that if the gap is from any of the

Scandinavian countries  or between Canada /USA, 1/2
roundtrip shall be applied as per Open Jaw fare
calculation principle.
Example:
1.  CPH-LON-OSL 
Origin - Copenhagen , Denmark
1st Destination     - London, UK
Final  Destination - Oslo, Norway

2. Fare Construction Points (FCP)
We  know that in point to point systems of fare
calculations for Domestic one-way trips,  fare to each
stopover point on the routing is charged and all fares
per sector are added to arrive at the total fare. In
international air fare calculations , the origin (O) and
final destination (D)  or  O-D cities are the fare
construction points or fare break points of the journey.
These are called fare construction points (FCP)          Since NUC values are not currency, we need to
because a single unit pricing journey will take the
direct fare of this two points regardless of the
intermediate points or stopover points before arrival at
the final destination point.  This is because Mileage
system will allow ticket  to have intermediate points  ,
stopovers or connections, between the two FCP points
For example MNL-SIN-KUL-JKT , we will not just
add the sectoral fares:  MNL-SIN,  SIN-KUL , KUL-
JKT fares to arrive at the ticket airfare. This route will
take the through fare of MNL-JKT . We are talking
about  normal fare calculations, but for special fares/
discounted fares  such as excursion fares, restrictions
on number of stopovers will be found.  module. ROE values from the Tariff  page excepts
3. Neutral Unit of Construction (NUCs)
     International air fares are typically given in the
currency of the country of origin or commencement
(COC) or in  standard counting units. As you may have
noticed during your Airline Reservations course, Fare
Displays  are given in the currency of the country of
origin or commencement (COC) , but will  also be
displayed in the standard counting units called neutral
units of construction or NUCs.  Again NUC value is
not a real currency, it is neutral and as such  is  used  to
calculate the international air fares regardless of COC.  Decimal units (DU) = 2 the heading other charges is
NUCs are only counting units and not equivalent to
any currency, although interestingly  you may note  EMS Table correct interpretation
that IATA selected the US Dollar USD to serve as the
basis of the rates of exchange for NUCs. Typically 1
NUC = 1 USD.
NUC values from different points are listed under
WorldWide Fares, Passenger Air Tariff and published
by IATA.  NUCs are also available for retrieval in the
Computer reservation systems (CRS) and Global
distribution systems (GDS) such as Amadeus, Abacus,
Galileo, and Sabre , under Fare Display entries.
For our training,  download pdf training extract of
NUC  samples from Tariff book under Resources and
Tools Topic of this module.  Exercises for this course
will be provided with  NUC Fares  under 'given'  to
facilitate training purposes only.
Rounding Rules
NUCs are NOT rounded off,  it is quoted and
expressed to 2-decimal places only.
If calculation arrives at NUC1234.5789  , you will
only retain the 2 decimal places after the whole
number , no rounding, simply drop the other decimal
numbers
Thus the final amount is NUC1234.57  .
4. IATA Rate of Exchange (ROE)
convert the NUC value into the currency of the country
of ticket issuance  or country of commencement
(COC).  To do this, we need to multiply the value to a 
number factor or what is called the IATA Rate of
Exchange (ROE).   ROE are notified by IATA , and it
is not a constant number, it is adjusted four times a
year typically every 3 months, unless a major variation
in currency value by more than 10% within the period
occurs. (PTAA-Tariff Course Handbook,2011).  Since
the ROE factor is not constant, there is no need to
memorize the factor. For our training, download the
iROE pdf file under the Resources Folder in this
were accurate at the time of publication and are to be
used for illustration and training purposes only.
 To change NUC amount to a specific local currency ,
multiply the NUC by the ROE  for that country.
Example:  The one way fare from Paris to New York   
TC2 - TC1 , we take the AT NUC  Through Fare for  
PAR-NYC   as NUC976.28. To change the NUC
value  to the currency of country of origin (COC), get
the ROE of the COC, for this route we get the ROE of 
France : 0.742833 Rounding Unit  (RU) of LCF= 1,
the rounding unit for surcharges .
 EMS table  interpretation, if you have a result
more than 1.000 up to 1.05000 then apply 5M.
 If result is more than 1.050000 , such as
1.0500001 then you apply 10M. 
 Same goes with next level , if result is flat
1.05000 it is 5M but if  more than 1.05000 ,i.e.
1.0500001  then you apply 10M.
 If result is flat 1.150000 then you apply 15M.
 But if result is higher such as 1.1500001 then
you apply 20M , etc..