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Introduction
Fares Level 2 will revise the basic concepts of the mileage system,
including HIP`s, covered in Level 1, before the study of more complex fare
construction principles. The course fully utilises the Galileo system and
practises a variety of system entries related to fares, which are vital in
work situations.
This course will give you an in-depth knowledge of complex multi-sector
air fares and how they are constructed and displayed in Galileo and any
air fare travel document. It will introduce the concept of the lowest
combination of fares and the calculation of the most economical fare
for a routing.
The knowledge that you gain will enable you to more accurately
interpret the fare breakdown which is displayed by Galileo and shown
on fares related documents. This will allow you to communicate more
confidently with colleagues, airline staff and customers with respect to
fares and fare construction.
Each subject will be covered by your trainer, with demonstrations and
exercises to follow. There is a 'mock' examination, or revision paper,
taken prior to the exam on the final day of the course. There is a final
examination of 3 hours' duration.
Please feel free to ask questions at any time during the course.
Course Objectives
Notes:
IATA Geography
IATA Geography was covered at length in the Fares Level 1 course, so
we will take a look at this now by way of a revision. There will be no
questions in the exam about Geography for the Fares Level 2 course,
but fare notes often refer to IATA areas and sub-areas so it is important
to recognise these.
These IATA areas are divided into sub-areas. The main sub-areas are
listed below and are also indicated on the maps that follow:
Middle East - Egypt, Sudan, South Sudan, Iran and geographical Middle
East.
South West Pacific - Australia, New Zealand, Papua New Guinea, Fiji,
French Polynesia, New Caledonia and nearby islands.
South East Asia - Brunei Darussalam, Cambodia, China (exc. Hong Kong
SAR and Macau SAR), Chinese Taipei, Guam, Hong Kong SAR (China),
Indonesia, Kazakhstan, Kyrgyzstan, Lao (People's Democratic Republic),
Macau SAR (China), Malaysia, Marshall Islands, Micronesia, Mongolia,
Myanmar, Northern Mariana Islands, Palau, Philippines, Russian
Federation/Russia (in Asia), Singapore, Tajikistan, Thailand, Timor Leste,
Turkmenistan, Uzbekistan and Vietnam.
These are the main sub areas, however, there are many other areas, the
full list of which is in the Passenger Air Tariff (Definitions).
Fare Rules may refer to IATA Areas and sub areas. Some additional sub
areas are listed below:
IATA AREAS
IATA Area 1
North Atlantic
Mid Atlantic
South Atlantic
IATA AREA 2
Europe
Middle East
Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar,
Saudi Arabia, South Sudan, Sudan, Syrian Arab Republic, United Arab
Emirates, Yemen.
Africa
Eastern Europe
IATA Area 3
North Central Pacific
Australia, Fiji, Papua New Guinea, New Zealand and various associated
Pacific Islands.
Japan/Korea
Global Indicators
These are codes which relate to the direction, or areas, involved in a
routing. Some city pairs have different global indicators and these may
result in different fare levels. The most common Global Indicators (GI s)
are:
For any route crossing an ocean, i.e. AT / PA / AP, the Global Indicator
crossing the ocean will take precedence/priority.
EH PA WA Routing is PA
EH EH TS EH Routing is TS
The following chart will ensure you select the correct Global Indicator.
Use the chart and confirm the answers to the following routes.
NO YES
NO YES
YES NO
In the Fares Level 1 course we focused on point to point fares and Mileage
fares for multi sector routes, with and without HIP`s. To look up the fares we
have to use a combination of the fare display and the flown mileage display.
Fares are quoted in NUC`s:
In order to read fare notes you need to access the rule paragraphs or
categories. The entry to read all fare notes is:
FN*1/ALL
Each country has an IATA rate of exchange - ROE - and unless that
country uses the USD for air fares, it is the ROE that is used to convert
NUC amounts into currency.
The Rate of Exchange is updated 4 times a year, and the new rates of
exchange apply from: -
01 JANUARY
01 APRIL
01 JULY
01 OCTOBER
The new rates will be applicable for any fares quoted or ticketed on and
after these dates. If there is a significant fluctuation in a country’s bank
rates during a quarter, currently set at 6%, these rates are liable to ad-
hoc changes at the beginning of the next month.
For all Galileo fare quotes (except wholly domestic journeys), the fare
levels in the linear fare quote are displayed in NUCs and the final total is
converted into local currency.
FD10JUNLONJNB-RT/YY:NUC
FD:NUC
FD10JUNLONJNB-RT/YY/2
The /2 will automatically show fares in NUC at half the return value.
(This is extremely useful when dealing with round trip itineraries.)
Mileage Surcharges
If the flown mileage is greater than the MPM then it may be possible to
charge the through fare, but it will have to be increased (surcharged) by
a fixed percentage.
The set surcharge bands are: 5% 10% 15% 20% 25%
Any surcharge over 25% would require the fare to be constructed in an
alternative way, this is covered in the GA2 fares course.
The mileage check, with any surcharges, is calculated automatically in
response to the FL/ entry.
One Way Journeys
Example:
FL/LONWAWATHIST
The LWL and the HGL columns indicate the number of miles down to or
up to the next surcharge band.
The check is applied to each city in sequence. Travel as far as ATH has a
10M surcharge, but this is ignored as Istanbul, the final destination,
indicates the complete routing has a 20M surcharge.
Select the appropriate fare for the mileage surcharge band – in our
example 20M.
FDO-D
FM
1742.07
1742.07
XX
Total fare with surcharge applied
BHC/CTM
FZI
1742.07
XX
FZINUC1742.07GBP
0.598595
FZI
FZI GBP1043.00
1. Write down the origin and destination cities as your fare components
3. Write down the one way fare from origin to destination in NUC`s FD
6. Convert the total NUC fare into the currency of commencement of travel
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
For the mileage deduction of 700 miles shown in the mileage display
above to apply, the city specified in the remarks column must appear as
a via point in the routing and these are indicated in the fare calculation
area preceded by E/. Stopovers may or may not be at these points, that
is dependent on the fare type.
For certain routings a mileage deduction is applicable but no via point is
specified. In the REMARKS column it would either show E/XXX or
indicate one of the via cities that you have entered. Galileo usually
shows the via city.
If it says Exception this may indicate a deduction for a specific carrier
applies, check the text below to see.
Example 2:
FL/LONSTOLISMADSJU
SIN DEL
SIN
SQ 12JAN C
KUL MH 16JAN C
M (E/BOM) Specified via point for
BOM AI 16JAN C FL/ mileage deduction – use
DEL E/XXX if no via point is
1000.00 C specified
FD
FDO-D
1000.00
FM
1000.00
XX
BHC/CTM
FZI
1000.00
XX
1.26655
FZI
The fare break point can be established by using the FL/ entry - enter
the whole routing except the last city and select the city shown against
the highest MPM figure.
For the journey - SIN DEL BOM BAH CCU SIN the entry and response
would be:
FL/SINDELBOMBAHCCU
From the above it can be seen that at 4722, BAH is the point of highest
MPM from SIN. Also, there is a mileage deduction for this journey.
Carry out a separate mileage check for both the outbound and inbound
itineraries. The outbound check has been completed as far as BAH. This
is M as SINDELBOMBAH fit within the MPM.
Fares
Always select return (round trip) fares for a return journey. Half of the
return fare is to be used for the outbound fare component and half is to
be used for the inbound fare component.
To display only half return fares for a fare, add the /2 entry to the FD
entry.
Note: Current Galileo 360 Fares functionality requires that the :NUC
modifier is omitted, as half return NUC amounts will be automatically
displayed.
Example:
FD26JANRGNBAH-RT@Y/YY/2
Note: Smartpoint doesn`t currently indicate the rates are in half returns
FDO-D
Sub-totals entered
1668.00 1668.00 against each fare
FM breakpoint
3336.00
XX
Total of 2
subtotals
BHC/CTM
FZI
3336.00
XX
1.00
FZI
The city with the highest MPM is AUH so this is the breakpoint. The
surcharge to the breakpoint is 5M.
Now carry out a separate mileage check for the inbound journey from
the breakpoint back to the point of origin, so add the last city.
Inbound:
FL/AUHCAICASPAR
FDO-D
FM*1 or FMNUC4415.53
FM 4636.30 5519.41
XX 10155.71
XX4636.30+5519.41
BHC/CTM
FZI
When the form of payment credit card is selected from the list, an
additional drop 10155.71
down list will be enabled, which allows for the selection
XX
of the credit card vendor and the ability to add the card number and
FZINUC10155.71EUR
expiry date. 0.724488
FZI
FZI
EUR 7358.00
Once the form of payment has been saved, it can be viewed in the
Booking File Viewer window by clicking on the *FOP button.
PAR AF LON SV JED SV AUH 5M4636.30 EK CAI MS CAS AF PAR 25M5519.41
NUC10155.71 END ROE0.724488 Inbound fare shown
Outbound fare shown against final destination
against breakpoint
4. Select a half return fare in NUC`s. Show this fare in both columns FD/2
5. Apply the mileage surcharge for each component of the fare, to obtain
your two sub totals FM
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
HIP`s were covered in detail in Level 1. All exercises from now on will
require a HIP check.
A Higher Intermediate Point is a fare between any 2 ticketed points in a
fare component, which is higher than the origin to destination fare. The
fare for the component must be raised to the higher intermediate fare
level. This check is also known as the HIF check – Higher Intermediate
Fare.
• Only stopover points are checked
• Restricted Normal Fares (secondary level fares) such as Y2, J2
and F2 fares may be used for the HIP check, if the stopover and
transfer conditions of the secondary level are applicable to the
portion of the routing being checked, and if the fare has been
filed as a Normal Fare
• If more than one HIP is found, the the highest fare must be
used for the calculation. If two or more of the highest fares are
the same level, either may be used or shown
• If a mileage surcharge has been calculated this must be applied
to the Higher Intermediate Point
For the purposes of this course illustrate all HIPs found in the calculation
in the HIP box.
NCE ZNZ
NCE
AF 15JAN Y
BCN
IB 18JAN Y
FRA 25M
LH 18JAN Y FL/
LON
BA 25JAN Y
DAR
PW 27JAN Y FD 2000.00
ZNZ
No HIP check at transit List all HIP`s, use
Point FRA BCN DAR 2100.00 normal secondary
levels if listed and
LON DAR 2050.00 applicable for the sector
FDO-D where the HIP occurs
LON ZNZ 2300.00
Use highest HIP and
Increase by mileage
surcharge
FM 2875.00
XX 2875.00
BHC/CTM
FZI
XX
2875.00
FZI 0.821567
FZI
EUR 2363.00
NCE AF BCN IB X/FRA LH LON BA DAR PW ZNZ 25M LONZNZ2875.00 NUC 2875.00
END ROE0.821567
Show the HIP cities
used in the linear
construction, after the
mileage surcharge
1. Write down the origin and destination cities as your fare components
3. Write down the one way fare from origin to destination in NUC`s FD
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
All HIPs are used in the `direction of travel` except for HIPs checked
on the inbound fare component which goes back into the country of
origin, and this must be used in the `reverse direction` to travel.
FRAJNB JNBFRA
FRA
LH 29JAN C
MAN 5M
OS 31JAN C 15M
VIE
OS 03FEB C FL/
JNB
VS 10FEB C 2000.00 2000.00
LON
BA 10FEB C FD
CPH
SK 13FEB C
PAR MAN JNB PAR JNB
LH 15FEB C
FRA 2800.00 2400.00
FDO-D
VIE JNB CPH JNB
Don`t check transit points
only stopovers 2100.00 2300.00
2940.00 2760.00
FM
Select the highest HIP Select the highest HIP
outbound and increase inbound and increase
by 5% by 15%
XX
5700.00
BHC/CTM
FZI
XX
5700.00
FZI 0.821567
FZI EUR4683.00
4. Select a half return fare in NUC`s. Show this fare in both columns FD/2
6. Apply the mileage surcharge for each component of the fare, to obtain
your two sub totals FM
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
NOTES
1.
HIP/HIF from origin
- Origin to destination fare
= Difference
+ HIP from origin
= MINIMUM FARE
2.
Compare the minimum fare to total constructed fare and
charge whichever is higher.
a. If charging the minimum fare, calculate a plus up, which is
the difference between the minimum fare and the total fare.
Minimum fare
- Total fare
= Plus up
b. If the total constructed fare is higher, this must be charged
and no plus up is calculated.
Exceptions:
The One Way Backhaul Check does not apply to:
• Fare Components/Pricing Units wholly within Europe
• Journeys wholly between Argentina, Brazil, Chile, Paraguay,
Uruguay and IATA Area 2
• Journeys wholly within IATA Area 1
A journey is the whole or total ticket, and a Pricing Unit is only that
individual portion of the fare construction.
DUB HAV
DUB
BD 31JAN Y
LON
JM 03FEB Y 5M
KIN
JM 05FEB Y FL/
HAV
1500.00
FD
1995.00
FM
Total – Highest
HIP plus mileage 1995.00
XX surcharge
BHC
HIP from Origin 1750.00 Minimum fare 2000.00
BHC/CTM -Origin Destination - 1500.00 - Total Fare - 1995.00
Difference 250.00 Plus Up 5.00
+HIP from Origin + 1750.00
Minimum Fare 2000.00
FZI
2000.00
XX
Question 1 – Group
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
Question 5
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
All circle trips are subject to the Circle Trip Minimum Check (CTM). First
we need to establish the difference between a round trip and a circle
trip.
Journey Types
ROUND TRIP
This is a return itinerary consisting of only two fare components for
which the outbound and the inbound fares are the same, or if they
differ, this is only due to differences of season, day of week or class.
Examples:
LON
DEL BA M
SIN SQ 900.00
BOM SQ M
LON AI 900.00
CIRCLE TRIP
This is a return itinerary consisting of more than two fare components,
or a return itinerary consisting of two fare components whose fare
levels differ due to mileage surcharge or HIPs.
Examples:
MAN
BCN IB
ROM AZ 10M
ATH OA 330.00
MIL AZ M
MAN AZ 300.00
LON
PAR BA M
ZRH LX ZRHDXB
DXB EK 900.10
KWI KU M
LON KU 499.99
The fare for a Circle Trip must not be less than the direct route
return fare from the origin to the highest rated stopover point on
the itinerary.
1. Check all direct round trip fares from the origin to all relevant
stopover cities.
Note: A direct restricted normal fare e.g. J2, Y2 may be used for this
check irrespective of the stopover and routing restrictions of the
fares rules, unlike the HIP check, however ensure the fare is filed as a
Normal Fare.
2. The highest round trip fare from the origin will be the minimum fare.
3. Compare the minimum fare to the total constructed fare and charge
whichever is higher.
Minimum Fare
- Total Fare
= Plus Up
For all other journeys, the CTM check is applied to all ticketed points.
FM 3570.00 3200.00
XX 6770.00
Circle Trip Minimum Minimum 6800.00
LONHKGLON 6100.00 - Total 6700.00
LONSINLON 5800.00 = Plus Up 30.00
BHC/CTM
LONSGNLON 6800.00
Highest round trip fare from origin
LONJKTLON 6000.00 to each stopover point – use
LONBOMLON 2700.00 FD23JANLONHKG-RT/YY:NUC
not /2
FZI
XX 6800.00
FZI 0.567999
FZI
GBP3924.00
LON VS HKG SQ SIN VN SGN GA JKT 5M LONSGN 3570.00 AI BOM AI MOW SU LON
M MOWJKT 3200.00 P LONSGN30.00 NUC6800.00 END ROE0.567999
Plus Up
Question 1 – Group
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
Entry:
FL/LONBRULISMADGVAIST
Response:
EXC indicates the 25M surcharge band is exceeded, and if, as above, this
is shown against a destination, then the through fare cannot be
collected, and for fare construction, the itinerary must be broken at
another city.
From the response screen on the previous page, it can be seen that LIS
is the best breakpoint. At 10M it is within the 25M surcharge band.
Beyond LIS the maximum surcharge band is exceeded.
If a map is referred to, it can be seen that Lisbon is the point at which
there is the sharpest change of direction in the routing:
LON
BRU
GVA
MAD
IST
LIS
For this itinerary two one way fare components must be calculated:
When assessing these, use one way fares in the direction of travel.
Separate mileage checks and HIP checks must be applied to each fare
component.
Now check the mileage from LIS to IST. It is possible to select IST, or
even GVA or MAD as a further breakpoint, however, usually the fewer
the breakpoints the lower the fare for the client.
Entry:
FL/LISMADGVAIST
Response:
When fare quoting an itinerary, Galileo will select the breakpoint which
gives the lowest fare.
FDO-D
MAD IST 650.00
605.00 700.00
FM
1305.00
XX
FZI
XX 1305.00
0.576999
FZI
FZI
GBP 753.00
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
For a return journey, establish the initial fare breakpoint based on the
highest MPM from the origin. Use the FL/ entry to establish the
breakpoint:
For a journey:
WLG AKL LAX HKG KUL DEL BKK SYD WLG
First Component/PUC
Notice that the entry with the highest MPM from origin is DEL, at 9457.
However, the routing from WLG to DEL exceeds 25M. An additional
breakpoint must be found. Looking down the LVL column in the display,
the only possibility is LAX.
Second Component/PUC
Third Component/PUC
HKG LAX
KUL
DEL
BKK
AKL
SYD
WLG
Fare Levels
Half return fares must be used throughout.
Direction of Fares
All fares are used in the direction of travel, EXCEPT for the last
component/PU ending in the country of origin. For this final returning
component, use fares in the opposite direction of travel.
XX
8510.00
CTM must be done as fares differ due to HIP`s and/or
mileages and there are more than 2 fare components –
CTM is done in direction of travel as standard return fares
CTM
BHC/CTM WLG LAX WLG 6000.00
No Plus Up
FZI
XX 8510.00
FZI 1.547375
FZI
NZD13169.00
WLG NZ AKL NZ LAX M 3000.00 UA HKG CX KUL AI DEL 10M LAXHKG 3410.00 TG
BKK TG SYD NX WLG M SYDDEL 2100.00 NUC8510.00 END ROE1.547375
Question 1 – Group
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
• All fares must be used in the direction of travel, except the last fare
component, ending in the country of origin. For this component,
fares and HIPs must be used FROM the country of origin, ie: the
opposite direction of travel
There are 3 general indirect travel limitations that govern the way in
which a fare for a multi-sector itinerary is collected. They are all related
to the duplication of a city in an itinerary.
If any of the above situations occur, then the through fare from origin to
destination cannot be collected and a combination of two or more fares
is required.
The through fare LON KUL cannot be collected as there are two
departures from LON. It does not matter for the second departure
whether LON is a stopover or a transit point.
LON
BRU BA 200.00
X/LON BA
SIN SQ M
KUL SQ 2000.00
2200.00
2) Collect the LON BRU return fare and LON KUL one way fare
LON
BRU BA 150.00
X/LON BA 150.00
SIN SQ M
KUL SQ 1800.00
2100.00
The lowest of these calculations should be charged - option 2.
B. A fare component must not include more than one arrival at its
point of destination:
LON
HKG
TYO
OSA
TYO
The through fare LON TYO cannot be collected as there are two arrivals
at the destination TYO.
1) Collect the LON OSA and OSA TYO as 2 x one way fares
LON
HKG VS
TYO NH M
OSA JL 3000.00
TYO NH 300.00
3300.00
2) Collect the LON TYO one way fare and the TYO OSA return fare
LON
HKG VS M
TYO NH 3000.00
OSA JL 300.00
TYO NH 300.00
3600.00
When using the FL/ entry to check mileage, the system recognises the
situations in which the first two indirect travel limitations apply and
responds with a warning message.
For all of the above itineraries, the through fare EDI BEY can be
collected. Although CAI occurs twice in the routing, there is never more
than one stopover at that city, therefore the rule is not broken.
Galileo Fares Level 2 81
Module 8: Indirect Travel Limitations
The EDI BEY through fare cannot be collected. There is more than one
stopover at CAI which breaks the rule of the third indirect travel
limitation.
1) Collect the one way through fare plus the side trip. The side trip is
considered as a separate return journey and is not included in the
mileage check on the through fare.
The calculation is:
First – the one way fare EDI BEY calculated with the following cities,
which must include the common ticketed point of CAI
EDI
LON
CAI
AMM
BEY
The mileage check for the throughfare is applied excluding the side trip
Second – plus the side trip CAI SSH CAI, charged at the return fare level
2) Collect the fare to and from the city between the duplicate stopover
points, so that these stopover points are in different fare
components, ie: collect the EDI SSH and the SSH BEY one way fares.
As can be seen from the FL/ entry below, if the entire routing is
input, a warning message is generated as Galileo recognises that the
same point occurs twice in the routing.
Contruction 1 (sidetrip)
No mileage check required for a single
sector return
FDO-D
FM 800.00 220.00
XX 1020.00
BHC/CTM
FZI
XX 1020.00
FZI
0.576999
FZI
GBP589.00
EDI BA LON MS CAI (MS SSH 110.00 MS CAI 110.00) RJ AMM ME BEY M 800.00
NUC1020.00 END ROE0.576999
750.00 220.00
970.00
970.00
0.576999
GBP560.00
EDI BA LON MS CAI MS SSH M 750.00 MA CAI RJ AMM ME BEY M CAIAMM 220.00
NUC970.00 END ROE0.576999
Cairo is now in two separate fare
components
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
Return Journeys
The first two indirect travel limitations are also applicable to return
journeys. For the following routing, using the usual guidelines, Hong
Kong would be the breakpoint, being the point of highest MPM from
London.
LON
HKG
SHA
HKG
LON
But if the first HKG was the only breakpoint there would be two
departures from the origin of the second fare component (HKG) which
is not allowed.
LON
HKG 3000.00
SHA
HKG M Not Permitted !
LON 3000.00
If the second HKG was the only breakpoint there would be two arrivals
at the destination of the fare component (HKG).
LON
HKG
SHA M
HKG 3000.00 Not Permitted !
LON 3000.00
LON M
HKG LONHKG
SHA 3000.00
HKG M
/// LONHKG
LON 3000.00
6000.00
LON
HKG 3000.00 PU1
SHA 200.00 PU2
HKG 200.00 PU2
LON 3000.00 PU1
6400.00
90 Galileo Fares Level 2
Module 8: Indirect Travel Limitations
In the example below the breakpoint, the point of highest MPM from
the origin, is SIN. However the outbound fare component contains 2
stops at BAH and therefore either the side trip BAH-DMM-BAH should
be additionally collected, or the fare additionally broken at DMM.
a) b)
LON LON
AMS AMS half RT/ PU1
BAH half RT/ PU1 BAH
DMM side trip/ PU2 DMM
BAH BAH half RT/ PU1
SIN SIN
ROM half RT/ PU1 ROM half RT/ PU1
LON LON
OR
2. Calculate the sum of the fares to and from the surface break.
GLA
EI
DUB
KL
AMS
SURFACE
LUX
LG
PAR
AF
ROM
In the fare calculation area, the surface sector is shown according to the
calculation which is used.
701.50
701.50
701.50
0.576999
GBP405.00
GLA EI DUB KL AMS // LUX LG PAR AF ROM 15M AMSROM701.50 NUC701.50 END
ROE0.576999
When the through fare is collected
the surface sector is shown as //
between the relevant cities
517.50 720.00
1237.50
1237.50
0.576999
GBP714.00
GLA EI DUB KL AMS 15M517.50 /-LUX LG PAR AF ROM 20M720.00 NUC1237.50 END
ROE0.576999
When the fare is constructed to and
from the surface break enter /-
between the relevant cities
The passenger Air Tariff contains a full list, and Galileo is programmed
with the information.
Unreasonable Connections
Between: Venice and Ljubljana, Malaga and Tangier, Faro and Seville.
TPM Check
When a fare has a surface break and the TPM total prior to the surface
break is less than the TPM surface break, the fare up to and then from
the surface break must be ticketed separately.
Example:
LON TPM
PAR 220
X 647 2 separate tickets – the TPM total before the
VIE surface break is 220, less than the TPM of the
BKK 5235 surface break - 647
There are 3 different types of NOJ journeys where the sector is not
included in the calculations.
MEL
BKK QF 1000.00 HALF RETURN FARES
MEL QF 900.00
Domestic at turnaround:
LON
PER QF 3500.00
X HALF RETURN FARES
MEL
LON QF 4000.00
International turnaround:
LON
JNB VS M
CPT SA 2400.00
X HALF RETURN FARES
HRE
LON BA 2100.00
SYD
MAN BA 3100.00
X HALF RETURN FARES
LON
MEL QF 3500.00
RIO
LON JJ 2800.00
X HALF RETURN FARES
PAR
SAO AF 2900.00
LON TPM
SXB 404
X 2 one way fares. The TPM total after the
BRU (216) surface break is 206, less than the TPM of the
LON 206 surface break - 216
LON
PER QF M
MEL / 4000.00 HALF RETURN FARES
LON QF 4000.00
BOM
DAC AI 800.00 ONE WAY FARES
KHI PK 700.00
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
FZI
XX
FZI
FZI
Some itineraries may be a mixture of more than one class of travel ie: Y
and/or C and/or F.
c) Add the differential to the lower class through fare to obtain a total
fare.
3. Sectorise by Class
Calculate the sum of the applicable fares for each portion of the routing
flown in a different class of service.
STO
SK C
LON
RJ C
AMM
RJ F
MCT
GF F
DXB
AI C
BOM
1.
a) STO-BOM C class through fare, plus the differential for AMM-DXB
i.e. the AMM-DXB F fare minus the AMM-DXB C fare, with a mileage
check.
3. The STO-AMM C class fare, plus the AMM-DXB F class fare, plus the
DXB-BOM C class fare
(690.00 - 575.00)
2970.00 115.00
3085.00
3085.00
7.369996
SEK22740
STO SK LON RJ AMM X/MCT GF DXB AI BOM 10M 2970.00 D AMMDXB 15M 115.00
NUC3085.00 END ROE7.369996
C F C F C
STO BOM AMM AMM MCT MCT
STO
SK 12JUL C MCT MCT DXB DXB
LON
RJ 14JUL C
AMM 10M
RJ 26JUL F
MCT
GF 26JUL F
DXB 2700.00 1600.00 1100.00 540.00 450.00
AI 10AUG C
BOM
3560.00
3560.00
7.369996
SEK26240
STO SK LON RJ AMM X/MCT GF DXB AI BOM 10M 2970.00 D AMMMCT 500.00 D
MCTDXB 90.00 NUC3560.00 END ROE7.369996
LONBOM 7100.00
7810.00
7810.00
7810.00
7.369996
SEK 57560
3440.00
3440.00
7.369996
SEK 25355
STO SK LON RJ AMM M2200.00 RJ X/MCT GF DXB 15M 690.00 AI BOM 550.00
NUC3440.00 END ROE7.369996
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
These are calculated using the same procedure as one way fares. There
are 2 relevant points to remember when calculating the differential:-
2. Look up the fares for the differential in the same direction as the
lower class fare components. For the last fare component into the
country of origin, assess the differentials from the country of origin i.e.
the opposite direction to travel.
Example:
STO Outbound
LON SK C Differential AMM-MCT use
AMM RJ C AMM-MCT half return fares
MCT RJ F
DXB GF F Inbound
CAI MS F Differential MCT-CAI use
STO SK C CAI-MCT half return fares
Notice that although the three higher class sectors are adjoining, once
the breakpoint is established, one higher class sector is in the outbound
component and the remaining two in the return component! Therefore
each differential is assessed only within its component.
C F C C F C
STO AMM AMM MCT MCT MCT
STO
SK 12JUL C MCT MCT MCT STO CAI CAI
LON
RJ 14JUL C
AMM M M
RJ 26JUL F M M
MCT
GF 29JUL F
DXB 2500.001500.00 1000.00 2500.00 1000.00850.00
MS 20AUG F
CAI
SK 31AUG C
STO
(1500.00-1000.00) (1000.00-850.00)
5650.00
5650.00
7.369996
SEK 41645
C F C C F C F C
STO STO AMM AMM MCT MCT MCT DXB DXB
SK 12JUL C MCT MCT MCT STO DXB DXB CAI CAI
LON
RJ 14JUL C
AMM M M
RJ 26JUL F
MCT
GF 29JUL F
DXB 2500.00
1500.00 2500.00
900.00 700.00
MS 20AUG F 1000.00 500.00 400.00
CAI
STO SK 31AUG C
5800.00
5800.00
7.369996
SEK42750
OUTBOUND
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
INBOUND
FL/
FD
FDO-D
FM
XX
BHC/CTM
FZI
XX
FZI
FZI
OUTBOUND
INBOUND
OUTBOUND
INBOUND
OUTBOUND
INBOUND
Important:
For certain routes, when part of the journey is flown in Y class, and the
main part of the journey in C/J class, the component/PU must be
calculated as a full C/J fare - not with a differential.
Area 1 and Area 3 via AT Atlantic Sector and sector between Area 2
and 3
e.g. NYC C ROM Y CAI C KHI
Europe/
South West Pacific All sectors between first/last city in Europe
and first/last city in South West Pacific
e.g. LON Y ROM J SIN J PER Y HBA
Europe/Japan, Korea
(Dem of) and Korea Europe via EH/TS to/from Japan/Korea
(Rep. of) e.g. DUB Y OSL Y ROM C SEL
There are also some rules where part of the journey is in First Class,
where the full First Class fare must be charged.
For many travellers, the major factor influencing the decision about
which flights to book is cost, followed by the standard of service. Special
fares, in general, cost less than normal fares but they are governed by
more restrictive conditions. They were commonly used by the leisure
traveller, but are becoming increasingly used for business travel.
Other factors that may affect the final fare to be charged are:
Day of the week - identified within the fare basis code by:
X = Midweek Travel
W = Weekend Travel
APEX
YHAP Economy, High season, advance purchase
KLWAP3M Economy, Low season, Weekend, advance purchase
fare valid for 3 months
PEX/SuperPEX
YKXPX4M Economy, Shoulder season, Midweek, PEX fare valid
for 4 months
LLSX Economy, Low season, SuperPEX fare
Excursion
YEE Economy, excursion fare valid for 1 year
YHEE6M Economy, High season, excursion fare valid for 6
months
Fares Heirachy
The following fare "tier" illustrates the lowest fare types, which are
most commonly purchased, to the highest fare type. Airlines own fares
and IATA fares are found within any fare type.
In addition to these fare types, airlines use many other kinds of fares,
such as Seat Sales, Category 25 and 35 fares and many other types of
discounted fares.
Fare Selection
In order to determine if a special fare suits a specific routing and dates
of travel, the fare display and fare notes must be accessed in order to
first check advance purchase, stopover and transfer information,
minimum stay and maximum stay as appropriate. When these are
checked and confirmed applicable for your client, read the remainder of
the rule to ensure all conditions apply.
Advance Purchase
If checking a fare with an advance purchase deadline in days, then
either:
• add the number of days to the date of purchase and ensure this
date comes before the date of travel:
*TAA/26JUN/+14
• deduct the number of days from the departure date and ensure
this date comes on or before the date of purchase:
*TAA/10JUL/14
Stopovers
This occurs when a passenger arrives at an intermediate point and is not
scheduled to depart within 24 hours of arrival, unless a rule states a
different duration - 12hrs, 6hrs etc.
- for all other journeys add to the date of outbound international travel
check that the date of inbound international travel from the last
stopover point is on or after this day.
SU - this indicates that the Sunday Rule applies - this states that return
travel from the point of turnaround must not commence until the
Sunday following arrival, i.e. the passenger must stay a Saturday night
at the destination.
Maximum Stay
In days - add the number of days to the date of outbound travel.
*TAA/10JUL/+35
All other journeys - the date of departure for the first outbound
international sector determines the season for the entire journey.
Weekday/Weekend
Travel
Transatlantic travel - the day of the week of the outbound transatlantic
sector determines the outbound fare and the day of the week of the
inbound transatlantic sector determines the inbound fare.
All other journeys - the day of the week of the outbound international
sector determines the outbound fare and the day of the week of the
inbound international sector determines the inbound fare.
1000.00 1050.00
2050.00
2309.00
0.576999
GBP1333.00
800.00 800.00
1600.00
1773.30
0.595825
GBP1057.00
LON BD PAR S86.65 AF LIM 800.00 IB MAD S86.65 JK LON 800.00 NUC1773.30 END
ROE0.595825
Specified stopovers are shown next
to the city they are charged for.
1. Check origin to all cities, and all cities to destination for a special
fare HIP. Compare fares of the same type and conditions.
e.g. YLEE2M to YLEE2M
2. If any HIPs are found, use the city pair with the highest HIP.
If no fare of the same type exists use a fare of the next higher fare
type for comparison. Compare in this order:
The conditions and rules of the special fare originally selected will apply
to the whole itinerary.
The following flow chart may be useful when carrying out the special fare HIP check.
Having established the origin to breakpoint special fare level apply the HIP check separately for each
fare component as follows:
YES NO
YES NO NO YES
YES
* Remember to compare the most similar type of fare, and if none exist, compare with a higher fare
type, but do not use the normal fare for the comparison.
JNB LON
JNB
LON X direction of fares
CPT
CPT LON
RIO MAD
RIO
MAD X direction of fares
BUE
BUE MAD
SHA SHA
LON direction of fares
LON BJS
BJS
For the following routing the VS YHEE6M fare is applicable for the dates of
travel.
LON
VS 07JAN
JNB
CPT SURFACE
VS 20JAN
LON
For the purposes of this course only the open jaw construction is
required for special fares, the alternative calculation of treating the
surface sector as flown is not required, although this is a possible
combination.
This rule allows any type of Open Jaw, without any specific instructions.
Now ½ return LONJNB plus ½ return LONCPT of the same fare basis, are
used for the construction.
800.00 850.00
1650.00
1650.00
102.456
JPY169100
TYO NH X/KUL MH DRW 800.00 /- PER QF X/RGN NH TYO 850.00 NUC1650.00 END
ROE102.456
NOTES
FD10MAYMANLIS
FDMANLIS10MAY
FDMAN10MAYLIS
These may be added to the entry to make the display more specific, either in the initial entry or later
as a follow up entry as illustrated below:
FD12MAYLONNYC-OW@C/VS:NUC
FD12MAYLONAKL@YOW.AP*CNN
FD12MAYAMSSIN-RT@NORMS.EH:NUC
Having obtained a basic fare display it can be changed by entering any of the modifiers, in any order,
prefixed with FD.
FD-RT@C
FD/AF-OW*CNN
FN*1 Display paragraph headings for fare note for fare line 1
FN*P10 Display paragraph 10 from menu display
FN*ALL Display all paragraphs from menu display
FN*1/P10 Display paragraph 10 for note for fare line 1 (P can be omitted)
FN*1/ALL Displays all paragraphs contained in the note
Fare Routings
Currency Conversion
Decode/Encode
Calculator Function
Filed Fares
Abbreviations
OJ Open Jaw
OW One Way
Definitions
Pricing Units – PUC A journey or part of a journey that could, if chosen, be ticketed separately.
Each one way fare component is considered one Pricing Unit, and each
return trip calculation is considered one Pricing Unit.
Subjourney The definition can be considered the same as a Pricing Unit, other than the
expression is generally used when there is more than one Pricing Unit.
Stopovers A stopover is a stay of 24 hours or more at any city between the origin and
destination of a journey. Stopovers are permitted at the passenger’s request
at any scheduled point, provided it is not prohibited by either the routing or
the fare note, and the passenger arranges and specifies it on the ticket in
advance, to enable the journey to be calculated correctly.
Counting of Stopovers Return fare breakpoints or construction points are not considered
stopovers, neither is the surface sector of an open jaw type journey. Any
intermediate cities visited for more than 24 hours are considered stopovers,
unless a fare rule restricts this further e.g. 12hrs, 6hrs. If a fare has a surface
sector, other than an open jaw type fare, the last point of arrival by air and
the first point of departure by air on each break together are considered one
stopover.
Transit No longer an official definition, but commonly used when a passenger has a
transfer at an airport, but does not have a stopover at that airport.
Weekday/Midweek Monday through to Thursday (although some fare rules state otherwise).
Weekend Friday through to Sunday (although some fare rules state otherwise).
The carrier fare selection rules used for journeys (fare components)
within Europe are laid down by governmental and IATA resolutions, and
may be found in tariff publications. Carrier fare selection for other
journeys is not, currently, subject to such regulation. The following
criteria is the Galileo fare selection system.
IATA Areas
Sector Carrier Fare to Use
SYD BKK TG Use the carrier which crosses from the first visited
BKK STO SK IATA Area on the second (SK)
STO LON BD
Sub-Areas
Sector Carrier Fare to Use
LON ROM AZ
ROM DXB EK Use the first visited Sub Area to the second (EK)
DXB JNB SA
Within Sub-Areas
The airline industry is one of the fastest changing industries in the world and as such, all airlines
need to co-operate with one another to provide an apparently seamless interlinking service for
passengers.
IATA is involved in every aspect of an airline's operation. It does not set the rules but acts as an
intermediary between different airlines; between airlines and governments; and between airlines
and travel agents in relation to passengers and freight, therefore enabling discussions and decisions
to be made that affect the entire industry.
The main objectives of IATA are:
• To promote safe and regular air transport for passengers, cargo and mail, and to encourage
air commerce.
• To provide a forum for collaboration among the air transport companies.
• To co-operate with the International Civil Aviation Organisation and other International
Organisations.
To give you a better understanding of what IATA is involved in, listed below are some of the
categories. If you wish to look further into any aspect, IATA offers detailed information on each of
the categories on their Website - www.iata.org
• Air Traffic Management
• Airports
• Aviation Information and Research
• BSP - Billing and Settlement Plan - Distribution of Travel Agency Revenue
• Cabin Health
• Cargo
• IATA Clearing House - Revenue Accounting
• Crisis Management - service issues which may affect the industry e.g. war
• Distribution
• Environment
• Flight Operations
• Flight Safety
• Ground Handling
• In-flight Services
• Insurance
• Interlining - the relationship between airlines
• Prorate Agency - the way in which a fare is proportioned out between airlines
• Safety
• Industry Standards
• Taxation
• Training
• Currency Services
Galileo Fares Level 2 152
Glossary: Travel Industry Organisations
The aim of the ICAO is to ensure the safe and orderly growth of civil aviation by:
• Encouraging aircraft design to meet the need for safe, efficient and economical air
transportation
• Preventing economic waste caused by unreasonable competition
• Avoiding discrimination between states
• Promoting safety and development in all aspects of civil aviation
In 1947 the ICAO became an agency of the United Nations, with its head office in Montreal and has
become an intergovernmental organisation leading the co-ordination of national standards and
control over international activity.
• Safety Regulator
• Economic Regulation
• Airspace Policy
• Consumer Protection
• Environmental Research and Consultancy
An ATOL licence is compulsory for agents who assemble their own travel packages, and is managed
by the Civil Aviation Authority. ATOL is the only protection scheme for both flights and air holidays
sold by tour operators in the UK.
• To develop standardisation and related activities in the world with a view to facilitating the
international exchange of goods.
• To develop co-operation in the spheres of intellectual, scientific, technological and economic
activities.
• For the standardisation of many codes and abbreviations, e.g. country codes and currency
codes.
BAA owns seven of the UKs airports, which includes Heathrow, Gatwick, Stansted, Glasgow,
Edinburgh, Aberdeen and Southampton.
They also have management contracts or stakes in four airports outside the UK including Boston,
Pittsburg and Baltimore in the USA and Naples in Italy.