Mileage system (MPM-TPM-EMA-EMS-HIP) – Backhaul check rule.

MAXIMUM PERMITTED MILAGE ( MPM )

Maximum Permitted Mileage (MPM) in the context of air ticketing and reservation is a term used to
define the maximum distance or number of miles that a passenger is allowed to travel between two
destinations while still being eligible for a specific fare or routing. primarily used for fare calculation and
ticket pricing.

MPM is determined by the airline or airline alliance and is based on a specific set of rules and criteria.
These rules may take into account factors such as the class of service, fare type, stopovers, connecting
flights, and the routing options available.

Passengers can book a ticket at the established fare if their chosen itinerary does not exceed the MPM.
If the distance traveled exceeds the MPM, additional charges or a different fare category may apply.

MPM is an important factor in airfare pricing as it helps airlines manage and control pricing while still
allowing for some flexibility in routing. It ensures that passengers are charged reasonably based on the
distance they intend to travel, with deviations from the MPM typically resulting in fare adjustments.

Assume that the airline has established an MPM of 1,000 miles for this route. This means that,
according to the airline's fare rules, passengers can book a ticket at a specific fare as long as the total
mileage of their chosen routing between City A and City B does not exceed 1,000 miles.

Example 1: If a passenger wants to fly directly from City A to City B, and the distance between these two
cities is 800 miles, the passenger can book a ticket at the designated fare because the total mileage (800
miles) is below the MPM (1,000 miles).

Example 2: Now, if a passenger wants to take a more circuitous route, with a layover in City C, which
increases the total distance to 1,200 miles, they would likely be required to pay a higher fare. This is
because their chosen routing exceeds the MPM of 1,000 miles, and fare rules might apply a fare
adjustment or categorize it under a different fare class.

In this way, Maximum Permitted Mileage helps airlines control and standardize fare pricing while
allowing for some flexibility in the choice of routes and itineraries for passengers.

Ticketed Point Mileage (TPM)

Refers to the total distance measured in miles or kilometers between the origin (departure city or
airport) and the destination (arrival city or airport) on a passenger's air travel itinerary. Each TPM is
assigned a specific two letter Global Indicator .

TPM is necessary when pricing indirect travel with intermediate connections and stopovers and pricing
mileage based fares .
Example: New York City (JFK) to Los Angeles (LAX) with a layover in Chicago (ORD).

Segment 1: JFK to ORD is 800 miles.

Segment 2: ORD to LAX is 1,750 miles.

In this case, the total TPM for the itinerary, including the layover, is 2,550 miles.

The TPM of 2,550 miles would be used to determine the fare for the passenger's ticket, which may vary
based on the airline's fare rules, fare class, and any other applicable factors.

It's important to note that the TPM may differ for different passengers on the same route based on
their chosen itineraries and fare classes, even though the distance between the two cities remains the
same.

Extra Mileage Allowance (EMA)

refers to an additional amount of mileage or distance that an airline may permit a passenger to travel
beyond the Ticketed Point Mileage (TPM) specified in their ticket, without incurring additional charges
or fare adjustments.

*If the fare component exceeds the maximum permitted milage by not more than 25% a surcharge
applies resulting in higher fare ,The surcharge can be avoided / reduced if the fare construction point
or FCP has EMA .

It's important to note that EMA is subject to certain limitations and conditions defined by the airline.

Extra Mileage Surcharge (EMS)

is an additional fee or charge imposed by an airline when a passenger exceeds the allowed Ticketed
Point Mileage (TPM) on their ticket. The EMS is typically calculated based on the excess mileage beyond
the ticketed point mileage and is subject to the airline's specific rules and pricing structure. The airline
may charge this fee to compensate for the additional operational costs associated with the extended
travel distance or to bring the fare in line with the actual mileage traveled.

EMS range from 5 %,10%,15%,20%,25%

Eg: A passenger has purchased an airline ticket for a flight from New York City (JFK) to London
Heathrow (LHR). The ticket is issued with a Ticketed Point Mileage (TPM) of 3,500 miles for this
specific route.

However, due to a change in travel plans or personal preferences, the passenger decides to make a
stopover in Paris (CDG) before continuing on to London. The actual distance from New York (JFK) to
Paris (CDG) is approximately 3,650 miles, and the distance from Paris (CDG) to London (LHR) is
approximately 200 miles. The total distance of this altered itinerary is 3,850 miles.

In this case, the passenger has exceeded the originally ticketed TPM of 3,500 miles by 350 miles. The
airline may have a policy that specifies an EMS rate, for example, $0.10 per mile beyond the TPM. So,
for the excess 350 miles, the EMS would be calculated as:

EMS = 350 miles (Excess mileage) * $0.10/mile = $35

The passenger would be required to pay an additional $35 as an Extra Mileage Surcharge to cover the
additional distance traveled beyond the initially ticketed point mileage.

EMS formula :

EMS = TOTAL TPM /MPM

Higher Intermediate Point (HIP)

Refers to a specific city or airport on an air travel itinerary that serves as an intermediate stop
between the passenger's origin and final destination. HIPs are used for fare calculation and routing
purposes, and they allow passengers to make stopovers or connections while still being eligible for a
specific fare.

HIPs are strategically chosen based on the airline's routing rules and fare structure.

When using HIPs in an itinerary, passengers may have the option to spend some time in the
intermediate city before continuing their journey to the final destination. HIPs are a valuable tool for
travelers who want to explore multiple locations during a single trip while keeping their airfare
reasonable and based on the airline's fare rules and pricing structure.

WHAT IS HIGHER INTERMEDIATE POINT(HIP) CHECK ?

A "Higher Intermediate Point (HIP) check" is a term used in the airline industry to refer to the process
of verifying whether a proposed air travel itinerary complies with the airline's rules and fare structure
related to HIPs (Higher Intermediate Points).

If the itinerary adheres to the airline's HIP rules, the passenger can proceed with the booking. If not,
adjustments may be needed, such as selecting different HIPs or changing the route to meet the
airline's criteria and fare structure.

IF HIP CHECK IS YES :

 Suppose a passenger wishes to book a round-trip flight from New York City (JFK) to Singapore (SIN) with a
stopover in Tokyo (NRT) for a few days on the outbound journey. The passenger's preferred routing is as
follows:

1. JFK to NRT (Stopover)

2. NRT to SIN (Final Destination)

Now, let's say the airline has specific HIP rules and fare calculations for this route. The airline considers Tokyo
(NRT) as a designated HIP for this itinerary. The HIP check would involve assessing whether this proposed
itinerary complies with the airline's rules:

1. HIP Compliance: The passenger's stopover in Tokyo (NRT) is permitted by the airline because it's a designated
HIP on this route.
2. Fare Calculation: The fare for the entire journey is based on the rules and fare structure associated with the
chosen HIP itinerary, which may differ from a non-stop flight.
3. Pricing: The price quoted to the passenger is determined by the airline's fare calculations and pricing structure.

In this example, the HIP check ensures that the stopover in Tokyo (NRT) is correctly incorporated into
the fare calculation and that the passenger is charged based on the airline's fare rules for itineraries
involving HIPs.

IF HIP CHECK IS NO :

a passenger who wants to book a round-trip flight from Los Angeles (LAX) to Rome (FCO) with a stopover in
London (LHR) on the outbound journey:

1. LAX to LHR (Stopover)

2. LHR to FCO (Final Destination)

In this example, the airline's HIP rules do not designate London (LHR) as a Higher Intermediate Point for the
route between Los Angeles (LAX) and Rome (FCO). Therefore, a HIP check would reveal that the chosen
itinerary does not comply with the airline's rules.

The passenger may encounter the following issues:

1. HIP Compliance: The stopover in London (LHR) is not a designated HIP for this specific route according to the
airline's policy.
2. Fare Calculation: The fare for the entire journey cannot be based on the rules and fare structure associated with
a HIP itinerary, as London (LHR) is not recognized as a HIP for this route.
3. Pricing: The airline would need to recalculate the fare based on different criteria, such as standard pricing for a
non-HIP itinerary or possibly rerouting through a designated HIP city if the passenger still wants to have a
stopover.

In this case, the HIP check would alert the passenger and the airline to the non-compliance with HIP
rules, and adjustments to the itinerary or fare calculation would be necessary to align with the airline's
fare structure and policies.