Basics of Airline Fares

General Introduction

Types of Fares

• Normal Fares– No restrictions, different classes possible

• Special Fares– Restrictions, only in Economy class

• Normal Fares are higher

• Normal Fares are the same with every IATA member airline

Factors Influencing Fares

• Type of Intermediate Stops:– Stopover (> 24 hrs) or Transfer

• Routing– Global Indicator

Global Indicators

Other Factors:

• Maximum Permitted Mileage (MPM) compared with:

• Ticketed Point Mileages (TPM): Actual Flown• If TPM > MPM a surcharge must be paid• NUC: Virtual Currency and IROE• Certain Checks:

– HIP: Higher rated intermediate points

– BHC: One Way Backhaul Minimum Check

– CTM: Circle Trip Minimum Check

Type of Journeys

• One Way

• Return Journey:– Round Trip– Circle Trip

• Open Jaw

• Round-the-World Journey

Open Jaws

Open Part must be domestic!

Two Pricing Concepts:

• Journey Concept• Pricing Unit Concept (PUC):

– Journey may be divided into series of sub-journeys

– Possible when there are common points and/or countries in a journey

• Slicing and Dicing: dividing a journey into sub-journeys

• Why: PUC gives sometimes lower fares

Slicing and DicingSlice and dice the following journey:

Madrid – Lisbon – Cairo – Johannesburg – Surface – Capetown – Cairo - Lisbon - Barcelona

BCN

MAD

LIS

CAI

JNB

CPT

Madrid – Lisbon – Cairo – Johannesburg – Surface – Capetown – Cairo - Lisbon - Barcelona

1. Open Jaw MAD – LIS - BCN

BCN

MAD

LIS

CAI

JNB

CPT

2. Return LIS - CAI

3. Open Jaw CAI – JNB - - - CPT - CAI

Fare Manuals

• PAT:

• Passenger Air Tariff

• Various Volumes:– Fares (per hermisphere)– Rules– Maximum Permitted Mileages

How to Read Fares1. Headline city + Code2. Fares / Class

1. Normal Print: OW2. Bold Print: Return

3. Special Fare4. Carrier Code5. MPM6. GI7. Rule8. Amount in Local and NUC9. Local Currency10. Specified Routing

Read this fare

How to Read Fares: TPM

Ticketed Point Mileages (TPM):

1. Departure City (Aalborg) & Arrival City (Billund)

2. Country Code

3. Miles to Arrival City

4. Global Indicator

Basic Fare Construction

1. Determine FCP’s

2. NUC (GI & Type)

3. Rule (if any)

4. Note MPM

5. Calculate TPM6. EMA (if TPM > MPM)

7. EMS (See table)

8. HIP9. Rule10. AF: Applicable Fare11. Check:

OW: BHCCT: CTM

13. Total14. IROE15. LCF: Local Curency Fare