BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. NOTICE OF TIER 1 AGREEMENTS FILING BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Notice of IATA Traffic Conference Actions Tentatively Exempted From Filing for Approval Docket OST NOTICE OF TIER 1 AGREEMENTS FILING BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION 24 June 2013 Communications with respect to this Document should be sent to Douglas Lavin Regional Vice President North America International Air Transport Association 1201 F Street, NW, Suite 650 Washington, DC (202)

2 Summary DOCKET: DOT OST DOT ORDER: None Requested Date: 24 June 2013 Filing fee/iata Acct: Waived by Order , Appendix A, Section D US/UST involved Yes Intended effective date: 1 August 2013 Implementation date: 1 October 2013 Resolution/Original Memos: Resolution 017c PTC COMP Memo Aug05 PTC COMP Memo Aug05 PTC COMP Memo Jul06 PTC COMP Memo Nov08 PTC COMP Memo Jul09 PTC COMP Memo Dec09 PTC COMP Memo Nov10

3 NOTICE OF TIER 1 AGREEMENTS FILING Pursuant to statements submitted by Member airlines of the International Air Transport Association (IATA), the undersigned has been constituted to be their attorney in fact for filing with the Department of Transportation copies of agreements adopted by the IATA Traffic Conferences. On their behalf, and pursuant to the procedures specified in Order (13 April 2012), I am filing with the Department, in Docket OST , this Notice, the subject agreements and supporting documentation. These agreements are Tier 1 agreements tentatively exempted by Order from Condition #2 to the Department s approval of the Provisions for the Conduct of the IATA Traffic Conferences, which condition requires preimplementation Department review. The intended effective date of the agreements is 1 August The subject agreements amend or establish Resolutions and/or Recommended Practices that do not address subject areas which the Department has indicated it still chooses to review under Condition #2. The text of the agreements and other conference documentation sent to airline Members of IATA accompany this Notice. The cover pages of the documentation clearly identify each affected Resolution and/or Recommended Practice and show whether the subject agreements are amendments or new agreements. Other pages provide the text of each subject agreement. Where an affected Resolution or Recommended Practice has previously been exempted from Condition #2 by Department action, the cover pages include the appropriate

4 docket and order number. The cover pages include a summary to explain the nature and purpose of the subject amendments and/or agreements. Respectfully submitted, /s/ Douglas Lavin Douglas Lavin Regional Vice President North America International Air Transport Association Attorney In Fact

5 CERTIFICATE OF SERVICE A copy of this notice has been served this day by first class or priority mail on the following person: Chief, Transportation, Energy & Agriculture Section Antitrust Division Department of Justice Washington, D.C A copy of this notice has been sent this day by to John Kiser (John.Kiser@dot.gov) and to Della Davis (Della.Davis@dot.gov) of the Department of Transportation. /s/ Douglas Lavin Douglas Lavin 24 June 2013 Date Served

6 24 June 2013 MEMORANDUM PTC COMP 1720 TO: FROM: Members Participating in Tariff Coordinating Conferences Manager, Tariffs & Reservation Standards SUBJECT: Composite Passenger Tariff Coordinating Conference Composite Resolution 017c Intended Effective Date: 1 August 2013 Implementation Date: sale on/after 1 October NOTIFICATION OF FILING - AMENDMENTS TO COMPOSITE RESOLUTIONS THAT HAD BEEN PENDING DOT ACTION Please be advised that amendments to the Composite Resolutions adopted and circulated by the Memoranda listed below have been filed to US DoT for intended effect 1 August 2013 and for implementation for sale on/after 1 October Resolutions Memo Number Date of Issuance Resolution 017c PTC COMP Memo Aug05 PTC COMP Memo Aug05 PTC COMP Memo Jul06 PTC COMP Memo Nov08 PTC COMP Memo Jul09 PTC COMP Memo Dec09 PTC COMP Memo Nov10 Amendments shown in the attached document will be declared effective for 1 August 2013 after the 30-day notification period to US DoT. International Air Transport Association Route de l Aéroport 33 PO Box 416 CH Geneva 15 Airport Switzerland Tel: Fax tariffs@iata.org

7 Background Information At the Composite meeting in Abu Dhabi October 2012, Members were advised that after years of lobbying and negotiations, the US DoT had agreed with the IATA proposal to exempt the vast majority of COMP agreements from the obligation to undergo prior US DoT review. This means that we can start implementation after providing 30 days notice, as outlined in the DoT order , as opposed to waiting months (or years) for the governmental review process. Prior to the DoT agreement, however, numerous filings for resolution changes had already been pending DoT action. Those filings pending approvals had to be withdrawn and re-filed in accordance with the new filing process. IATA and system provider members of the Resolution Advisory Working Group (RADWG) reviewed all of the pending filings and established a schedule for implementing the changes. RADWG agreed at the meeting held March 2013 in Montreal that changes requiring two weeks of development effort as attached will be implemented on 1 July A memo to declare the changes effective will be issued at the end of April. Those requiring major efforts, such as the HIP package, will be implemented on 1 October Memos to declare those changes effective will be issued two months prior to the implementation date. Alban Sato Manager, Tariffs & Reservation Standards Airline Distribution Standard PTC COMP 1720

8 RESOLUTION 017c CONSTRUCTION RULES FOR FARE COMPONENTS Effective 1 August 2013 for Implementation 1 October 2013 (Tier 1) Content Explanations/Notes Original Memo Original Docket 1) APPLICATION the provisions of this Resolution must be used to calculate the fare for a fare component in one class of service; if different classes are used the fare shall be calculated as per Resolution 017e 2) FARES the fare shall not be less than the lower amount obtained by either of the following principles a) Mileage Principle i) aa) total TPMs shall be compared with the MPM for the fare component bb) routings within MPM where the sum of the TPMs does not exceed the comparable MPM, apply the applicable direct route fare. Such comparison must be made using TPMs, MPMs and fares with the same global indicator provided that, to ascertain the applicable MPM between TC2 and TC3, the sector flown between TC2 and TC3 shall determine the global indicator; if within a fare component there is more than one sector that transits between TC2 and TC3 the sector attracting the highest TPM will be used to determine the MPM Deleted redundant wording as Resolution 011b already shows how to establish global indicators 1329(25JUL06) cc) routings exceeding MPM where the sum of the TPMs is in excess of the MPM: divide the sum of TPMs by the MPM, and surcharge in accordance with the table below. When dividing the sum of TPMs by the MPM the result of the calculation shall be truncated at 5 decimals; the result indicates the mileage percentage to be applied if the result is over up to and including the fare shall be not less than the direct route fare plus %

9 % % % % over 1.25 lowest combination dd) notwithstanding Paragraphs bb) and cc) above, for travel wholly within TC1 which originates, terminates or has a fare construction point in Rio de Janeiro or Sao Paulo and neither city is an intermediate ticketed point on such fare component 1) if the fare to or from Rio de Janeiro falls within the MPM, and the fare for the same route to or from Sao Paulo exceeds the MPM, the fare to and from the latter point need not be surcharged 2) if the fare to or from Sao Paulo falls within the MPM, and the fare for the same route to or from Rio de Janeiro exceeds the MPM, the fare to and from the latter point need not be surcharged 3) if the fare to or from Rio de Janeiro must be surcharged, the fare for the same routing to or from Sao Paulo need not take a higher surcharge (or vice versa) ee) notwithstanding Paragraphs bb) and cc) above, for travel between Iguassu Falls and Europe/Middle East/Africa via the Atlantic for travel between Iguassu Falls and South West Pacific via the Pacific for travel within TC1 where the fare component originates or terminates in Iguassu Falls 1) if the fare to or from Iguazu is within the MPM, and the fare for the same route to or from Iguassu Falls exceeds the MPM, the fare to or from the latter point need not be surcharged 2) if the fare to or from Iguazu must be surcharged, and the fare for the same routing to or from Iguassu Falls need not take a higher surcharge ii) Specified Routings when the fare component coincides with the routing in Attachment 'A', the direct route fares apply disregarding Subparagraph i) above, and Paragraphs 5) and 6), provided that an intermediate point(s) may be omitted if a more direct routing is used and no additional point(s) is added Amended to disregard Back haul check in case routing specified 1268(23AUG05)

10 iii) MPM Deductions mileages specified in Attachment 'B' must be deducted from the MPM before the comparison with the sum of TPMs is made. These MPM reductions only apply when the fare component and the global indicator coincide with the provisions in the Attachment iv) TPM Exceptions aa) TPM Deductions mileages specified in Attachment 'C' must be deducted from the total TPM before comparison with the MPM is made these TPM deductions only apply when the fare component includes intermediate ticketed points shown in the applicable routing in the Attachment; provided additional intermediate ticketed points may be added to the routing only one TPM deduction per fare component is permitted bb) Surface Sector TPMs any intermediate sector(s) travelled by surface within a fare component must be included in the sum of TPMs, except for intermediate sectors specified in Attachment 'D'. In the absence of a TPM for an intermediate sector not listed in Attachment 'D', a TPM shall be established by a combination of TPMs cc) South Atlantic TPMs 1) TC12 for transportation between Argentina, Brazil, Chile, Paraguay, Uruguay and Middle East where a passenger travels on a direct single flight coupon service from a point in Argentina, Brazil, Chile, Paraguay, Uruguay to Miami or Montreal or New York or Toronto and on a direct single flight coupon service from such point (i.e. arrival and departure city in North America must be the same) to a point in Middle East or vice versa, the mileage for these two sectors shall be deemed to be equal to the ticketed point mileage between the last point of departure in Argentina, Brazil, Chile, Paraguay, Uruguay to the first point of arrival in Middle East or vice versa 2) TC123 for transportation between Argentina, Brazil, Chile, Paraguay, Uruguay and TC3 where a passenger travels on a direct single flight coupon service from a point in Argentina, Brazil, Chile, Paraguay, Uruguay to Atlanta or Miami or Montreal or New York or Toronto or Washington and on a direct single flight coupon service from such point (i.e. arrival and departure city in North America must be the same) to a point in TC3 or vice versa, the mileage for these two sectors shall be deemed to be equal to the

11 ticketed point mileage between the last point of departure in Argentina, Brazil, Chile, Paraguay, Uruguay to the first point of arrival in TC3 or vice versa Note: If a ticketed point mileage is not published for these sectors, calculate the mileage by dividing the maximum permitted mileage by 1.20 The following example illustrates the application of the above Example: RIO-NYC-KHI-HKG Maximum permitted mileage RIO-HKG is Ticketed point mileages are TPM RIO-NYC ) NYC-KHI ) 9013 * KHI-HKG 2980 Total * RIO-KHI maximum permitted mileage of divided by 1.20 no mileage surcharge applicable b) Lowest Combination Principle except as provided in Resolution 017a, Section B, Paragraph 4, the lowest combination of fares over a ticketed point on the itinerary 3) LIMITATIONS ON INDIRECT TRAVEL a fare component must not include more than one departure from fare component origin or more than one arrival at fare component destination or more than one stopover at any one intermediate ticketed point. Additionally a) a fare component within TC1 or within TC31 must not include more than one arrival and one departure at any ticketed point b) for a journey originating in TC1 no fare component within TC1 may include more than one international departure and one international arrival at any ticketed point in the country where travel originates Example: POA-BUE-SAO-NYC through fare not permitted because of two international departures from Brazil

12 c) Except for journeys wholly within South America for a pricing unit originating in Brazil, a fare component from a point in Brazil must not include more than 2 domestic sectors in Brazil Examples: 1. BSB-RIO-NYC at a through fare BSB- NYC is permitted 2. POA-RIO-SSA-LIS at a through fare POA-LIS is not permitted. The international fare component must be assessed from RIO and POA-RIO charged separately 3. FLN-X/CWB-IGU-X/SAO-LON at a through fare FLN-LON is not permitted. The first international fare component must be assessed from IGU CWB and FLN-CWB-IGU charged separately d) for a pricing unit originating in Germany a fare component from/to a point in Germany must not include more than two domestic sectors in Germany e) a fare component from/to/via a point in Japan must not include more than three domestic sectors in Japan 4) FARE COMPONENTS WITH A SURFACE SECTOR(S) a) apply the through fare or the sum of fares over the sectors actually flown, whichever is lower b) in the case of normal fare travel, where the mileage for an international surface break is greater than the ticketed point mileage over the routing travelled from origin of the journey up to the point of commencement of the surface break when normal fares are on both sides of the surface break and the surface break is not included in the through fare, travel from origin of the journey up to the surface break will be ticketed separately, the remainder of the journey being assessed in accordance with Resolution 024e Example: Travel NYC-LON-PAR xxx FRA-LON-NYC Construction could be NYC-LON RT 1 pricing unit LON-PAR OW 1 pricing unit FRA-LON OW 1 pricing unit notwithstanding separate PUs, the TPMs NYC-LON plus LON-PAR are added together and the resulting sum is compared to the TPM of the surface break PAR-FRA c) in the application of Subparagraph b), the surface break shall be measured Changed the examples to reflect an agreement to increase the number of domestic sectors in Brazil from one to two domestic sectors Dealt by 1545(8SEP09) 1262(16AUG05)

13 using ticketed point mileages; if no ticketed point mileage exists for the points concerned, the shortest operated mileage shall be used (i.e. MPM divided by 1.20); provided that in the event there is no shortest operated mileage, the ticketed point mileage shall be established by a combination of ticketed point mileages. For the purpose of this rule, surface breaks in Attachment 'D' and between Canada and USA may be ignored 5) HIGHER INTERMEDIATE POINT (HIP) CHECK a) Normal Fares i) if in any routing otherwise permissible at the direct route normal fare there is a direct route normal fare(s) of the same class of service involving stopover points from aa) fare component origin to each intermediate stopover point bb) each intermediate stopover point to each subsequent intermediate stopover point cc) each intermediate stopover point to the subsequent fare break point Clarification of the HIP process 1511(21NOV08) superseded by 1532(23JUL09) which is higher than the direct route normal fare between the fare construction points, the fare shall be not less than the highest fare referred to above (HIP). In the case of fares that are established by seasonality (including blackout dates), or day of week or flight application, the check will be based on the applicable fare (by seasonality including blackout dates, or by day of week or by flight application) ii) if in any indirect routing otherwise permissible at the direct route normal fare plus a percentage (EMS), there is a direct route normal fare(s) of the same class of service involving stopover points as specified in i) aa), bb) and cc) above which is higher than the direct route normal fare between the fare construction points, the fare for the indirect route shall be not less than the highest fare referred to above (HIP), and the surcharge percentage (EMS) applicable to the through fare shall be applied to such higher intermediate fare iii) when comparing normal fares of the 'same class of service' in order to determine if there is a higher intermediate fare, the following sequence shall be followed sleeper seat is compared with sleeper seat fare; if no sleeper seat fare, compare with the highest first class fare, ignoring any fare rule provisions Clarified comparison process 1329(25JUL06) superseded by 1596(02NOV10)

14 provided that where more than one first class fare is published, compare with the highest first class fare first class fare is compared with first class fare; if no first class fare, compare with the highest intermediate/business class fare (or next lower class fare), ignoring any fare rule provisions provided that where more than one intermediate/business class fare is published, compare with the highest intermediate/business class fare intermediate/business class fare is compared with intermediate/business class fare; if no intermediate/business class seat fare, compare with the highest economy class fare, ignoring any fare rule provisions provided that where more than one economy class fare is published, compare with the highest economy class fare economy class is compared with economy class fare; if no economy class fare to compare, no check is required iv) when comparing normal fares in accordance with the foregoing, the comparison shall be made in the same direction as the fare component. When using half round trip fares the comparison shall be made using half round trip fares. When using one way fares the comparison shall be made using one way fares v) where more than one normal fare is published for the carrier and the class of service used the lower/lowest level may be used subject to any stopover, transfer, seasonality (including blackout dates), flight application, routing validation, day of week limitations of the lower/lowest fare (excluding application of stopover charges vi) when the ticket shows no stopover at both the unit origin and the unit destination point of a side trip which has been charged separately (due to transfer connections on both occasions) a stopover shall be considered to be taken at such point unless the time interval between the arrival immediately preceding the side trip and the departure immediately following the side trip does not constitute a stopover as defined in Resolution 012 vii) when there is an imbedded surface sector the HIP check applies to the point of arrival by air immediately preceding the surface sector and to the point of departure immediately following the surface sector, unless the time interval between the arrival and the departure does not constitute a stopover as defined in Resolution 012, however, such check shall not apply between the terminal points of the unflown sector Clarification added for HIP in case of embedded sector 1268(23AUG05)

15 viii) when there is a fare construction surface sector, the HIP check applies to the point of such surface sector that is not the fare construction point unless the time interval between the arrival and departure at such point does not constitute a stopover as defined in Resolution 012; however, such check shall not apply between the terminal points of the unflown sector ix) notwithstanding the above aa) for journeys originating in Western Africa, the HIP check in each fare component shall be applied on all ticketed points in Western Africa bb) for journeys originating in Malawi, the HIP checks in each fare component shall be applied on all ticketed points in Malawi dd) except TC12 Mid and South Atlantic for journeys originating in the Republic of Yemen, the HIP check in each fare component shall be applied on all ticketed points in the Republic of Yemen x) day-of-week application: in establishing the day-of-week fare level to be used for the HIP check the rule for the application of the day-of-week fares shall be applied solely to the sector(s) for which the check is being made. The day of travel on such sector(s) shall be used to determine the day of week fare level to be used for the HIP check Example: Routing: A B C D - A First fare component (A to C) fare A-C is a fare established using the day of the week of the first international sector A-B fare A-B is a non-day-of-week fare there are day-of-week fares B-C with the rule that the first international sector determines the day of week fare to be applied to establish the day-of-week fare level to be used for the HIP check on the sector B-C the date of travel B to C will be used second fare component (fare in the direction from A to C) fare A-C is a fare established using the day of week of the first international sector A-D fare A-D is a non-day-of-week fare there are day-of-week fares D-C with the rule that the first international sector determines the day-of-week fare to be applied to establish the day-of week fare level to be used for the HIP check on the sector C-D the date of travel C to D will be used Routing: GVA-FRA-CAI-AMS-GVA Removed HIP exception 1268(23AUG05) Clarification of the HIP process for day-of-week application with new examples 1511(21NOV08) superseded by 1532(23JUL09) First fare component (GVA-CAI)

16 fare GVA-CAI is established using the day of the week of the first international sector GVA-FRA fare GVA-FRA is a non-day-of-week fare there are day-of-week fares FRA-CAI with the rule that the first international sector determines the day of week fare to be applied to establish the day-of-week fare level to be used for the HIP check on the sector FRA-CAI the date of travel FRA-CAI will be used Second fare component (fare in the direction from GVA-CAI) fare GVA-CAI is established using the day of the week of the first international sector GVA-AMS. Note: the first international sector is taken in the direction of the fare component. fare GVA-AMS is a non-day-of-week fare there are day-of-week fares AMS-CAI with the rule that the first international sector determines the day-of-week fare to be applied to establish the day-of week fare level to be used for the HIP check on the sector CAI-AMS the date of travel CAI to AMS will be used xi) in establishing the seasonal fare level to be used for the HIP check the rule for the application of the seasonal fares shall be applied solely to the sector(s) for which the check is being made. The seasonal rule for such sector shall be used to determine the seasonal fare level to be used for the HIP check. Where reference in a seasonal rule is to a specific segment of travel e.g. first international sector, the specific segment shall be assessed within the sector(s) for which the HIP level is being established Example Routing A B C B A First fare component (A to C) fare A-C is a non seasonal fare fare A-B is a non-seasonal fare there are seasonal fares B-C with the rule that the first international sector determines the seasonal fare to be applied to establish the seasonal fare level to be used for the HIP check on the sector B-C the date of travel B to C will be used Second fare component (fare in the direction from A to C) fare A-C is a non seasonal fare fare A-B is a non-seasonal fare there are seasonal fares B-C with the rule that the first international sector determines the seasonal fare to be applied to establish the seasonal fare level to be used for the HIP check on the sector C-B the date of travel C to B will be used

17 b) Special Fares i) having established an applicable special fare for a pricing unit, such special fare may be applied subject to the following if in any routing otherwise permissible at the direct route special fare there is a direct route special fare(s) of the same class of service from Clarification of the Special Fare HIP process 1511(21NOV08) superseded by 1532(23JUL aa) Compare special fare of the pricing unit to applicable special fares for the same fare type fare component origin to each intermediate stopover point bb) Compare special fare of the pricing unit to applicable special fares within the same fare type group from fare component origin to each intermediate stopover point, from an intermediate stopover point to the fare component destination each intermediate stopover point to fare component destination which is higher than the direct route special fare between the fare construction points, the fare shall be not less than the highest applicable special fare referred to above (HIP) 1) if there is no applicable special fare within the same fare type group on the sector concerned, the fare shall not be less than the lowest of any applicable special fares within the next higher fare type group shown in subparagraph (b). Continue to the next grouping only if an applicable special fare is not found. Note: Where more than one special fare is published within the same fare type group the lower/lowest level may be used subject to any stopover, transfer, seasonality (including blackout dates), flight application, routing validation, day of week limitations of the lower/ lowest fare (excluding application of stopover charges) 2) if the lowest applicable fare from fare component origin to each intermediate stopover point or from intermediate stopover point to fare component destination within the same fare type group is less than or equal to the through special fare, the special fare for the component may be applied ii) if in any indirect routing otherwise permissible at the direct route special fare plus a percentage (EMS), there is a direct route special fare(s) of the same class of service involving points as specified in i) aa) and bb) above, which is higher than the direct route special fare between the fare construction points, the fare for the indirect route shall be not less than the highest applicable special fare referred to above (HIP), and the surcharge percentage (EMS) applicable to the through fare shall be applied to such higher intermediate fare iii) the sequence described below shall be followed for each sector indicated

18 in i) aa) and bb) above 1) the special fare of the fare component shall not be less than the lower/lowest applicable special fare of the same fare type 2) if there is no matching applicable special fare of the same type, the special fare of the fare component shall not be less than the lower/lowest applicable special fare within the same fare type group 3) if there is no applicable special fare within the same fare type group, the special fare of the fare component shall not be less than the lower/lowest applicable special fare within the next higher fare type group. Continue to the next group only if there is no applicable special fare found 4) if there is no applicable special fare within any higher fare type group, the direct route special fare, surcharged if necessary, should be used Note: The conditions which define applicable fare are listed in resolution 012c (HIP). Any stopover/transfer charges which apply to an intermediate stopover point are excluded. iv) in defining a special fare of the same fare type group, the comparison shall be from the lowest to the highest of the following fare type groups: Fare Type Groups Column 1 Column 2 Column 3 Column 4 (a) APEX fare, or (b) Instant Purchase/ PEX fare, or (c) Excursion fare, or (d) All other individual special fares (a)git or fare, (b) Individual IT fare, Public Group Fare Note: HIP check not applicable Status Fares Note: If no status fare of the same fare type is found, no HIP will apply.

19 (except Status, IT fares) v) all conditions attached to the special fare for the component apply FLOW CHART for SPECIAL FARES (when no matching applicable special fare type is found) See attached vi) when comparing special fares in accordance with the foregoing, comparison shall be made with the following provisions aa) in the same direction as the fare component. bb) half round trip fare compared to half round trip fare; one way fares compared to one way fares. cc) limited to the same class of service first class fare is compared with first class fare; intermediate/business class fare is compared with intermediate/business class fare; economy class fare is compared with economy class fare vii) when the ticket shows no stopover at both the unit origin and the unit destination point of a side trip which has been charged separately (due to transfer connections on both occasions) a stopover shall be considered to be taken at such point unless the time interval between the arrival immediately preceding the side trip and the departure immediately following the side trip does not constitute a stopover as defined in Resolution 012 viii) when there is an imbedded surface sector the HIP check applies to the point of arrival by air immediately preceding the surface sector and to the point of departure immediately following the surface sector, unless the time interval between the arrival and the departure does not constitute a stopover as defined in Resolution 012, however, such check shall not apply between the terminal points of the unflown sector ix) when there is a fare construction surface sector, the HIP check applies to the point of such surface sector that is not the fare construction point unless the time interval between the arrival and departure at such point does not Clarification added for HIP in case of embedded sector 1268(23AUG05)

20 constitute a stopover as defined in Resolution 012; however, such check shall not apply between the terminal points of the unflown sector. x) notwithstanding the above aa) for journeys originating in Western Africa, the HIP check in each fare component shall be applied on all ticketed points in Western Africa bb) for journeys between Kilimanjaro and Nairobi, the HIP check in each fare component shall be applied on all ticketed points cc) for journeys originating in Malawi, the HIP check in each fare component shall be applied on all ticketed points in Malawi xi) day-of-week application: in establishing the day-of-week fare level to be used for the HIP check the rule for the application of the day-of-week fares shall be applied solely to the sector(s) for which the check is being made. The day of travel on such sector(s) shall be used to determine the day of week fare level to be used for the HIP check Clarification of the Special fare HIP process for day-of-week application with new examples 1511(21NOV08) superseded by 1532(23JUL Example: Routing: GVA-FRA-CAI-AMS-GVA First fare component (GVA-CAI) fare GVA-CAI is established using the day of the week of the first international sector GVA-FRA fare GVA-FRA is a non-day-of-week fare there are day-of-week fares FRA-CAI with the rule that the first international sector determines the day of week fare to be applied to establish the day-of-week fare level to be used for the HIP check on the sector FRA-CAI the date of travel FRA-CAI will be used Second fare component (fare in the direction from GVA-CAI) fare GVA-CAI is established using the day of the week of the first international sector GVA-AMS. Note: the first international sector is taken in the direction of the fare component. fare GVA-AMS is a non-day-of-week fare there are day-of-week fares AMS-CAI with the rule that the first international sector determines the day-of-week fare to be applied to establish the day-of week fare level to be used for the HIP check on the sector CAI-AMS the date of travel CAI to AMS will be used Routing A B C B A First fare component (A to C) fare A-C is a non-day-of-week fare fare A-B is a non-day-of-week fare there are day-of-week fares B-C with the rule that the first international sector determines the seasonal fare to be applied

21 to establish the day-of-week fare level to be used for the HIP check on the sector B-C the date of travel B to C will be used Second fare component (fare in the direction from A to C) fare A-C is a non-day-of-week l fare fare A-B is a non-day-of-week fare there are day-of-week fares B-C with the rule that the first international sector determines the seasonal fare to be applied to establish the day-of-week fare level to be used for the HIP check on the sector C-B the date of travel C to B will be used ix) xii) seasonality application: in establishing the seasonal fare level to be used for the HIP check the rule for the application of the seasonal fares shall be applied solely to the sector(s) for which the check is being made. The seasonal rule for such sector shall be used to determine the seasonal fare level to be used for the HIP check. Where reference in a seasonal rule is to a specific segment of travel e.g. first international sector, the specific segment shall be assessed within the sector(s) for which the HIP level is being established Example Routing A B C B A GVA PAR CAI PAR - GVA First fare component (A to C) fare GVA - CAI A-C is a non seasonal fare fare GVA PAR A-B is a non-seasonal fare there are seasonal fares PAR CAI B-C with the rule that the first international sector determines the seasonal fare to be applied to establish the seasonal fare level to be used for the HIP check on the sector PAR CAI B-C the date of travel B PAR to C CAI will be used Second fare component (fare in the direction from A to C) fare GVA - CAI A-C is a non seasonal fare fare GVA PAR A-B is a non-seasonal fare there are seasonal fares B-C PAR CAI with the rule that the first international sector determines the seasonal fare to be applied to establish the seasonal fare level to be used for the HIP check on the sector C-B CAI-PAR the date of travel C CAI to B PAR will be used 6) ONE WAY BACKHAUL RULE (BHC) a) this Paragraph does not apply i) for journeys pricing units wholly within TC1 Deleted application of One Way Backhaul Rule on special fares 1555(01DEC09)

22 ii) for journeys pricing units wholly between Argentina, Brazil, Chile, Paraguay, Uruguay and TC2 iii) for pricing units wholly within Europe iv) for pricing units between Europe and the Middle East/Africa v) for pricing units wholly within Africa b) this Paragraph applies only when using normal one way fares and special one way fares pricing units c) if in any fare component travel is via a higher rated intermediate stopover point, the fare for such fare component shall be the higher of: i) the applicable fare between the fare construction points, or ii) the fare from fare component origin to the highest rated intermediate stopover point plus the difference between such fare and the direct route fare between the fare construction points Example: A B C D Fares A to B NUC 50 A to C 150 A to D 140 B to C 175 B to D 160 Fare to be charged is or whichever is higher B to C NUC 175 A to C NUC 150 plus the difference between A to C and A to D 10 TOTAL NUC 160 the one way backhaul rule check need not be applied for points which have been excluded from the provisions of this Resolution, subject to the same conditions contained in the exclusion

23 FLOW CHART for SPECIAL FARES (when no matching applicable special fare type is found) Is an applicable special fare(s) found for the same class of service within the same fare type group from fare component origin to intermediate stopover point(s) and from an intermediate stopover point(s) to fare component destination? No Is an applicable special fare(s) found in a higher fare type group(s)? Yes Is the lowest applicable fare within this group higher than the special fare for the component No Yes No Yes Apply the special fare for the component (surcharge if necessary) Is the lowest applicable fare within this group higher than the special fare for the component? Apply the special fare for the component (surcharge if necessary) No Yes Apply the special fare for the component (surcharge if necessary). Raise the fare to such higher special fare (surcharge if necessary).

24 017c ATTACHMENT 'A' SPECIFIED ROUTINGS Between And Via Note TC1 Asuncion Brasilia Bogota/Guayaquil/ Mexico/Quito Atlanta/Baltimore/Boston/ Chicago/Mexico/Miami/Montreal/ New York/Philadelphia/ Ottawa/Toronto/Washington Buenos Aires/Rio de Janeiro/ Sao Paulo Rio de Janeiro/Sao Paulo/Bogota Buenos Aires Guayaquil/Quito/San Jose Rio de Janeiro/Sao Paulo Cancun a point in Colombia/Quito/Guayaquil Mexico City/Miami Montevideo Guayaquil/Quito/San Jose Rio de Janeiro/Sao Paulo Quito Aruba Caracas Quito Rio de Janeiro/Sao Paulo Caracas/Bogota Salvador Quebec City/Rouyn Noranda/ Sept-Iles/Val d'or A point in New Brunswick/ Nova Scotia/ Prince Edward Island Baltimore/Montreal/New York/ Ottawa/Philadelphia/ Washington Bermuda Antigua/Bahamas/ Barbados/Bermuda/Cuba/ Dominican Republic/French Antilles/Haiti/Jamaica/ St. Lucia/Trinidad and Tobago Rio de Janeiro/Sao Paulo Montreal-Toronto i) Montreal-Toronto ii) Halifax-Montreal-Toronto

25 A point in Newfoundland and Labrador Antigua/Bahamas/ Barbados/Bermuda/Cuba/ Dominican Republic/French Antilles/Haiti/Jamaica/ St. Lucia/Trinidad and Tobago St Johns-Halifax-Montreal- Toronto Montreal/Ottawa Bermuda Halifax/Toronto a point in Canada Asuncion/Montevideo i) Toronto-Rio de Janeiro ii) Toronto-Sao Paulo a point in Canada a point in Argentina i) Toronto-Rio de Janeiro/ Buenos Aires ii) Toronto-Sao Paulo/ Buenos Aires iii) Toronto-Mexico City-Buenos Aires iv) Toronto-Bogota-Buenos Aires a point in Canada a point in Chile i) Toronto-Rio de Janeiro/ Santiago ii) Toronto-Sao Paulo/ Santiago iii) Toronto-Mexico City- Santiago iv) Toronto-Bogota-Santiago a point in Canada Lima Toronto-Mexico City iv) Toronto-Bogota TC2 Middle East Cairo Dammam Riyadh-Jeddah Jeddah-Riyadh Cairo Riyadh Jeddah Dubai Zahedan Tehran Hofuf Cairo/Damascus Riyadh Riyadh Amman/Beirut/Damascus Dammam

26 TC2 Africa Blantyre Harare/Johannesburg Lilongwe No stopover permitted Francistown Johannesburg Gaborone Johannesburg Mombasa Nairobi Kilimanjaro Mombasa Nairobi TC3 Beijing Fukuoka Shanghai Beijing Sendai Shanghai-Osaka Only one stopover permitted at Shanghai/Osaka Beijing Osaka Shanghai-Nagasaki Only one stopover permitted at Shanghai/Nagasaki Beijing Tokyo Shanghai-Nagasaki-Osaka Only one stopover permitted at Shanghai/Nagasaki/Osaka Colombo Lahore Karachi Delhi Nagoya/Osaka/Tokyo Bangkok Hong Kong Kathmandu Bangkok Hong Kong Kuala Lumpur Kota Kinabalu/Manila Hong Kong Singapore Manila Karachi Seoul Bangkok/Manila-Tokyo Kolkata Hong Kong/Taipei Bangkok Kota Kinabalu Taipei Hong Kong Sapporo Seoul Nagoya/Tokyo Tokyo Faisalabad/Karachi/ Islamabad/Lahore/ Multan/Peshawar Bangkok-Manila Manila-Bangkok

27 TC12 North Atlantic Canada-Europe Montreal/Ottawa Bologna/Florence/ Genoa/Trieste/Turin/ Venice/Verona Toronto-Rome TC23 Cairo Tokyo Bangkok-Manila Cairo/Sanaa Beijing Bangkok Japan/Korea(Dem. People s Rep. of), Korea (Rep. of)/china (excluding Hong Kong SAR, Macao SAR), Hong Kong SAR, Macao SAR Mashad Tehran EH Lahore Tehran Karachi Peshawar Tehran Karachi Tehran Guangzhou/ Taipei/ Bangkok/ Hong Kong Kuala Lumpur Tokyo Kuwait Bangkok/Manila TC31 North/Central Pacific Seattle Japan Los Angeles/San Francisco Key to Symbols " - " means "and/or" " / " means "or"

28 017c ATTACHMENT 'B' M P M DEDUCTIONS MPMs between the following TC Areas/Countries must be reduced by the following amounts, dependent upon the global direction of the passenger's itinerary Currently there are no TC Areas/Countries listed in Attachment B

29 017c ATTACHMENT 'C' T P M DEDUCTIONS TC1 Between And Miles Applicable Routing Buenos Aires/Montevideo Canada/Mexico/USA 510 Rio de Janeiro-Sao Paulo with no stopover at either point Caracas Buenos Aires/Montevideo 400 wholly within the South America Sub-area TC2 Europe-Middle East Europe Iran (except Tehran) 100 via Tehran Budapest Middle East 100 via a point in Europe other than Hungary TC3 TC3 TC3 700 via both Mumbai and Delhi or except when travel is to/from Mumbai via Delhi; or wholly within Afghanistan, to/from Delhi via Mumbai; or Bangladesh, Bhutan, via both Islamabad and Karachi; or Maldives, Pakistan, to/from Karachi via Islamabad; or India, Nepal and Sri Lanka to/from Islamabad via Karachi Osaka/Tokyo Denpasar Bali 70 via Jakarta with no stopover no additional intermediate points between Jakarta and Denpasar Bali

30 017c ATTACHMENT 'C' Between And Miles Applicable Routing TC12 North Atlantic Alberta/British Europe 400 via St.Johns-Halifax-Montreal-Ottawa-Toronto Columbia/Yukon Cancun Europe 550 via Mexico City Merida Europe 150 via Mexico City New Brunswick/ Europe 1500 via Boston-Montreal-Ottawa-Toronto Newfoundland and Labrador/ Nova Scotia/ Prince Edward Island Newfoundland and Labrador Europe 700 via Halifax New Brunswick/Nova Scotia/ Israel 500 via Halifax-Montreal-Toronto Prince Edward Island Newfoundland and Labrador Israel 1600 via St.Johns-Halifax-Montreal-Toronto South Africa Canada/Mexico/USA 660 via Tel Aviv TC23 Europe South Asian Subcontinent 700 via both Mumbai and Delhi or to/from Mumbai via Delhi; or to/from Delhi via Mumbai Middle East TC3 (except South West 700 via both Mumbai and Delhi or Pacific) to/from Mumbai via Delhi; or to/from Delhi via Mumbai; or via both Islamabad and Karachi; or to/from Karachi via Islamabad; or to/from Islamabad via Karachi

31 017c ATTACHMENT 'D' SURFACE SECTOR TPMs FILINGS IN ACCORDANCE WITH RESOLUTION 001z Between And Alghero IT Olbia IT Alicante ES Murcia ES Alicante ES Valencia ES Almeria ES Malaga ES Amman JO Jerusalem Amritsar IN Lahore PK Amsterdam NL Rotterdam NL Antwerp BE Brussels BE Arica CL Tacna PE Barcelona ES Gerona ES Barcelona ES Reus ES Basle CH Mulhouse FR Beijing CN Tianjin CN Berlin DE Dresden DE Berlin DE Leipzig Halle DE Berne CH Geneva CH Berne CH Zurich CH Bilbao ES San Sebastian ES Bilbao ES Santander ES Bilbao ES Vitoria ES Bologna IT Florence IT Brazzaville CG Kinshasa CD Bremen DE Hamburg DE Bremen DE Munster DE Brownsville US Matamoros MX

32 Catania IT Palermo IT Ciudad Juarez MX El Paso TX Cologne DE Dusseldorf DE Cologne DE Munster DE Curitiba BR Joinville BR Cuzco PE La Paz BO Detroit US Windsor CA Dresden DE Leipzig Halle DE Dubai AE Sharjah AE Dusseldorf DE Munster DE Florence IT Pisa IT Between And Granada ES Malaga ES Guatemala GT Tapachula MX Guayaramerin BO Porto Velho BR Hamburg DE Hanover DE Hamburg DE Munster DE Hanover DE Munster DE Hilo US Kona US Hong Kong HK Macao MO Hong Kong HK Shenzhen CN Hong Kong HK Zhuhai CN Iguassu Falls BR Iguazu AR Jerez de la Frontera ES Seville ES Kabul AF Peshawar PK Krabi TH Phuket TH La Coruna ES Santiago de Compostela ES Laredo US Nuevo Laredo MX

33 Larnaca CY Paphos CY Leticia CO Tabatinga BR Livingstone ZM Victoria Falls ZW Livramento BR Rivera UY Ljubljana SI Zagreb HR McAllen US Reynosa MX Milan IT Turin IT Munich DE Nuremberg DE Nagoya JP Osaka JP Paso de Los Libres AR Uruguaiana BR Podgorica CS Tivat CS Puerto Montt CL San Carlos de Bariloche AR San Diego US Tijuana MX Santiago de Compostela ES Vigo ES Split HR Zadar HR Stockholm SE Vasteraas SE Swakopmund NA Walvis Bay NA Venice IT Verona IT