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 26 March 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: 26 March 2013 Filing fee/iata Acct: Waived by Order , Appendix A, Section D US/UST involved Yes Intended effective/implementation date: 1 July 2013 Resolution Original Memos Respective Docket Numbers Resolution 011 PTC COMP Memo 1329 / 25Jul06 DN: Resolution 011b PTC COMP Memo 1329 / 25Jul06 DN: PTC COMP Memo 1547 / 18Sep09 DN: Resolution 012 PTC COMP Memo 1330 / 25Jul06 DN: PTC COMP Memo 1547 / 18Sep09 DN: PTC COMP Memo 1508 / 21Nov08 DN: PTC COMP Memo 1511 / 21Nov08 DN: PTC COMP Memo 1595 / 02Nov10 DN: Resolution 012c PTC COMP Memo 1330 / 25Jul06 DN: PTC COMP Memo 1532 / 03Jul09 DN: Resolution 017a PTC COMP Memo 1268 / 23Aug05 DN: PTC COMP Memo 1596 / 02Nov10 DN: PTC COMP Memo 1547 / 18Sep09 DN: Resolution 017e PTC COMP Memo 1268 / 23Aug05 DN: PTC COMP Memo 1547 / 18Sep09 DN:

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 - 2 -

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 26 March 2013 Date Served - 3 -

6 RESOLUTION 011 MILEAGES AND ROUTES FOR TARIFF PURPOSES (ATTACHMENT A) Effective 1 May 2013 (Tier 1) Content Explanations/Notes Original Memo Original Docket SHORTEST OPERATED MILEAGES SOMs between the following TC Areas/Countries must be constructed with the shortest operated mileages over the specified points ROUTING BETWEEN AND n) Russia Russia (in Europe) South East Asia except China (excluding Hong Kong SAR and Macao SAR), Kazakhstan, Kyrgyzstan, Mongolia, Russia in Asia, Tajikistan, Turkmenistan, Uzbekistan), South West Pacific GLOBAL INDICATOR RU OVER Moscow and Japan Adopted in September 2009 for effective 1 April 2010, changes made to clarify the technical application of routing RU 1329 (25JUL06)

7 RESOLUTION 011b GLOBAL INDICATORS Effective 1 May 2013 (Tier 1) Content Explanations/Notes Original Memo Original Docket 1) in applying Global Indicators (GI) the following shall apply a) if a sector can attract more than one Global Indicator, then the routing of the flights must be used to determine the specific Global Indicator to be applied e.g. SIN-NYC --- options via PA or via AT. b) the comparison of the itinerary of a fare component with a Global Indicator shall be based on the ticketed points within the fare component c) fares may only be used for the Global Indicator for which they are established. The itinerary within a fare component will attract a Global Indicator as follows Fare Component GI Routing Restriction Wholly Within TC1 Wholly Within TC2 Wholly Within TC3 WH EH EH Adopted in July 2006 for effective 1 April 2007, changes made to clarify intent that the fare component should be wholly within the area and not via other areas 1329 (25JUL06) Between TC1 and TC2 via the Atlantic AT Between TC1 (except Argentina, Brazil, Chile, Paraguay, Uruguay) and TC3 via the Atlantic AT Between Argentina, Brazil, Chile, and TC3 (except South East Asia/South AT

8 Paraguay, Uruguay Asian Subcontinent, Korea (Dem. People s Rep. of), Korea (Rep. of) via the Atlantic) Between Argentina, Brazil, Chile, Paraguay, Uruguay and South East Asia/South Asian Subcontinent, Korea (Dem. People s Rep. of), Korea (Rep. of) via the Atlantic AT if travel is via Central Africa, Southern Africa Indian Ocean Islands then travel must also be via a point(s) in TC2 outside Central Africa, Southern Africa, Indian Ocean Islands Between Argentina, Brazil, Chile, Paraguay, Uruguay and South East Asia, South Asian Subcontinent, Korea (Dem. People s Rep. of), Korea (Rep. of) via the Atlantic SA only via point(s) in South East Asia, South Asian Subcontinent, Korea (Dem. People s Rep. of), Korea (Rep. of), South Atlantic area, Central Africa, Southern Africa, Indian Ocean Islands only or via direct transatlantic services Adopted in September 2009 for effective 1 April 2010, changes made to clarify the technical application of routing SA 1547(18SEP09) Between TC1 and TC3 (except South West Pacific) PA not applicable for routings on nonstop services between Canada / USA and South Asian Subcontinent Between TC1 (except Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, and South West Pacific PA not applicable for routings on nonstop services between Canada / USA and South Asian Subcontinent

9 Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela) Between Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela and South West Pacific PA not via North America / applicable for transpacific routings that do not qualify as PN Between TC1 (effective 01Jun12) And TC2 via the Pacific PA via TC3 Between Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela and South West Pacific PN must be via North America but not via TC3 except South West Pacific Between TC2 (except Russia in Europe, Ukraine) Between Russia (in Europe), Ukraine and TC3 EH not for routings on non-stop services between Europe and Japan, Korea (Dem. People s Rep. of), Korea (Rep. of) and TC3 EH not for routings on non-stop services between Europe and Japan, Korea

10 (Dem. People s Rep. of), Korea (Rep. of); only for routings via another country(ies) in Europe (except Russia in Europe, Ukraine) and/or Middle East Between TC2 (except Russia in Europe) and TC3 except China (excluding Hong Kong SAR and Macao SAR) TS only for routings on non-stop services between Europe and Japan, Korea (Dem. People s Rep. of), Korea (Rep. of) Adopted in September 2009 for effective 1 April 2010, changes made to clarify the technical application of routings TS and RU 1547(18SEP09) Between Russia (in Europe) and TC3 except China (excluding Hong Kong SAR and Macao SAR) TS only for routings on non-stop services between Europe and Japan, Korea (Dem. People s Rep. of), Korea (Rep. of); via another country(ies) in Europe Between Russia (in Europe) and TC3 except China (excluding Hong Kong SAR and Macao SAR), Kazakhstan, Kyrgyzstan, Mongolia, Russia in Asia, Tajikistan, Turkmenistan, Uzbekistan) RU only for routings on non-stop services between Russia (in Europe) and Japan, Korea (Dem. People s Rep. of), Korea (Rep. of); not via another country(ies) in Europe Between Russia (in Europe), Ukraine and TC3 FE only for routings on non-stop services between Russia (in Europe), Ukraine and TC3 other than Japan, Korea (Dem. People s Rep. of),

11 Korea (Rep. of) Between TC2 and TC3 via the Atlantic and Pacific AP 2) if there is no fare with the Global Indicator identified by the routing travelled, the fare shall be constructed in accordance with Resolution 017a Section A) Paragraph 6) (the lowest combination principle) Example Routing: Through fare: Fare Construction: ACC-FRA-MOW-TYO-MNL based on fare component ACC-MNL, EH or TS: the itinerary of the fare component dictates that a TS fare should be applied if there is no through TS fare then the fare must be broken at FRA or MOW or TYO (if a TS fare exists) whichever gives the lower amount 3) for purposes of this Resolution, travel via North and Central Pacific refers to TC31 travel via a point(s) in TC3 excluding South West Pacific Example CCS-ATL-LAX-SYD is considered a PN route not via North and Central Pacific 4) IATA is authorised to update this Resolution as and when required based on agreements for fare specification by individual conference meetings

12 RESOLUTION 012 GLOSSARY OF TERMS Effective 1 May 2013 (Tier 1) Content Explanations/Notes Original Memo Original Docket TERM DEFINITION Exchange Rebooking The issuance of a new ticket for a totally unused ticket necessitated by a change to the carrier, flight, date, class of service or sector of the first flight coupon of the ticket change of reservation and/or other changes which do not require ticket reissuance a change to the reservations data without a change of ticketed points Amended definitions of Rebooking and Rerouting for clarity and to be in line with Resolution 017f Exchange, Reissues and Refunds. Introduced definitions of Exchange and Reissue to clearly distinct the processes. 1330(25JUL06) 1330(25JUL06) Reissue The issuance of a revised ticket necessitated by a change to other than the first flight coupon of the ticket or a change to other than the carrier, flight, date or sector of the first flight coupon of a ticket. Added class of service to the definition of Exchange for further technical clarity 1547(18Sep09) Rerouting change of routing and/or other changes which require ticket reissuance any change to ticketed points Other Charges Related Charges Charges such as taxes/fees/charges, flight related services, merchandising related service, ticket related services etc., excluding excess baggage charges fare related charges such as cancellation penalties, nonrefundable amounts, rebooking and rerouting charges, refund/reissue overrides, stopover charges, weekend surcharges etc., and excess baggage charges Amended definitions for Other Charges and Related Charges to align with definitions in the Passenger Services Conference Recommended Practice (RP) 1790 Additional Services to accommodate the new functionality 1508(21NOV08)

13 TERM DEFINITION Status fares fares that are only available to designated categories of passengers after meeting eligibility requirements accompanied by passenger type description Introduced definition for Status Fares to accommodate the split of the HIP application for Normal and Special fares 1511(21NOV08) Deadline reservations: the minimum/maximum number of days/months before the day of departure by which reservations must be confirmed ticketing: the minimum/maximum number of days/months before the day of departure or the minimum/maximum number of hours/days after reservation by which payment and ticketing must be completed; issue date of a PTA constitutes the ticketing date Notes Examples added to the definition of Deadline for clarity 1547(18SEP09) ) before departure: the definition refers to the first flight of the pricing unit 2) after departure: the definition refers to subsequent flights of the pricing unit 3) for the purpose of determining a deadline expressed in months it shall mean a period of time before a given date in one month to the corresponding date in a previous month Exceptions Where the corresponding date does not exist in a shorter, earlier month, then the month(s) shall mean from a given date in one month to the last day of such shorter earlier month. For example: Departure Date = 30 March One month before departure = 28/29 February When the 'given date' is the last day in one month, then the corresponding date in an earlier month

14 must be the same date, with the exception of earlier months that do not have that same date. For example: Departure Date = 31 March One month before departure = 28/29 February Departure Date = 28/29 February One month before departure = 28/29 January Departure Date = 30 April Three months before departure = 30 January Departure Date = 31 July One month before departure = 30 June Budget Fare (for travel wholly within Europe) special economy restricted fares Definition of Budget Fare deleted with the cancellation of the fare in light of introduction of Flex Fares 1547(18SEP09) Normal Fare a fare established in the Resolution 040/050/060 series for intermediate/business, first or economy class service and any other fare denominated and published as a normal fare (e.g. C2, F2, Y2, YIF, CIF, FIF). Children's fares and infants' fares which are established as a percentage of the fares referred to above are also considered to be normal fares Definition Normal Fares amended to include fare basis codes for Flex Fares 1547(18SEP09) Local Currency Fares fares and related charges expressed in the currency of the country of commencement of travel; see Resolution 024a for those countries where the US Dollar or euro is used for local currency Definition Local Currency Fares amended to include euro currency fares application 1547(18SEP09) Country of Commencement of Transportation Excess Baggage Charge the country from which travel on the first international sector takes place. If the first international sector is a surface sector, priced as an embedded surface sector, such sector shall constitute travel for the purpose of establishing the Country of Commencement of Transportation Charges applied to baggage checked in excess of free or paid baggage allowance Definition Country of Commencement of Transportation amended to clarify technical processing of cases where the first international sector of a journey is an embedded surface sector Definition Excess Baggage Charges introduced for clarity 1595(02NOV10) 1595(02NOV10)

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16 RESOLUTION 012c FARE CONSTRUCTION RULE ACRONYMS Effective 1 xxx 2013 (to be determined with HIP package) (Tier 1) Content Explanations/Notes Original Memo Original Docket Acronym Name Resolution/Reference Fares Applicable Fare BHC One Way Back Haul check 017c Paragraph 6) Normal Special day of week, seasonality (including blackout dates), flight application, number of stopovers, number of and transfers limitations, routing validation Clarified the application of stopover and transfer rules for the One Way Back Haul check(bhc) and Higher Intermediate Point check (HIP) 1330(25JUL06) CTM Circle Trip Minimum check 017b Section C, 3) Normal Special day of week, seasonality (including blackout dates) EMA Extra Mileage Allowance 017c Attachment C EMS Extra Mileage Surcharge 017c Paragraph 2) a) i) HIP Higher Intermediate Point check 017c Paragraph 5) a), b) Normal Special day of week, seasonality (including blackout dates), flight application, number of stopovers, number of and transfers limitations, routing validation References to the HIP application added for clarity 1532(3JUL09)

17 MPM RWM TPM Maximum Permitted Mileage Round the World Minimum Ticketed Point Mileage 011 Section E 017b Section C, 3) same as CTM 011 Section D

18 RESOLUTION 017a CONSTRUCTION RULES FOR JOURNEYS Effective 1 xxx 2013 (to be determined) (Tier 1) Content Explanations/Notes Original Memo Original Docket RESOLVED that, SECTION A - APPLICATION 1) a) the fare for a journey (excluding side trips assessed separately) shall be the lowest of i) a single pricing unit for the journey, or ii) any series of end-on combined pricing units which collectively comprise the journey being travelled b) to determine the fares for Paragraph 1)a) above using normal fares refer to the flow chart attached hereto 2) fares to be assessed for the total journey shall be the applicable fares effective on the date of departure on the first sector a) if the routing of the journey is determined as fulfilling the definition of a round trip or circle trip or normal/special fare open jaw trip in Resolution 012, the pricing unit must be assessed as a round trip or circle trip or normal/special fare open jaw trip and must use half round trip fares; the use of one way fares is not permitted. For end-on combination of normal and special fares, completely separate the special and normal fare and assess the normal fare subjourney according to the flow chart Example: Travel LON-MIL-STO-LON Construction LON-MIL ½ RT ) MIL-STO ½ RT ) 1 pricing unit LON-STO ½ RT ) OW fares not permitted as travel is continuous, circuitous and returns to same point CTM check LON-MIL RT and LON-STO RT last fare component from country of origin b) if there is a common point/country on the routing the journey may be broken into more than one pricing unit provided these must be for return subjourneys Removed reference to normal/special fare open jaw trip 1268(23AUG05)

19 using half round trip fares Example: Travel HEL-BKK-TYO-SEL-TYO-BKK-HEL Construction could be HEL-BKK RT 1 pricing unit BKK-TYO RT 1 pricing unit TYO-SEL RT 1 pricing unit or HEL-TYO RT 1 pricing unit TYO-SEL RT 1 pricing unit or HEL-BKK RT 1 pricing unit BKK-SEL RT 1 pricing unit c) i) a return subjourney only occurs if the fare is broken more than once at the common point/country. The fare for travel between such fare break points must be priced as a round trip, circle trip or normal/special fare open jaw, as applicable, and must use half round trip fares Example: Travel NYC-LON-JNB-MAN-NYC Construction could be NYC-LON ½ RT ) NYC-MAN ½ RT ) 1 pricing unit LON-JNB ½ RT ) MAN-JNB ½ RT 1 pricing unit both subjourneys fall within definition of OJ (note that above journey could also be constructed as NYC-JNB RT) ii) if travel between such fare break points would require the use of one way fares, this is not permitted Example: Travel NYC-LON-RIO-JNB-MAN-NYC Construction could not be NYC-LON ½ RT) ) NYC-MAN ½ RT) ) LON-RIO OW ) not possible RIO-JNB OW ) MAN-JNB OW ) travel LON-RIO-JNB-MAN is not within definition of OJ use of OW fares not permitted total journey falls within definition of CT and may only be constructed as a single pricing unit d) fares shall be assessed in the direction of travel, except that the fare

20 component into the country of pricing unit origin shall be in the direction from such country, i.e. not in the direction of travel Example 1: Travel FRA-MAD-JNB-MAD-FRA Construction could be FRA-JNB RT 1 pricing unit or FRA-MAD RT 1 pricing unit MAD-JNB RT 1 pricing unit Total of 2 pricing units component JNB-MAD must be in the direction from MAD to JNB Example 2: Travel SYD-SIN-BNE-SYD Construction could be SYD-SIN RT 1 pricing unit or SYD-SIN ½ RT ) BNE-SIN ½ RT ) 1 pricing unit BNE-SYD ½ RT ) Total of 1 circle trip pricing units component SIN-BNE must be in the direction from BNE to SIN because the fare component is back in to country of pricing origin 3) a)if the routing of the journey is determined as fulfilling the definition of a normal/special fare open jaw trip in Resolution 012, the pricing unit shall be assessed as two half round trip fares, provided that, if there is a common point(s) or other points in either the country of origin or the country of turnaround or both, the fare may alternatively be assessed as a return subjourney from/to the common point(s) or other points and a one way subjourney(s) for the domestic sector(s) Added example to ensure clarity for the direction of domestic fares ticketed as a part of an international journey Removed the entire paragraph for normal/special fare open jaw trip 1596(02NOV10) 1268(23AUG05) b) in the case of the alternative pricing option the one way pricing unit must be assessed using one way fares and the return subjourney must be assessed using half round trip fares c) fares shall be assessed in the direction of travel, except that the fare component into the country of pricing unit origin shall be in the direction from such country, i.e. not in the direction of travel 4 3)a) if the routing of a journey is determined as not fulfilling the definition of round trip or circle trip or normal/special fare open jaw trip, it shall be assessed as follows, subject to the routing Deleted reference to normal/special fare open jaw trip and added assessment process using half round trip fares 1268(23AUG05) i) as a one way journey

21 ii) as a series of one way subjourneys iii) as a round trip, or circle trip journey with the surface sector assumed flown iv) as an open jaw using two half round trip fares (subject to Paragraph 2) d) above) v) if there is a common point/country - as a mix of one way subjourney and a return subjourney (subject to Paragraphs 2)c) and 2)d) above) Example: Travel PAR-ATH Construction PAR-ATH OW 1 pricing unit does not qualify for RT, CT or normal fare OJ vi) if there is a common point/country - as a mix of side trip and a return subjourney (subject to Paragraphs 2)c) and 2)d) above) Added an example to to ensure clarity for one way (OW) fare in a side trip 1596(02NOV10) Example: Travel MAN-LON (/-PAR-LON) NCE-MAN Construction MAN-NCE RT 1 pricing unit PAR-LON OW 1 pricing unit does not qualify for RT, CT or normal fare OJ. PAR-LON must be in the direction PAR to LON as the side trip is considered separate. Example: Travel PAR-BKK-VIE-ROM Construction could be PAR-BKK OW 1 pricing unit BKK-VIE OW 1 pricing unit VIE-ROM OW 1 pricing unit or PAR-BKK OW 1 pricing unit PAR BKK ½ RT) BKK-ROM OW 1 pricing unit ROM BKK ½ RT) 1 pricing unit or PAR-BKK ½ RT) VIE-BKK ½ RT) 1 pricing unit VIE-ROM OW 1 pricing unit * no return to country of origin (Europe in accordance with Resolution Clarified the correct application by amending and adding examples. It deals with the Europe should be considered as one country for Normal open jaw and the directionality of pricing units. 1547(18SEP09)

22 017b Section D 1) a), fares in the direction of travel from the country of origin Example: Travel STO-NBO XXX SEZ-NBO-STO Construction could be STO-NBO OW ½ RT) 1 pricing unit STO-SEZ OW ½ RT) 1 pricing unit (subject to international turnaround surface sector TPM check in accordance with Resolution 017b Section D 1) c) iii) aa) or STO-NBO RT 1 pricing unit SEZ-NBO OW 1 pricing unit or STO-SEZ RT 1 pricing unit Example 1: Travel KHH-TPE-SIN-TPE Construction could be KHH-SIN ½ RT ) TPE-SIN ½ RT ) 1 pricing unit or KHH-TPE OW 1 pricing unit TPE-SIN RT 1 pricing unit whichever is the lower Example 2: Travel KHH-TPE-JKT-DPS XXX JKT-TPE Construction could be KHH-DPS ½ RT ) TPE-JKT ½ RT ) 1 pricing unit or KHH-TPE OW 1 pricing unit TPE-JKT RT 1 pricing unit JKT-DPS OW 1 pricing unit Clarified the correct application by amending and adding examples. It deals with the Europe should be considered as one country for Normal open jaw and the directionality of pricing units. 1547(18SEP09) or or Example 3: Travel KHH-TPE OW 1 pricing unit TPE-DPS ½ RT ) TPE-JKT ½ RT ) 1 pricing unit KHH-JKT ½ RT ) TPE-JKT ½ RT ) 1 pricing unit JKT-DPS OW 1 pricing unit whichever is the lower GLA MAN ROM LON

23 Construction could be GLA-ROM ½ RT ) LON-ROM ½ RT ) 1 pricing unit or GLA-MAN OW 1 pricing unit MAN-ROM ½ RT ) LON-ROM ½ RT ) 1 pricing unit b) in the case of i), ii) and the one way subjourney in iv) and v) above, the journey/subjourney must be assessed using one way fares; the use of half round trip fares is not permitted c) fares shall be assessed in the direction of travel, except that when a pricing unit for a one way subjourney terminates in a country from which a previous pricing unit has been assessed, the pricing unit for the one way subjourney into such country shall be assessed from such country, i.e. not in the direction of travel Examples: 1. Travel ATL-LON-STO-LIS-GLA ATL-SEL-SYD-BJS-PUS Construction ATL-LON ATL-SEL OW 1 pricing unit LON-STO SEL-SYD OW 1 pricing unit STO-LIS SYD-BJS OW 1 pricing unit GLA-LIS PUS-BJS OW 1 pricing unit Total of 4 pricing units fare component LIS-GLA BJS-PUS must be in the direction of GLA-LIS PUS-BJS because the termination point (GLA PUS) is in the same country from which a previous pricing unit (LON- STO SEL-SYD) was assessed 2. Travel : PAR BKK AMS /- BRU NCE Construction PAR BKK ½ RT) AMS BKK ½ RT) 1 pricing unit NCE BRU OW 1 pricing unit Total of 2 pricing units Fare component BRU-NCE must be in the direction of NCE-BRU because the termination point (NCE) is the unit origin country of the previous pricing (PAR-BKK-AMS). 3. Travel : ZRH CAI MUC /- DXB FRA Construction a) ZRH CAI ½ RT) FRA DXB ½ RT) 1 pricing unit CAI MUC OW 1 pricing unit Total of 2 pricing units Clarified the correct application by amending and adding examples. It deals with the Europe should be considered as one country for Normal open jaw and the directionality of pricing units. 1547(18SEP09)

24 Fare component CAI-MUC must be in the actual direction of travel because the termination point (MUC) is not in the country of unit origin of the previous pricing unit (ZRH-CAI surface DXB FRA). Construction b) ZRH CAI ½ RT) MUC CAI ½ RT) 1 pricing unit DXB FRA OW 1 pricing unit Total of 2 pricing units Fare component DXB-FRA must be in the actual direction of travel because the termination point (FRA) is not in the country of unit origin of the previous pricing unit (ZRH-CAI-MUC). 4) in applying the provisions of Subparagraphs 2)d) and 3)c) except for round trip pricing units, fare components between Canada and USA and between Denmark, Norway, Sweden shall be assessed in the direction of travel 5) fare construction must be via the itinerary of the passenger. The addition of points not on the passenger's itinerary is not permitted Exception: constructions using add-ons 6) Unpublished Fares when it is necessary to establish a fare between any two ticketed points on a journey, the following provisions shall apply, subject to Section B, Paragraph 4: a) the fare shall be the lowest combination of sector fares over an intermediate ticketed point for the class of service used b) the fare shall be constructed in the direction of travel, except that when the fare is for a fare component which terminates in the country of unit origin or in a country from which a previous pricing unit has been assessed, the fare shall be in the direction from the country, i.e. not in the direction of travel c) if the same construction point is used for the outbound and inbound fare, the fare shall be constructed in accordance with Section B, Paragraph 1 Example: i A to B to C to D to A ii A to D to C to B to A Fares: A to B 50 B to A 45 B to C 40 C to B 50 C to D 60 D to C 90 D to A 90 A to D 50 No fare A to C No fare C to A Construction: i A to B 50 + B to C 40 + C to D 60 + A to D 50 = Total 200 Corrected reference consequent to removal of a paragraph 1268(23AUG05)

25 ii A to D 50 + D to C 90 + C to B 50 + A to B 50 = Total 240 d) the fares used must be shown separately on the ticket e) for purposes of fare construction checks, a fare need not be constructed over another ticketed point when there are no published fares to/from/between an intermediate point(s) in the routing. 7) Fares Expressed as a Percentage when fares are expressed as a percentage of another fare and different percentages apply in a pricing unit, the following rule applies: a) apply the percentage to the base fare to establish the fare level as an amount b) use such fare level for the application of all fare construction rules Example: A - B - C - D - A children's fare: A - C 50% of adult fare B - C 67% of adult fare A - D 50% of adult fare * calculate amounts resulting from application of above percentages * apply HIP/CTM etc rules using the resultant levels 8) a journey on a ticket or conjunction ticket, at the time of original issue or when reissued, must not include more than four international arrivals and four international departures in any one country; provided for the counting of arrivals and departures surface sectors are considered to be flown Example: AMS-CAI-RTM-LON-AMS-DXB-AMS-JNB-AMS-BAH This journey is not allowed to have five international departures from the Netherlands 9) unless otherwise specified, for the purpose of: Resolution 017a (except Section A Paragraphs 6 5 and 8 7, Section B Paragraph 3) Resolution 017b Resolution 017c (except Paragraph 3) Resolution 017f (except Section B Paragraph 1, Section C, Section D) a) Canada and USA shall be considered as one country Corrected reference consequent to removal of a paragraph 1268(23AUG05)

26 b) Scandinavia shall be considered as one country SECTION B - COMBINATIONS 1) a) combinations are only permitted with fares which by their own terms are combinable Exception: combinations to/from USA b) fares used in combination are to be shown separately on the ticket 2) round the world: one way special fares shall not be used to calculate fares for round the world travel 3) combination of one way normal pricing units with international side trip one way pricing units to or via the country of commencement of transportation shall not be permitted 4) combination of fares USA: nothing precludes the combination of international fares and normal/special fares within USA provided that any conditions attached to such fares are complied with; stand-by fares must not be so combined 1268(23AUG05) Flowchart Attachment replaced as attached

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28 RESOLUTION 017e MIXED CLASS Effective 1 May 2013 (Tier 1) Content Explanations/Notes Original Memo Original Docket A GENERAL 1) mixed class travel is when an itinerary involves travel in two or more classes of service 2) in assessing the fare for the mixed class transportation, special fares must not be used 3) the application of this Resolution shall not be used to circumvent any stopover/transfer restrictions applicable to the through fare for the lowest class of service used 4) differentials are assessed in the same direction as the fare used for the lowest class of service 5) when half round trip fares are used, differentials are assessed using half round trip fares. When one way fares are used, differentials are assessed using one way fares 6) class differential calculation is only subject to the HIP check, no further minimum checks apply 7) when comparing normal fares of the 'same class of service', in order to determine the fares to be used in a class differential calculation, the following sequence shall apply if no sleeper seat fare, use first class fare; if no first class fare, use intermediate class fare; if no intermediate class fare, use economy class fare; provided that where more than one economy class fare is published, use the highest economy class fare; Example Routing: SIN C LAX F CHI when calculating the class differential for LAX to CHI, if there is no intermediate Mixed class calculation sequence clarified for the fares to be used 1268(23AUG05)

29 class fare for this sector, the highest economy fare shall be used, i.e. LAX-CHI F- Y = D B FARE CALCULATION 1) establish the fare for the itinerary in the lowest class of service used applying all applicable fare construction checks; provided that if no fare is found in the lowest class of service used, drop down to the next lower class of service common to all the fare components of the pricing unit Example: TYO C SEL F TSN C DLC C TYO (sector fares) when there is no C fare available for SEL TSN, calculate with Y fare for the entire pricing unit and apply CTM check using Y fare 2) establish whether as a result of 1) above the mixed class sector(s) a) apply within a fare component, or b) constitute an entire fare component, or c) constitute an entire pricing unit Clarified the application of Mixed class travel by adding an example 1547(18SEP09) C MIXED CLASS SECTOR(S) WITHIN A FARE COMPONENT 1) if the calculation in the lower class of travel establishes that the mixed class sector(s) fall within a fare component, the differential for the sector(s) travelled in a higher class shall be the lowest of the following a) the difference between the lower class fare for the sectors flown in the higher class and the fare for the higher class of travel on those sectors b) the difference between the applicable fare for the fare component in the lower class of service and the applicable fare for the fare component in the higher class of service Example LON-BKK-HKG-LON class of service Y except BKK-HKG F fares (half RT in NUC) First Economy LON-BKK LON-HKG BKK-HKG the fare shall be assessed in economy class: the differential shall be the lowest of LON-HKG-LON RT = NUC a) BKK-HKG F less

30 BKK-HKG Y Differential b) LON-HKG F less LON-HKG Y Differential the total fare shall be LON-HKG-LON RT Y Plus differential TOTAL ) for consecutive sectors within a fare component travelled in a higher class of service, the difference shall be the lower of a) the difference between the lowest applicable fare for the lowest class of service used and the lowest applicable fare for the higher class of service used, or b) lowest applicable through fare for the lowest class used for the sectors concerned and the lowest applicable through fare for the higher class used for such sectors Example Travel BKK HKG C SIN F ZRH F sum of the through C fare plus lower differential of the following Calculation 1 HKG-SIN F Fare HKG-SIN C Fare difference SIN-ZRH F2 Fare SIN-ZRH C Fare Difference total difference Calculation 2 HKG-ZRH F Fare * HKG-ZRH C Fare difference (*subject to mileage rules and HIP check) the differential to be applied shall be

31 D AN ENTIRE FARE COMPONENT IN A HIGHER CLASS if the calculation in the lower class of travel establishes that the mixed class sector(s) constitute an entire fare component(s), the differential shall be the difference between the applicable fare for the lower class of travel for the fare component and the applicable fare for the higher class of travel for the fare component Example LON-BKK-HKG-LON Class of service Y except HKG-LON F fares (half RT in NUC) First Economy LON-BKK LON-HKG BKK-HKG the fare shall be assessed in economy class LON-HKG-LON RT Y the differential shall be LON-HKG F less LON-HKG Y differential TOTAL E AN ENTIRE PRICING UNIT IN A HIGHER CLASS 1) if the calculation in the lower class of travel establishes that the mixed class sector(s) constitute an entire Pricing Unit, the differential shall be the difference between the applicable fare for the lower class of travel for the Pricing Unit and the applicable fare for the higher class of travel for the Pricing Unit 2) in applying this methodology the resultant level will only be applied if it gives a lower level than other calculations Example LON-BKK-HKG-BKK-LON Class of service LON-BKK-LON F BKK-HKG-BKK Y Fares (RT in NUC) First Economy LON-BKK LON-HKG BKK-HKG the fare shall be LON-BKK RT Y plus differential LON-BKK RT F less LON-BKK RT Y

32 plus BKK-HKG RT Y TOTAL