Application of Tariff

Application of Tariff Application of Tariff 3 Applicability of Fares (Extracted from IATA Reso 017) 4 Different carriers in a fare 4 Normal Fares 4 Special Fares 4 Cabotage Fares 4 Fares Established as a Percentage 5 Validities and Counting 6 Validity of Ticket 6 Validity of Fares 6 Counting of Days 6 Counting of Month(s) 7 Counting of Year 7 Minimum Stay 8 Maximum Stay 8 Stopovers and Transfers 9 General Stopover Rule 9 Definition of Stopovers 9 Definition of Transfers 11 Published Fares and Add-On Amounts 12 Mileage System / Routings 13 Mileage Calculation 12 Applicable Fare when Mileage exceeded 12 Surface Transportation (Gaps) 13 Mileage Exceptions 15 Excess Mileage Allowance (EMA) 18 Special EMAs for LH and UA 17 Interrupted Travel 20 General Rule for Interrupted Travel 19 Interrupted Travel with Normal Fares 19 Fare construction 22 Fare construction principles - how to proceed 21 Basic fare construction principles 21 Pricing Unit Concept 24 Definitions 23 Sequence of checks 24 Applicable fares 24 Constructed fares 24 Add-on constructions 25 Add-on application 25 C/ construction to establish unpublished fares 25 Fares based on a Percentage of another Fare 25 Comparing fares with global indicators 28 Construction Rules For Journeys 31 General 30 How to determine the Fare for a Journey 30 "Slicing" and "Dicing" an Itinerary 30 Round, Circle, Open Jaw Trip Journeys 30 RT, CT, OJ Journeys with common Point/Country 31

Fare Direction for RT, CT, OJ Journeys 31 OJ Journeys - alternative Option for Assessment 31 Journeys other than Round, Circle, Open Jaw Trips 31 Journey Limitations on Indirect Travel 32 Arrivals and Departure in one Country 32 Construction Rules for Individual Pricing Units 34 OW Pricing Units 33 Minimum checks for OW pricing units 34 Round Trip Pricing Units 34 Circle Trip Pricing Units 35 Definition of a CT 35 Circle Trip Construction 35 Circle Trip Minimum Fare Check (CTM) 35 Unreasonable connections 38 Normal Fare Open Jaw Pricing Units 40 Definition of normal fare OJ 39 Fare construction for normal fare open jaw 39 Minimum checks for Fare Open Jaws 42 Directional Minimum Check 41 Common Point Minimum Fare Check (CPM) 41 Special Fare Open Jaw Pricing Units 43 Definition of Special Fare OJ 42 Fare construction for special Fare open Jaw 42 Construction Rules for Fare Components flown in one Class of Service 44 General 43 General Provisions for fare components 43 Limitations on Indirect Travel 45 General Limitations 44 Additional limitations at the origin point 44 Additional limitations at intermediate points 44 Additional Limitations by Country 44 Journey limitations 45 Fare components with a surface sector(s) 47 Fare Calculation 46 Normal fares 46 Higher Intermediate Point (HIP) Check 48 HIP check for normal and special fares 47 HIP exceptions by countries 47 HIP check - normal fares 48 HIP check - special fares 50 Fares Guarantee (IATA Reso 049x) 53 Refunds and Reroutings (IATA Reso 017f) 55 Section A - General 54 Section B - Voluntary Reroutings (for partly used Pricing Units) 54 Voluntary Rerouting of Totally Unused Tickets 55 Section D - Refunds (for partly used tickets) 55 Application of Cancellations and Refunds as of 08MARCH2010 Definition of "HIGHER FARE" Surface Sectors 62 Imbedded surface sector 61 Fare construction surface sector 61 2

Surface sector provisions 61 Combination 63 End-on combination 62 Side trip combination 62 Local combination 63 Combination of USA domestic fares with international fares 63 Mixed Class Construction 66 General 65 MIXED CLASS EXCEPTIONS: 68 Mixed Class Fare Checks 68 Normal Fare Flow Chart 70 General Notes: 70 Summary of steps and checks 72 3

Applicability of Fares (Extracted from IATA Reso 017) The fare paid is only applicable when international travel actually starts in the country of the point of origin shown on the ticket. Different carriers in a fare If, in the particular routing, travel is not limited to one or more specified carrier(s), transportation may be on the service of any participating and connecting carrier. The publication of a routing does not imply the existence of a service or that traffic rights are granted. Therefore, the schedules of carriers must always be consulted when making routing. Normal Fares Full fares for a First/Business/Economy Class service and restricted fares published as normal fares (e.g. F2, C2, Y2 ect.). Children and infant fares which are established as a percentage of a normal fare are also considered to be normal fares. These Fares bare the Fare Type Codes FU/FR/FS/FT, BU/BR/BS/BT and EU/ER/ES/ET. Special Fares Any fare other than normal fare. Cabotage Fares Are fares for transportation between the territories of the same state (e.g. Paris to Reunion). These fares are not applicable for transportation by all carriers. British Cabotage Journeys between the following territories are British Cabotage and traffic is restricted to British airlines which have authority to issue tickets on foreign airlines under certain circumstances. Bermuda, British Virgin Islands, Caicos Islands, Cayman Islands, Gibraltar, Montserrat, Turks Islands, United Kingdom Dutch Cabotage Between and within Netherlands, Netherlands Antilles and Aruba. French Cabotage Between and within Continental France, Corsica, French Guiana, Guadeloupe (including St. Barthelemy, Northern St. Martin, Les Saintes, La Desirade, Marie- Galante-Grand-Bourg), Martinique, Mayotte, Reunion, St. Pierre and Miquelon, New Caledonia (including Loyalty Islands), French Polynesia (including Wallis and Futuna). 4

USA Cabotage Journeys between the following territories are U.S. Cabotage Points: American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnson Atoll, Kingman Reef, Midway Island, Northern Mariana Island, Puerto Rico, Saipan, Swains Island, Pacific Trust Territories, Palmyra Island, Panama Canal Zone, US Virgin Islands, Wake Island. Fares Established as a Percentage When fares are expressed as a percentage of another fare and different percentages apply on a journey, apply the following procedures: - apply the percentage to the base fare to establish a nominal fare level - use the nominal fare level for application of all fare construction rules Example: Journey A-B-C-D Children s fare: A-C 50% of the adult fare A-D 50% of the adult fare B-C 67% of the adult fare B-D 67% of the adult fare Calculate amounts resulting from the application of the above percentage. Using these amounts, apply minimum fare checks (HIPs, CTMs...) 5

Validities and Counting Validity of Ticket A ticket is valid one year after issuance. If the travel starts later than ticket issuance, the validity is one year form the date of the first flight (departure). Exceptions: - for tickets paid for in the currencies of Colombia, Gambia, Ghana, Sierra Leone, Zambia, travel must be commenced within one month after the date of issuance - within Japan: International tickets issued for wholly domestic travel in Japan on which reserved status is shown will be valid only for the flight for which the reservation is made; open dated tickets are valid for 60 days (via NH 90 days) from date of issue - tickets issued for only seasonable services will be valid only for this use - tickets for domestic transportation may have a shorter validity - via SA: normal fare tickets issued for wholly domestic journeys within South Africa and Southwest Africa by SA are valid for six months Once the validity is fixed, such validity will be basic for any reissue or rerouting. Validity of Fares Normal OW, RT or CT fares are valid one year. The validity of special fares is described in the respective rules. If normal and special fares are combined in one ticket, such shorter period of validity shall apply only with respect to such special fare transportation, unless the shorter accordance with the combination of rules for the special fare in question. Counting of Days Departure for each flight coupon must be scheduled before midnight local time of expiry date on such flight coupon. In case of minimum stay requirements, the day to which the minimum stay is related shall not be counted. Examples: - travel under an open ticket issued 01OCT must be commenced not later than midnight of 01OCT of the year following - if travel under flight coupon No. 1 with an international flight commenced 01OCT, the last flight coupon of the ticket must be used for a flight scheduled to depart not later than midnight 01OCT of the year following, provided a normal fare is involved - for special fares the simplest way to determine minimum and maximum stay is to add the number of days to the dates from which they must be counted 6

e.g.: 14/45 days Excursion Fare commencement of journey 07JUN minimum stay 14 days related to arrival at turnaround point = 08 JUN maximum stay: 45 days Minimum stay: 07JUN Maximum stay: 07JUN + 14days + 45days ---------- ---------- = 21 JUN = 52-30 (30 for JUN) ------------------------ = 22 JUL Counting of Month(s) Validity of one month means a period of time from a given date in one month to the corresponding date in a subsequent month, e.g.: - 1-month validity 01JAN 01FEB or 30JAN 28FEB - 2-month validity 15JAN 15MAR Exception: When the given date is the last day of the month the corresponding date will also be the last day of that month: 02-month validity 28FEB 30APR Counting of Year Validity of one year means a period of time from a given date in one year to the corresponding date in a subsequent year, e.g.: 01JAN99 01JAN00 7

Minimum Stay - Transatlantic/Transpacific: The number of days, counting from the day after departure on the outbound Transatlantic/Transpacific sector to the earliest day of return Transatlantic/Transpacific travel may commence from the last stopover point outside the country of origin (here including the point of turnaround) - all other travel: The number of days counting from the day after departure, on the first outbound international sector to the earliest day return travel may commence from the last stopover point outside the country of origin (here including the point of turnaround) Exception: Between Europe and Cyprus/Israel - Sunday Return Rule: Return travel from the last stopover point outside the country of origin must not be commenced before 0001 hours on the Sunday following the day of departure from the country of origin - when fare rule quotes a minimum number of days to be spent in or at a specific area, country or city, such duration is counted from the day after day of arrival to the earliest day return travel may commence - Transatlantic/Transpacific to/from USA/Canada Lufthansa: To/from Canada: return travel from the last point of stopover may not commence prior to the minimum stay period stated in the rule, after the date of departure from the point of origin. To/from USA: return travel from the last point of stopover may not commence prior to the minimum stay period stated in the rule, after departure of the outbound Transatlantic sector. Maximum Stay - the number of days counting from the day after departure, to the last day return travel may commence from the last stopover point - Transatlantic/Transpacific to/from USA/Canada Lufthansa: To/from Canada: return travel on the last continuous sector must commence by midnight of the last day of the maximum stay period stated in the rule, after the date of departure from the point of origin To/from USA: return travel from the last stopover must commence by midnight of the last day of the maximum stay period stated in the rule, after the date of departure from the point of origin 8

Stopovers and Transfers General Stopover Rule Stopovers are permitted at passenger s request at any scheduled stop of an aircraft if arranged and ticketed in advance. Exceptions: No stopovers are permitted if: - a carrier has no traffic rights - the fare does not permit stopovers - the routing regulations do not permit stopovers Limitation on stopover has to be observed if: - a fare used limits for stopovers - carriage is wholly within the USA or when US domestic fares are used in combination with other fares. Stopovers in USA are only permitted upon payment of the sector fare via the stopover point - travel in IC-services within India, stopover restrictions are to be respected Definition of Stopovers IATA Reso 012: Definition Stopover:: When a passenger arrives at an intermediate point and is scheduled to depart later than 24 hours after arrival (local time) Exception: for travel wholly within Central America or for travel wholly between Central America and Panama: when a passenger arrives at an intermediate point and is scheduled to depart later then 6 hours after arrival (local time). Attn: there may be exceptions by carrier. When a transit point is used as the origin, destination of a side trip, that point will be counted as a stopover 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. Specific Conditions for Travel at Fares within Area 1 Tickets sold in Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay in the country s own currency may not provide for a stopover in that country once the passenger has left it, if the ticket includes travel outside Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay, unless otherwise specified in a fare rule, en-route stopovers are permitted free and all RT fares permit a free stopover at the point of turnaround fare construction point. Counting of Stopovers - in case of RTs or CTs, the stopover at point of turnaround (fare construction point) is not counted - in case of turnaround OJ trips, the outward point of arrival and the inward point of departure is one stopover which is not counted 9

- a transit point used as the origin, destination of a sidetrip will be counted as a stopover unless the time interval between the arrival immediately preceding the sidetrip and the departure immediately following the sidetrip does not counted as one stopover - when one or more portions of travel are by surface transportation, the last point of arrival by air and the first departure by air on each such surface break count together as 1 stopover if the time interval between arrival immediately preceding the surface sector and departure following the surface sector constitutes a stopover, provided that: - if stopovers are restricted to a specific area and there is a surface sector involved, both points in the surface sector must be in the specific area - where a specific routing permits stopovers at named points, both points of the surface sector must permit stopovers - surface sectors are permitted between two named transfer points in a routing - if one point has a stopover charge the charge must be assessed, if both points have stopover charge only one (the higher level) is assessed. Counting of stopovers in an OJ trip, based on a special fare rule which prohibits stopovers but allows OJ: Examples: Counting of stopovers in an OJ-trip, based on a special fare rule which prohibits stopovers but allows OJ: FRA CHI X NYC FRA 876.50 NUC 755.26 NUC Explanation: CHI and NYC together are regarded as stopover at the point of turnaround which is not counted as a stopover Counting of stopovers in case of surface sectors, based on a rule which permits 1 stopover only, passenger wants to stop in GOA and TRN and travel GOA-TRN by surface: relevant fares NUC PAR PAR-ROM 815.86 ROM PAR-GOA 627.32 GOA PAR-TRN 603.19 X (train) TRN PAR Explanation: In case of a surface break within a fare component, the origin of the surface (GOA) and the terminal point of the surface (TRN) together count as one intermediate point stopover. 10

General Transfer Rule Transfers may be limited by the fare rule, normal fares have no transfer limitations. Definition of Transfers A transfer takes place when a passenger changes the aircraft. Iata Reso 012: Definition Stopover:: When a passenger arrives at an intermediate point and is scheduled to depart later than 24 hours after arrival (local time) Exception: for travel wholly within Central America or for travel wholly between Central America and Panama: when a passenger arrives at an intermediate point and is scheduled to depart later then 6 hours after arrival (local time). Attn: there may be exceptions by carrier. Counting of Transfers Whenever transfers are limited by a special fare rule, the following applies: - a transfer is permitted at the point of turnaround/fare construction point and this transfer will not be counted - if a transfer is restricted to a specific area and there is a surface sector involved, both points in the surface sector must be in the specific area - where a specific routing permits transfers at named point(s), both points of the surface sector must permit transfers - where there is a surface break, the last point of arrival by air and the first point of departure together count as one transfer, unless the surface break terminates in or commences from the point of turnaround (fare construction point) 11

Published Fares and Add-On Amounts Where no published direct fare exists between 2 points over the required routing, a through fare can be constructed by means of add-on amounts: - add the add-on amount to the published fare between the origin/destination and the add-on gateway city - only one add-on amount at each end of a published direct fare may be used - the add-on amount to be used must applicable for the same class as the published fare to which it is added - a fare constructed with add-on is regarded as a published through fare and must be shown in the ticket as one single amount - such through fare will then be subject to all rule conditions appl9icable to the international fare used in the construction. Add-on must not be separately sold/ticketed as a sector fares Mileage System / Routings MPM: TPM: Maximum permitted mileage Ticketed point mileage (effective mileage between two ticketed points of the routing) Mileage Calculation - add up the TPM for all ticketed sectors between the terminal points of the through fare - compare the sum of the TPM with the MPM - sectors travelled by surface within a through fare must be included. If a TPM is not published for the surface sector, the lowest combination of TPMs over another point may be used - TPMs and MPMs must be used into the global direction according to the fare Applicable Fare when Mileage exceeded Where the TPM is in excess of the MPM by: Over Up to and including The fare shall be the direct route fare plus 5% 5% 5% 10% 10% 10% 15% 15% 15% 20% 20% 20% 25% 25% Over 25% lowest combination Note: permitted mileages calculated in accordance with above procedures shall be rounded down to the next lover whole mile. 12

Example: Mileage calculation for a return indirect journey: Routing Relevant miles OSL TPM OSL-CPH 314 CPH TPM CPH-DUS 422 DUS TPM DUS-PAR 289 PAR TPM PAR-GVA 250 GVA ------- LON 1275 CPH OSL MPM: OSL-GVA 1173 TPM GVA-LON 466 TPM LON-CPH 594 TPM CPH-OSL 314 ------ 1374 MPM: OSL-GVA 1173 Explanation: In case of return journeys, the journey is divided in 2 parts, an outbound and an inbound part. For each part, a separate mileage calculation is done. On the outbound part TPM (1275) exceeded MPM and a surcharge of 5% has to be collected. On the inbound part, a 20% surcharge is applicable. Surface Transportation (Gaps) In calculating the mileage for a through fare via indirect routings, surface transportation (at the passenger's expense) may be included between the following intermediate points ignoring the mileage between such points. Area 2 Between : and : Alghero (AHO) Olbia (OLB) Alicante (ALC) Murcia (MJV) Alicante (ALC) Valencia (VLC) Almeria (LEI) Malaga (AGP) Amman (AMM) Jerusalem (JRS) Amritsar (ATQ) Lahore (LHE) Amsterdam (AMS) Rotterdam (RTM) Antwerp (ANR) Brussels (BRU) Barcelona (BCN) Gerona (GRO) Barcelona (BCN) Reus (REU) Basle (BSL) Mulhouse Berlin (BER) Dresden (DRS) Berlin (BER) Leipzig (LEJ) Berne (BRN) Geneva (GVA) Berne (BRN) Zurich (ZRH) Bilbao (BIO) San Sebastian (EAS) 13

Bilbao (BIO) Bilbao (BIO) Bologna (BLQ) Brazzaville (BZV) Bremen (BRE) Bremen (BRE) Catania (CTA) Cologne (CGN) Cologne (CGN) Cuzco (CUZ) Dresden (DRS) Dubai (DXB) Dusseldorf (DUS) Florence (FLR) Granada (GRX) Hamburg (HAM) Hamburg (HAM) Hanover (HAJ) Jerez de la Frontera (XRV) La Coruna (LCG) Larnaca (LCA) Livingstone (LVI) Ljubljana (LJU) Milan (MIL) Munich (MUC) Podgorica, Serbia & Montenegro Santiago de Compostela (SCQ) Split (SPU) Stockholm (STO) Swakopmund (SWP) Venice (VCE) Santander (SDR) Vitoria (VIT) Florence (FLR) Kinshasa (FIH) Hamburg (HAM) Muenster (FMO) Palermo (PMO) Dusseldorf (DUS) Munster (FMO) La Paz (LPB) Leipzig (LEI) Sharjah (SHI) Münster (FMO) Pisa (PSA) Malaga (AGP) Hanover (HAJ) Muenster (FMO) Muenster (FMO) Sevilla (SVQ) Santiago de Compostela (SCQ) Paphos (PFO) Victoria falls (VFA) Zagreb (ZAG) Turin (TRN) Nürnberg (NUE) Tivat, Serbia & Montenegro Vigo (VGO) Zadar (ZAD) Vasteraas (VST) Walvis Bay (WVB) Verona (VRN) Area 1 Between : and : Arica (Chile) (ARI) Tacna (TCQ) Brownsville (BRO( Matamores (MAM) Ciudad Juarez (CJS) El Paso (ELP) Curitiba (CWB) Joinville (JOI) Cuzco (CUZ) La Paz (LPB) Detroit (DTW) Windsor (YQG) Guatemala (GUA) Tapachula (TAP) Guayaramerin (GYA) Porto Velho (PVH) Hilo( ITO) Kona (KOA) Iguassu Falls (Brazil) (IGI) Iguazu (Argentina) (IGR) Laredo (LRD) Nuevo Laredo (NLD) Leticia (LET) Tabatinga (TBT) Livramento (LVB) Rivera (RVY) McAllen (MFE) Reynosa (REX) Paso de los Libres (AOL) Uruguaiana (URG) Puerto Montt (PMC) San Carlos de Bariloche (BRC) 14

San Diego (US) (SAN) Tijuana (TIJ) Area 3 Between : and : Amritsar (ATQ) Lahore (LHE) Guanzhou (CAN) Hong Kong (HKG) Hong Kong (HKG) Macao (QMP) Kabul (KBL) Peshawar (PEW) Nagoya (NGO) Osaka (OSA) Note: The terminal points of the sectors specified above may not be used as fare construction points, points of origin, destination when the mileage calculation is made accordance with above provision. The use of 2 consecutive gaps is prohibited. Mileage Exceptions Europe - Japan/Korea (South) For nonstop travel between Europe and Japan/Korea (South) the TS MPM must be used. When transportation is performed on 1 single flight coupon between Europe and China excl. HKG and another single flight coupon between China excl. HKG and Japan/Korea (South), the EH MP must be reduced by 1000 miles. Area 1 - RIO/SAO With regard to travel wholly within Area 1 which originates, terminates or has a point of turnaround in RIO or SAO the following shall apply: - if the fare to or from RIO falls within the MPM and the fare for the same route to or from SAO exceeds the MPM, the fare to and from the later point need not be surcharged - if the fare to or from SAO falls within the MPM, and the fare for the same route to or from RIO exceeds the MPM, the fare to and from the later point need not be surcharged - if the fare to or from RIO must be surcharged, the fare for the same routing to or from SAO need not take a higher surcharge (or OW) Note: via RG this provision does not apply when both RIO and SAO are in the same fare component. South Atlantic - Area 3 For transportation between Argentina, Brazil, Chile, Paraguay, Uruguay and Area 3 where a passenger travels on a direct single flight coupon service from a point in Argentina, Brazil, Chile, Paraguay, Uruguay to ATL, MIA, YMX, NYC, YTO or WAS and on a direct single flight coupon service from such point to a point in TC3 or v.v. the mileage for these 2 sectors shall be deemed to be equal to the ticketed point 15

mileage between the last point of departure in Argentina, Brazil, Chile, Paraguay, Uruguay to the first point of arrival in Area 3 or v.v. South Atlantic- /Middle East 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, Montreal, New York or Toronto and on a direct single flight coupon service from such a point (i.e. arrival/departure city in North America must be the same) to a point in Middle East or v.v., the mileage for these 2 sectors shall be deemed to be equal to the ticketed point mileage between the last point of departure in Argentina, Chile, Brazil, Paraguay, Uruguay to the first point of arrival in Middle East or v.v. South Atlantic Area - South East Asia When travel is between Argentina, Brazil, Chile, Paraguay, Uruguay and South East Asia via the Atlantic and is: - on a direct service or - not via point(s) in Area 2 other than point(s) in Central Africa, Southern Africa (Indian Ocean Islands) the MPM to apply will be those with the global routing indicator SA Area 3 construction of normal fares to/from interior points in Pakistan When constructing through normal fares to/from interior points in Pakistan by use of add-on amounts over KHI and when transportation on the sector to/from the interior Pakistani point and KHI is on a single flight coupon the following mileage rules will apply: - the mileage for the entire fare component shall be assessed to/from KHI and the fare - construction point in TC3 outside Pakistan - if the routing to/from KHI requires a mileage surcharge such surcharge shall be applied to the through fare for the fare component to/from the interior point in Pakistan and the fare construction point in TC3 outside Pakistan Within Europe Travel between KLU and Switzerland is permitted via FRA at the direct route (raised to FRA level is necessary). 16

Excess Mileage Allowance (EMA) A special mileage calculation procedure applies to define indirect routings. A TPMdeduction is permitted if: EMA applies Mileages specified in the table below 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; provided additional intermediate ticketed points may be added to the routing - only one TPM deduction per fare component is permitted Special EMAs for LH and UA Between And Via TPM Deduction OR/WA BE/FR/DE/NL/GB 470 ANC BE/FR/DE/NL/GB 2600 BOS BE/FR/DE/NL/GB WAS 200 PVD BE/FR/DE/NL/GB WAS 70 Saudi Arabia USA/CA/MX TLV 660 CA Area 2/3 USA 850 Caribbean Europe MIA 1000 Caribbean Europe NYC 300 USA PT FRA/LON/PAR 800 USA Gambia, Congo (FIH), Senegal, BRU 2100 Guinea, Mauritania, USA Benin, Burkina Faso, Cameroon, PAR 1200 Congo (BZV), cote d Ivoire, Gabon, Mali, Niger, Nigeria, Senegal USA Angola LON 300 USA Ghana, Nigeria LON 1000 USA Liberia, Sierra Leone LON-ACC 2600 USA Ghana, Nigeria FRA 1400 USA Togo PAR-DLA 1500 BGO NYC OSL/CPH 50 Points in Alberta, Yukon, British Colombia Europe YMQ/YTO/YOW 400 Points in New Brunswick, Nova Scotia, Prince Edward Island Europe BOS/YMQ/YTO/ YOW 1500 Points in Europe YHZ 700 Newfoundland MD/PA/WAS IE LON 150 17

CLT/NYC/PHL/ LIS MUC 1230 WAS CHI/YTO LIS MUC 900 LAX LIS MUC 220 NYC/PHL/WAS OPO MUC 900 CHI/YTO OPO MUC 570 CLT OPO MUC 790 18

Interrupted Travel General Rule for Interrupted Travel For fare components which include one or more surface sectors, the fare shall be the lower of either: - the total through fare, whereby the mileage of any unused sector must be included in the mileage calculation. In the absence of a direct TPM for an unused sector a TPM must be assessed by combination of TPM over other sectors, or - the sum of sector fares of the sectors actually flown Interrupted Travel with Normal Fares In case of normal fare travel, where the international surface break is greater than the TPM over the routing travelled from the point of origin to the point of commencement of the surface break and the surface break is not included in the through fare, the journey from the point of origin up to the surface break shall be ticketed separately. If a surface break is greater than the routing travelled from the point of origin to the point of commencement of the surface break: - measure the surface break by means of TPM, if not available - divide the MPM between starting point and ending point of the surface break by the factor 1.20 and compare with the total TPM of the routing from the point of origin to the point of commencement of the surface break. Provided there is no shortest operated mileage, the TPM shall be established by a combination of TPM. Examples 1: Fare required for BCN MRS surface NCE-GVA Calculation1: direct fare BCN-GVA (MPM 474; NUC 237.45) BCN MRS 218 MRS NCE 102 (surface sector TPMs included) NCE GVA 186 506 = 10M Through fare BCN-MRS-NCE-GVA is thus NUC261.19 Calculation 2: Sector fare BCN-MRS NUC 184.46 Sector fare NCE-GVA NUC 172.09 Total NUC 356.55 19

The lower through fare amount of NUC 261.19 may be applied. Example 2: Fare required for AMS BRU surface LON SNN Calculation 1: Direct fare AMS-SNN (MPM: 706; NUC 311.48) Direct fare BRU-SNN (NUC: 318.02) AMS BRU 98 BRU LON 206 (surface sector TPMs included) LON SNN 380 Total 685 = M Through fare AMS-BRU-LON-SNN is thus the higher intermediate fare BRU-SNN = NUC 318.02 Calculation 2: Sector fare AMS-BRU NUC 95.55 Sector fare LON-SNN NUC 187.48 Total NUC 283.03 The mileage for the international surface break BRU-LON (206) is greater than AMS-BRU flown by air. Calculation 2 with one ticket may therefore not be used. Either calculation 1 with one ticket or a ticket AMS-BRU and a separate ticket LON-SNN may be issued. 20

Fare construction Fare construction principles - how to proceed Establish the journey type by calculating the itinerary as a single PUC whenever possible. - apply fare construction steps and checks required for the journey type involved - take note of type of surface sectors, if any - when applying fares with stopover and transfer conditions, note that ticketed transfer points include all intermediate points with or without stopovers - for each fare component, determine whether the published fare may be applied by means of specified routing options or the mileage system - compare the fare of this single PUC to the fare resulting from the combination of two or more PUC - for combinations of normal fare pricing units, follow the normal fare determination - choose appropriate breakpoints and take note of limitations on indirect travel, if any - make sure that terms of combinability are satisfied - quote whichever is lower Basic fare construction principles An itinerary is priced as a single journey however if the itinerary can be broken into separate "stand-alone" prices which give the consumer a lower price then this is permitted A "journey" is every point on the ticket. The fare for a journey (excluding side trips assessed separately) is the lowest of - a single pricing unit for the journey, or - any series of end-on combined pricing units which collectively comprise the journey being travelled A "pricing unit" is any stand-alone price (this also includes the price for a "journey" which is also a stand-alone price). The term "pricing unit" is used instead of the term "stand-alone" (a stand-alone price is a price which could be sold separately on a separate ticket). The fare for a pricing unit is assessed as a "one way sub journey" using OW fares or as a "return sub journey" using 1/2-RT-fares. The fare for a fare component is the lower amount which can be determined according to: 1. Mileage principle 2. Lowest combination of fares principle: the lowest combination of fares over an intermediate ticketed point on the itinerary, subject to minimum fare checks Note: this principle does not preclude combination of international fares with normal/special fares within the USA All fare constructions must be accomplished in NUCs Fares to be assessed for the total journey are the applicable fares eff. on the date of departure on the first sector 21

The fare paid will only apply when international travel commences in the country of the origin of the journey shown on the ticket. If international travel actually commences outside the country of the ticketed origin of the journey, the fare must be reassessed from the point where international travel actually began. For example, if a ticket is purchased at the Koruna fare for travel PRG-ZRH-NYC, and the passenger actually commences travel in ZRH instead of PRG, the fare must be reassessed at the ZRH-NYC, Swiss franc level. 22

Pricing Unit Concept The Pricing Unit Concept for fare construction rules was introduced 01. JUN 2000. A pricing unit is essentially a fare which is capable of being sold independently of any other fare. The pricing unit concept provides the opportunity to price multiple stopover journeys in alternate ways. For example, a journey PAR-TYO-SYD-surface TYO-PAR can be assessed either as a OW PAR-SYD (via TYO) plus a OW TYO-PAR (in the direction from PAR), or as a RT PAR-TYO plus a OW TYO-SYD. The lower fare obtained by the 2 methods would be used, subject to any minimum fare checks. Explanations and examples of different types of itineraries and associated fare construction principles appear in the following rules. Definitions A new set of definitions were established for use with the pricing unit concept. The most important definitions for the PUC are: Journey The origin to destination of the entire ticket (every point on a ticket) Pricing unit A journey or part of a journey which is priced as a separate entity, i.e. is capable of being ticketed separately. One way sub journey Part of a journey where travel from one country does not return to such country of origin. The fare for a OW sub journey is assessed as a single pricing unit using a OW fare. Return sub journey Part of a journey where travel from a point/country returns to such point/ country (RT/CT/NOJ). The fare for a return sub journey is assessed as a single pricing unit using 1/2-RT-fares. Country of unit origin The country in which the origin of the pricing unit is situated. Destination The final stopping place of the journey shown on the ticket. Origin The initial starting place of the journey as shown on the ticket. Unit destination The final stopping place of a pricing unit. Unit origin The initial starting point of a pricing unit. 23

Sequence of checks Effective 01. June 2008 the following checks have been deleted: CPM Common Point Minimum Check OSC One Way Subjourney Check RSC Return Subjourney Check DMC Directional Minimum Check COP Country of Payment Check For OW-PUS: Mileage Checks Higher Intermediate Point OW Backhaul Country of Commencement For RT/CT/NOJ-PUS: Mileage Checks Higher Intermediate Point CT-Minimum, RTW-Minimum*** Mixed PUS: Mileage Checks Higher Intermediate Point OW Backhaul Check CT-Minimum, RTW-Minimum*** TPM (Transported Miles) MPM (Maximum Miles) EMA (Excess Mileage Allowance) EMS (Excess Mileage Surcharge) HIP BHC COM TPM (Transported Miles) MPM (Maximum Miles) EMA (Excess Mileage Allowance) EMS (Excess Mileage Surcharge) HIP CTM/RWM TPM (Transported Miles) MPM (Maximum Miles) EMA (Excess Mileage Allowance) EMS (Excess Mileage Surcharge) HIP BHC CTM/RWM NOTE ***: RTW Minimum Check not applicable for LH/Star RTW fares Applicable fares Means a fare which is established after the application of all fare which is established after application of all fare construction calculations. The fare for a journey (excluding separately charged side trip PUs) is the lowest of: - a single pricing unit (PU) for the journey, or - a sequence of end-on pus (sub journeys) subject to minimum fare checks Constructed fares Means: - an unspecified through fare created by the use of add-ons, or - two or more fares shown as a single amount in a fare calculation and show as c/ 24

Fare construction must be via the itinerary of the passenger. The addition of points not on the passenger-s itinerary is not permitted (the use of fiction points is not permitted). Exception: This shall not prevent the use of a point not on the itinerary for the purpose of: - establishing a through fare by the use of an add-on amount - combining international fares with domestic normal/special fares within USA Add-on constructions Means an amount used only to construct an unspecified through fare. Add-on application Where no published fare exists between 2 points over the required routing, the through fare can be constructed by means of add-ons as follows: - add the add-on amount to the published fare between the origin/destination and the add-on gateway city - the add-on amount to be used must be applicable for the same class as the published fare to which it is added - only one add-on amount at each end of a published fare may be used to construct a through fare - a fare constructed with add-on is regarded as a published through fare and must be shown on the ticket as a single amount. Such through fare will then be subject to all rule conditions applicable to the international fare used in the construction - add-ons must not be separately sold/ticketed as sector fares C/ construction to establish unpublished fares 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. Fares based on a Percentage of another Fare When PU contains fare components for which different percentages apply, the fare for each component shall be calculated using the percentage applicable to that component. Fare construction checks (HIP, CTM, DMC...) shall be made using the levels which result of applying such percentage. Example: Travel: A B C D Children s fare: A-C 50% of the adult fare A-D 50% of the adult fare B-C 67% of the adult fare B-D 67% of the adult fare 25

Calculate amounts resulting from the application of the above percentages. Using these amounts, apply minimum fare checks (such as HIP/CTM checks). 26

Comparing fares with global indicators In applying Global Indicators (GI) the following applies: the comparison of the itinerary of a fare component with a GI is based on the ticketed points within the fare component and not on the operation of the flights fares may only be used for the GI for which they are established The itinerary within a fare component will attract a Global Indicator as follows: FARE COMPONENT AND GI Routing Restriction Within Area 1 Within Area 2 Within Area 3 Between Area 1 Between Area 1 (except Argentina, Brazil, Chile, Paraguay, Uruguay Between Argentina, Brazil, Chile, Paraguay, Uruguay Between Argentina, Brazil, Chile, Paraguay, Uruguay Between Argentina, Brazil, Chile, Paraguay, Uruguay Area 2 via Atlantic Area 3 via Atlantic Area 3 (except South East Asia via the Atlantic) South East Asia via the Atlantic South East Asia / South Asian Subcontinent via the Atlantic Between Area 1 Area 3 (except South West Pacific) Between Area 1 (except Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela) Between Argentina, Bolivia, Brazil, South West Pacific WH EH EH AT AT AT AT if travel is via Central Africa, Southern Africa, Indian Ocean Islands then travel must also be via a point(s) in Area 2 outside Central Africa, Southern Africa, Indian Ocean Islands SA via point(s) in Central Africa, Southern Africa, Indian Ocean Islands only or via direct services PA PA South West PA not via North America 27

Chile, Colombia, Ecuador, French Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela Between Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela Between Area 2 (except Russia in Europe, Ukraine) Pacific South West Pacific Area 3 Between Russia (in Europe), Ukraine Area 3 Between Area 2 (except Russia in Europe) Area 3 PN must be via North America but not via North and Central Pacific EH not for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of) EH not for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of); only for routings via another country(ies) in Europe (except Russia in Europe, Ukraine) and/ or Middle East TS only for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of) Between Russia (in Europe) Area 3 TS only for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of); via another country(ies) in Europe Between Russia (in Europe) Area 3 RU only for routings on non-stop services between Russia (in Europe) and Japan, Korea (Dem. Rep. of), Korea (Rep. of); not via another country(ies) in Europe Between Russia (in Europe), Ukraine Area 3 Between Area 2 Area 3 via the Atlantic and Pacific FE only for routings on non-stop services between Russia (in Europe), Ukraine and Area 3 other than Japan, Korea (Dem. Rep. of), Korea (Rep. of) AP If there is no fare with the GI identified by the routing travelled, the fare is constructed in accordance with the lowest combination principle 28

If a fare component can attract more than one GI the routing of the flights must be used to determine the GI e.g. SIN-NYC - options via PA or via AT 29

Construction Rules For Journeys General The following will be considered as one country: - USA and Canada - Denmark, Norway and Sweden (=Scandinavia) To establish unpublished fares, or fares expressed as a percentage, see the rule. Combination of international fares and normal/special fares within the USA is permitted. How to determine the Fare for a Journey The fare for a journey (excluding side trips assessed separately) is the lowest of - a single pricing unit for the journey or - any series of end-on combined pricing units which collectively comprise the journey being travelled Fares may only be constructed over ticketed points in the passenger s itinerary. The addition of points into the itinerary is not permitted, provided this does not apply to add-on construction points. Exception: combination of USA domestic fares with international fares "Slicing" and "Dicing" an Itinerary The application of the PUC depends on the itinerary. It is necessary to travel over a common point/country more than once in order to be able to "slice and dice" the itinerary. If this occurs the itinerary is assessed as a single price (pricing unit) and where separate pricing units can be assessed these are calculated and the sum of the pricing units compared to the fare for the entire journey - the lower amount being charged. It is sometimes possible that an itinerary will allow a number of different pricing unit calculations. In all cases it is the lowest of the possibilities that is applied. In order to ensure that simple RT or CT journeys are not broken into a series of OW-units, any journey or sub journey which is by definition a RT or CT must use 1/-RT-fares. Round, Circle, Open Jaw Trip Journeys If the routing of a journey satisfies the definition of a RT, CT or OJ: - the PU must be assessed as a RT/CT or OJ as applicable and must use half RT fares, the use of OW fares is not permitted - for end-on combination normal and special fares, completely separate the special and normal fare and access the normal fare sub journey Example: Travel: MAN ROM CPH MAD Fare construction: 30

MAN ROM 1/2 RT ROM CPH 1/2 RT ONE PU MAN CPH 1/2 RT - OW fares are not allowed as travel is continuous, circuitous and returns to the same point - a CTM check is performed MAN-ROM RT and MAN-CPH RT - the last fare component is assessed from the country of unit origin RT, CT, OJ Journeys with common Point/Country If there is a common point/country on the routing, the journey may be broken into multiple return sub journey PUs using half RT fares. A return sub journey 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 RT, CT or normal/special fare OJ, as applicable, and must use 1/2-RT-fares. If travel between such fare break points would require the use of OW-fares, this is not permitted. Fare Direction for RT, CT, OJ Journeys Fares are 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. Note: except for RT pricing units, fare components between Canada and USA and within the area of Denmark, Norway, Sweden are assessed in the direction of travel. OJ Journeys - alternative Option for Assessment If the routing of the journey is determined as fulfilling the definition of a normal/special fare OJ, the pricing unit is assessed as two half RT 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 sub journey from/to the common points(s) or other points and a OW sub journey (s) for the domestic sector(s) In the case of the alternative pricing option the OW pricing unit must be assessed using OW fares and the return sub journey must be assessed using half RT-fares. Fares must 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 *Note: except for RT pricing units, fare components between Canada and USA and within the area of Denmark, Norway, Sweden are assessed in the direction of travel. Journeys other than Round, Circle, Open Jaw Trips If the routing of a journey does not satisfy the definition of a RT, CT or normal/special fare OJ such routings shall be assessed: 31

- as a OW journey using a OW PU - as a series of OW sub journey s using OW PUs - as a RT or CT journey with the surface sector assumed to be flown - if there is a common point/country: as a mix of a OW sub journey and a RT sub journey. For the OW sub journey, OW fares must be used, the use of half RT fares is not permitted - fares will be constructed in the direction of travel except that the fare for a OW sub journey that terminates in a country from which a previous PU has commenced will be assessed in the direction from that country *Note: Except for RT PUs, fare components between Canada and USA and within the area of Denmark, Norway, Sweden are assessed in the direction of travel. Journey Limitations on Indirect Travel For Canada and USA and for Denmark, Norway, Sweden to be considered one country this rule does not apply: Arrivals and Departure in one Country A journey on a ticket, at any time, must not include more than four international arrivals and four international departures in any 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 32

Construction Rules for Individual Pricing Units For the purpose of this rule the following are considered as one country: - USA and Canada - Denmark, Norway and Sweden To establish "unpublished fares" and fares based as a percentage of another fare see the rules. Combination of international fares and normal/special fares within the USA is permitted. OW Pricing Units A separately charged OW fare which does not return to the country of origin OW fares must be used for OW pricing units (the use of 1/2 RT fares is not permitted) The fare for a OW pricing unit/sub journey is assessed in the direction of travel. However, when a pricing unit for a OW sub journey terminates in a country from which a previous pricing unit has been assessed, the fare for the OW sub journey into such country is assessed from such country, i.e. not in the direction of travel. Example: Travel: ATL-LON-STO-LIS-GLA Construction: ATL-LON OW 1 PU LON-STO OW 1 PU STO-LIS OW 1 PU GLA-LIS OW 1 PU total 4 PU - fare component LIS-GLA must be in the direction of GLA-LIS, because the termination point (GLA) is in the same country from which a previous PU (LON-STO) was assessed. Exception: when the countries of both the origin and the destination of a OW PU have been used to assess a previous PU, the direction of the last PU will be assessed in the reverse direction of travel. Example OW sector fares Travel: GVA-LON-ATH-ZRH(X)-MAN Although both ZRH and LON have been used to assess a previous PU, the ZRH-MAN component will be in the direction from MAN. 33

Minimum checks for OW pricing units OW Backhaul Rule (BHC) The BHC applies only when using normal or special one way fares. If there is a higher rated intermediate stopover point in a fare component, the fare for such component shall be the higher of either: the applicable fare between the fare construction points (for the end-to-end component), or the direct fare from the origin point of the fare component to the highest rated intermediate stopover point, plus the difference between such fare and the direct fare from origin to destination of the component Exceptions: The BHC does not apply to any point which has been excluded from the HIP fare check, provided the conditions of the exclusion are met. The BHC does not apply for journeys wholly within Area 1 journeys wholly between Argentina, Brazil, Chile, Paraguay, Uruguay and Area 2 pricing units wholly within Europe Directional minimum check (DMC) Deleted as of 01. June 2000 Round Trip Pricing Units Definition of a RT: A RT means a journey entirely by air from a point of origin to another point and return to the point of origin, comprising two fare components only, for which the applicable normal half RT fare for each component, measured from the point of origin, is the same for the routing travelled. If the fares to be used differ through class of service / seasonality / midweek / weekend / carrier variations, the outbound fare shall be used also for the inbound fare component for the purpose of determining if the journey is a RT. Unless otherwise specified, where a RT fare is not published for a RT pricing unit, the fare will be twice the outbound OW fare. The reference in the RT-definition to "two fare components only" does not preclude fares for end-on combination or side trips paid for separately being shown on the same ticket. 34