DCC Distribution Cost Charge Principle, Handling Rules & Refund Procedures SWISS International Air Lines Ltd. Malzgasse15, 4052 Basel, Switzerland
1 DCC Distribution Cost Charge Principle, Handling Rules & Refund Procedures Contents 1 INTRODUCTION 2 1.1 LHGroup-agent.com (LH/220 documents only) 2 1.2 Fee Levels and Rules 2 1.3 Exceptions 3 2 HANDLING RULES OF THE DCC IMPLEMENTED AS YR-IATA TAX CODE 3 2.1 Collection of the DCC 3 2.2 Pricing and Ticketing 3 2.3 Reissue 4 3 REFUND 4 3.1 Refund Process (INVOL only) 4 3.2 Void - Cancellation 5 4 SALES AUDIT 5 5 GLOSSARY 5 VALIDITY This policy is valid on/after 24 th August 2015 and until further notice. SWISS reserves the right to amend and/or to adapt and/or to delete rules described in this document at any time.
2 1 Introduction In light of the modified general conditions, the Lufthansa Group Airlines - Austrian Airlines, Brussels Airlines, Lufthansa and SWISS - will introduce a Distribution Cost Charge (DCC) for Travel Agencies/Sales Partners bookings made through a GDS. The Lufthansa Group Airlines own sales bookings will not be subject to DCC. Effective 01st September 2015 (date of ticketing) the DCC will apply to all Lufthansa Group (LH, OS, LX, SN) tickets sold via GDS by a sales Partner. These tickets will be subject to the new DCC in all markets. See chapter 1.3 below for exceptions. The DCC rules are part of the filing and will be processed automatically in the Global Distribution Systems (GDS). No DCC applies for Lufthansa Group own sales channels (online + offline). 1.1 LHGroup-agent.com (LH/220 documents only) Parallel to the introduction of DCC the Lufthansa Group will offer Travel Agencies the possibility to book tickets via the new LHGroup-agent.com portal. LHGroup-agent.com provides Travel Agencies access to flights, fares, general information and online ticketing. Since LHGroup-agent.com tickets are issued by Lufthansa, no DCC will be charged on such tickets. 1.2 Charge Levels and Rules The DCC is defined as a fixed amount per ticket. The DCC amount is identical for all routings and fare types. The DCC amount corresponds to CHF16 / EUR16 per ticket and applies on /after 01 September 2015 (date of ticketing) for first issues of all LH-Group Airlines tickets (Lufthansa, SWISS, Austrian Airlines, Brussels Airlines - hereafter referred to as LH-Group Airlines) issued worldwide by a distribution Partner/Travel Agency using a GDS. For international markets the DCC amount will be filed in CAD, GBP, JPY, NZD, and USD. As of 1 st September 2015 the amounts are fixed as follows: 17.50 USD 11.30 GBP 2180.0 JPY 23.00 CAD 16.00 CHF 16.00 EUR The above rates are subject to regular review. DCC is collected for all tickets issued by a Travel Agency/distribution Partner via any GDS (e.g. Amadeus, Travelport, Infini, etc.) on the ticket stock of a LH-Group Airline. DCC is charged on such tickets regardless of the fare owner and/or participation of other airlines in the routing only exception: a pure 4U/EW itinerary issued on an LH document is exempted from DCC (please mind that in case of mixed travel itineraries, e.g. 4U/EW/LH combinations, the DCC is applicable). DCC is charged per ticket (including conjunction tickets) for all itineraries, e.g. return, one way, circle trips, domestic, continental or intercontinental routings. DCC applies to all RBDs, all compartments and all fare types (published as well as unpublished) exception: LH and OS group fares (DCC applies to LX and SN groups). DCC only applies on first issues no DCC is collected for reissues. DCC only applies to tickets, not to EMDs or other documents. There is no discount on DCC amounts e.g. the same DCC applies to children and to adult tickets.
3 PEP and AD/DG tickets are subject to the standard DCC. The DCC is non-refundable. 1.3 Exceptions As a general rule the DCC is charged on all fares and booking classes. Worldwide exceptions: No DCC is charged on following tickets: Tickets booked and issued via LHG own sales channels (LH, LX, OS, SN websites; service centers; city offices; airport ticket desks; LHGroup-agent.com). INF tickets. Pure 4U/EW itineraries on LH documents in case of mixed travel itineraries, e.g. 4U/EW/LH combinations, the DCC is applicable. Group tickets on LH and OS documents (applicable group fares with ticket designator GR). Due to technical reasons for the time being group fare tickets - identified with ticket designator GR issued on LH and OS documents are exempted from DCC. Standard DCC applies to group fare tickets issued on LX and SN. Country specific exceptions: In some countries the introduction of the DCC requires official approval. For some countries this approval is not yet available at the time of writing. Communication of the introduction of the DCC will therefore take place subject to the agreement of the corresponding government agency in each case. Currently all tickets with start of journey in Brazil, China, Hong Kong, Iran and Libya, New Zealand, Tunisia and Yemen are exempted from the DCC. 2 Handling Rules of the DCC implemented as YR-IATA tax code 2.1 Collection of the DCC Considering that not all GDSs are able to implement the DCC using an OB fee by September 1 st, the DCC will be replaced by a YR-IATA tax code until the GDSs are fully capable of displaying the OB fee. The DCC will be filed by the Lufthansa Group Airlines. In the initial stage the DCC will be collected via a YR-IATA tax code. Therefore the DCC will be part of the Total Amount of the ticket and will be part of the Tax Box similar to all other taxes /fees/charges. Please note that in case of combinations of LH/LX/OS/SN flights with flights of other airlines using an own YR (in general as international surcharge) the YR amounts may be shown separately or added up. This depends on the YR filing of the other airline and on the settings of the GDS used. 2.2 Pricing and Ticketing The initial DCC filing as YR-IATA tax code (until the final implementation of the DCC as OB fee) is part of the automatic pricing process in all GDSs. Accounting, invoicing and VAT handling processes are identical to other taxes, fees and charges shown in the tax box of the ticket. Please note that all standard booking and ticketing regulations remain unchanged. This includes the SWISS ticketing policy on carrier validation rules based on IATA Resolution 852. An LX/724 document may only be issued if SWISS is part of the itinerary. Exception: SWISS may allow a validation exception e.g. in a specific market when a certain selected carrier, which is not in BSP/ARC, needs to be ticketed. Such exception is only possible in connection with a journey including the sale of other SWISS flights and only if specifically authorised by your local SWISS representative.
4 2.3 Reissue As per previous DCC communication, the DCC does not apply in case of reissue. However during the interim time in which the DCC is filed as a YR tax this cannot be avoided if automated reissue tools (e.g. Amadeus ATC) are used. In case of reissue of tickets originally issued after 01 September 2015 (DCC is included in the original ticket as YR-IATA tax code), upon reissue the YR will be taken as tax paid (PD) in the new ticket and will not be charged again. In case of reissue of tickets originally issued prior to 01 September 2015 (with no DCC included in the original ticket) the YR will be charged automatically in case the new calculation is based on current fares (e.g. for wholly unused tickets) in case an automated reissue tool (e.g. Amadeus ATC) is used. In this case the added YR-IATA tax code may be manually deleted. Sales Audit is informed accordingly, to secure that no ADMs are issued in such a case. Alternatively, a credit note can be requested for a DCC amount charged within a reissue transaction, once the journey is completed (all coupons flown). This can be requested via BSP link. 3 Refund Following rules are valid for the LH-Group Airlines: Voluntary refunds: refund of the DCC is not permitted. Involuntary refunds: The DCC may only be refunded in case of INVOL refunds of completely unused tickets. For partially used tickets the DCC shall not be refunded. The DCC is non-refundable on a voluntary basis. This provision is part of the fare conditions and will be shown in the fare notes. This rule applies to the interim period with DCC filing as YR-IATA tax code as well as to the later collection of the DCC via OB fee. From a technical perspective, during the interim period during which the DCC is filed as a YR- IATA tax, Travel Agents must manually remove the DCC YR tax from the refund mask when applying for refund. In case a tool is used to support the refund processes of a Travel Agent, the tool should be adjusted to avoid the refund of the DCC as YR-IATA tax code for LH/OS/LX or SN tickets. 3.1 Refund Process (INVOL only) Refund of the DCC is only possible on involuntary basis and in case of completely unused tickets. No refund shall be made in case of partially flown tickets. Following process applies to all involuntary refund requests: For all refunds of LX/724 documents related to Schedule Changes or Cancellations it is absolutely mandatory to contact SWISS for an authorization. Any involuntary refund request can only be authorized if a proof of the Schedule Change is available. Missing prior authorization is considered as voluntary refund and original fare conditions will apply. Proof of SKCHG: SWISS will authorize an involuntary refund only after having verified the SKCHG. In case of OAL SKCHG, Travel Agencies might be requested to produce a proof from the OAL or a copy of their GDS PNR history, in case the SWISS representative is unable to ascertain the SKCHG their end. Schedule Change or Cancellation of a LX flight (LX flight number and LX operation) on a LX/724 ticket: LX representative enters the required authorization for refund approval in the PNR. The Travel Agent can afterwards proceed to refund the ticket directly through the GDS with a refund notice. Schedule Change or Cancellation of an OAL flight (OAL flight number) or an LX flight (flight number) operated by OAL on an LX/724 ticket: If the SWISS representative has access to an active PNR and can enter the required authorization for refund approval in the PNR, the Travel Agent may proceed to refund the ticket through the GDS with a refund notice. If an active PNR is no longer available for the SWISS representative, the agent must apply for refund through a refund application in BSP after having obtained authorization by LX. Following information must be attached to the refund application: - INVOL information. Example: INVOL SKCHG LX16/12OCT - Scanned copy of the OAL SKCHG confirmation or copy of the GDS PNR history showing OAL SKCHG.
5 - Scanned copy of the LX approval. IMPORTANT: TAs in the USA must apply for refund by sending the above mentioned information by email to refundtravelagtus@swiss.com TAs in China must apply for refund by sending the above mentioned information by email to refundtravelagtcn@swiss.com To this purpose, use standard email header line according to the following example: *INVOL/SKCHG* UA945/12NOV - Refund Request Ticket 724 0000 000 000 For all involuntary refund applications no refund administration fee applies. 3.2 Void - Cancellation If a ticket is cancelled using the standard void/cancellation process, the DCC is voided/cancelled together with the ticket no monetary transactions are reported. 4 Sales Audit Taxes, fees and charges are checked during the standard sales audit process. In case a tax, fee or charge is manually changed or deleted the pricing indicator is set to manual and the ticket is subject to ADM issuance. Refunded DCCs are also checked through standard fare audit and will result in an ADM in case of incorrect refund, e.g. if a DCC was refunded on voluntary basis. 5 Glossary Abbreviation AD Ticket ATPCO BSP DCC DG Ticket EW IATA INF INVOL ITR LH-Group Airline LH LHG LX OS RBD SN VAT 4U Description Agency Discount Ticket Airline Tariff Publishing Company Billing and Settlement Plan IATA Airlines billing system Distribution Cost Charge Government Discount Ticket Eurowings International Air Transport Association Infant Involuntary Itinerary Ticket Receipt Lufthansa Group Airlines (LH, LX, OS, SN) Lufthansa Lufthansa Group SWISS Austrian Airlines Reservation Booking Designator (booking class) Brussels Airlines Value Added Tax Germanwings In case of questions please contact your SWISS representation. Thank you.