LH finalises to abandon IATA fares


Old Aug 7, 07, 8:14 pm
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Post LH finalises to abandon IATA fares

Earlier this year, LH decided to go it alone and no longer participate in the IATA YY fares in Europe:

Changes of IATA Fares
The European Commission has terminated trust immunity of IATA-Fares within EU countries. Therefore, IATA-Fares of the past are being discontinued and replaced by a new procedure for travel from 01.03.2007. Lufthansa is not participating in that new procedure.

Therefore IATA-Fares within Europe will no longer be displayed when LH-Carrier fares are concerned.

Lufthansa continues to offer interlineable fares for all its direct services as well as all destinations served by partner airlines. The full flexible Lufthansa CRT-Fare remains also interlineable with non-partner airlines.
Now they have gone one step further and included the longhaul:

2/333 01.08.07: Veränderungen bei den IATA-Tarifen zu Interkont - Zielorten

Die europäischen und amerikanischen Behörden beenden die kartellrechtliche Freistellung für IATA-Tarife zu Interkont - Zielorten. Dies hat zur Folge, dass es die bekannten IATA-Tarife in dieser Form nicht mehr geben wird. Die IATA hat ein Ersatzverfahren eingeführt, an dem Lufthansa nicht partizipieren wird. Als Konsequenz daraus werden ab dem 1. August 2007 in den Fare Displays bei der Abfrage von LH-Tarifen die IATA-Tarife nicht mehr erscheinen und können auch nicht mehr auf Lufthansa – Dokumenten angewendet werden. Auch dürfen die IATA – Tarife nicht auf Lufthansa – Flügen angewendet werden, selbst wenn sie auf Dokumenten anderer Airlines ausgestellt werden.

Die unter LH veröffentlichten IATA - Tarif - Duplikate bleiben bestehen. Somit bietet Lufthansa mit dem FRT, CRT und YRT weiterhin in jeder Klasse einen mit allen Airlines interline-fähigen Tarif zu allen Zielorten im Lufthansa -Streckennetz sowie zu vielen weiteren Zielorten an.

Für Rückfragen steht Ihnen Ihr Lufthansa-Serviceteam wie gewohnt gerne zur Verfügung.
Essentially it means:

- LH will no longer accept tickets issued by other airlines using YY IATA fares
- LH will offer full-fares that can be interlined with any other airline
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Old Aug 8, 07, 1:45 am
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...a question of time until LX will (have to) do the same I guess.

How is this new IATA procedure working? What are the differences between the old and procedures? Is there already a relevant thread on FT somewhere?
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Old Aug 8, 07, 1:54 am
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I am not intimate with this rule. However, everytime I have tried to book an SQ ticket using 'YY'..I have zero success...SQ always seems to be 25-30% higher...maybe I am just unlucky??
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Old Aug 8, 07, 7:28 am
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Originally Posted by f4freeJunior View Post
How is this new IATA procedure working? What are the differences between the old and procedures? Is there already a relevant thread on FT somewhere?
I couldn't find any recent thread concerning this topic.
The IATA website offers some information:The new term: Flex Fares
IATA must change its previous way of calculating these fares: "Flex Fares are new multilateral interline fares derived from published carrier fares. The concept is simple: for a given market, a base fare is calculated using available carrier fares in the market, and an interline premium is added which reflects the flexibility in an IATA fare."

The block exemption for tariff agreements:
  • within EU ended in December 2006
  • between EU-USA and between EU-Australia ended in June 2007
  • between EU and the rest of the world will end in October 2007 though that date may be reviewed
I interpret the decision of LH as a one-way solution: Obviously they have enough passengers on routes where LH is their first choice and the pax are willing to pay an even higher amount than for IATA (so the fare is still transferable to all the other airlines). You can call that self-confident or "taking what the lucrative market is offering and renounce the rest".
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Old Aug 8, 07, 7:55 am
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Yup, LH were Tip-toeing towards this move earlier, but now they are firmly slamming the door shut all over.
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Old Aug 8, 07, 4:26 pm
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This is disappointing news. There were some great YY fares in markets that LH didn't publish any fares for.
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