FlyerTalk Forums - Recent technical changes to IATA fare construction rules

FlyerTalk Forums (https://www.flyertalk.com/forum/index.php)

- TravelBuzz (https://www.flyertalk.com/forum/travelbuzz-176/)

- - Recent technical changes to IATA fare construction rules (https://www.flyertalk.com/forum/travelbuzz/882588-recent-technical-changes-iata-fare-construction-rules.html)

Recent technical changes to IATA fare construction rules

Effective October 16, a number of changes to IATA fare construction rules have come into effect. Some of these rules are fairly esoteric and won't come into play very often; the first one though is useful to the average FTer. At the very least, it's a peek at how crazy these rules used to be. Before reading this I didn't know some of these rules existed, so please bear with me if my explanations are a bit off.

I got this information off of a presentation from Sabre, one of the global distribution systems.

Europe considered one country for open jaw
In order to combine two fares on a half-round-trip basis to create an open jaw, the "open" ends need to be in the same country. Europe is now considered one country for this purpose. (I don't know for sure which countries constitute Europe in this case.)

Example: LHR-JNB-FRA used to price out as two one-way fares. Now it can price out as 1/2 of the LHR-JNB round-trip plus 1/2 of the JNB-FRA round trip. (Of course, all other combinability rules in the fare still apply.)

Constructed minimum fare checks abolished
If there is no filed fare between two cities, a fare must be "constructed" between the departure/arrival city and the connection point (basically, the two fares are added together.) All of the weird checks like HIP checks won't apply within the construction points.

Example: SIN-MNL-NRT-ULN, stopover in each city. There is no constructed fare between MNL and ULN. Previously, IATA required that MNL-NRT be HIP-checked; that requirement no longer exists.
Note that there does exist a SIN-ULN fare, and so the SIN-NRT HIP check does in fact happen.

Increase in arrival/departure limit in Europe
Previously, there was a limit of three arrivals and three departures within one country on a single ticket. (I believe, but am not sure, that this was effective in Europe only, and the rest of the world had a limit of four arrivals/departures.) This limit has been increased to four (I think to be in line with the rest of the world.)

Example: MIA-LHR-FRA-LHR-FRA-LHR-FRA-LHR-FRA-DFW-MIA has four arrivals and four departures each in England and Germany. Before this itinerary needed to be issued on two separate tickets. Now it can be issued on one.

Some minimum fare checks eliminated
The following fare checks are no longer used:

Directional minimum check (DMC):
Similar to a HIP check, but in reverse: When stopping/connecting in a city, ensures that the fares of origin-connection and connection-destination is not less than the direct fare. Previously only applicable to one-way and normal open jaws involving Japan and issued outside country of origin.
Country of payment (COP):
When an international round trip or circle trip is sold in the destination country, ensures that the fare is not less than the same trip in the opposite direction. Note that this check still applies for itineraries originating in Algeria or Tunisia, to or via France/Italy to Europe, when issued in France or Italy. :confused:
Common point minimum (CPM):
When a point is used twice in an round-trip + open-jaw itinerary, ensures that the open-jaw portion is not less than the round trip fare.
One way sub-journey check (OSC)
On a one-way ticket, ensures that the fares of stopover-connection and connection-destination is not less than the direct fare. I think the difference between this and the DMC is that the stopover is an intermediate point, not the origin.
Return sub-journey check (RSC)
Same as OSC, but for round-trip, circle-trip, and open-jaw itineraries.

Note that higher intermediate point (HIP) check is still in place.

Example:
DMC: BKK-NRT-FRA (sold and ticketed in Germany) no longer checks for a higher BKK-FRA fare; if BKK-NRT + NRT-FRA is cheaper that fare is used.
COP: CKG-x/HKG-NRT-CKG (sold and ticketed in Japan) no longer checks for a higher NRT-CKG round trip fare; if CKG-NRT is cheaper that fare is used.
CPM: BOM-NRT-BOM-MAA no longer checks to see if NRT-BOM + BOM-MAA is higher than NRT-MAA. This would not normally be a problem if the BOM-NRT segment not part of the itinerary (note that if NRT-BOM is higher than NRT-MAA and BOM was a stopover, you'd get a HIP check).
OSC: SGN-PNH-xBKK-DAC no longer checks to see if PNH-DAC is higher than PNH-BKK + BKK-DAC.
RSC: KIX-PUS//ICN-PEK-ICN-KIX.

Any idea if HIP check can be forfeited for a non IATA but MPM fare (ie filed by a specific sirline) in case its fare rules do not explicitly have HIP waiver for stopovers (in text version)?

Quote:

Originally Posted by Keter (Post 12335406)

Any idea if HIP check can be forfeited for a non IATA but MPM fare (ie filed by a specific sirline) in case its fare rules do not explicitly have HIP waiver for stopovers (in text version)?

I can't remember ever seeing an airline-specific fare that's silent on HIP as opposed to explicitly waiving/not-waiving HIP checks. Where there's something explicit they definitely do HIP checks. Here's an example:

Code:

*I«                                                             

 1 DL 801D 01MAY J ATLNRT SS1   155P  455P  02MAY S /DCDL /E    

OPERATED BY NORTHWEST AIRLINES                                  

 2 JL 951C 06MAY Q NRTICN SS1  1000A 1235P /DCJL /E             

WP«                                                             

01MAY DEPARTURE DATE-----LAST DAY TO PURCHASE 24APR/2359        

       BASE FARE                     TAXES             TOTAL    

 1-   USD8344.00                     54.20XT      USD8398.20ADT 

    XT     16.10US       2.50AY      22.40SW       5.50OI       

            3.20YQ       4.50XF                                 

         8344.00                     54.20           8398.20TTL 

ADT-01  DW JOW                                                  

 ATL DL TYO Q69.00 7092.00DW JL SEL1182.67JOW NUC8343.67        

 END ROE1.00 XFATL4.5                                           

VALIDATING CARRIER - DL                                         

WPNB1«                                                          

01MAY DEPARTURE DATE-----LAST DAY TO PURCHASE 24APR/2359        

       BASE FARE                     TAXES             TOTAL    

 1-   USD8667.00                     54.20XT      USD8721.20ADT 

    XT     16.10US       2.50AY      22.40SW       5.50OI       

            3.20YQ       4.50XF                                 

         8667.00                     54.20           8721.20TTL 

ADT-01  DW                                                      

 ATL DL TYO Q70.00JL SEL M ATLTYO7092.00DW                      

 P ATLTYO ATLSEL1505.00 NUC8667.00END ROE1.00 XFATL4.5          

VALIDATING CARRIER - DL                                         

WPRD*C17«                                                       

    V FARE BASIS     BK    FARE   TRAVEL-TICKET AP  MINMAX  RTG 

  1   DW             D‡X  5587.00     ----      -/‡  -/12M PA01 

PASSENGER TYPE-ADT                 AUTO PRICE-YES               

FROM-ATL TO-SEL    CXR-DL    TVL-01MAY10  RULE-5020 IPRP/3      

FARE BASIS-DW                NORMAL FARE  DIS-N   VENDOR-ATP    

FARE TYPE-BR      OW-BUSINESS CLASS RESTRICTED                  

USD  5587.00   MPM  E09DEC09 D-INFINITY   FC-DW  FN-            

SYSTEM DATES - CREATED 08DEC09/1432  EXPIRES INFINITY           

                                                                

17.HIP/MILEAGE EXCEPTIONS                                       

   NO HIP OR MILEAGE EXCEPTIONS APPLY.

Quote:

Originally Posted by BDA shorts (Post 13071205)

HIP checks always apply by default, unless there is a waver in the Fare Rules ("NO HIP OR MILEAGE EXCEPTIONS APPLY" = default).

Quote:

Originally Posted by KVS (Post 13071423)

HIP checks always apply by default, unless there is a waver in the Fare Rules ("NO HIP OR MILEAGE EXCEPTIONS APPLY" = default).

And in case of a fare with a routing attached this section of rules is completely irrelevant, at least this is how this seems to work. Am I correct?

Quote:

Originally Posted by Keter (Post 13072271)

And in case of a fare with a routing attached this section of rules is completely irrelevant, at least this is how this seems to work. Am I correct?

Unfortunately not the case. Take this example that I ran into last year:

Code:

*I«                                                             

 1 DL 657Y 01MAY J BDAATL SS1   400P  617P /DCDL /E             

 2 DL 393Y 03MAY M ATLPTY SS1   530P  836P /DCDL /E             

WP«                                                             

01MAY DEPARTURE DATE-----LAST DAY TO PURCHASE 24APR/2359        

       BASE FARE                     TAXES             TOTAL    

 1-    USD899.00                     94.50XT       USD993.50ADT 

    XT     32.20US       7.00XY       5.00XA       2.50AY       

           35.00BM       4.30BL       4.00EN       4.50XF       

          899.00                     94.50            993.50TTL 

ADT-01  Y                                                       

 BDA DL ATL Q120.00DL PTY BDAATL779.00Y NUC899.00END ROE1.00 XF 

 ATL4.5                                                         

VALIDATING CARRIER - DL                                         

WPRD*C17«                                                       

    V FARE BASIS     BK    FARE   TRAVEL-TICKET AP  MINMAX  RTG 

  1   Y              Y‡X   295.00     ----      -/‡  -/  - WH01 

PASSENGER TYPE-ADT                 AUTO PRICE-YES               

FROM-BDA TO-PTY    CXR-DL    TVL-01MAY10  RULE-7010 IPRWI/303   

FARE BASIS-Y                 NORMAL FARE  DIS-N   VENDOR-ATP    

FARE TYPE-EU      OW-ECONOMY UNRESTRICTED                       

USD   295.00  0110  E24OCT08 D-INFINITY   FC-Y  FN-             

SYSTEM DATES - CREATED 23OCT08/1938  EXPIRES INFINITY           

                                                                

17.HIP/MILEAGE EXCEPTIONS                                       

   NO HIP OR MILEAGE EXCEPTIONS APPLY.                          

WPRD*RTG«                                                       

    V FARE BASIS     BK    FARE   TRAVEL-TICKET AP  MINMAX  RTG 

  1   Y              Y‡X   295.00     ----      -/‡  -/  - WH01 

PASSENGER TYPE-ADT                 AUTO PRICE-YES               

FROM-BDA TO-PTY    CXR-DL    TVL-01MAY10  RULE-7010 IPRWI/303   

FARE BASIS-Y                 NORMAL FARE  DIS-N   VENDOR-ATP    

FARE TYPE-EU      OW-ECONOMY UNRESTRICTED                       

USD   295.00  0110  E24OCT08 D-INFINITY   FC-Y  FN-             

SYSTEM DATES - CREATED 23OCT08/1938  EXPIRES INFINITY           

                                                                

PUBLISHED RTG BDA-PTY/DL110 /TAR-WDRG    EF-24OCT08 DIS-INDEF   

                                                                

/WITHIN THE WESTERN HEMISPHERE/                                 

DOM ROUTE VALIDATION APPLIES WITHIN ORIG/DEST COUNTRIES         

 1. BDA-ATL-PTY

A bit of food for thought: DL flies BDA-ATL and ATL-PTY each once daily. There was a point last year where, upon arriving at ATL, the next flight out (with a legal connection time) was 24 hours and 3 minutes--resulting in a stopover instead of a connection. Sabre still priced in the HIP, even though it was impossible to have an itinerary involving a (legal) connection. Would DL's rate desk have removed the HIP if you asked really nicely? Maybe.

But then I was right from the very beginning: the text rule and what is in fact validated for autopricing (ie in a programmed language) are too far different things [many fares with routing say - No HIP or mileage exceptions apply but in fact all these checkes are waived].

I also found once a fare where the text and the fact agreed.

And it would be great to be able to know all the differences...

Quote:

Originally Posted by BDA shorts (Post 10592987)

Europe considered one country for open jaw
In order to combine two fares on a half-round-trip basis to create an open jaw, the "open" ends need to be in the same country. Europe is now considered one country for this purpose. (I don't know for sure which countries constitute Europe in this case.)

I think that the restriction on the "open ends" applies only at origin: open jaw at origin requires the open segment to be within one country. But at destination I think there is no restriction, just that the open segment much be shorter than the longest (or shortest?) flown fare component. Can anyone comment on that? i am not 100% sure but would be interested in understanding it better.

Quote:

Originally Posted by ranskis (Post 13094749)

To answer that, I tried pricing out both JFK-AMS//DKR-JFK (open jaw at destination) and AMS-JFK-DKR (open jaw at origin) on DL. Both priced as open jaws. This makes me think that instead of "Europe is considered one country" it's really "Area 2 is considered one country."

To test that... ORD-FRA//DEL-ORD (open jaw at destination) on AA prices as an open jaw, but DEL-ORD-FRA (open jaw at origin) does not price as an open jaw (requires two one-way fares at a much higher price). So that means (a) I think it really is "Area 2 is considered one country," and (b) to answer ranskis's question, I think you're completely right.

Incidentally, I recently purchased TLV-x/EWR-RDU//EWR-LON on CO; it priced as a double open jaw. That's in line with "Area 2 is considered one country" since the Middle East is Area 2.

Code:

*I«                                                             

 1 AA  84S 01MAY J ORDFRA SS1   730P 1110A  02MAY S /DCAA /E    

 2 AA 293S 11MAY T DELORD SS1  1215A  500A /DCAA /E             

 3 AA  83S 12MAY W FRAORD SS1   225P  455P /DCAA /E             

 4 AA 292S 22MAY J ORDDEL SS1   720P  830P  23MAY S /DCAA /E    

WPS1/2«                                                         

01MAY DEPARTURE DATE-----LAST DAY TO PURCHASE 05JAN/2359        

       BASE FARE                     TAXES             TOTAL    

 1-    USD997.00                     90.40XT      USD1087.40ADT 

    XT     32.20US       5.50YC       7.00XY       5.00XA       

            2.50AY       5.70WO      28.00IN       4.50XF       

          997.00                     90.40           1087.40TTL 

ADT-01  SKW14AP SLXRIND                                         

 CHI AA FRA Q130.00 332.50SKW14AP/-DEL AA*AT*CHI Q160.00 374.00 

 SLXRIND NUC996.50END ROE1.00 XFORD4.5                          

NONREF/CHG FEE APPLIES/NO VALUE AFTER FLT TIME                  

FEE FOR CHANGE OR REFUND                                        

VALIDATING CARRIER - AA                                         

WPS3/4«                                                         

  ‡NO COMBINABLE FARES FOR CLASS USED‡53                        

WPS3/4‡NC«                                                      

12MAY DEPARTURE DATE-----LAST DAY TO PURCHASE 05JAN/2359        

       BASE FARE      EQUIV AMT      TAXES             TOTAL    

 1-   EUR3700.00     USD5320.00     100.00XT      USD5420.00ADT 

    XT     32.20US       5.50YC       7.00XY       5.00XA       

            2.50AY       9.40DE      33.90RA       4.50XF       

         3700.00        5320.00     100.00           5420.00TTL 

ADT-01  Y BJOWIND                                               

 FRA AA CHI Q133.38 4089.09Y AA*AT*DEL Q160.00 1100.00BJOWIND   

 NUC5482.47END ROE0.674722 XFORD4.5                             

NO REFUND FEE FOR CHANGE                                        

VALIDATING CARRIER - AA                                         

CHANGE BOOKING CLASS -   3Y 4B

Note that if you consider specific airlines fares you should also consider airline's restrictions. And the original question was related to pure IATA rules.

For example, SU usually only allows open jaws with open segment within one country for cheaper fares or does not allow open jaws at all (not sure re AA rules).

Also it is the rule application which matters (again, usually airlines specific): for example, fares for transportation between area 2 and area 3 are different from fares between specific countries. Even same-point unrestricted fares may have different application.

It is also the combinability restrictions which matter as well: some fares are only combinable with fares within certain rule (even if with fares for same carrier) while other have no such restrictions...