Recent technical changes to IATA fare construction rules
Oct 28, 2008 | 7:34 pm
#1
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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:
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.
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.
- 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.
Sep 5, 2009 | 6:34 am
#2
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HIP Check
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)?
Dec 28, 2009 | 9:07 pm
#3
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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 DX 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.
Dec 28, 2009 | 9:58 pm
#4
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HIP checks always apply by default, unless there is a waver in the Fare Rules ("NO HIP OR MILEAGE EXCEPTIONS APPLY" = default).
Dec 29, 2009 | 3:57 am
#5
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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?
Dec 30, 2009 | 8:29 am
#6
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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 YX 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 YX 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
Jan 1, 2010 | 12:21 am
#7
Join Date: Aug 2007
Location: AMS
Programs: KL PFL; BA Nobody; EY Silver
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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...
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...
Jan 1, 2010 | 10:06 pm
#8
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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.)
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.)
Jan 2, 2010 | 10:53 pm
#9
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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.
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 USED53
WPS3/4NC
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
Jan 3, 2010 | 9:09 am
#10
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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...
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...
Last edited by Keter; Jan 3, 2010 at 9:17 am