BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. NOTICE OF TIER 1 AGREEMENTS FILING BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Notice of IATA Traffic Conference Actions Tentatively Exempted From Filing for Approval Docket OST NOTICE OF TIER 1 AGREEMENTS FILING BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION 1 February 2013 Communications with respect to this Document should be sent to Douglas Lavin Regional Vice President North America International Air Transport Association 1201 F Street, NW, Suite 650 Washington, DC (202)

2 Summary DOCKET: DOT OST DOT ORDER: None Requested Date: 1 February 2013 Filing fee/iata Acct: Waived by Order , Appendix A, Section D US/UST involved Yes Intended effective date: 1 June 2013 Meeting site, date: PTC Composite Meeting of Passenger Tariff Coordinating Conferences Abu Dhabi, 17 October 2012 Agreements Composite Resolution 017ha (Memo )

3 NOTICE OF TIER 1 AGREEMENTS FILING Pursuant to statements submitted by Member airlines of the International Air Transport Association (IATA), the undersigned has been constituted to be their attorney in fact for filing with the Department of Transportation copies of agreements adopted by the IATA Traffic Conferences. On their behalf, and pursuant to the procedures specified in Order (13 April 2012), I am filing with the Department, in Docket OST , this Notice, the subject agreements and supporting documentation. These agreements are Tier 1 agreements tentatively exempted by Order from Condition #2 to the Department s approval of the Provisions for the Conduct of the IATA Traffic Conferences, which condition requires preimplementation Department review. The intended effective date of the agreements is 1 August The subject agreements amend or establish Resolutions and/or Recommended Practices that do not address subject areas which the Department has indicated it still chooses to review under Condition #2. The text of the agreements and other conference documentation sent to airline Members of IATA accompany this Notice. The cover pages of the documentation clearly identify each affected Resolution and/or Recommended Practice and show whether the subject agreements are amendments or new agreements. Other pages provide the text of each subject agreement. Where an affected Resolution or Recommended Practice has previously been exempted from Condition #2 by Department action, the cover pages include the appropriate

4 docket and order number. The cover pages include a summary to explain the nature and purpose of the subject amendments and/or agreements. Respectfully submitted, /s/ Douglas Lavin Douglas Lavin Regional Vice President North America International Air Transport Association Attorney In Fact - 2 -

5 CERTIFICATE OF SERVICE A copy of this notice has been served this day by first class or priority mail on the following person: Chief, Transportation, Energy & Agriculture Section Antitrust Division Department of Justice Washington, D.C A copy of this notice has been sent this day by to John Kiser (John.Kiser@dot.gov) and to Della Davis (Della.Davis@dot.gov) of the Department of Transportation. /s/ Douglas Lavin Douglas Lavin 1 February 2013 Date Served - 3 -

6 1 November 2012 MEMORANDUM TO: FROM: Members Participating in Tariff Coordinating Conferences Manager, Tariffs & Reservation Standards SUBJECT: Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012 Composite Resolution 017ha Intended Effective Date: 1 June 2013 RESOLUTION - ADOPTED Attached is Composite Resolution 017ha, which was adopted at the above meeting for an intended effective date of 1 June Implementation date will be advised at a later date. The filing period for the attached Resolutions ends 15 December Members are reminded of their obligations under Resolutions 001 and 006 to advise this office by the end of the filing period whether approval by their Government authorities is required and, if so, to accomplish the necessary filing formalities. The effective date will be declared in accordance with Resolutions 001 and 006, when all the known necessary Government approvals have been received. Alban Sato Manager, Tariffs & Reservation Standards Airline Distribution Standards International Air Transport Association Route de l Aéroport 33 PO Box 416 CH Geneva 15 Airport Switzerland Tel: Fax AS tariffs@iata.org

7 RESOLUTION ADOPTED AT COMPOSITE MEETING OF PASSENGER TARIFF COORDINATING CONFERENCE ABU DHABI, 17 OCTOBER 2012 EFFECTIVE DATE: 01 JUNE 2013 RESO TITLE COMMENTS RD 017ha Fare Selection Criteria New 1

8 ADOPTED Res Doc : 1 Resolution : 017ha Page : 1 FARE SELECTION CRITERIA PTC1(88)017ha PTC2(166)017ha PTC3(93)017ha PTC12(197)017ha PTC23(162)017ha PTC31(127)017ha PTC123(176)017ha New Filing Period Begins 15 November 2012 Intended Effectiveness: 1 June 2013 Ends 15 December 2012 Expiry: Indefinite RESOLVED that, Type B 1) for the purposes of fare selection, the fares to be used will be those applicable to the carrier selected. These may be either a) carrier specific fares, or b) if all fares of the selected carrier cannot be used, the YY fare (subject to the selected carrier s acceptance of the use of YY fares), or c) if a partial structure has been filed as carrier specific fares then the remainder of the structure will be established using YY fares unless the carrier has advised that such YY fares will not apply Examples 1. The carrier only has fares records for carrier specific Normal Fares - the special fares structure for that carrier will be the YY fares 2. The carrier has only a single fares record for a carrier specific PEX fare - the Normal fares and the rest of the special fares for that carrier will be the YY structure 3. The carrier has no fares records for carrier specific fares - the YY structure will apply for that carrier 2) the fares to be applied, in the direction of the fare selection in accordance to 017a, will be the lowest of a) the fares for the carrier who performs i. the carriage on the first sector which crosses from one area to another, if none ii. the carriage on the first sector which crosses from one sub-area to another, if none iii. the carriage on the first international sector AHU, Oct12

9 ADOPTED Res Doc : 1 Resolution : 017ha Page : 2 b) the fares for the carrier who performs the greatest part of consecutive carriage, either wholly international or a combination of international and domestic, measured by TPM EXAMPLES OF FARE COMPONENTS CROSSING AREAS: 1. Journey: PAR-XX-BKK-ZZ-AKL-BB-DXB-XX-PAR PAR-AKL AKL-PAR the fares to be applied will be the lowest of carrier PAR-BKK (area crossing carrier) and carrier BKK-AKL (longest international carriage) the fares to be applied will be the lowest of carrier DXB-AKL (both the longest consecutive carriage and area crossing carrier) 2. Journey: BOM-XX-TYO-ZZ-HNL-BB-SEL-XX-BOM BOM-HNL HNL-BOM the fares to be applied will be the lowest of carrier BOM-TYO (longest international carriage) and carrier TYO-HNL (area crossing carrier) the fares to be applied will be carrier SEL-HNL (both the longest consecutive carriage and area crossing carrier) 3. Journey: RIO-XX-NYC-ZZ-LON-BB-WAS-XX-SAO-XX-RIO RIO-LON LON-RIO the fares to be applied will be the lowest of carrier RIO-NYC (longest international carriage) and carrier NYC-LON (area crossing carrier) the fares to be applied will be lowest of carrier WAS-LON (area crossing carrier) and the carrier RIO-SAO-WAS (longest consecutive carriage) 4. Journey: YVR-DD-SEL-XX-IST-BB-HKG-ZZ-YVR-ZZ-YTO YVR-IST IST-YTO the fares to be applied will be the lowest of the carrier YVR-SEL (first area crossing) and carrier SEL-IST (longest international carriage) the fares to be applied will be lowest of the carrier YVR-HKG (first area crossing carrier) and the carrier YTO-YVR-HKG (longest consecutive carriage) 5. Journey: BKK-XX-VIE-ZZ-YMQ-ZZ-YYC-BB-LON-XX-BKK BKK-YYC the fares to be applied will be the lowest of carrier BKK-VIE (first area crossing) and carrier VIE-YMQ-YYC (longest consecutive carriage) AHU, Oct12

10 ADOPTED Res Doc : 1 Resolution : 017ha Page : 3 YYC-BKK the fares to be applied will be those of carrier BKK-LON (both the longest consecutive carriage and the first area crossing carrier) EXAMPLES OF FARE COMPONENTS BETWEEN SUB-AREAS: 1. Journey: CAI-XX-ADD-ZZ-JNB-XX-KRT-ZZ-CAI CAI-JNB JNB-CAI the fares to be applied will be the lowest of carrier CAI-ADD (first subarea crossing) and carrier ADD-JNB (longest international carriage) the fares to be applied will be lowest of carrier KRT-JNB (both the longest consecutive carriage and the first sub-area crossing within Area 2 carrier) 2. Journey: MEL-XX-JKT-DD-TYO-ZZ-MNL-XX-BNE-XX-MEL MEL-TYO TYO-MEL the fares to be applied will be the lowest of carrier MEL-JKT (first subarea crossing) and carrier JKT-TYO (longest international carriage) the fares to be applied will be lowest of carrier BNE-MNL (first sub-area crossing carrier) and carrier MEL-BNE-MNL (longest consecutive carriage) EXAMPLES OF FARE COMPONENTS WITHIN A SUB-AREA 1. Journey: KUL-XX-BKK-DD-CAN-DD-BJS-ZZ-HKG-XX-KUL KUL-BJS BJS-KUL the fares to be applied will be the lowest of carrier KUL-BKK (first international) and carrier BKK-CAN-BJS (longest consecutive carriage) the fares to be applied will be lowest of carrier KUL-HKG (both the longest consecutive carriage and the first international sector) 2. Journey: SCL-XX-ASU-DD-SAO-DD-RIO-ZZ-ASU-XX-SCL SCL-RIO RIO-SCL the fares to be applied will be the lowest of carrier SCL-ASU (both the longest consecutive carriage and the first international sector) the fares to be applied will be lowest of carrier SCL-ASU (both the longest consecutive carriage and the first international sector) AHU, Oct12

11 ADOPTED Res Doc : 1 Resolution : 017ha Page : 4 GENERAL 3) surface sectors a) for the purpose of determining the carrier performing the greatest part of the consecutive international and domestic carriages, surface sectors will not be considered for the calculation of consecutive TPM Example: SPK-ZZ-TYO xxx OSA-ZZ-HKG-BB-SIN TYO-OSA surface sector is not considered for the calculation of TPM, therefore the comparison would be: SPK-TYO (carrier ZZ) 510 OSA-HKG (carrier ZZ) 1548 HKG-SIN (carrier BB) 1594 The result is HKG-SIN has the longest consecutive international TPM and carrier BB s fares will be selected for comparison. b) if the longest TPM sector is a surface sector, such sector is not considered c) if the sector for which the selection is to be made is a surface sector, YY fares will be selected 4) for the purpose of this Resolution a) travel between Canada and USA is not considered as international travel Example: YUL-NYC-MEX first international sector is NYC-MEX b) travel between Denmark, Norway and Sweden is considered as international travel Example: STO-CPH-LON first international sector is STO-CPH c )within TC1 when crossing sub-areas, the following applies: North America Canada, Greenland, Mexico, St. Pierre and Miquelon, USA Caribbean Anguilla Guadeloupe Antigua and Barbuda (including St.Barthelemy Aruba and Northern St.Martin) Bahamas Haiti Barbados Jamaica Bermuda Martinique Bonaire, Saba, Sint Eustatius Montserrat British Virgin Islands St.Kitts and Nevis Cayman Islands St. Maarten Cuba Saint Lucia Curacao St.Vincent and the Grenadines Dominica Trinidad and Tobago Dominican Republic Turks and Caicos Islands Grenada Suriname Guyana French Guiana Central America Belize Guatemala Costa Rica Honduras El Salvador Nicaragua AHU, Oct12

12 ADOPTED Res Doc : 1 Resolution : 017ha Page : 5 South America Argentina Panama Bolivia Paraguay Brazil Peru Chile Uruguay Colombia Venezuela Ecuador AHU, Oct12

13 Composite Passenger Tariff Coordinating Conference Abu Dhabi, 17 October 2012 Summary of Agreements For intended effective date of 1 June 2013, Composite meeting adopted a new Fare Selection Criteria Resolution that would provide: General guideline for the fare selection criteria in case on interlining, which Applies a more competitive method, while Meeting concerns of certain regulatory bodies and Enable systems to implement the solution as it is similar to the criteria method already approved and implemented for markets within Europe (Resolution 017hh) AHU, Oct12