Press Release

For Immediate Release
15 January 2005

An Explanation of IATA Fare Changes Provided To ACTE By Topaz International, Ltd.

-- On January 15th, 2005 there will be some changes to the manner in which airfares are calculated. These changes were implemented by IATA and approved by the United States Department of Transportation. It is important that all corporate travel mangers ensure their travel management companies are aware of these changes.

The elimination of the International Sale Indicators (SITI, SITO, SOTI, SOTO) will make a large impact on corporate travelers because it will change how fares will be calculated when travel originates in a different country other than where the ticket was purchased. Example: split ticketing - a passenger purchases a one-way ticket prior to January 15, 2005 from New York City to Seoul in business class for $2400.00 and a separate return ticket Seoul to New York City connecting in Tokyo for $3500.00. The return ticket is greater because the ticket is sold and ticketed in the USA with travel originating in Korea. The return ticket is considered as a SOTO ticket (Sold Outside/Ticketed Outside) Current fare construction rules require a higher intermediate fare check to be made at all ticketed points for SOTO tickets. Since the Tokyo to New York fare is greater than Seoul to New York, the Tokyo-New York fare is charged on the return ticket. Effective January 15th, the International Sale Indicators will no longer exist. Higher Intermediate Point checks only need to be based on stopover points regardless where the ticket is issued and sold with a few exceptions. Therefore, the fare on the return ticket will be for Seoul to New York ($1900.00).

The elimination of the Country of Unit Origin Minimum check will eliminate having to charge a higher fare if a passenger should travel via the country of origin on a one-way ticket. Example: Atlanta - Mexico City - Connecting in Miami - Sao Paulo. Fare construction rules require a fare to be charged from Atlanta to Mexico City and another fare from Mexico City to Sao Paulo; however since the passenger is traveling via a point in the country of origin (MIA), a fare check must be made from Miami to Mexico City and Miami to Sao Paulo to ensure the fare from the country of origin is not undercut. Effective January 15, 2005, this check will not be required, allowing the passenger to pay the Mexico City - Sao Paulo fare.

Currently the Directional Minimum Check (DMC) is not applicable for sales made in the United States and its territories; however, effective January 15, 2005, the DMC will be applicable to one way and normal open jaw journeys to/from/via Japan when the traffic document is issued an any other country other than country of ticket origin and the journey does not terminate in Canada, United States, or U.S. Territories. Example: Traffic document issued Los Angeles. Travel: Seoul - connecting in Tokyo - Singapore. Whichever fare is greater: Seoul to Singapore; Seoul to Tokyo; Tokyo to Seoul; Tokyo to Singapore; Singapore to Seoul; or Singapore to Tokyo would have to be charged.

For information on these changes, or customized classes to ensure your Travel Management Companies are up to speed on these changes, please contact Topaz International. If you have other issues related to IATA that you would like ACTE to focus on please email the ACTE IATA Task Force at [email protected]


For more information, contact:
Debbie Flynn
CEO
Brighter Group
The Pod, London's Vertical Gateway
Bridges Wharf, Battersea
London SW11 3BE England
T: 020 7326 9880
F: 020 7326 9890
E: [email protected]
W: www.brightergroup.com