Chapter-2 Local Currency Fares Ticketing terminology(THM-NU-CRS)

1. CHAPTER 2:
LOCAL CURRENCY, FARES,TICKETINGTERMINOLOGY
Md Shaifullar Rabbi

2. Md Shaifullar Rabbi
Assistant Manager
Customer Support and Training Department
Sabre Travel Network Bangladesh Limited
BBA & MBA
Major in Tourism and Hospitality Management
Faculty of Business Studies
University of Dhaka
Md Shaifullar Rabbi

3. AIRLINES INDUSTRY
 The airline industry encompasses a wide
range of businesses, called airlines, which
offer air transport services for paying
customers or business partners. These air
transport services are provided for both
human travelers and cargo, and are most
commonly offered via jets, although some
airlines also use helicopters.
 Airlines may offer scheduled and/or
chartered services and the airline
industry forms a key part of the wider
travel industry, providing customers with
the ability to purchase seats on flights
and travel to different parts of the world.
The airline industry offers a variety of
career paths, including pilots, flight
attendants and ground crew.
Md Shaifullar Rabbi

4. GLOBAL AIRLINE MARKET: 2019
❑Passenger Numbers
As per IATA, passenger numbers are expected to
rise from 4.34 billion passengers in 2018 to 4.59
billion passengers in 2019.
❑Revenue and Profits
The overall revenue is expected to rise from $824
billion in 2018 to $885 billion in 2019.
Global airline industry net profits will reach
$35.5 billion in 2019, increasing from $32.3 billion
in 2018.
Md Shaifullar Rabbi

5. EMPLOYMENT
The aviation industry supports 87.7 million jobs around the world, either directly within the industry
or, supported through the industry's supply chain, employees' spending and in the aviation-enabled
tourism sector.
❑11.3 million direct jobs
 Around 11.3 million people work in the aviation industry directly.These jobs are:
 Airport operators: 648,000 (work for the airport operator)
 Other airport-based roles: 5.5 million (retail, car rental, customs and immigration, freight
forwarders and catering)
 Airlines: 3.6 million (flight and cabin crews, executives, ground services, check-in, training,
maintenance staff)
 Civil aerospace: 1.3 million (engineers and designers of civil aircraft, engines and components)
 Air navigation service providers: 237,000 (air traffic controllers, executives)
 These jobs are, on average, 4.3 times more productive than average jobs in the economy.
Source- https://aviationbenefits.org/economic-growth/supporting-employment/
Md Shaifullar Rabbi

6. ❑18.1 million indirect jobs
 Over 18.1 million jobs globally are supported by aviation indirectly,
through the air transport industry's purchase of goods and services.
 These include suppliers to the air transport industry, for example fuel
suppliers, construction companies, suppliers of aircraft components,
manufacturers of goods sold in airports, and a variety of business
support roles, like call centres, IT and accountancy.
❑13.5 million induced jobs
 Air transport industry employees (direct and indirect) support 13.5
million induced jobs globally, using their income to purchase goods and
services for themselves. Their spending power supports jobs in retail,
consumer goods, and a range of service industries such as banks and
restaurants.
❑44.8 million jobs in tourism
 Tourism is fast becoming the world's largest industry, and air transport
plays a vital role. Conservative estimates suggest that aviation supports
44.8 million jobs within tourism. Md Shaifullar Rabbi

7. KEY FUNCTIONS OF AIRLINES
Airlines functional
activities
The structure of the
airlines industry
Planning
Flight Scheduling
Aircraft routing
Principles of Airlines
scheduling
Fleet assignment
Crew Scheduling
Manpower planning
Revenue
Management
Flight Dispatch
Gate assignment
Project Management
Airlines Irregular
Operation
Md Shaifullar Rabbi

8. Md Shaifullar Rabbi

9. TYPES OF AIRLINE EMPLOYMENT OPPORTUNITIES
➢Flight Attendant Jobs: The main responsibility of a flight attendant is to make sure
passengers are safe. Next, the must provide great customer service. Flight attendants
make up almost 20 percent of the 515,000 employees that comprise the aviation
workforce. Do you love to travel? The job might be for you!
➢Airline Administrative Support: Every airline, big and small, needs administrative support
staff to keep the office running smoothly. These positions include secretaries, data entry
workers, receptionists, communications and PR specialists, and those who work in the
human resources department who handle or oversee the hiring, labor relations issues,
training, and termination of employees.
➢Operations Agent: Also known as an Airline Operations Agent, the cargo agent needs
great communication skills for receiving and transmitting information from and to
pilots, ground crew, and other personnel. The Ops Agent must be able to prioritize a
large number of projects and tasks. When flights are overbooked (it happens often!),
agents must make decisions to rectify the situation in a way that will not negatively
impact the schedule.
➢Avionics Technicians: Avionics technicians specialize in working on the electronics
systems of aircraft. Avionics technician jobs involve troubleshooting, repairing, replacing,
and installing avionics equipment. Calibration of the equipment may also be required.
Md Shaifullar Rabbi

10.  Regional Sales Manager: The airline district sales manager oversees all of a district’s reservations
and ticket sales offices, and the sales representatives in that district. Sales representatives promote
their airline in an effort to sell cargo space and plane tickets.
 Flight Dispatcher: Flight dispatchers are responsible for ensuring the safety of an aircraft’s flight.
This includes preparing a flight plan, which is a detailed schedule of destinations, layovers,
distance, expected fuel consumption, winds aloft, weather, altitude, compass bearing, and
alternate destinations in case of problems.
 Ground / Airport Station Attendant: This position has many names: airline informational
representative, ground attendant, station attendant, special assistant coordinator, or airport
informational representative. Regardless of title, the main responsibility is to assist passengers in
the terminal with general questions regarding directions, terminal services, or arranging wheelchair
access.
 Aviation Meteorologist: Aviation meteorologists provide weather information to airline flight
dispatchers and pilots. They must determine current and forecasted weather conditions for all
altitudes, including the direction and speed of wind, cloud cover, and precipitation.
 Passenger Service Agent: Passenger service agents some of the same responsibilities as those in
station agent jobs, but they are focused on working passengers – not aircraft. Their duties include
issuing refunds to passengers, computing fares, preparing and selling tickets, collecting charges for
excess baggage, checking baggage, and providing travel information.
 Ramp Planner: An airline ramp planner is responsible for knowing the arrival and departure times
for each of the airline’s aircraft at that airport. He or she coordinates a variety of departments or
contracted companies that must perform various tasks on the aircraft before it can depart for the
next flight.
Md Shaifullar Rabbi

11.  Reservation Sales Agent: Reservation sales agents provide travel information over the
telephone to customers of the airline. Typically, this information includes trip planning, car
rentals, seat availability, fare information, schedules, tours, meals, and other information
relevant to the customer’s flight plans. Although internet reservations have skyrocketed,
airlines still utilize reservation sales agents.
 Sales Representative: Airline sales representatives help generate business for the airlines.
They promote their airline to businesses.
 Crew Schedule Coordinator: Airline crew schedule coordinator are responsible for staffing of
aircrew and ground support to keep flights on schedule. If weather or mechanical difficulties
delay a flight, it is the crew scheduler’s responsibility to make sure schedule adjustments are
made so that travelers arrive at their destination on time.
 Airline Station Agent: The most important duty of the station agent or district operations
manager, is ensuring the overall operations of a given airline at an airport. This encompasses
both flight and ground support operations and involves coordinating flight crew, cargo crew,
baggage crew, ground crew, and the information that must be communicated among all
these teams.
 Airline Ticket Agent: Ticket agents work at an airline’s ticket or baggage counter. They greet
customers when they arrive at the airport. They check in luggage and make seat assignments.
They also handle airline ticket sales, reservation changes, and provide information on
aircraft boarding.
 Airline Flight Instructor: An airline flight instructor provides recurrent training for the airline’s
pilots.Airline flight instructors may be senior pilots who fly for the airline.
 Aviation Attorney: Aviation attorneys specialize in aviation-related cases in commercial or
general aviation for individuals, government agencies, or companies. Aviation attornies
represent airlines and/or the government. Some aviation attorneys work for the FAA, while
others may be on staff or on retainer by large corporations who own aircraft or deal with
airlines.
Md Shaifullar Rabbi

12. OFFICIAL AIRLINE GUIDE
OAG is a global travel data provider with headquarters in the UK. The company
was founded in 1929 and operates in
the USA, Singapore, Japan, Lithuania and China. It has a large network of flight
information data including schedules, flight status, connection times and
industry reference codes such as airport. The "Official Aviation Guide of the
Airways" was first published in February 1929 in the United States, listing 35
airlines offering a total of 300 flights. After the Guide was taken over by a rival
publication in 1948, the September issue carried the OAG title for the first time.
OAG was founded in Chicago, but moved to the suburb of Oak Brook, Illinois in
1968.The "ABC World Airways Guide" containing maps and tips for travelers was
first published in the UK in 1946. The integration of the ABC and OAG brands
occurred following the acquisition of OAG Inc. in 1993 by Reed Elsevier which
already owned ABC International.[ OAG had acquired SRDS, an ad rate
information company from Macmillan Inc. a sister Maxwell company, in 1992;
Reed Elsevier sold SRDS to a buyout firm in 1994.[In August 1996 all products
from the combined ABC and OAG businesses were rebranded as OAG.
Md Shaifullar Rabbi

13. TRAVEL INFORMATION MANUAL (TIM)
Published monthly, theTIM (Travel Information Manual) is the world's leading source of
Passport,Visa and Health documentationregulations for passengers.Airlines andTravel
Agents useTIM to provide advice on border requirements to passengers at the time of
booking, and airlines use it at the time of boarding to ensure passengers have sufficient
travel documents for their destination and any transit points. If your passengers do not
have sufficient travel documents the airline will not carry them!
Key Benefits
 TheTIM is a must for all who are involved in the travel industry.This unique manual
details rules and regulations for every nationality going to every country worldwide on
subjects such as:
 Passport regulations and recommendations
 Visa regulations and recommendations
 Health regulations and recommendations
 AirportTax to be paid by the traveler at either departure or arrival airport
 Customs regulations relating to import/export of goods and small pets by a passenger
 Currency regulations relating to import and export by a passenger
Md Shaifullar Rabbi

14. PASSENGER AIRTARIFF
Md Shaifullar Rabbi

15. E-TICKETING
 An electronic ticket, often
called e-ticket, is the digital
ticket equivalent of a paper
ticket. The term is most
commonly associated with
airline issued tickets.
Electronic ticketing for urban
or rail public transport is
usually referred to as travel
card or transit pass. It is also
used in ticketing in the
entertainment industry.
 An electronic ticket system is a
more efficient method of
ticket entry, processing and
marketing for companies in
the airline, railways and other
transport and entertainment
industries. Md Shaifullar Rabbi

16. Md Shaifullar Rabbi

17. AIRLINESTERMINOLOGY
❑Tariff/ fare: The money a person pays to travel on an
airplane.
❑Infant: 0 to below 2 years passenger. A person who has not
reached his/her second birthday as of the date of
commencement of travel. Normally pay 10 percent of
normal adult fare. Indicate in the fare basis box in the ticket.
❑Child: passenger 2-to below 12 years old. A person who has
arrived his/her second birthday but not his/her 12th birthday
as of the date of commencement of travel pay child fare.
Also indicated by CH in the fare basis box in the ticket.
❑ Adult: A person who has reached his/her 12th birthday as of
the date of commencement of travel.
❑PNR: Passenger name record -The official name of one’s
reservation in a computer system (CRS).
❑No Show: A traveler who does not appear for a flight on which
he or she has a reservation and fails to cancel that reservation
properly. Airlines will cancel all further flights on a traveler’s
itinerary if a reservation is not cancelled. Md Shaifullar Rabbi

18. ❑Excursion: Any person visiting a country other than where he lives and remain
less than 24 hours as per IATA.
❑Tourist: Person who stays at least 24 hours but not more than one year in the
country visited and the purpose of that trip can be business, leisure, holiday,
meeting.
❑NUC; Neutral unit of construction means standard Units of currency use for
the fare construction.
❑ROE; IATA rate of exchange: The ROE established by the IATA clearing house
for the use to
✓A) convert the local selling fare in to NUC values and B) convert NUC values
when used in fare construction /calculation into the local selling fare (in the
currency of country of commencement of journey.)
❑Over book: The practice by airlines of confirming more seats on an aircraft than are
actually available. Airlines often overbook their flights. In other words, they sell more
tickets than there are seats, in order to compensate for the no-show factor.
❑Confirmed Reservation: Oral or written statement by a hotel, restaurant, airline or
other supplier that the request for a reservation has been received and will be honored
❑Add on Fare: Used primarily for international travel where the fare from a gateway is
fixed and a fare for travel to the gateway is added on to provide a total fare for travel.
Md Shaifullar Rabbi

19. ❑Segment: A ‘leg’ or part of a journey, usually in reference to an air itinerary. One
takes off and landing during air travel constitutes a segment.
❑Sector: A portion of an itinerary which may be comprises of legs or segments,
usually used in reference to fare construction.
❑Reconfirmation: A requirement that passengers under certain given circumstances
advice a carrier of their intention to use the space reserved.
❑Reissue: The generation of a new ticket that is exchanged for another, due to
change of plans, dates, flights etc. May involve additional fare penalties and fees.
❑Revalidation: The authorized stamping or written upon the passenger ticket
evidencing that it has been officially altered by the carrier.
❑Constructed fare: A fare, other than a specified fare, constructed in accordance
with principles described in the fare construction principles section of the air
tariff.
❑Service Charge: Amount of money determined by a percentage of a customer’s
total purchase. A fare additional charge made by travel agents for services
beyond the normal activities of arranging for transport, accommodations.
❑Commission: The amount paid by the supplier (carrier, hotel, tour, operator,
etc) to the travel agent for selling transportation, accommodations or other
services.
❑Override: Extra commission paid by carriers, tour wholesalers, hotels and other
suppliers to travel agents as bonuses or incentives for selling these particular
firm services. Usually related to volume business.
Md Shaifullar Rabbi

20. ❑Stand by / Go Show: A passenger trying to obtain space on a flight earlier or later
than his / her scheduled flight is said to be going on a standby.
❑Boarding Area: The space for passengers waiting to obtain boarding passes, check-
in or board a plane.
❑Boarding Bridge (Covered Walkway): A covered passageway from an airport
terminal building to an aircraft for the use embarking and disembarking
passengers.
❑Boarding Pass: Card handed to a passenger before boarding and aircraft. It
indicates that all check in formalities have been completed and specifies the class
and compartment of the air craft as well as sometime indication the seat number
allotted to the passenger.
❑Baggage Claim: The area in an airport where customers claim their checked
luggage.
❑Connecting Flight: Two or more flights used to transport a customer between
two cities. When a passenger changes planes en route from origin to
destination, each flight number is different and the time on the ground cannot
exceed 4 hours for domestic.
❑Interline connection: A flight on one airline that connects to a flight on
another carrier-these tickets are usually more expensive than flying all on
one carrier but may be the only way to get to a destination in some cases. Also
unless an interline agreement for baggage handling exists, you may have to
claim your luggage from the first flight and recheck it on the next carrier’s
flight.
❑Electronic Ticket (E-ticket): A computer record, and not printed on a paper
ticket. It may be referred to as ticketless travel. A receipt is printed for
customer records. Md Shaifullar Rabbi

21. ❑Passenger Ticket: Those portion of the passenger ticket and baggage check
constituting the passenger’s written evidence of the contract of carriage.
❑Special Service Request (SSR): A PNR field used to request a special service or
action. This field generates a message to an airline. The most common of these
requests is for special meals (for example: Kosher, vegetarian) and seat
assignments. Other requests are for MAAS, stretcher, wheelchair, oxygen, and
unaccompanied minors, which must be made directly with the airline .
❑Upgrade: To move to the next higher category, as to upgrade a
passenger from coach to business class. Some tickets allow a passenger
to upgrade using the redemption of miles, a certificate or award or
paying with money.
❑Higher-Intermediate-Point : A place on an itinerary to which there is a
higher fare than the destination or next fare break point. When a city
between the city of origin and the fare break point has a higher fare
than the destination city, the higher fare must be used.
❑Direct Flight:- A flight to another city stops at least once en route, but
does not involve a change of Carrier ( you do not have to change the
plane) DAC – BKK – SIN : BG-046
❑Non-Stop Flight:- A flight that proceeds directly to the final destination
without any stops at intermediate points.DAC- KUL BG086
❑Intraline connection (On line):- When a passenger has to change the
aircraft of the same airlines for transfer connection during his journey
then it is called intraline connection.
DAC – BKKTG-340, BKK – KULTG-415 Md Shaifullar Rabbi

22. ❑Interline connection (Off line): When a passenger has to change both the aircraft and
the airlines for a transfer connection during his journey then it is called interline
connection. DAC – CCU BG 095 CCU – MAA 9W-654
❑Origin: The initial point at which a journey commences or the initial point of a
published fare used in the calculation of a through one way, round or circle trip fare.
❑Destination: A place, which supplies the reason for travel and where the journey of the
travelers ends for some time. According to its facilities and attractions the destination
can be a business destination, a touristic destination or other.
❑Stopover: A deliberate interruption of a journey, requested at a place between points of
origin and destination.
❑First Class: Generally the most expensive class of service is first class. First-class
passengers sit in a wider, more comfortable seat and pay no extra charge for drinks,
headsets, or movies. Amenities include china and linen place settings, elaborate meals
and deserts. First class is usually at the front of the plane, or upstairs on some planes.
❑Business Class: Business class usually offers service in between first class and coach.
Many airlines offer special services for the business traveler, such as a larger tray-table
for paperwork, fax service, or electrical outlets. Business class is found on airplanes that
have three or more cabins, which includes most international flights and sometimes on
flights within the U.S.
❑Economy / Coach Class: Coach/economy class is generally the less expensive class of
service. Passengers receive the basics a seat, nonalcoholic beverages and sometimes
meal service, or meal service at a cost.
Md Shaifullar Rabbi

23. BILLING & SETTLEMENT PLAN
BSP:- The IATA Billing and Settlement Plan:
A system for computerized processing of
accounts between Agents and Airlines on a
country-by-country basis. BSP is a
standardize system for airlines and agents,
providing them with a simplified approach
to the selling, reporting and administration
of passenger air transportation. Through
BSPs, both Airlines and agents improve
service standards saving time, effort and
thereof money.
Md Shaifullar Rabbi

24. MAXIMUM PERMITTED MILEAGE
❑ Maximum permitted mileage (MPM); the
element in the mileage principal in the MPM which is
the maximum distance in the miles that the passenger
is allowed to travel between the origin and destination
of a fare component. IN the PAT fare pages you find
MPM under GI/ MPM and routing column. In fare
construction, the permitted total of ticket point
mileages allowed between two fare break
points. Maximum Permitted Mileage (MPM) distances
represent the maximum distance between two
specified international points established on the basis
of shortest combinations of non-stop sectors and
where applicable, over specified construction points,
increased by 20%. The Mileage Manual contains close
to 7 million MPM distances. It is published once per
year in April and includes monthly bulletins.
MPM DAC- DXB 2652 DXB-L ON 6579 LON-P AR 635
Md Shaifullar Rabbi

25. TICKETED POINT MILEAGE
Ticketed point mileage (TPM): TPMs represents
the shortest operated mileages between the
ticketed points of journey. These TPMs are
published in the general PAT rules book. An
officially stated distance between two cities, used
in airline fare calculations regardless of the
airports used. Official source for flown mileages
between all points including more than 65,000
city pair mileages. A TPM represents a distance
covered by one flight coupon of a passenger ticket
and is calculated on the basis of non-stop or
through scheduled air services. TPMs are also used
when establishing prorate factors. The TPM is
published twice per year for yearly annual fee
including monthly bulletins.
Md Shaifullar Rabbi

26. EXCESS MILEAGE ALLOWANCE
Excess mileage allowance (EMA): If in case
the total TPM is higher than the MPM ,you
have to look for an EMA .The EMA is the
TPM deduction or published bonus mileage
that is deducted from the total TPM . Such
mileage deduction depends on the type of
routing .the origin/destination and via points
of the fare component. After deducting the
applicable EMA from the TPM, the reduced
TPM is compared once again with the MPM
to determine whether or not the routing is
“within the mileage”. The complete list of
EMA is found in section 2.3.4 of the PAT
general rules supplement.
Md Shaifullar Rabbi

27. LOCAL CURRENCY FARE
LCF: Local currency fare Payment in the
country of commence of travel: A) In
the currency of the country of
commencement of travel or B) In any
currency not marked with # sign in the
NUC conversion factor table in PAT.
Convert these currencies to the bank
selling rate effective on the date of
ticket issuance.
Md Shaifullar Rabbi

28. EXTRA MILEAGE SURCHARGE
❑Extra mileage surcharge: It may happen that after checking the EMA
tables, you cannot find an applicable EMA or you found it was not
enough to lower the TPM .In such cases, the TPM still exceeds the
MPM and it becomes necessary to impose a surcharge. Surcharges may
vary from 5% to 25% and are determined by a simple formula .with
divided the TPM total by the MPM. If the result is :
surcharges the fare by:
➢Over 1.000000 but not higher than 1.050000 … 5%
➢Over 1.050000 but not higher than 1.100000 …10%
➢Over 1.100000 but not higher than 1.150000...15%
➢Over 1.150000 but not higher than 1.200000 …20%
➢Over 1.200000 but not higher than 1.250000 ……2 5%
When using this formula you must check up to six decimal places.
Md Shaifullar Rabbi

29. ❑Code Sharing: Code sharing is the most common type of
airline partnership; it involves one airline selling tickets for
another airline’s flights under its own airline code. Code
sharing is an aviation business term for the practice of
multiple airlines selling space on the same flights, where a
seat can be purchased on one airline but is actually
operated by a co operating airline under a different flight
number or code. When airlines code- share, they combine
their schedules and marketing efforts and enter into
agreements for reservation and ticketing.
❑Baggage Allowance: The weight or volume of baggage
that may be a passenger carried without additional
charge. Now a day’s maximum airlines has their own
baggage allowance policy. As per IATA standard baggage
allowance weights for Economy class 20 KG, Business
class 30 KG, First class 40KG. For travel between cross
Atlantic or cross Pacific luggage allowance for Economy
class 2Pc X 23 = 46KG, Business class 2Pc X 32 = 64KG,
First class 2Pc X 32 = 64KG
Md Shaifullar Rabbi

30. SPECIAL MEALS
Special Meals: Airlines offer special meals for a
variety of reasons therefore, there are many types
of meals. Most airline offer children meals low
calorie low/no salt, low cholesterol, diabetic and
vegetarian. Religious or ethnic meals are offered
such as Kosher, Muslim, Hindu and Oriental, Not
all airlines offer all type of meals. Very often the
places an airline will fly will determine the types
of special meals offered. Special meals must be
ordered 12-24 hours in advance of the flight so
that they may be prepared and boarded on the
proper flight.There is no cost for a special meal.
Md Shaifullar Rabbi

31. Md Shaifullar Rabbi