Fare Construction | Fare Construction in IATA | Calculate One-Way Routing | Air Tariff | IATA Course

Introduction

This tutorial provides a comprehensive guide to fare construction for one-way journeys, specifically from Jeddah to Frankfurt on a Saudi Arabian Airlines flight in Economy "Y" Class. Understanding fare construction is essential for travel consultants and anyone involved in air ticketing, as it ensures accurate fare calculations and compliance with IATA regulations.

Step 1: Understand Fare Construction Points

• Familiarize yourself with the concept of Fare Construction Points (FCP), which are critical for determining the fare for a journey.
• Identify the origin and destination of the journey (e.g., Jeddah to Frankfurt) and any intermediate points if applicable.

Step 2: Determine Ticketed Point Mileage

• Calculate the mileage between the origin and the destination.
• Use the IATA Mileage Calculator to find the exact mileage. This is essential for applying the mileage rules.

Step 3: Apply Maximum Permitted Mileage

• Compare the Ticketed Point Mileage with the Maximum Permitted Mileage (MPM) for the route.
• Ensure that the calculated mileage does not exceed the MPM, as this could affect the fare.

Step 4: Consider Extra Mileage Allowance

• Check if there is an Extra Mileage Allowance (EMA) applicable for the route.
• This can sometimes allow for additional mileage beyond the MPM, so it’s essential to verify the airline's rules.

Step 5: Check for Higher Intermediate Point Fare

• Investigate if a higher intermediate point fare is available for the route.
• This could provide a more competitive fare option and might include connections or layovers.

Step 6: Conduct a Backhaul Check

• Determine if the itinerary involves backhauling, which is traveling away from the final destination before proceeding.
• Backhaul scenarios may result in different fare calculations, so be sure to verify this aspect.

Step 7: Calculate Constructed Fare

• Use the information gathered (Ticketed Point Mileage, MPM, EMA, and any relevant surcharges) to calculate the constructed fare.
• Apply the IATA Rate of Exchange if the fare needs to be converted to a local currency.

Step 8: Perform Local Currency Fare Calculation

• If needed, convert the constructed fare to the local currency using the IATA Rate of Exchange.
• Ensure that the exchange rates used are current and reflect the appropriate market rates.

Conclusion

In this tutorial, we covered the essential steps for fare construction from Jeddah to Frankfurt, including understanding fare construction points, calculating ticketed point mileage, and considering various allowances and surcharges. Mastering these concepts will enhance your ability to provide accurate fare calculations as a travel consultant. For further learning, consider practicing with different routes and fare scenarios. If you have any questions, feel free to reach out or check out additional resources for more in-depth study. Safe travels!