Application of Tariff

Application of Tariff 1 Applicability of Fares (Extracted from IATA Reso 017) Different carriers in a fare Normal Fares Special Fares Cabotage Fares Fares Established as a Percentage Validities and Counting Validity of Ticket Validity of Fares Counting of Days Counting of Month(s) Counting of Year Minimum Stay Maximum Stay Stopovers and Transfers General Stopover Rule Definition of Stopovers Definition of Transfers Published Fares and Add-On Amounts Mileage System / Routings Mileage Calculation Applicable Fare when Mileage exceeded Surface Transportation (Gaps) Mileage Exceptions Excess Mileage Allowance (EMA) Special EMAs for LH and UA Interrupted Travel General Rule for Interrupted Travel Interrupted Travel with Normal Fares Fare construction Fare construction principles - how to proceed Basic fare construction principles Pricing Unit Concept Definitions Sequence of checks Applicable fares Constructed fares Add-on constructions Add-on application C/ construction to establish unpublished fares Fares based on a Percentage of another Fare Comparing fares with global indicators Construction Rules For Journeys General How to determine the Fare for a Journey "Slicing" and "Dicing" an Itinerary Round, Circle, Open Jaw Trip Journeys RT, CT, OJ Journeys with common Point/Country 4 4 4 4 4 5 6 6 6 6 7 7 8 8 9 9 9 11 12 12 12 12 13 15 17 17 19 19 19 21 21 21 23 23 24 24 24 25 25 25 25 27 30 30 30 30 30 31

Fare Direction for RT, CT, OJ Journeys OJ Journeys - alternative Option for Assessment Journeys other than Round, Circle, Open Jaw Trips Journey Limitations on Indirect Travel Arrivals and Departure in one Country Construction Rules for Individual Pricing Units OW Pricing Units Minimum checks for OW pricing units Round Trip Pricing Units Circle Trip Pricing Units Definition of a CT Circle Trip Construction Circle Trip Minimum Fare Check (CTM) Unreasonable connections Normal Fare Open Jaw Pricing Units Definition of normal fare OJ Fare construction for normal fare open jaw Minimum checks for Fare Open Jaws Directional Minimum Check Common Point Minimum Fare Check (CPM) Special Fare Open Jaw Pricing Units Definition of Special Fare OJ Fare construction for special Fare open Jaw Construction Rules for Fare Components flown in one Class of Service General General Provisions for fare components Limitations on Indirect Travel General Limitations Additional limitations at the origin point Additional limitations at intermediate points Additional Limitations by Country Journey limitations Fare components with a surface sector(s) Fare Calculation Normal fares Higher Intermediate Point (HIP) Check HIP check for normal and special fares HIP exceptions by countries HIP check - normal fares HIP check - special fares Fares Guarantee (IATA Reso 049x) Refunds and Reroutings (IATA Reso 017f) Section A - General Section B - Voluntary Reroutings (for partly used Pricing Units) Voluntary Rerouting of Totally Unused Tickets Section D - Refunds (for partly used tickets) Surface Sectors Imbedded surface sector Fare construction surface sector Surface sector provisions Combination

31 31 31 32 32 33 33 34 34 35 35 35 35 37 39 39 39 41 41 41 42 42 42 43 43 43 44 44 44 44 44 45 46 46 46 47 47 47 48 50 52 54 54 55 55 55 61 61 61 61 61 2

End-on combination Side trip combination Local combination Combination of USA domestic fares with international fares Mixed Class Construction General Mixed Class Fare Checks Normal Fare Flow Chart General Notes: Summary of steps and checks

62 62 63 63 65 65 68 69 70 71

Applicability of Fares (Extracted from IATA Reso 017)

The fare paid is only applicable when international travel actually starts in the country of the point of origin shown on the ticket. Different carriers in a fare If, in the particular routing, travel is not limited to one or more specified carrier(s), transportation may be on the service of any participating and connecting carrier. The publication of a routing does not imply the existence of a service or that traffic rights are granted. Therefore, the schedules of carriers must always be consulted when making routing. Normal Fares Full fares for a First/Business/Economy Class service and restricted fares published as normal fares (e.g. F2, C2, Y2 ect.). Children and infant fares which are established as a percentage of a normal fare are also considered to be normal fares. These Fares bare the Fare Type Codes FU/FR/FS/FT, BU/BR/BS/BT and EU/ER/ES/ET. Special Fares Any fare other than normal fare. Cabotage Fares Are fares for transportation between the territories of the same state (e.g. Paris to Reunion). These fares are not applicable for transportation by all carriers. British Cabotage Journeys between the following territories are British Cabotage and traffic is restricted to British airlines which have authority to issue tickets on foreign airlines under certain circumstances. Bermuda, British Virgin Islands, Caicos Islands, Cayman Islands, Gibraltar, Montserrat, Turks Islands, United Kingdom Dutch Cabotage Between and within Netherlands, Netherlands Antilles and Aruba. French Cabotage Between and within Continental France, Corsica, French Guiana, Guadeloupe (including St. Barthelemy, Northern St. Martin, Les Saintes, La Desirade, MarieGalante-Grand-Bourg), Martinique, Mayotte, Reunion, St. Pierre and Miquelon, New Caledonia (including Loyalty Islands), French Polynesia (including Wallis and Futuna).

USA Cabotage Journeys between the following territories are U.S. Cabotage Points: American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnson Atoll, Kingman Reef, Midway Island, Northern Mariana Island, Puerto Rico, Saipan, Swains Island, Pacific Trust Territories, Palmyra Island, Panama Canal Zone, US Virgin Islands, Wake Island. Fares Established as a Percentage When fares are expressed as a percentage of another fare and different percentages apply on a journey, apply the following procedures: - apply the percentage to the base fare to establish a nominal fare level - use the nominal fare level for application of all fare construction rules Example: Journey A-B-C-D Childrens fare: A-C 50% of the adult fare A-D 50% of the adult fare B-C 67% of the adult fare B-D 67% of the adult fare Calculate amounts resulting from the application of the above percentage. Using these amounts, apply minimum fare checks (HIPs, CTMs...)

Validities and Counting

Validity of Ticket A ticket is valid one year after issuance. If the travel starts later than ticket issuance, the validity is one year form the date of the first flight (departure). Exceptions: - for tickets paid for in the currencies of Colombia, Gambia, Ghana, Sierra Leone, Zambia, travel must be commenced within one month after the date of issuance - within Japan: International tickets issued for wholly domestic travel in Japan on which reserved status is shown will be valid only for the flight for which the reservation is made; open dated tickets are valid for 60 days (via NH 90 days) from date of issue - tickets issued for only seasonable services will be valid only for this use - tickets for domestic transportation may have a shorter validity - via SA: normal fare tickets issued for wholly domestic journeys within South Africa and Southwest Africa by SA are valid for six months Once the validity is fixed, such validity will be basic for any reissue or rerouting. Validity of Fares Normal OW, RT or CT fares are valid one year. The validity of special fares is described in the respective rules. If normal and special fares are combined in one ticket, such shorter period of validity shall apply only with respect to such special fare transportation, unless the shorter accordance with the combination of rules for the special fare in question. Counting of Days Departure for each flight coupon must be scheduled before midnight local time of expiry date on such flight coupon. In case of minimum stay requirements, the day to which the minimum stay is related shall not be counted. Examples: - travel under an open ticket issued 01OCT must be commenced not later than midnight of 01OCT of the year following - if travel under flight coupon No. 1 with an international flight commenced 01OCT, the last flight coupon of the ticket must be used for a flight scheduled to depart not later than midnight 01OCT of the year following, provided a normal fare is involved - for special fares the simplest way to determine minimum and maximum stay is to add the number of days to the dates from which they must be counted

e.g.:

14/45 days Excursion Fare commencement of journey 07JUN minimum stay 14 days related to arrival at turnaround point = 08 JUN maximum stay: 45 days Minimum stay: 07JUN + 14days ---------= 21 JUN Maximum stay: 07JUN + 45days ---------= 52 - 30 (30 for JUN) -----------------------= 22 JUL

Counting of Month(s) Validity of one month means a period of time from a given date in one month to the corresponding date in a subsequent month, e.g.: - 1-month validity 01JAN 01FEB or 30JAN 28FEB - 2-month validity 15JAN 15MAR Exception: When the given date is the last day of the month the corresponding date will also be the last day of that month: 02-month validity 28FEB 30APR Counting of Year Validity of one year means a period of time from a given date in one year to the corresponding date in a subsequent year, e.g.: 01JAN99 01JAN00

Minimum Stay
- Transatlantic/Transpacific: The number of days, counting from the day after departure on the outbound Transatlantic/Transpacific sector to the earliest day of return Transatlantic/Transpacific travel may commence from the last stopover point outside the country of origin (here including the point of turnaround) - all other travel: The number of days counting from the day after departure, on the first outbound international sector to the earliest day return travel may commence from the last stopover point outside the country of origin (here including the point of turnaround) Exception: Between Europe and Cyprus/Israel - Sunday Return Rule: Return travel from the last stopover point outside the country of origin must not be commenced before 0001 hours on the Sunday following the day of departure from the country of origin - when fare rule quotes a minimum number of days to be spent in or at a specific area, country or city, such duration is counted from the day after day of arrival to the earliest day return travel may commence - Transatlantic/Transpacific to/from USA/Canada Lufthansa: To/from Canada: return travel from the last point of stopover may not commence prior to the minimum stay period stated in the rule, after the date of departure from the point of origin. To/from USA: return travel from the last point of stopover may not commence prior to the minimum stay period stated in the rule, after departure of the outbound Transatlantic sector.

Maximum Stay
- the number of days counting from the day after departure, to the last day return travel may commence from the last stopover point - Transatlantic/Transpacific to/from USA/Canada Lufthansa: To/from Canada: return travel on the last continuous sector must commence by midnight of the last day of the maximum stay period stated in the rule, after the date of departure from the point of origin To/from USA: return travel from the last stopover must commence by midnight of the last day of the maximum stay period stated in the rule, after the date of departure from the point of origin

Stopovers and Transfers

General Stopover Rule Stopovers are permitted at passengers request at any scheduled stop of an aircraft if arranged and ticketed in advance. Exceptions: No stopovers are permitted if: - a carrier has no traffic rights - the fare does not permit stopovers - the routing regulations do not permit stopovers Limitation on stopover has to be observed if: - a fare used limits for stopovers - carriage is wholly within the USA or when US domestic fares are used in combination with other fares. Stopovers in USA are only permitted upon payment of the sector fare via the stopover point - travel in IC-services within India, stopover restrictions are to be respected Definition of Stopovers IATA Reso 012: Definition Stopover:: When a passenger arrives at an intermediate point and is scheduled to depart later than 24 hours after arrival (local time) Exception: for travel wholly within Central America or for travel wholly between Central America and Panama: when a passenger arrives at an intermediate point and is scheduled to depart later then 6 hours after arrival (local time). Attn: there may be exceptions by carrier. When a transit point is used as the origin, destination of a side trip, that point will be counted as a stopover unless the time interval between the arrival immediately preceding the side trip and the departure immediately following the side trip does not constitute a stopover. Specific Conditions for Travel at Fares within Area 1 Tickets sold in Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay in the countrys own currency may not provide for a stopover in that country once the passenger has left it, if the ticket includes travel outside Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay, unless otherwise specified in a fare rule, en-route stopovers are permitted free and all RT fares permit a free stopover at the point of turnaround fare construction point. Counting of Stopovers - in case of RTs or CTs, the stopover at point of turnaround (fare construction point) is not counted - in case of turnaround OJ trips, the outward point of arrival and the inward point of departure is one stopover which is not counted

- a transit point used as the origin, destination of a sidetrip will be counted as a stopover unless the time interval between the arrival immediately preceding the sidetrip and the departure immediately following the sidetrip does not counted as one stopover - when one or more portions of travel are by surface transportation, the last point of arrival by air and the first departure by air on each such surface break count together as 1 stopover if the time interval between arrival immediately preceding the surface sector and departure following the surface sector constitutes a stopover, provided that: - if stopovers are restricted to a specific area and there is a surface sector involved, both points in the surface sector must be in the specific area - where a specific routing permits stopovers at named points, both points of the surface sector must permit stopovers - surface sectors are permitted between two named transfer points in a routing - if one point has a stopover charge the charge must be assessed, if both points have stopover charge only one (the higher level) is assessed. Counting of stopovers in an OJ trip, based on a special fare rule which prohibits stopovers but allows OJ: Examples: Counting of stopovers in an OJ-trip, based on a special fare rule which prohibits stopovers but allows OJ: FRA CHI X NYC FRA 876.50 NUC 755.26 NUC

Explanation: CHI and NYC together are regarded as stopover at the point of turnaround which is not counted as a stopover Counting of stopovers in case of surface sectors, based on a rule which permits 1 stopover only, passenger wants to stop in GOA and TRN and travel GOA-TRN by surface: PAR ROM GOA X TRN PAR relevant fares PAR-ROM PAR-GOA PAR-TRN (train) NUC 815.86 627.32 603.19

Explanation: In case of a surface break within a fare component, the origin of the surface (GOA) and the terminal point of the surface (TRN) together count as one intermediate point stopover.

10

General Transfer Rule Transfers may be limited by the fare rule, normal fares have no transfer limitations. Definition of Transfers A transfer takes place when a passenger changes the aircraft. Iata Reso 012: Definition Stopover:: When a passenger arrives at an intermediate point and is scheduled to depart later than 24 hours after arrival (local time) Exception: for travel wholly within Central America or for travel wholly between Central America and Panama: when a passenger arrives at an intermediate point and is scheduled to depart later then 6 hours after arrival (local time). Attn: there may be exceptions by carrier. Counting of Transfers Whenever transfers are limited by a special fare rule, the following applies: - a transfer is permitted at the point of turnaround/fare construction point and this transfer will not be counted - if a transfer is restricted to a specific area and there is a surface sector involved, both points in the surface sector must be in the specific area - where a specific routing permits transfers at named point(s), both points of the surface sector must permit transfers - where there is a surface break, the last point of arrival by air and the first point of departure together count as one transfer, unless the surface break terminates in or commences from the point of turnaround (fare construction point)

11

Published Fares and Add-On Amounts

Where no published direct fare exists between 2 points over the required routing, a through fare can be constructed by means of add-on amounts: - add the add-on amount to the published fare between the origin/destination and the add-on gateway city - only one add-on amount at each end of a published direct fare may be used - the add-on amount to be used must applicable for the same class as the published fare to which it is added - a fare constructed with add-on is regarded as a published through fare and must be shown in the ticket as one single amount - such through fare will then be subject to all rule conditions appl9icable to the international fare used in the construction. Add-on must not be separately sold/ticketed as a sector fares

Mileage System / Routings

MPM: TPM: Maximum permitted mileage Ticketed point mileage (effective mileage between two ticketed points of the routing)

Mileage Calculation - add up the TPM for all ticketed sectors between the terminal points of the through fare - compare the sum of the TPM with the MPM - sectors travelled by surface within a through fare must be included. If a TPM is not published for the surface sector, the lowest combination of TPMs over another point may be used - TPMs and MPMs must be used into the global direction according to the fare Applicable Fare when Mileage exceeded Where the TPM is in excess of the MPM by: Over 5% 10% 15% 20% Note: Up to and including 5% 10% 15% 20% 25% Over 25% The fare shall be the direct route fare plus 5% 10% 15% 20% 25% lowest combination

permitted mileages calculated in accordance with above procedures shall be rounded down to the next lover whole mile.

12

Example: Mileage calculation for a return indirect journey: Routing OSL CPH DUS PAR GVA LON CPH OSL TPM TPM TPM TPM OSL-CPH CPH-DUS DUS-PAR PAR-GVA Relevant miles 314 422 289 250 ------1275

MPM: OSL-GVA 1173 TPM TPM TPM MPM: GVA-LON LON-CPH CPH-OSL OSL-GVA 1173 466 594 314 -----1374

Explanation: In case of return journeys, the journey is divided in 2 parts, an outbound and an inbound part. For each part, a separate mileage calculation is done. On the outbound part TPM (1275) exceeded MPM and a surcharge of 5% has to be collected. On the inbound part, a 20% surcharge is applicable. Surface Transportation (Gaps) In calculating the mileage for a through fare via indirect routings, surface transportation (at the passenger's expense) may be included between the following intermediate points ignoring the mileage between such points. Area 2 Between : Alghero (AHO) Alicante (ALC) Alicante (ALC) Almeria (LEI) Amman (AMM) Amritsar (ATQ) Amsterdam (AMS) Antwerp (ANR) Barcelona (BCN) Barcelona (BCN) Basle (BSL) Berlin (BER) Berlin (BER) Berne (BRN) Berne (BRN) Bilbao (BIO) and : Olbia (OLB) Murcia (MJV) Valencia (VLC) Malaga (AGP) Jerusalem (JRS) Lahore (LHE) Rotterdam (RTM) Brussels (BRU) Gerona (GRO) Reus (REU) Mulhouse Dresden (DRS) Leipzig (LEJ) Geneva (GVA) Zurich (ZRH) San Sebastian (EAS) 13

Bilbao (BIO) Bilbao (BIO) Bologna (BLQ) Brazzaville (BZV) Bremen (BRE) Bremen (BRE) Catania (CTA) Cologne (CGN) Cologne (CGN) Cuzco (CUZ) Dresden (DRS) Dubai (DXB) Dusseldorf (DUS) Florence (FLR) Granada (GRX) Hamburg (HAM) Hamburg (HAM) Hanover (HAJ) Jerez de la Frontera (XRV) La Coruna (LCG) Larnaca (LCA) Livingstone (LVI) Ljubljana (LJU) Milan (MIL) Munich (MUC) Podgorica, Serbia & Montenegro Santiago de Compostela (SCQ) Split (SPU) Stockholm (STO) Swakopmund (SWP) Venice (VCE) Area 1 Between : Arica (Chile) (ARI) Brownsville (BRO( Ciudad Juarez (CJS) Curitiba (CWB) Cuzco (CUZ) Detroit (DTW) Guatemala (GUA) Guayaramerin (GYA) Hilo( ITO) Iguassu Falls (Brazil) (IGI) Laredo (LRD) Leticia (LET) Livramento (LVB) McAllen (MFE) Paso de los Libres (AOL) Puerto Montt (PMC)

Santander (SDR) Vitoria (VIT) Florence (FLR) Kinshasa (FIH) Hamburg (HAM) Muenster (FMO) Palermo (PMO) Dusseldorf (DUS) Munster (FMO) La Paz (LPB) Leipzig (LEI) Sharjah (SHI) Mnster (FMO) Pisa (PSA) Malaga (AGP) Hanover (HAJ) Muenster (FMO) Muenster (FMO) Sevilla (SVQ) Santiago de Compostela (SCQ) Paphos (PFO) Victoria falls (VFA) Zagreb (ZAG) Turin (TRN) Nrnberg (NUE) Tivat, Serbia & Montenegro Vigo (VGO) Zadar (ZAD) Vasteraas (VST) Walvis Bay (WVB) Verona (VRN)

and : Tacna (TCQ) Matamores (MAM) El Paso (ELP) Joinville (JOI) La Paz (LPB) Windsor (YQG) Tapachula (TAP) Porto Velho (PVH) Kona (KOA) Iguazu (Argentina) (IGR) Nuevo Laredo (NLD) Tabatinga (TBT) Rivera (RVY) Reynosa (REX) Uruguaiana (URG) San Carlos de Bariloche (BRC) 14

San Diego (US) (SAN)

Tijuana (TIJ)

Area 3 Between : Amritsar (ATQ) Guanzhou (CAN) Hong Kong (HKG) Kabul (KBL) Nagoya (NGO) and : Lahore (LHE) Hong Kong (HKG) Macao (QMP) Peshawar (PEW) Osaka (OSA)

Note:

The terminal points of the sectors specified above may not be used as fare construction points, points of origin, destination when the mileage calculation is made accordance with above provision. The use of 2 consecutive gaps is prohibited.

Mileage Exceptions Europe - Japan/Korea (South) For nonstop travel between Europe and Japan/Korea (South) the TS MPM must be used. When transportation is performed on 1 single flight coupon between Europe and China excl. HKG and another single flight coupon between China excl. HKG and Japan/Korea (South), the EH MP must be reduced by 1000 miles. Area 1 - RIO/SAO With regard to travel wholly within Area 1 which originates, terminates or has a point of turnaround in RIO or SAO the following shall apply: - if the fare to or from RIO falls within the MPM and the fare for the same route to or from SAO exceeds the MPM, the fare to and from the later point need not be surcharged - if the fare to or from SAO falls within the MPM, and the fare for the same route to or from RIO exceeds the MPM, the fare to and from the later point need not be surcharged - if the fare to or from RIO must be surcharged, the fare for the same routing to or from SAO need not take a higher surcharge (or OW) Note: via RG this provision does not apply when both RIO and SAO are in the same fare component.

South Atlantic - Area 3 For transportation between Argentina, Brazil, Chile, Paraguay, Uruguay and Area 3 where a passenger travels on a direct single flight coupon service from a point in Argentina, Brazil, Chile, Paraguay, Uruguay to ATL, MIA, YMX, NYC, YTO or WAS and on a direct single flight coupon service from such point to a point in TC3 or v.v. the mileage for these 2 sectors shall be deemed to be equal to the ticketed point 15

mileage between the last point of departure in Argentina, Brazil, Chile, Paraguay, Uruguay to the first point of arrival in Area 3 or v.v. South Atlantic- /Middle East For transportation between Argentina, Brazil, Chile, Paraguay, Uruguay and Middle East where a passenger travels on a direct single flight coupon service from a point in Argentina, Brazil, Chile, Paraguay, Uruguay to Miami, Montreal, New York or Toronto and on a direct single flight coupon service from such a point (i.e. arrival/departure city in North America must be the same) to a point in Middle East or v.v., the mileage for these 2 sectors shall be deemed to be equal to the ticketed point mileage between the last point of departure in Argentina, Chile, Brazil, Paraguay, Uruguay to the first point of arrival in Middle East or v.v. South Atlantic Area - South East Asia When travel is between Argentina, Brazil, Chile, Paraguay, Uruguay and South East Asia via the Atlantic and is: - on a direct service or - not via point(s) in Area 2 other than point(s) in Central Africa, Southern Africa (Indian Ocean Islands) the MPM to apply will be those with the global routing indicator SA Area 3 construction of normal fares to/from interior points in Pakistan When constructing through normal fares to/from interior points in Pakistan by use of add-on amounts over KHI and when transportation on the sector to/from the interior Pakistani point and KHI is on a single flight coupon the following mileage rules will apply: - the mileage for the entire fare component shall be assessed to/from KHI and the fare - construction point in TC3 outside Pakistan - if the routing to/from KHI requires a mileage surcharge such surcharge shall be applied to the through fare for the fare component to/from the interior point in Pakistan and the fare construction point in TC3 outside Pakistan Within Europe Travel between KLU and Switzerland is permitted via FRA at the direct route (raised to FRA level is necessary).

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Excess Mileage Allowance (EMA)

A special mileage calculation procedure applies to define indirect routings. A TPMdeduction is permitted if: EMA applies Mileages specified in the table below must be deducted from the total TPM before comparison with the MPM is made. - these TPM deductions only apply when the fare component includes intermediate ticketed points shown in the applicable routing; provided additional intermediate ticketed points may be added to the routing - only one TPM deduction per fare component is permitted

Special EMAs for LH and UA Between OR/WA ANC BOS PVD Saudi Arabia CA Caribbean Caribbean USA USA USA And BE/FR/DE/NL/GB BE/FR/DE/NL/GB BE/FR/DE/NL/GB BE/FR/DE/NL/GB USA/CA/MX Area 2/3 Europe Europe PT Gambia, Congo (FIH), Senegal, Guinea, Mauritania, Benin, Burkina Faso, Cameroon, Congo (BZV), cote dIvoire, Gabon, Mali, Niger, Nigeria, Senegal Angola Ghana, Nigeria Liberia, Sierra Leone Ghana, Nigeria Togo NYC Europe Via TPM Deduction 470 2600 200 70 660 850 1000 300 800 2100 1200

WAS WAS TLV USA MIA NYC FRA/LON/PAR BRU PAR

USA USA USA USA USA BGO Points in Alberta, Yukon, British Colombia Points in New Brunswick, Nova Scotia, Prince Edward Island Points in Newfoundland MD/PA/WAS

LON LON LON-ACC FRA PAR-DLA OSL/CPH YMQ/YTO/YOW

300 1000 2600 1400 1500 50 400

Europe

BOS/YMQ/YTO/ YOW

1500

Europe IE

YHZ LON

700 150 17

CLT/NYC/PHL/ WAS CHI/YTO LAX NYC/PHL/WAS CHI/YTO CLT

LIS LIS LIS OPO OPO OPO

MUC MUC MUC MUC MUC MUC

1230 900 220 900 570 790

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Interrupted Travel
General Rule for Interrupted Travel For fare components which include one or more surface sectors, the fare shall be the lower of either: - the total through fare, whereby the mileage of any unused sector must be included in the mileage calculation. In the absence of a direct TPM for an unused sector a TPM must be assessed by combination of TPM over other sectors, or - the sum of sector fares of the sectors actually flown Interrupted Travel with Normal Fares In case of normal fare travel, where the international surface break is greater than the TPM over the routing travelled from the point of origin to the point of commencement of the surface break and the surface break is not included in the through fare, the journey from the point of origin up to the surface break shall be ticketed separately. If a surface break is greater than the routing travelled from the point of origin to the point of commencement of the surface break: - measure the surface break by means of TPM, if not available - divide the MPM between starting point and ending point of the surface break by the factor 1.20 and compare with the total TPM of the routing from the point of origin to the point of commencement of the surface break. Provided there is no shortest operated mileage, the TPM shall be established by a combination of TPM. Examples 1: Fare required for BCN MRS surface NCE-GVA Calculation1: direct fare BCN-GVA (MPM 474; NUC 237.45) BCN MRS MRS NCE NCE GVA 218 102 186 506 = 10M Through fare BCN-MRS-NCE-GVA is thus NUC261.19 Calculation 2: Sector fare BCN-MRS Sector fare NCE-GVA Total NUC 184.46 NUC 172.09 NUC 356.55 (surface sector TPMs included)

19

The lower through fare amount of NUC 261.19 may be applied. Example 2: Fare required for AMS BRU surface LON SNN Calculation 1: Direct fare AMS-SNN (MPM: 706; NUC 311.48) Direct fare BRU-SNN (NUC: 318.02) AMS BRU BRU LON LON SNN Total 98 206 380 685 = M (surface sector TPMs included)

Through fare AMS-BRU-LON-SNN is thus the higher intermediate fare BRU-SNN = NUC 318.02 Calculation 2: Sector fare AMS-BRU Sector fare LON-SNN Total NUC 95.55 NUC 187.48 NUC 283.03

The mileage for the international surface break BRU-LON (206) is greater than AMS-BRU flown by air. Calculation 2 with one ticket may therefore not be used. Either calculation 1 with one ticket or a ticket AMS-BRU and a separate ticket LON-SNN may be issued.

20

Fare construction
Fare construction principles - how to proceed Establish the journey type by calculating the itinerary as a single PUC whenever possible. - apply fare construction steps and checks required for the journey type involved - take note of type of surface sectors, if any - when applying fares with stopover and transfer conditions, note that ticketed transfer points include all intermediate points with or without stopovers - for each fare component, determine whether the published fare may be applied by means of specified routing options or the mileage system - compare the fare of this single PUC to the fare resulting from the combination of two or more PUC - for combinations of normal fare pricing units, follow the normal fare determination - choose appropriate breakpoints and take note of limitations on indirect travel, if any - make sure that terms of combinability are satisfied - quote whichever is lower Basic fare construction principles An itinerary is priced as a single journey however if the itinerary can be broken into separate "stand-alone" prices which give the consumer a lower price then this is permitted A "journey" is every point on the ticket. The fare for a journey (excluding side trips assessed separately) is the lowest of - a single pricing unit for the journey, or - any series of end-on combined pricing units which collectively comprise the journey being travelled A "pricing unit" is any stand-alone price (this also includes the price for a "journey" which is also a stand-alone price). The term "pricing unit" is used instead of the term "stand-alone" (a stand-alone price is a price which could be sold separately on a separate ticket). The fare for a pricing unit is assessed as a "one way sub journey" using OW fares or as a "return sub journey" using 1/2-RT-fares. The fare for a fare component is the lower amount which can be determined according to: 1. Mileage principle 2. Lowest combination of fares principle: the lowest combination of fares over an intermediate ticketed point on the itinerary, subject to minimum fare checks Note: this principle does not preclude combination of international fares with normal/special fares within the USA All fare constructions must be accomplished in NUCs Fares to be assessed for the total journey are the applicable fares eff. on the date of departure on the first sector

21

The fare paid will only apply when international travel commences in the country of the origin of the journey shown on the ticket. If international travel actually commences outside the country of the ticketed origin of the journey, the fare must be reassessed from the point where international travel actually began. For example, if a ticket is purchased at the Koruna fare for travel PRG-ZRH-NYC, and the passenger actually commences travel in ZRH instead of PRG, the fare must be reassessed at the ZRH-NYC, Swiss franc level.

22

Pricing Unit Concept

The Pricing Unit Concept for fare construction rules was introduced 01. JUN 2000. A pricing unit is essentially a fare which is capable of being sold independently of any other fare. The pricing unit concept provides the opportunity to price multiple stopover journeys in alternate ways. For example, a journey PAR-TYO-SYD-surface TYO-PAR can be assessed either as a OW PAR-SYD (via TYO) plus a OW TYO-PAR (in the direction from PAR), or as a RT PAR-TYO plus a OW TYO-SYD. The lower fare obtained by the 2 methods would be used, subject to any minimum fare checks. Explanations and examples of different types of itineraries and associated fare construction principles appear in the following rules. Definitions A new set of definitions were established for use with the pricing unit concept. The most important definitions for the PUC are: Journey The origin to destination of the entire ticket (every point on a ticket) Pricing unit A journey or part of a journey which is priced as a separate entity, i.e. is capable of being ticketed separately. One way sub journey Part of a journey where travel from one country does not return to such country of origin. The fare for a OW sub journey is assessed as a single pricing unit using a OW fare. Return sub journey Part of a journey where travel from a point/country returns to such point/ country (RT/CT/NOJ). The fare for a return sub journey is assessed as a single pricing unit using 1/2-RT-fares. Country of unit origin The country in which the origin of the pricing unit is situated. Destination The final stopping place of the journey shown on the ticket. Origin The initial starting place of the journey as shown on the ticket. Unit destination The final stopping place of a pricing unit. Unit origin
The initial starting point of a pricing unit.

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Sequence of checks Effective 01. June 2008 the following checks have been deleted: CPM Common Point Minimum Check OSC One Way Subjourney Check RSC Return Subjourney Check DMC Directional Minimum Check COP Country of Payment Check For OW-PUS: Mileage Checks

Higher Intermediate Point OW Backhaul Country of Commencement For RT/CT/NOJ-PUS: Mileage Checks

TPM (Transported Miles) MPM (Maximum Miles) EMA (Excess Mileage Allowance) EMS (Excess Mileage Surcharge) HIP BHC COM

Higher Intermediate Point CT-Minimum, RTW-Minimum*** Mixed PUS: Mileage Checks

TPM (Transported Miles) MPM (Maximum Miles) EMA (Excess Mileage Allowance) EMS (Excess Mileage Surcharge) HIP CTM/RWM

Higher Intermediate Point OW Backhaul Check CT-Minimum, RTW-Minimum***

TPM (Transported Miles) MPM (Maximum Miles) EMA (Excess Mileage Allowance) EMS (Excess Mileage Surcharge) HIP BHC CTM/RWM

NOTE ***: RTW Minimum Check not applicable for LH/Star RTW fares Applicable fares Means a fare which is established after the application of all fare which is established after application of all fare construction calculations. The fare for a journey (excluding separately charged side trip PUs) is the lowest of: - a single pricing unit (PU) for the journey, or - a sequence of end-on pus (sub journeys) subject to minimum fare checks Constructed fares Means: - an unspecified through fare created by the use of add-ons, or - two or more fares shown as a single amount in a fare calculation and show as c/ 24

Fare construction must be via the itinerary of the passenger. The addition of points not on the passenger-s itinerary is not permitted (the use of fiction points is not permitted). Exception: This shall not prevent the use of a point not on the itinerary for the purpose of: - establishing a through fare by the use of an add-on amount - combining international fares with domestic normal/special fares within USA Add-on constructions Means an amount used only to construct an unspecified through fare. Add-on application Where no published fare exists between 2 points over the required routing, the through fare can be constructed by means of add-ons as follows: - add the add-on amount to the published fare between the origin/destination and the add-on gateway city - the add-on amount to be used must be applicable for the same class as the published fare to which it is added - only one add-on amount at each end of a published fare may be used to construct a through fare - a fare constructed with add-on is regarded as a published through fare and must be shown on the ticket as a single amount. Such through fare will then be subject to all rule conditions applicable to the international fare used in the construction - add-ons must not be separately sold/ticketed as sector fares C/ construction to establish unpublished fares For purposes of fare construction checks, a fare need not be constructed over another ticketed point when there are no published fares to/from/between an intermediate point(s) in the routing.

Fares based on a Percentage of another Fare When PU contains fare components for which different percentages apply, the fare for each component shall be calculated using the percentage applicable to that component. Fare construction checks (HIP, CTM, DMC...) shall be made using the levels which result of applying such percentage. Example: Travel: A B C D Childrens fare: A-C 50% of the adult fare A-D 50% of the adult fare B-C 67% of the adult fare B-D 67% of the adult fare

25

Calculate amounts resulting from the application of the above percentages. Using these amounts, apply minimum fare checks (such as HIP/CTM checks).

26

Comparing fares with global indicators

In applying Global Indicators (GI) the following applies: the comparison of the itinerary of a fare component with a GI is based on the ticketed points within the fare component and not on the operation of the flights fares may only be used for the GI for which they are established

The itinerary within a fare component will attract a Global Indicator as follows: FARE COMPONENT Within Area 1 Within Area 2 Within Area 3 Between Area 1 Between Area 1 (except Argentina, Brazil, Chile, Paraguay, Uruguay Between Argentina, Brazil, Chile, Paraguay, Uruguay Area 2 via Atlantic Area 3 via Atlantic Area 3 (except South East Asia via the Atlantic) South East Asia via the Atlantic AND GI WH EH EH AT AT AT Routing Restriction

Between Argentina, Brazil, Chile, Paraguay, Uruguay

AT if travel is via Central Africa, Southern Africa, Indian Ocean Islands then travel must also be via a point(s) in Area 2 outside Central Africa, Southern Africa, Indian Ocean Islands

Between Argentina, Brazil, Chile, Paraguay, Uruguay

South East SA via point(s) in Central Africa, Asia / South Southern Africa, Indian Ocean Asian Islands only or via direct Subcontinent services via the Atlantic Area 3 (except South West Pacific) PA

Between Area 1

Between Area 1 (except Argentina, South West Bolivia, Brazil, Chile, Colombia, Pacific Ecuador, French Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela) Between Argentina, Bolivia, Brazil, South West

PA

PA not via North America 27

Chile, Colombia, Ecuador, French Pacific Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela Between Argentina, Bolivia, Brazil, South West Chile, Colombia, Ecuador, French Pacific Guiana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, Venezuela Between Area 2 (except Russia in Europe, Ukraine) Area 3 PN must be via North America but not via North and Central Pacific EH not for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of) EH not for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of); only for routings via another country(ies) in Europe (except Russia in Europe, Ukraine) and/ or Middle East TS only for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of) TS only for routings on non-stop services between Europe and Japan, Korea (Dem. Rep. of), Korea (Rep. of); via another country(ies) in Europe RU only for routings on non-stop services between Russia (in Europe) and Japan, Korea (Dem. Rep. of), Korea (Rep. of); not via another country(ies) in Europe FE only for routings on non-stop services between Russia (in Europe), Ukraine and Area 3 other than Japan, Korea (Dem. Rep. of), Korea (Rep. of) AP

Between Russia (in Europe), Ukraine Area 3

Between Area 2 (except Russia in Europe)

Area 3

Between Russia (in Europe)

Area 3

Between Russia (in Europe)

Area 3

Between Russia (in Europe), Ukraine Area 3

Between Area 2

Area 3 via the Atlantic and Pacific

If there is no fare with the GI identified by the routing travelled, the fare is constructed in accordance with the lowest combination principle 28

If a fare component can attract more than one GI the routing of the flights must be used to determine the GI e.g. SIN-NYC - options via PA or via AT

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Construction Rules For Journeys

General The following will be considered as one country: - USA and Canada - Denmark, Norway and Sweden (=Scandinavia) To establish unpublished fares, or fares expressed as a percentage, see the rule. Combination of international fares and normal/special fares within the USA is permitted. How to determine the Fare for a Journey The fare for a journey (excluding side trips assessed separately) is the lowest of - a single pricing unit for the journey or - any series of end-on combined pricing units which collectively comprise the journey being travelled Fares may only be constructed over ticketed points in the passengers itinerary. The addition of points into the itinerary is not permitted, provided this does not apply to add-on construction points. Exception: combination of USA domestic fares with international fares "Slicing" and "Dicing" an Itinerary The application of the PUC depends on the itinerary. It is necessary to travel over a common point/country more than once in order to be able to "slice and dice" the itinerary. If this occurs the itinerary is assessed as a single price (pricing unit) and where separate pricing units can be assessed these are calculated and the sum of the pricing units compared to the fare for the entire journey - the lower amount being charged. It is sometimes possible that an itinerary will allow a number of different pricing unit calculations. In all cases it is the lowest of the possibilities that is applied. In order to ensure that simple RT or CT journeys are not broken into a series of OW-units, any journey or sub journey which is by definition a RT or CT must use 1/-RT-fares. Round, Circle, Open Jaw Trip Journeys If the routing of a journey satisfies the definition of a RT, CT or OJ: - the PU must be assessed as a RT/CT or OJ as applicable and must use half RT fares, the use of OW fares is not permitted - for end-on combination normal and special fares, completely separate the special and normal fare and access the normal fare sub journey

Example: Travel: MAN ROM CPH MAD Fare construction: 30

MAN ROM 1/2 RT ROM CPH 1/2 RT ONE PU MAN CPH 1/2 RT OW fares are not allowed as travel is continuous, circuitous and returns to the same point a CTM check is performed MAN-ROM RT and MAN-CPH RT the last fare component is assessed from the country of unit origin

RT, CT, OJ Journeys with common Point/Country If there is a common point/country on the routing, the journey may be broken into multiple return sub journey PUs using half RT fares. A return sub journey only occurs if the fare is broken more than once at the common point/country. The fare for travel between such fare break points must be priced as a RT, CT or normal/special fare OJ, as applicable, and must use 1/2-RT-fares. If travel between such fare break points would require the use of OW-fares, this is not permitted. Fare Direction for RT, CT, OJ Journeys Fares are assessed in the direction of travel, except that the fare component into the country of pricing unit origin shall be in the direction from such country i.e. not in the direction of travel. Note: except for RT pricing units, fare components between Canada and USA and within the area of Denmark, Norway, Sweden are assessed in the direction of travel. OJ Journeys - alternative Option for Assessment If the routing of the journey is determined as fulfilling the definition of a normal/special fare OJ, the pricing unit is assessed as two half RT fares, provided that, if there is a common point(s) or other points in either the country of origin or the country of turnaround or both, the fare may alternatively be assessed as a return sub journey from/to the common points(s) or other points and a OW sub journey (s) for the domestic sector(s) In the case of the alternative pricing option the OW pricing unit must be assessed using OW fares and the return sub journey must be assessed using half RT-fares. Fares must be assessed in the direction of travel except that the fare component into the country of pricing unit origin shall be in the direction from such country, i.e. not in the direction of travel *Note: except for RT pricing units, fare components between Canada and USA and within the area of Denmark, Norway, Sweden are assessed in the direction of travel. Journeys other than Round, Circle, Open Jaw Trips If the routing of a journey does not satisfy the definition of a RT, CT or normal/special fare OJ such routings shall be assessed: 31

as a OW journey using a OW PU as a series of OW sub journey s using OW PUs as a RT or CT journey with the surface sector assumed to be flown if there is a common point/country: as a mix of a OW sub journey and a RT sub journey . For the OW sub journey , OW fares must be used, the use of half RT fares is not permitted fares will be constructed in the direction of travel except that the fare for a OW sub journey that terminates in a country from which a previous PU has commenced will be assessed in the direction from that country

*Note: Except for RT PUs, fare components between Canada and USA and within the area of Denmark, Norway, Sweden are assessed in the direction of travel. Journey Limitations on Indirect Travel For Canada and USA and for Denmark, Norway, Sweden to be considered one country this rule does not apply: Arrivals and Departure in one Country A journey on a ticket, at any time, must not include more than four international arrivals and four international departures in any country provided for the counting of arrivals and departures surface sectors are considered to be flown Example: AMS-CAI-RTM-LON-AMS-DXB-AMS-JNB-AMS-BAH This journey is not allowed to have five international departures from the Netherlands

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Construction Rules for Individual Pricing Units

For the purpose of this rule the following are considered as one country: - USA and Canada - Denmark, Norway and Sweden To establish "unpublished fares" and fares based as a percentage of another fare see the rules. Combination of international fares and normal/special fares within the USA is permitted. OW Pricing Units A separately charged OW fare which does not return to the country of origin OW fares must be used for OW pricing units (the use of 1/2 RT fares is not permitted) The fare for a OW pricing unit/sub journey is assessed in the direction of travel. However, when a pricing unit for a OW sub journey terminates in a country from which a previous pricing unit has been assessed, the fare for the OW sub journey into such country is assessed from such country, i.e. not in the direction of travel. Example: Travel: ATL-LON-STO-LIS-GLA Construction: ATL-LON OW 1 PU LON-STO OW 1 PU STO-LIS OW 1 PU GLA-LIS OW 1 PU total 4 PU fare component LIS-GLA must be in the direction of GLA-LIS, because the termination point (GLA) is in the same country from which a previous PU (LON-STO) was assessed.

Exception: when the countries of both the origin and the destination of a OW PU have been used to assess a previous PU, the direction of the last PU will be assessed in the reverse direction of travel. Example OW sector fares Travel: GVA-LON-ATH-ZRH(X)-MAN Although both ZRH and LON have been used to assess a previous PU, the ZRH-MAN component will be in the direction from MAN.

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Minimum checks for OW pricing units

OW Backhaul Rule (BHC) The BHC applies only when using normal or special one way fares. If there is a higher rated intermediate stopover point in a fare component, the fare for such component shall be the higher of either: the applicable fare between the fare construction points (for the end-to-end component), or the direct fare from the origin point of the fare component to the highest rated intermediate stopover point, plus the difference between such fare and the direct fare from origin to destination of the component

Exceptions: The BHC does not apply to any point which has been excluded from the HIP fare check, provided the conditions of the exclusion are met. The BHC does not apply for journeys wholly within Area 1 journeys wholly between Argentina, Brazil, Chile, Paraguay, Uruguay and Area 2 pricing units wholly within Europe

Directional minimum check (DMC) Deleted as of 01. June 2000 Round Trip Pricing Units Definition of a RT: A RT means a journey entirely by air from a point of origin to another point and return to the point of origin, comprising two fare components only, for which the applicable normal half RT fare for each component, measured from the point of origin, is the same for the routing travelled. If the fares to be used differ through class of service / seasonality / midweek / weekend / carrier variations, the outbound fare shall be used also for the inbound fare component for the purpose of determining if the journey is a RT. Unless otherwise specified, where a RT fare is not published for a RT pricing unit, the fare will be twice the outbound OW fare. The reference in the RT-definition to "two fare components only" does not preclude fares for end-on combination or side trips paid for separately being shown on the same ticket.

34

RT fares, when combinable, may be used with other fares on the basis of half RT (instead of OW fare). Local Currency Minimum Fare Checks (COP) Does not apply on LH fares. Officially deleted as of 01. June 2008 Circle Trip Pricing Units Definition of a CT Normal fares: Travel from a point and return thereto by a continuous, circuitous air route, including travel comprising two fare components but which do not meet the conditions of the RT definition. Special fares: Travel from a point and return thereto by a continuous, circuitous air route, comprising only two international fare components which do not meet the conditions of RT definition. Circle trip provisions - unreasonable connections: A sector between two fare construction points shown in the chart "Establishing Unpublished Fares" where it is considered that no reasonable air service is available, may be travelled by other means of transport with no prejudice to the CT. The conditions applicable to CT construction, including the CTM check, will apply to all air portions of the journey. The cities which are considered to have no reasonable connection are listed under: "Establishing Unpublished Fares". Circle Trip Construction The fare shall be the lowest combination of half RT fare components for sections of the itinerary starting the calculation from the unit origin. All fare components shall be applied in the direction of travel. Exception: Any fare component terminating in the country of unit origin shall be applied in the direction from that country. Where more than one level of fare is available for the carrier(s) and class of service used, the lower/lowest level may be used subject to any conditions of such fare. Circle Trip Minimum Fare Check (CTM) The fare for a CT PU (excluding any side trip PU which has been charged separately) must not be less than the direct route normal or special RT fare (as appropriate) for the highest rated pair of points applicable to the class of service used from the point of unit origin to any stopover point on the route of travel. Where more than one normal fare is published for the carrier and the class of service used, the lower/lowest level may be used.

35

Different global Indicators (GI-S) Where the itinerary includes different global indicators (including round the world travel), the CTM check is made using the lower of such RT fares from the unit origin to each point to be checked. *Note: only direct route fares between 2 points with the appropriate GI-S are to be used, if there is no direct route fare with the appropriate GI-S or there is no GI for the routing then it is not necessary to construct such fare and the CTM will be made on available fares. Where RT fares from the point of unit origin to any stopover point differ according to carrier(s) used outbound and inbound, the fare to be used for the check shall be the lower of such RT fares. When there are RT fares with different GI-S from the point of unit origin to any stopover point, the fare to be used for the CTM is the fare applicable to the flown itinerary. Specials fares Special Fares: If no qualifying special fare is available to a higher rated normal fare stopover point, the fare for the PU must not be less than the direct RT normal fare to the higher rated point for the class of service used. Exceptions: - no CTM check is required for RTW-travel originating In Australia/New Zealand - no CTM check is required for an en route point which has been excluded for the HIP check provided the conditions of the exclusion are observed. Unpublished fares When no fare is published for the CTM check, it shall be established for the lowest combination of RT fares of the class used over any ticketed point. When shown on the ticket, such constructed fare shall be identified as c/. Example: Travel: A-B-C-D-A (CT) Fare construction: A-B + B-D + A-D (using 1/2 RT fares) Unpublished fare: A-C For the purpose of the CTM check, the fare for A-C will be established as the lower of A-B RT plus B-C RT or A-D RT plus D-C RT.

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Unreasonable connections
For the application of CT, a fare construction surface sector break may be travelled by any other means of transportation without prejudice to the CT on the sectors which follow. These sectors are considered to have no reasonable direct scheduled air service. List of unreasonable connections:
Between Aalborg Aalborg Aarhus Alicante Alicante Almeria Altenrhein Annecy Avignon Basle Basle Beijing Berlin Berlin Berlin Berne Berne Bilbao Bilbao Bilbao Billund AAL AAL AAR ALC ALC LEI ACH NCY AVN BSL BSL BJS BER BER BER And Aarhus Karup Karup Murcia Valencia Malaga Innsbruck Geneva Marseille Mulhouse Strasbourg Tianjin Dresden Leipzig Halle Wroclaw AAR KRP KRP MJV VLC AGP INN GVA MRS MLH SXB TSN DRS LEJ WRO GVA ZRH Between Hamburg Hamburg Hanover Helsingborg Helsingborg Hong Kong Hong Kong Hong Kong Innsbruck Istanbul Jerez De La F Jerez De La F Jonkoping Kalmar Kalmar Kalmar Karlstad Klagenfurt Klagenfurt Klagenfurt Kristianstad Kristianstad La Coruna Leeds Linkoping Linkoping Linkoping Linz Lisbon Lisbon Liverpool Livingstone Ljubljana Ljubljana Ljubljana Lulea And HAM Hanover HAM Munster HAJ Munster AGH Kristianstad AGH Malmo HKG Macao HKG Shenzhen HKG Zhuhai INN Munich IST Thessaloniki XRY Malaga XRY Seville JKG Malmo KLR Kristianstad KLR Vaxjo HAJ FMO FMO KID MMA MFM SZX ZUH MUC SKG AGP SVQ MMA KID VXO

BRN Geneva BRN Zurich

KLR Ronneby RNB KSD Orebro-Bofors ORB KLU Ljubljana KLU Maribor KLU Salzburg KID Malmo KID Ronneby LJU MBX SZG MMA RNB

BIO San Sebastian EAS BIO Santander SDR BIO Vitoria VIT BLL Esbjerg EBJ

Birmingham BHX East Midlands EMA Birmingham BHX London Bol BWK Split Bologna BLQ Florence Bologna BLQ Pisa Bournemouth BOH Southampton Bratislava BT Vienna Bremen BRE Hamburg Bremen BRE Hanover Bremen BRE Munster Bremen BRE Paderborn Brussels BRU Eindhoven Catania CTA Palerm Cologne CGN Dortmund Cologne CGN Dusseldorf LON SPU FLR PSA SOU VIE HAM HAJ FMO PAD EIN PMO DTM DUS

LCG Santiago Comp SCQ LBA LPI LPI LPI LNZ LIS LIS LPL LVI LJU LJU LJU LLA Manchester Malmo Norrkoping Vasteras Munich Malaga Sevilla Manchester Victoria Fal Trieste Venice Zagreb Ornskoldsvik MAN MMA NRK VST MUC AGP SVQ MAN VFA TRS VCE ZAG OER

37

Cologne Cologne Dortmund Dresden Dusseldorf Dusseldorf Faro Faro Florence Frankfurt Geneva Geneva Genoa Gibraltar Gothenburg Gothenburg Gothenburg Gothenburg Gothenburg Granada Graz Graz Graz Halmstad Halmstad Halmstad Halmstad Halmstad

BRE BRE DTM DRS DUS DUS FAO FAO FLR FRA GVA GVA GOA GIB GOT GOT GOT GOT GOT GRX GRZ GRz GRZ HAD HAD HAD HAD HAD

Munster Paderborn Dusseldorf Leipzig Halle Luxembourg Munster Malaga Sevilla Pisa Strasbourg Grenoble Lyon Nice Malaga Jonkoping Malmo Vaxjo Trollhattan Helsingborg Malaga Ljubljana Maribor Zagreb Angelholm Gothenburg Jonkoping Malmo Vaxjo

FMO PAD DUS LEJ LUX FMO AGP SVQ PSA SXB GNB LYS NCE AGP JKG MMA VXO THN AGH AGP LJU MBX ZAG AGH GOT JKG MMA VXO

Lugano LUG Milan Lycksele LYC Ornskoldsvik Lycksele LYC Umea Malaga AGP Tangier Malmo MMA Norrkoping Malmo MMA Ronneby Maribor MBX Trieste Maribor MBX Zagreb Montevideo MVD Puerto Montt Munich MUC Nuremberg Munich MUC Salzburg Munich MUC Stuttgart Norrkoping NRK Vasteras Orebro-Bofors ORB Stockholm Orebro-Bofors ORB Vasteras Ornskoldsvik OER Skelleftea Ornskoldsvik OER Umea Pula PUY Trieste Pula PUY Verona Pula PUY Venice Ronneby RNB Vaxjo Santiago Comp SCQ Vigo Stockholm STO Vasteras Strasbourg SXB Stuttgart Swakopmund SWP Walvis Bay Trieste TRS Zagreb Venice VCE Verona

MIL OER UME TNG NRK RNB TRS ZAG PMC NUE SZG STR VST STO VST SFT UME TRS VRN VCE VXO VGO VST STR WVB ZAG VRN

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Normal Fare Open Jaw Pricing Units

Definition of normal fare OJ Travel from a country and return thereto; comprising two international fare components only and where A) Origin Open Jaw: the outward point of departure in the country of unit origin and the inward point of arrival in the country of unit origin are different Pls be aware that this reflects the IATA definition of an OJ. LH has decided not to apply a stricter rule for NOJ than for special fare OJs and allows an international OJ for as OOJ as well as for TOJ provided the PU does not consist of more than two international fare components. . However, in rare cases this general policy might be disregarded for specific market requirements. Consequently, it is important to double-check the respective fare note. B) Turnaround Open Jaw: the outward point of arrival and the inward point departure are different or C) Double Open Jaw: the outward point of departure in the country of unit origin and the inward point of arrival in the country of unit origin are different (origin open jaw) and the outward point of arrival and the inward point of departure are different (turnaround open jaw)

Fare construction for normal fare open jaw General the fare for a NOJ pricing unit shall be the sum of 1/2 the applicable RT fares for both international legs of the open jaw, assessed in the direction from the country of unit origin. For the purpose of an NOJ Canada, USA shall be considered as one country Except for pricing units wholly within Scandinavia, Scandinavia shall be considered as one country Aruba; Netherlands Antilles shall be considered as one country Except for pricing units wholly within Europe, Europe shall be considered as one country Origin Open Jaw: Only domestic surface sectors are permitted; except for those countries to be considered one mentioned above Turnaround Open Jaw: Both domestic and international surface breaks are permitted; CPM applies a 39

described under minimum checks for NOJ below When the surface sector is an international sector the distance of such sector must not be greater than the flown distance of the shorter of the two fare components. Please be aware that LH fare rules might override this and use the longest sector flown instead Exception: For travel originating in Canada or USA, the surface break may be permitted between countries in the Europe sub-area; provided travel in both direction is via the Atlantic

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Minimum checks for Fare Open Jaws

Directional Minimum Check Deleted as of 01. June 2008 Common Point Minimum Fare Check (CPM) Deleted as of 01. June 2008

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Special Fare Open Jaw Pricing Units

Definition of Special Fare OJ Travel comprising only two international fare components with a surface break which, unless otherwise stated in a fare rule, may be between any two points/countries in the area of origin and turnaround as provided for in the special fare rule. In this context the following rules apply: Turnaround Open Jaw (TOJ) the outward point of arrival and the inward point of departure are not the same Origin Open Jaw (OOJ) the outward point of departure and the inward point of arrival are not the same Single Open Jaw (SOJ) either turnaround open jaw or origin open jaw Open Jaw (OJ) any combination of the above

Fare construction for special Fare open Jaw Unless otherwise stated in an applicable fare rule, the fares shall be the sum of half the applicable RT fares, subject to any applicable mileage surcharge and/or higher intermediate fare for both legs of the OJ. When the inbound component terminates in the country of unit origin, the fare applicable from that country is used. Exception: For travel originating and terminating in Europe, except for travel wholly within Europe: when an OJ applies between countries in Europe, the fare component which terminates in Europe shall be assessed in the direction from Europe. Example: Travel: GVA LIM STR (Europe-Mid Atlantic Excursion) This fare permits a SOJ construction: GVA-LIM 1/2 RT excursion STR-LIM 1/2 RT excursion Unless otherwise stated in a fare rule the surface sector where permitted may occur between points within (domestic) or between (international) countries in the area of unit origin and/or unit turnaround as specified in the special fare rule. Example: Travel: NBO TYO surface SEL NBO (GIT from Africa to Japan/Korea) This special fare permits turnaround OJ within Japan, within Korea or between Japan and Korea.

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Construction Rules for Fare Components flown in one Class of Service

General The following countries will be considered as one country: - Canada and USA - Denmark, Norway and Sweden (= Scandinavia) General Provisions for fare components The fare for a fare component will be the lower amount which can be determined according to: - mileage principle - lowest combination of fares principle the lowest combination of fares over an intermediate ticketed point on the itinerary, subject to minimum fare checks. *Note: this principle does not preclude combination of international fares with normal/special fares within the USA.

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Limitations on Indirect Travel

For Canada and USA and for Denmark, Norway and Sweden to be considered one country, this rule does not apply. General Limitations A fare component must not include more than: - one departure from its point of origin, or - one arrival at its point of destination, or - one stopover at any one intermediate ticketed point Additional limitations at the origin point For journeys originating in Area 1: A fare component within Area 1 must not include more than one international departure and one international arrival at any ticketed point in the country where the journey originates. Example: POA-BUE-SAO-NYC: there are 2 international departures from Brazil, the use of through fare is not permitted. Additional limitations at intermediate points For TC1 or TC31 (via the Pacific) fare components, no more than one arrival and one departure at any intermediate ticketed point may be included, regardless of where travel commences.

Additional Limitations by Country Brazil (except journeys wholly within South America) For a pricing unit commencing in Brazil a component from a point in Brazil must not include more than 2 domestic sectors in Brazil. Examples: 1. BSB RIO NYC at a through fare BSB NYC is permitted 2. POA RIO SSA LIS at a through fare POA LIS is permitted 3. FLN X/CWB IGU X/SAO LON at a through fare FLN LON is not permitted. The first international fare component must be assessed from CWB and FLN CWB charged separately. Germany For a pricing unit originating in Germany a fare component from/to a point in Germany must not include more than 2 domestic sectors in Germany.

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Journey limitations A journey on a ticket or conjunction ticket, at the time of original issue or when reissued, must not include more than four international arrivals and four international departures in any one country; provided for the counting of arrivals and departures surface sectors are considered to be flown. Example: AMS-CAI-RTM-LON-AMS-DXB-AMS-JNB-AMS-BAH This journey is not allowed to have five international departures from the Netherlands

45

Fare components with a surface sector(s)

Fare Calculation For itineraries which include a surface sector apply the lowest of the through fare or the sum of fares over the sectors actually flown. Normal fares In the case of normal fare travel, if the TPM for an international surface break is: - greater than the TPM over the routing travelled from the origin of the journey up to the point where the break commences, and the surface sector is not included in the through fare, ravel from origin of the journey up to the surface break will be ticketed separately, the remainder of the journey being assessed in accordance with the rules for payment of fares outside the country of commencement of travel. Example: Travel NYC-LON-PAR xxx FRA-LON-NYC Construction could be NYC-LON RT 1 pricing unit LON-PAR OW 1 pricing unit FRA-LON OW 1 pricing unit Notwithstanding separate PUs, the TPMs is undertaken from NYC-LON plus LON-PAR are added together and the resulting sum is compared to the TPM of the surface break PAR-FRA - TPM calculation must always be made from the point of origin of the journey regardless of the number of fare components/pricing units which may be required up to the commencement of the surface break Example 1: KUL-JHB-SURFACE-SIN-KUL Ticketing procedure: The mileage for the JHB-SIN surface sector is greater than KUL-JHB mileage, and separate tickets must be issued. Example 2: NYC-LON-PAR-SURFACE-FRA-LON-NYC Ticketing procedure: a separate ticket is not required since the TPM PAR-FRA is less than the cumulative TPM NYC-PAR. if no TPM exists for the points concerned the shortest operated mileage (which is equivalent to the MPM divided by 1,2) may be used . However, if there is no shortest operated mileage, a combination of ticketed point mileages must be used in applying this rule, surface sectors between Canada and USA, and those in the chapter "surface transportation" may be disregarded

46

Higher Intermediate Point (HIP) Check

HIP check for normal and special fares The higher intermediate point check applies to each fare component of all pricing units (OW/RT/CT/RW/NOJ/OJ) as follows: from fare component origin to each intermediate stopover point from each intermediate stopover point to each subsequent intermediate stopover point (Note: This is for normal fares only.) from each intermediate stopover point to the subsequent fare break point. HIP exceptions by countries Africa For journeys wholly between Kilimanjaro and Nairobi, HIP check will be for all ticketed points. India For traffic originating in India and destined to Canada/ USA, when stopovers are taken in Europe or UK, higher intermediate fares shall not be applicable from points in Europe/ UK to Canada/ USA. Israel For travel originating in Israel, HIPs will be checked for all ticketed points from Israel. This does not apply to the HIP check from an intermediate point to another intermediate point or the fare construction point, or to fares with specified routings. EXAMPLE: Travel: Tel Aviv-Frankfurt-X/London-New York The HIP check is TLV-FRA, TLV-LON and FRA-NYC. (LON-NYC is not checked.) Malawi For journeys originating in Malawi, the HIP check in each fare component shall be applied on all ticketed points in Malawi. Turkey For travel between the Middle East and Turkey involving more than one point in Turkey, any higher intermediate point in Turkey must be charged whether or not a stopover is taken. Western Africa For journeys originating in Western Africa, the HIP check in each fare component shall be applied on all ticketed points in Western Africa.

47

HIP check - normal fares General application If in any routing permitted at the direct route normal fare there is a higher direct route normal fare of the same class at an intermediate stopover point, the fare for the component must be raised to the level of such higher fare. Example: Travel: London- X/ Zurich-Nairobi Y class. No Stopover at ZRH. Direct Fare LON-NBO NUC 1703.16. No stopover at ZRH so no HIP check is needed. Total NUC 1703.16 multiplied by NUC Conversion Factor (ROE) (NUC 1=0.60417) rounded to the nearest GBP 1 = GBP 1029.00. Where fares are established by season or day of week or flight application, the check will be based on the applicable fare (by season or by day of week or by flight application). o Day of week fare level: to establish the day of week fare level to be used for the HIP, the rule for the application of the day of week fares applies only to the sector(s) for which the check is made. The day of travel on such sectors is used to determine the day of week fare level used for the HIP check Example Routing: A B C D A First fare component (A to C) fare A-C is a fare established using the day of week of the first international sector A-B fare A-B is a non-day-of-week fare there are day-of-week fares B-C with the rule that the first international sector determines the day of week fare to be applied to establish the day-of-week fare level to be used for the HIP check on the sector B-C the date of travel B to C will be used Second fare component (fare in the direction from A to C) fare A-C is a fare established using the day of week of the first international sector A-D fare A-D is a non-day-of-week fare there are day-of-week fares D-C with the rule that the first international sector determines the day-of-week fare to be applied to establish the day-of-week fare level to be used for the HIP check on the sector C-D the date of travel C to D will be used o Seasonal fare level: to establish the seasonal fare level to be used for the HIP, the rule for the application of seasonal fares applies only to the

48

sector(s) for which the check is made. The seasonal rule for such sector is used to determine the fare level used for the HIP check
Example Routing A B C B A First fare component (A to C) fare A-C is a non seasonal fare fare A-B is a non-seasonal fare there are seasonal fares B-C with the rule that the first international sector determines the seasonal fare to be applied to establish the seasonal fare level to be used for the HIP check on the sector B-C the date of travel B to C will be used Second fare component (fare in the direction from A to C) fare A-C is a non seasonal fare fare A-B is a non-seasonal fare there are seasonal fares B-C with the rule that the first international sector determines the seasonal fare to be applied to establish the seasonal fare level to be used for the HIP check on the sector C-B the date of travel C to B will be used

If in any indirect routing permitted at the direct fare plus a mileage surcharge, there is a direct fare of the same class between any 2 ticketed points which is higher than the direct fare between the fare construction points (through fare), the fare for the component must be raised to the level of such higher fare, then increased by the amount of mileage surcharge required for the end-to-end component. Fares Comparison: When comparing fares within the same class of service, this means: o Sleeper Seat with Sleeper Seat; if no Sleeper Seat compare with First Class. o First Class with First Class; if no First Class compare with Intermediate Class (or the next lower class). o Intermediate Class with Intermediate Class; if no Intermediate Class compare with the highest Economy Class. o Economy Class with Economy Class. When comparing normal fares in accordance with the above, the comparison will be made in the same direction as the fare component. When using half RT fares, the comparison will be made using half RT fares. When using one way fares, the comparison will be made using one way fares. Where more than one normal fare is published for the carrier and class of service used, the lower/ lowest fare level may be used provided all stopover, transfer, seasonality or day of week limitations of such lower/ lowest fare are satisfied, (excluding stopover charges). The origin and destination points of a separately charged sidetrip PU are considered a stopover, unless the elapsed time between arrival at the origin of the sidetrip and onward departure from the destination of the sidetrip is within 24 hours. This rule applies even if the ticket indicates that the passenger is using connecting flights at both points.

49

When there is a fare construction surface sector, the HIP check applies to the point of such surface sector that is not the fare construction point HIP check - special fares General application Having established an applicable special fare for a pricing unit, such special fare may be applied subject to the following: o Price the fare as a normal fare o Establish the lowest applicable level; If there is no HIP between both fare construction point of the special fare and an intermediate ticketed (stopover) point, the special fare may be applied If there is a HIP between either fare construction point of the special fare and an intermediate ticketed (stopover) point, the special fare shall not be less than such higher fare, except; o if there is a special fare of the same type at the same level or a lower level on the sector for which the normal fare applies, the special fare for the component may be applied, or o if there is a special fare of the same type at a higher level on the sector for which the higher normal fare applies, the special fare for the component shall not be less than such higher special fare, or o if there is no special fare of the same type on the sector for which the normal fare applies, the fare shall not be less than the lowest of any higher type of special fare within the same column shown in paragraph 4 below o in defining a fare of the same type, the comparison shall be limited to the class of service and (i) a-Late Booking fare, or bAPEX fare, or cPEX fare, or dExcursion fare (ii) aGIT fare or bITT fare, or cExcursion fare (iii) aPublic Group fare, or bExcursion fare

If there is more than one special fare of the same type on the sector for which the higher normal fare applies, the fare with the conditions most similar to those of the special fare for the component shall be used in comparison NOTE: all conditions attached to the special fare for the component apply

50

51

Fares Guarantee (IATA Reso 049x)

(APPLICABLE FOR LH AS OF 01JUNE2007) AS OF 20JANUARY 2009 RESO 049x IS ONLY APPLICABLE IN CASE OF REROUTING AND/OR CHANGE OF MARKETING AND/OR OPERATING CARRIER (REISSUE) Taxes In Order to provide the travel agents with the appropriate taxes to be paid or refunded and the airline with the appropriate Tax status, each tax nature code (e.g. YQ AN YR) must be compered: The one from the first itinerary and those from the new itinerary. Transportation shall be subject to the fares and charges in effect on the date of ticket issuance for travel on the specific dates and journey shown on the ticket. - provided no voluntary change is made to the originating (=outbound) flight, no increase in fare effected through a change in fare level, a change in conditions governing the fare, or cancellation of the fare itself, shall apply - in the event of a voluntary change to the originating (=outbound) flight the fares and charges for the passengers journey shall be recalculated in accordance with the fares and charges in effect on the date on which the change is made and is reflected on the ticket. Example: a passenger presents an unused ticket FRA ROM FRA and requests a change of routing and/or change of marketing and/or operating carrier (reissue) before departure: 1. The change concerns the sector FRA ROM: recalculate the fare using fares applicable on the day of reissue. Any additional amount has to be collected from the passenger. Any residual amount has to be refunded to the passenger. Fare conditions have to be observed (incl. ADVP conditions of the complete unused ticket). In case of different currencies involved, any fare difference has to be calculated using the current BSR applicable at time of reissue. 2. The change concerns the sector ROM FRA: recalculate the fare using fares applicable at the time of the original issue. Fare conditions have to be observed (incl. ADVP conditions of the complete unused ticket). In case of different currencies involved, any fare difference has to be calculated using the historical BSR applicable at time of issuance of the original ticket. 3. The change concerns both sectors FRA ROM FRA: recalculate the fare using fares applicable on the day of reissue. Any additional amount has to be collected from the passenger. Any residual amount has to be refunded to the passenger. Fare conditions have to be observed (incl. ADVP conditions of the complete unused ticket). In case of different currencies involved, any fare difference has to be calculated using the current BSR applicable at time of reissue. 4. In case of routing changed, applicable fare for the new routing will apply. 1st coupon unchanged: historical fares to be used 1st and other coupons changed: current fares to be used 5. In case new taxes and YQ-charges have to be calculated, always use the amount applicable to the changed fare, i. e. if historical fare to be used use historical taxes/charges; if current fares to be used use current taxes/charges. 6.Fare conditions have to be observed in all cases.

52

LH EXCEPTION IN CASE OF REBOOKING/REVALIDATION ONLY APPLICABLE AS OF 20 JANUARY 2009 (THIS EXCEPTION APPLIES TO LH TICKETS) 1. In case of rebooking any coupon of an unused Lufthansa ticket to a different flight/date on the same route and on the same operating and/or marketing (identical airline prefix) carrier within the ticket validity, no recalculation of fare/taxes/fees/charges (e.g.YQ) is necessary. Applicable rebooking fees have to be collected and all fare conditions have to be observed (e. g. ADVP, minimum stay, etc.). 2. In case of upgrade within the same compartment of an unused Lufthansa ticket (partly or completely) to a higher class (same routing, same operating and marketing carrier), recalculation is done based on historical fares and taxes/charges, valid on the original date of issue of the original ticket (Past date pricing). Applicable rebooking fees have to be collected and fare conditions have to be observed (e. g. ADVP, minimum stay, etc.). NOTE: Pls be aware that a change in season and/or day of week may lead to a difference in fare as fare conditions have to be observed. In this case the passenger has to pay the difference in fare or is entitled to a refund and a reissue is necessary. Historical fares/taxes/charges (past date pricing) may be used. Please note: The travel/ticket agent may decide on an individual basis not to apply the LH exception but to follow IATA rules instead. CHANGES IN FARES GAMBIA, GHANA, SIERRA LEONE, ZAMBIA (IATA Reso 049a) Notwithstanding Resolution 049x, for tickets paid for in the national currency of any of the above mentioned countries, the following conditions must apply 1) the fares and charges in effect on the date of original issue of tickets, MCOs, PTAs and any other passenger traffic documents are valid for travel if a) commencement of international travel takes place within a period of one month b) there is no voluntary change in the traffic document which results in a different fares in USD 2) once the one month period has expired and travel not commenced, such traffic documents must be reissued and transportation shall be subject to the fares, charges and related conditions applicable on the date on which such traffic documents are reissued 3) as used in 1) and 2), fares and charges in effect on the date on which such traffic documents are issued/reissued, must be based on the rate of exchange in effect on the date on which such traffic documents are issued/reissued

53

ADDITIONALLY PLEASE OBSERVE CURRENCY REGULATIONS UNDER GGAIRLHPT8INFO.

Refunds and Reroutings (IATA Reso 017f)

Section A - General All applicable fare construction rules shall apply to the recalculation of the fare for the new routing. Additional transportation at the through fare shall not be permitted unless the request has been made prior to arrival at the unit destination named on the ticket submitted for rerouting when the only coupons remaining in the ticket are for domestic transportation, such ticket shall not be rerouted for further international carriage Exception for Lufthansa: A domestic intra-German ticket is subject to value added taxes (vat). A ticket originating in Germany with international travel does not bear the vat. This is the reason why a domestic intra German ticket may not be reissued for the use of international travel. For the same reason no international ticket may be reissued to constitute a domestic intra-German ticket. Furthermore no residual domestic cpn. may be rerouted at all. New fares and charges shall be recalculated: - from the last fare construction point preceding the point from which the flight (coupon(s) will be uplifted (unless flight coupons are being uplifted at a fare break point when the recalculation shall be assessed from such fare break point) - to the destination or to the next fare construction point beyond which the original fare calculation remains applicable - provided once travel on a fare component has been completed such fare component may not be used for subsequent rerouting Multiple penalties For refund: - When combining fares within a pricing unit the more restrictive conditions apply - For half round trip combination if a refund penalty applies to each half round trip fare, then the highest penalty charge applies for the pricing unit - For half round trip combination if one of the combined half roundtrip fares does not allow any refund than refund is not permitted for the whole pricing unit. - When 2 or more pricing units are combined on one ticket and each PU has a penalty charge, then the penalty established for each PU applies For reissue: When combining fares within a pricing unit each fare component will be considered separately. For half RT combination if a reissue penalty applies to each half RT fare, then the highest penalty charge within the itinerary applies.

54

When 2 or more pricing units are combined on one tickket and each pricing unit has a reissue penalty charge, then the highest penalty charge within the itinerary applies. Section B - Voluntary Reroutings (for partly used Pricing Units) - when a OW journey/sub journey is to be converted into a RT journey/sub journey or a RT journey/sub journey is to be converted into a OW journey/sub journey the new fare shall be calculated from the point of origin/unit origin for the journey/sub journey to be travelled provided that if travel on a fare component has been completed such fare calculation point shall not be changed in assessing the new fare - the fares to be used will be those applicable to the new journey/sub journey - for the application of the above, all applicable fare construction rules shall apply to the recalculation of the fare - when, as a result of rerouting, an additional collection is required, the additional amount to be collected will be assessed as follows: - the difference between the fare for the original journey and the fare for the new journey will be assessed in the currency of the country of commencement of transportation - the fares to be used will be those applicable at the time of commencement of transportation using the IATA rate of exchange applicable at the time of the original transaction - -when collection is in a country other than the country of commencement of transportation, the amount to be collected will be the amount in the currency of the country of commencement of transportation, converted to the currency of the country of collection at the bankers selling rate in effect at the time of rerouting - nothing herein shall be deemed to permit a passenger travelling on an inclusive tour to voluntarily change his routing to a carrier not participating in the tour and still retain the inclusive tour benefits Voluntary Rerouting of Totally Unused Tickets When a totally unused ticket is presented for a change of outbound or outbound and inbound journey, the fare for the new journey shall be assessed based on the fares applicable at the time of commencement of the new transportation and the IATA rate of exchange applicable at the time of reassessment. In case a change is requested for the inbound journey only, the fare for the new journey shall be assessed based on the fares applicable at time of the original transaction and the IATA rate of exchange applicable at the time of the original transaction. Section D - Refunds (for partly used tickets) Refund will be assessed as follows: - the amount of the refund will be assessed in the country of commencement of transportation - the fare for the travel undertaken will be assessed using the fare(s) applicable at the time of commencement of transportation and the IATA rate of exchange applicable at the time of the original transaction - when original payment has been made in a country other than the currency of the country of commencement of transportation, refunds in the same currency as originally tendered will be made at the exchange rate used for the original payment 55

refunds other than outlined above will be made at the bank rate in effect on the date of the refund

LH will no longer apply government restrictions United States order 96-519 for LH carrier fares as 01APR2011

Application of Cancellations and Changes

1. Refunds Refunds are still based on the Pricing Unit, i. e. a) the most restrictive conditions within a Pricing Unit (PU) apply and b) if a passenger holds a ticket that consists of two Pricing Units (PU)s, one non-ref the other refundable, only the refundable one will be refunded. Example 1: LON FRA NYC FRA LON Tariff combination: RT BFFGB plus RT QLW4NCE Conditions BFFGB: Refund permitted without charge Conditions QLW4NCE Refund not permitted As refund is applied on a PU basis the whole ticket becomes non-refundable. This applies for unused tickets as well as for partly used tickets. Further Examples: 1. Outbound Refund against 100EUR charge/ Inbound Refund against 200EUR charge The ticket (unused/partly used) is refundable against 200EUR. 2. Outbound Refund against 100 EUR charge/ Inbound Refund not permitted The complete ticket is to be considered non-refundable. 3. Outbound Refund against 100 EUR charge/ Inbound Refund permitted free of charge The ticket (unused/partly used) is refundable against 100EUR. YQ Surcharge No refund for non-ref tickets

56

The YQ amount will not be refunded for non-refundable tickets. For Cont fares this is a major part of the total ticketed amount. The wording No refund of YQ surcharge for non refundable fares is part of the penalty paragraph refund section for non-refundable fares worldwide. Taxes and Fees In order to avoid misunderstandings and to make the current processing clearer, the following wording regarding taxes and is included in all refund versions: Refund of unused fees and taxes is permitted unless applicable OW/RT fare for actual travel is higher than original fare. 2. Changes The conditions in the change paragraph apply per Fare Component. However, LH still wants the passenger to pay the change fee only once per closed transaction (a closed transaction is defined by ending the PNR). So the amount will be paid as highest of any changed Fare Components wihtin the itinerary. Example 1: HAM-FRA-NYC-FRA-HAM Tariff combination: RT YFFDEW plus RT WLRCDEW Conditions YFFDEW: Rebooking/Rerouting/Upgrade permitted without charge. Conditions WLRCDEW: Rebooking/Rerouting/Upgrade permitted against a charge of EUR100 1. Passenger wants to change Outbound 2. Passenger wants to change Inbound 3. Passenger wants to change OB and IB Applicable Fee no charge 100EUR 100EUR

Bsp. 2: LON-FRA-BKK-FRA-LON Tarifkombination aus RT BFFGB und RT ULNNGB Conditions BFFGB: Rebooking/Rerouting/Upgrade permitted without charge Conditions ULNNGB: Rebooking/Rerouting/Upgrade not permitted 1. Passenger wants to change Outbound 2. Passenger wants to change Inbound Application changeable none changeable 57

3. Passenger wants to change OB and IB

OB changeable

The allowance of cross compartment combination might lead to the application of differing amounts depending on the change of segment: Example 3: FRA-TYO-FRA Tariff combination: RT DRCDE1 plus RT BLRCDE1 Conditions DRCDE1: Rebooking/Rerouting/Upgrade permitted against charge of 200EUR Conditions BLRCDE1: Rebooking/Rerouting/Upgrade permitted against charge of 100EUR 1. Passenger wants to change Outbound 2. Passenger wants to change Inbound 3. Passenger wants to change OB and IB Applicable Fee 200EUR 100EUR 200EUR

Applicability: This new processing is only applicable whenever you find an explicit hint in the penalty paragraph of the respective fare note that for refunds Pricing Units based processing applies and for changes Fare component based processing applies: Example Refund:
CANCELLATIONS ANY TIME CHARGE [" EUR/USD 150.00"] FOR CANCEL/NO-SHOW/REFUND. (PU based) THE FOLLOWING RULES APPLY PER PRICING UNIT CHILD DISCOUNT DOES NOT APPLY.

Example Changes:
Changes Before departer CHARGE EUR/USD 50.00 FOR REVALIDATION/REISSUE. The following rules apply per fare component/direction. Exception: change fee will be the highest of any changed fare component in the itinerary.

58

CHILD DISCOUNT DOES NOT APPLY. Infant without a seat free of charge.

There might be cases though when the new logic is not implemented yet (mostly private fares). So whenever this explicit hint (the following rules apply per fare component/direction) is missing like in the examples that follow all rules apply per Pricing Unit, i. e. the most restrictive principle still applies: More than 1 Pricing Unit (PU) on the ticket Cancellations For refunds each PU will have to be considered separately. Changes For reissue each PU will not be considered separately. The highest change fee of any changed fare component within the itinerary has to be paid, regardless how many PU are within the itinerary. No adding of multiple change fees of individual pricing units are necessary. Combinations with Partner Fares Whenever controversial reissue and/or refund rules are combined on RT basis with partner on LH ticket (220 document), LH rules overrule always partner rules in manual Processing. Automated Processing with ATC behaves in different ways. Example: HAM-FRA-ZRH-FRA TARIFF COMBINATION: FRA-HAM PNC31OW & FRA-ZRH-FRA 1/2RT LH PNC6D0 PLUS 1/2RT LX HSWISSDE Conditions PNCOW: Revalidation/ Reissue permitted against chargt of 50 EUR Highest fee of any change fare component within iternaray Conditions PNC6D Revalidation/ Reissue permitted against chargt of 50 EUR Highest fee of any change fare component within iternaray Conditions HSWISSD: Revalidation/ Reissue permitted against chargt of 50 EUR Highest fee of any change fare component within PU

59

LH TICKET

1. Passenger wants to change 2. Passenger wants to change 3. Passenger wants to change LX TICKET

FRA-HAM FRA-ZRH FRA-HAM & FRA-ZRH

Applicable Fee 50EUR 50EUR 50EUR Applicable Fee 50EUR 50EUR 100EUR

1. Passenger wants to change 2: Passenger wants to change 3. Passenger wants to change

FRA-HAM FRA-ZRH FRA-HAM & FRA-ZRH

Definition of HIGHER FARE Whenever the penalty paragraph (CAT16) refers to higher fare please keep in mind that this expression simply refers to the fare amount not to a higher RBD/booking class. E. g. the passenger holds a RT Ticket FRA-NYC Paid tariff: ZRCDEU Fare Structure ZFFDEW 2546 EUR ZRCDEW 2420 EUR Fare rule states upgrade to higher fare permitted; availability in Y given. In this case the YFFDEW fare 2546 EUR would be considered an upgrade. Definition of No-Show Whenever the penalty paragraph (CAT 16) refers to No Show please keep in mind that after original schedule flight departure time as shown in the affected flight coupon, the passenger becomes a No-Show. In case of No-Show changes are not permitted any longer for restrictive LH fares. Please refer to refund section of applicable fare rule. Definition of Closed Transaction A change fee applies for every single closed transaction. A closed transaction is defined be ending the PNR. Fare & YQ Residual Value For non refundable fares, no residual fare value will be credited to the passenger when reissue results in a lower fare. However, for accounting purposes an RF1 MCO needs to be issued manually if the change results in a lower fare. In that case an additional cancellation fee does not apply. Note: Intercont-fares issued before April 2011 do not show this rule in the penalty paragraph (PE). Therefore a refund MCO (R1) will correctly be created by ATC and credited to the passengers. 60 2420 EUR

For non refundable fares the residual YQ value will be credited (and automatically included in refund MCO) when reissue results in a lower YQ surcharge. Note: When a completely unused ticket or partially unused ticket is refunded, the YQ always remains non refundable.

Surface Sectors
Imbedded surface sector Imbedded surface sector means a domestic or international surface sector within a fare component but not to or from a fare construction point. Imbedded surface sectors are allowed in any itinerary at the passengers request Fare construction surface sector Fare construction surface sector means either the origin point or the terminal point of a domestic or international surface sector is at a point of turnaround or destination of a
pricing unit

Fare construction surface sectors are allowed in any itinerary at the passengers request. A fare construction surface sector from the point of origin of a PU shall not be permitted. A fare construction surface sector at the beginning or the end of the journey shall not be permitted

Surface sector provisions Any limitation on surface sectors in a fare rule applies to both imbedded And fare construction surface sectors unless otherwise stated. When a fare rule limits stopovers and/or transfers the method of assessing The impact of an imbedded surface break is possible. Such limitation of Stopovers and/or transfers shall not be impact by fare construction surface Sectors unless such stopover and/or transfer limitation applies to Stopovers and/or transfers at a fare construction point.

Combination

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End-on combination

A "End-on combination" means the combination of two or more fares which could be ticketed separately at a fare construction point. End-on combination does not apply to the combination of fares between the same points. B When a special fare rule limits end-on combination to specific fare categories, such limitation will apply in respect to the entire journey. EXAMPLE A special RT fare from SYD to SIN limits combinations to fares within Area 3:
o

1 A journey SYD-SIN-KUL-SIN-SYD combining with a SIN-KUL RT fare is permitted. 2 A journey SYD-SIN-KUL-LON-KUL-SIN-SYD combining with a SIN-KUL RT fare and a KUL/ LON RT fare is not permitted (LON is in Area 2).

EXCEPTION: This limitation does not apply to end-on combinations with fares to/ from USA.

Side trip combination

A "Side trip" means travel to and/ or from an enroute point of a fare component. When travel from/ to an en-route point of a through fare is separately charged, such side trip is considered a separate journey for the purpose of fare calculation. B "Side trip combination" means the combination of a fare which could be ticketed separately from and/ or to an enroute point of a fare component. C The combination of OW normal fares with international side trip one way fares to or via the country commencement of travel is not permitted. EXAMPLE Side trip calculation Problem: As stopovers are required at all points, a separate side trip Madrid Lisbon - Madrid is assessed

Routing VIE MAD stopover

Relevant fares VIE-MAD OW

NUC 850.22

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MAD LIS LIS MAD CAS EXPLANATION stopover LIS stopover

VIE-CAS

OW

934.38

MAD-LIS MAD

RT

442.32

The side trip is calculated as if it was a completely separate journey. In this case, it is considered a RT thus the fare is assessed as a MAD-LIS RT and not as the total of MAD-LIS half RT (or OW) plus LIS-MAD half RT (or OW). Local combination Combination of two fare components to create a single pricing unit - this also applies to the combination of two one-ways fares, provided the second fare component returns to the country of origin of the first fare component Notes:

1) Canada and USA are considered one country 2) Scandinavia is considered one country

Combination of USA domestic fares with international fares A Normal/ special domestic fares within the USA may be combined with international fares, even though such combination undercuts a published through international fare. All conditions of such normal/ special fares must be complied with, e.g. maximum/ minimum stay requirements, group size, combinations, etc; however, the term conditions does not include domestic routings. The cost of a ground package required by the domestic fare (e.g., ITT/ GIT) may be disregarded when the domestic IT fare is combined with an international IT fare having a tour package of the same or higher amount than the domestic fare. Standby fares may not be combined. B When a domestic fare is combined with an international fare, the resultant combination constitutes a through international fare and is therefore subject to the routing governing that particular international fare. C Through MPMs may be used either between an interior USA point and destination (or vice versa), or between a USA gateway and destination (or vice versa) (unless prohibited by rules applicable to one of the sector fares). EXAMPLE Travel: Chicago- New York- Frankfurt- Zurich-Amsterdam- Paris- Lagos MPM used from NYC MPM used from CHI

63

MPM NYC-LOS 6400 TPM NYC-LOS 7586 Fare Construction (in NUC) CHI NYC FRA ZRH AMS PAR LOS Total V Y Y Y Y Y 20M 1884 2063 179

MPM CHI-LOS 7266 TPM CHI-LOS 8307 Fare Construction (in NUC) CHI NYC FRA ZRH AMS PAR LOS Total V Y Y Y Y 15M Y 1806 2012

D Domestic fares may be constructed over one gateway and routed over another unless the conditions of the domestic fare used require travel via the fare construction point.

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Mixed Class Construction

General Mixed class travel is when an itinerary involves travel in two or more classes of service In assessing the fare for the mixed class transportation, special fares must not be used Any stopover/transfer restrictions applicable to the through fare must be observed Differentials are assessed in the same direction as the fare used for the lowest class of service 5) When half RT fares are used, differentials are assessed using half RT fares; when OW fares are used, differentials are assessed using OW fares 6) Class differential calculation is only subject to the HIP check, no further minimum checks apply 7) When comparing normal fares of the same class of service, in order to determine the fares to be used in a class differential calculation, the following sequence shall apply If no sleeper seat fare, use first class fare; If no first class fare, use intermediate/business class fare If no intermediate/business class fare, use economy class fare provided where more than one economy class fare is published, use the highest economy class fare FARE CALCULATION 1) Establish the fare for the itinerary in the lowest class of service used applying all applicable fare construction checks 2) Establish whether as a result of 1) above the mixed class sector(s) a. Apply within a fare component, or b. Constitute an entire fare component, or c. Constitute an entire pricing unit If the mixed class sectors are WITHIN A FARE COMPONENT, the differential for the sector(s) travelled in a higher class shall be the lowest of the following a. the difference between the lower class fare for the sectors flown in the higher class and the fare for the higher class of travel on those sectors b. the difference between the applicable fare for the fare component in the lower class of service and the applicable fare for the fare component in the higher class of service EXAMPLE: Travel: LON Y/ BKK F/HKG Y/LON The sum of the through C fare plus lower differential of the following 1) 2) 3) 4)

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Calculation BKK - HKG BKK - HKG Difference LON - HKG LON - HKG Difference Differential to be applied F Fare Y Fare F Fare Y Fare

(NUC) 490.86 333.95 156.91 8574.94 4169.86 4405.11 156.91

If mixed class sector(s) are CONSECUTIVE SECTORS WITHIN A FARE COMPONENT travelled in a higher class of service, the difference shall be the lower of a. the difference between the lowest applicable fare for the lowest class of service used and the lowest applicable fare for the higher class of service used, or b. lowest applicable through fare for the lowest class of service used for the sectors concerned and the lowest applicable through fare for the higher class used for such sectors EXAMPLE Travel: Bangkok-(C) Hong Kong-(F) Singapore-(F) Zurich The sum of the through C fare plus lower differential of the following Calculation 1 HKG-SIN HKG-SIN Difference SIN-ZRH SIN-ZRH Difference Total Difference Calculation 2 HKG-ZRH F Fare F2 Fare C Fare F Fare C Fare (NUC) 876.94 741.73 135.21 2421.28 2122.39 298.89 434.10 (NUC) 3613.68 66

HKG-ZRH Difference

C Fare

2566.70 1046.98

The differential to be applied shall be 434.10

If the calculation in the lower class of travel establishes that the mixed class sector(s) constitute an ENTIRE FARE COMPONENT(s), the differential shall be the difference between the applicable fare for the lower class of travel for the entire fare component and the applicable fare for the higher class of travel for the fare component EXAMPLE Travel: LON Y/BKK Y/HKG F/LON Calculation LON HKG plus diff LON - HKG LON - HKG Differential to be applied Total Fare Y RT Fare F RT Fare Y RT Fare (NUC) 7504.78 8574.97 3752.39 4822.58 12327.36

If the calculation in the lower class of travel establishes that the mixed class sector(s) constitute an ENTIRE PRICING UNIT, the differential shall be the difference between the applicable fare for the lower class of travel for the PU and the applicable fare for the higher class of travel for the PU

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EXAMPLE Travel: LON F/BKK Y/HKG Y/BKK - F/LON Calculation LON BKK plus diff LON - BKK LON - BKK Differential to be applied plus BKK - HKG Total Fare Y RT Fare Y RT Fare F RT Fare Y RT Fare (NUC) 6746.98 16664.02 6746.98 9917.04 667.90 17331.92

Mixed Class Fare Checks Class differential calculation is only subject to the HIP check, no further minimum checks apply. *Note: class differential (d) entry is no longer required for fare components flown entirely in a higher class of service than other fare components. The fare for the entire component shall be the applicable fare for the class of service used.

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Normal Fare Flow Chart

Is the journey a RT/CT by definition?
Yes No

Half RT fares must be used

Yes

If the journey is not a RT/CT by definition then the journey contains domestic and/or international surface breaks. Are all surface breaks domestic?
Yes No

Is there a common point(s) / country that would allow the assessment of 2 or more separate return subjourneys?
Yes No

Is the fare to be broken more than once at such common point/country?

Yes No

Can the fare be assessed using 2 international RT fares?

Yes

No

Is there a common point(s)/country?

Yes

No

Would (all) resulting subjourneys permit the continued use of half RT fares?
Yes

Is there a common point/country between the country of origin and the country of turnaround
No

Is the fare to be broken at such common point in such country (ies)

Yes No

The fare must be assessed as a series of RT subjourneys

The fare must be assessed as a single RT/CT journey

Yes

Is the fare to be broken more than once at such common point/country?

No

Are any subjourney(s) to/from such common point(s) / country(ies) return subjourneys?
Yes No

The fare must be assessed as a series of RT subjourneys subject to the following for NOJs

The RT subjourney must be assessed using RT fares. Use OW fares for remaining subjourneys. Subject to the following for NOJs

Use OW fares

For NOJ journey/subjourney is there a common point or more than one point in either the country of origin or the country of turnaround or both?
Yes No

Is the fare to be broken at such other point(s)?

Yes

No

The NOJ can be assessed as o OW domestic fare(s) and a return subjourney

Use 2 half RT fares

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General Notes: 1. If for pricing purpose the journey is changed (e.g. closing a surface gap or adding a sector that creates a surface gap) then the new journey will determine which path of the flow chart should be taken. 2. For end-on combination of normal and special fares separate the special and normal fare completely and assess the normal fare sub journey according to the flow chart. 3. The flow chart does not apply for local combination of normal and special fares in the given case refer to the special fares rule.

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Summary of steps and checks

The following is a summary of fare construction steps for various journey/ sub journey types. Consult the preceding fare construction rules for further information and exceptions. Note: As of 15 January 2005, ISI codes have been deleted. One Way Mileage Checks (MPM/ TPM/ EMA/ EMS) HIP Normal OW Pricing Unit Yes Check if there is a HIP from fare component origin to any stopover point; from intermediate stopover point to another; from intermediate stopover to fare component destination. HI fare from origin to highest rated stopover point. Normal/ Normal CT Special RT Yes Yes No Yes Yes Special OW Pricing Untit Yes Yes but not HIP from intermediate stopover to another.

BHC

Yes

Return Trip Pricing Units (MPM/ TPM/ EMA/ EMS) HIP: Stopover Points Only CTM

Normal Fare Special CT Open Jaw (Noj) Yes Yes Yes Yes

Special Fare Open Jaw (OJ) Yes Yes

The highest No normal round trip fare from origin to any stopover point in a pricing unit

The highest No special round trip fare from origin to any stopover point in a pricing unit

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