Building fare CalculationBy Muhammad Fadil

Content Writing fare calculation according to

IATA rules Spacing in Fare calculation Equivalent Fare paid (EFP) Intermediate points Surface sectors

What is a fare calculation and what should it contain?

OriginDestinationCarrierFareCurrencySpacing in Fare

calculationRate of exchangeTaxesNUC

A one way ticket purchased to travel from Abu Dhabi (AUH) to Jeddah (JED) on Etihad airways (EY) at 100.00AED.

How to Write a fare calculation from the above?

All fare calculation should start with the city or airport code the passenger starts his journey and should end with the arrival point.

Here the starting point is Abu Dhabi – AUH

Arrival point here is Jeddah – JEDIn between every city pairs (Departure point – arrival points) there should be a carrier (airline on which the passenger is travelling). 

Here carrier is Etihad airways – EY

The fare calculation should also contain the fare paid for the ticket and the currency in which the ticket was purchased.

Here the fare is 100 and the currency is AED

The currency is always written in 2 decimal places (2 dp) in the fare calculation – 100.00AED

The fare should be written in the fare both before the currency and after the currency. Note: In the next session, it will be explained why the fare should be

written twice in the fare calculation

Here the currency and the fare would be written as:

100.00 AED 100.00

The journey and the fare should stop with an ‘END’

100.00 AED 100.00 END

After the ‘END’ comes the rate of exchange -ROE used to sell the ticket.

Here the ticket was purchased in AED and we will be using a rate of exchange of 1.00000.

Rate of exchange should be written in 5 decimal places(5 dp)

Thus, the rate of exchange here will be written as follows: ROE 1.0000

After the rate of exchange comes the taxes which normally starts with XT. It will be describe in other session

A one way ticket purchased to travel from Abu Dhabi (AUH) to Jeddah (JED) on Etihad airways (EY) at 100.00AED.

From the above description, our fare calculation is:

AUH EY JED 100 AED 100 END ROE 1.00000

Spacing in fare calculation (Alpha-numeric rule).

The rule of spacing mentions that there should be a space between each alpha(words) in a fare calculation and no spacing between the numeric(digits).

Below the space is shown using a underscore ( _ )

AUH_EY_JED100.00AED100.00END_ROE1.0000

Below is a short list of what is considered as Alpha and what is considered as numeric in a fare calculation

WORDS in fare calculation Numbers in fare calculation

City or airport codes Currency Rate of exchange(ROE) Mileage(M) Surcharges (Q) IT or BT END Tax codes

Fare Value of rate of exchange Tax rates

 

Using the above description write the fare calculation of the followings:  

One way ticket to travel from Abu Dhabi (AUH) to Ahmedabad (AMD) on Etihad airways. Ticket was purchased at 250AED in Abu Dhabi.

AUH_EY_AMD250.00AED250.00END_ROE1.00000

Return trip ticket to travel from Abu Dhabi to France (CDG) and return back to Abu Dhabi.

The passenger will travel from Abu Dhabi to France by Etihad Airways and return by Air France (AF).

The ticket was purchased at 521 AED in Abu Dhabi.

AUH_EY_CDG_AF_AUH521.00AED521.00END_ROE1.00000

Equivalent Fare paid (EFP)An equivalent fare paid is money paid to purchase a ticket in another currency other than that of currency of country where the ticket is been purchased.

When an equivalent fare paid is used in a fare calculation, the rate of exchange should be calculated before constructing a fare calculation.

 Why do we need to calculate the EFP?

The reason to calculate the EFP is because the currency of account (listing currency) of Etihad Airways is AED.

Thus for accounting and reporting purposes all currency should be converted in AED.

For example:

A one way ticket purchased to travel from Abu Dhabi (AUH) to Jeddah (JED) on Etihad airways (EY) at 100.00USD.

First we need to get our rate of exchange using the Bank selling rate (BSR) in the master.

1 USD = 3.67 AED

Fare calculation:

AUH EY JED100.00USD100.00END ROE3.67000

How to calculate the EFP:A one way ticket purchased to travel from Abu Dhabi (AUH) to Jeddah (JED) on Etihad airways (EY).

The listing price of the ticket in Abu Dhabi is 200AED but the ticket was purchased in America using USD.

The bank selling rate is 1AED = 0.27USD

A one way ticket purchased to travel from Abu Dhabi (AUH) to Jeddah (JED) on Etihad airways (EY). The listing price of the ticket in Abu Dhabi is 200AED but the ticket was purchased using USD.

The bank selling rate is 1AED = 0.27USD

Local currency fare(LCF) = 200AED

Bank Selling rate (BSR) = 0.27USD Equivalent fare Paid = 200 x 0.27 = 54 USD Fare calculation:

AUH EY JED54.00USD54.00END ROE0.27000

Neutral Unit of construction (NUC)

What is the NUC? And is it used in Fare calculation?

Definition of NUCThe neutral unit of construction is a standard unit (currency) used in the aviation industry to construct fare calculation.

1.00 NUC is equivalent to 1.00 USD

Why using the NUC?When constructing fare calculation where two or more local currencies have to be used it is easier to convert the currency into the Neutral unit of construction

ExampleA return trip (RT) ticket bought in Abu Dhabi to travel from Abu Dhabi (AUH) to London (LON) having a stop point in Paris (PAR).

Since the local currency of Abu Dhabi is AED and the local currency of London is GBP it will be impossible to add the two fares to get the gross fare for constructing the Fare calculation. Thus the NUC is used as an standard currency.

How to construct a fare calculation using NUC: Convert all currencies to be used for

constructing the fare calculation into NUC using the rates published by IATA RATE OF EXCHANGE(IROE) or the local currency can be converted into USD since 1.00 NUC= 1.00USD.

Then use the local currency rate for NUC as ROE.

For Example

A one way ticket purchased in AUH at 150AED to from AUH to JED on Etihad Airways. Using the rate 1 AED = 0.27 NUC

Fare calculation in AED:

AUH EY JED150.00AED150.00END ROE1.00000

Fare calculation in NUCCurrency in NUC = 150 x 0.27

= 40.50NUCFare calculation:

AUH EY JED40.50NUC40.50END ROE0.27000

Intermediate points

An intermediate point is any stop point where the passenger will stop during his journey.

An intermediate point can be voluntary or involuntary

For example:

A just married couple wants to have there honeymoon in London but they also want to see Paris before going to London and return back Abu Dhabi.

They purchase a return trip (RT) ticket in Abu Dhabi at 600 AED to travel from Abu Dhabi (AUH) to London (LON) with a stop point of 2 days in Paris. The journey will completely be done on Etihad Airways.

In this example, our intermediate or stop over point is Paris(PAR)

Therefore our fare calculation will be represented as:

AUH-EY-PAR-EY-LON-EY-AUH600.00AED600.00END ROE1.00000 

Types of intermediate points:

Intermediate point with stop over Intermediate no stop over point

Intermediate point with stop over

An intermediate point where the passenger will stop more that 24 hours is considered as a Stop over point or a transfer point.

Intermediate no stop over pointAn intermediate point where the passenger will stop less than 24 hours is considered as no stop over point, also known as a transit point.

A no stop over point is shown in a fare calculation as X/.

Example of a no stop over point

A ticket purchased to travel from Abu Dhabi (AUH) to London (LON) on Etihad Airways at 500AED.

The plane will make stop of 2 hours in Paris (PAR) before continuing the journey to London

 Fare calculation:

AUH_EY_X/PAR_EY_LON500.00AED500.00END_ROE1.00000

Surface sectors

A surface sector is when a passenger uses other means to travel other than airlines.

The surface sector is shown in fare calculation as /- or //

/- is used for unpaid surface// is used for paid surface

Example of Surface sectorA ticket purchased to travel from Abu Dhabi (AUH) to LONDON (LON) but the passenger will stop in Paris (PAR) and travel by train to London and return back to Abu Dhabi by plane.

The ticket was bought at 1000AED in Abu Dhabi and the journey will done completely by Etihad Airways.

Fare Calculation:

AUH EY PAR /- LON EY AUH1000.00AED1000.00END ROE1.00000