Fare Calculation

Fare Calculation

Four different ways to calculate airfares in the Philippines.

Rate sheetsPassenger Air TariffGlobal distribution system’s Fare

Quotation Display (FDQ)Airline’s Rate Desk

Headlines/ Sideline Cities

Fares

Fare Type

Carrier code

MPM

Global Indicator

Rule

NUC

Local Currency

Route Reference

PASSENGER AIR TARIFF

Basic Fare Calculation ProceduresStep by step formula for fare calculation

used by the airlines’ Rate Desk as follows:

Establish the type of journey. Establish the Category of air fares

published with rule reference. Fares published with direction codes-

global indicators-can have different Maximum Permitted Mileage.

Basic Fare Calculation Procedures If no direct flights exist between points

of origin and destination, fares must be constructed using the mileage system. The correct steps are:

-Establish the Fare Break Point (FBP)

-Establish the Neutral Unit of Construction

(NUC)-Note the Maximum Permitted

Mileage (MPM)-Add the Ticked Points Mileage

(TPM)

Basic Fare Calculation ProceduresThe resulting total of each component is the

Construct Fare (CF).Check and apply any minimum-fare rule shown in

the General Rules book of the Passenger Air Tariff.Add the CF of all fare components for a Total (TTL)Convert the TTL at the applicable Rate of

Exchange (ROE) currency, and round off the Local Selling Fare (LSF).

Complete all the relevant boxes of the Ticket with the applicable taxes.