International Air Transport Association IATA Centre, Route de l’Aéroport 33 P.O. Box 416 CH-1215 Geneva 15 Airport, Switzerland In 2001, after learning that DG COMP was considering adding an obligation to collect interline statistics, demonstrating the degree and extent of interlining within the European Economic Area (EEA), a number of tariffs and statistical experts met with IATA to determine what could be collected and how. Difficulties had been experienced in previous attempts to quantify the levels of interlining for a number of reasons, including because airlines used different accounting systems, different standards and different definitions. For example very few airlines used a definition of Europe that matched the geographic definition of the EEA. As a result much of what had been produced only resulted in what has been called an apples to oranges comparison. The economist, who had worked with IATA in preparation of its response to the 2001 consultation, also participated in the discussions. The conclusions of the experts were: • In their view, the objective was best accomplished by each airline analysing how its customers were using the coupons of its own tickets. If the accounting records indicated that a passenger had flown on its own services, the flight coupon would be counted as being ‘flown’. If the airline had been billed by another airline for the flight coupon, that coupon would be counted as ‘billed’ and this would evidence interlining. • DG COMP was looking for statistics related to passengers travelling at fares applicable between two points in the EEA. The airlines would therefore need to exclude all tickets that were not for transportation solely between points in the EEA. For example all flight coupons of a ticket from Lyon to Brussels to New York would need to be excluded. At the request of one participant, to make the data selection process easier, it was agreed to limit the analysis to tickets that had been issued in the EEA. • It was not possible to distinguish between IATA ‘special’ fares and carrier ‘special’ fares. Airlines heretofore had no reason to distinguish between IATA and carrier fares and there was no ticket entry, or data record on a ticket or in a reservations record that had indicated which had been chosen by the passenger. However for ‘normal’ fares, it was possible to distinguish between the fully flexible fares established in IATA and those established by individual airlines as these fare types could be distinguished by the fare basis code that was included on all tickets. An IATA normal fare would almost always be coded “Y” or “C” or “D” while a carrier-restricted normal fare would likely bear a code such as “Y2” or “C57” or “DxxRT”. The economist observed that the concerns conveyed in the Commission’s consultative paper focused more on business, or normal fare, travel and therefore an analysis of normal fare traffic would demonstrate the value and need for the IATA interline product. - 2 - • It was believed that it would be feasible for many of the European airlines to provide statistics on this basis. The “Detailed Description” which follows was presented to DG COMP in January 2001 by IATA and the group of experts for their agreement. It is on this basis that the participating airlines have prepared the interline data submitted to DG COMP at the agreed intervals. Three minor updates have been made since January 2001: 1. The definition of the EEA now refers to 25 European Union states, rather than 15, beginning with the data collection period commencing July 2004. 2. With the agreement of DG COMP the reporting periods set out in Paragraph 4 have been changed from April – September and October – March to January – June and July – December. 3. As requested by DG COMP, IATA would also supply, in addition to the total numbers of all reporting airlines, on a confidential basis the data supplied by each reporting airline in early May and early November. IATA Government and Industry Affairs October 2004 Detailed Description Definitions: • EEA (European(European EconomicEconomic Area)Area) – The 25 European Union States, plus Iceland, Liechtenstein, Norway, and, due to the soon to be implemented bilateral accords, Switzerland. • Within the EEA - a ticket for an itinerary, other than a wholly domestic itinerary, for which all fare construction points are in the EEA. • Interline – Evidenced when an airline bills another airline for its flight coupons. • IATA Normal Fares – IATA fares governed by Resolution 062a (Economy Class Fares) and Resolutions in the 095 series (Budget, Eurobudget fares). • Carrier Normal Fares – Flexible fares without i) minimum/maximum stay requirements, or, ii) penalties, fees for rebooking or rerouting (an amount paid in upgrading to a higher fare is not considered a penalty or fee). Procedure 1 For flight coupons of own tickets issued in the EEA, analyse those for which all Fare Construction Points are within the EEA, 1.1 Identify and count all own flown coupons, at which travel was at a Normal fare, 1.2 Of 1.1, identify and count those at which travel was at an IATA Normal fare, 1.3 Identify and count all billed coupons, at which travel was at a Normal fare, 1.4 Of 1.3, identify and count those at which travel was at an IATA Normal fare. 2. For flight coupons of own tickets issued in the EEA, having a fare component (one way or round trip) between (24 identified origin/destination markets). 2.1 Identify and count all own flown coupons, at which travel was at a Normal fare, 2.2 Of 2.1, identify and count those at which travel was at an IATA Normal fare, 2.3 Identify and count all billed coupons, at which travel was at a Normal fare, 2.4 Of 2.3, identify and count those at which travel was at an IATA Normal fare. 3 Report for each of 1 and 2 the following: 3.1 The total number of passenger trips (1.1 + 1.3 and 2.1 + 2.3) 3.2 The number of passenger trips at an IATA normal fare (1.2 + 1.4 and 2.2 + 2.4) 3.3 The percentage of passenger trips at an IATA normal fare (3.2 ÷ 3.1 x 100) 3.4 The number of passenger trips at an IATA normal fare which were interlined (1.4 and 2.4) 3.5 The percentage of passenger trips at an IATA normal fare which were interlined (3.4 ÷ 3.2 x 100) 4. Reports to be sent to IATA each April and October covering coupons used or billed during the previous July - December and January – June periods. 5 IATA will report individual airline results on a ‘confidential’ basis to the EC together with industry totals in early May and early November. 020125report.doc tlb Flight Coupons of own tickets issued in the EEA, and with all Fare Construction Points within the EEA (1) AND Own flown coupons, at which travel was Billed coupons, at at a Normal Fare (1.1) which travel was at a Normal Fare (1.3) AND Own flown coupons, at which travel Billed coupons, at was at an IATA Normal Fare (1.2) which travel was at an IATA Normal Fare (1.4) EQUALS: Flight Coupons of own tickets issued in the EEA, and with all Fare Construction Points within the EEA (1) Own flown coupons, at which travel was Billed coupons, at at a Normal Fare (1.1) which travel was at a Normal Fare (1.3) Own flown coupons, at which travel Billed coupons, at was at an IATA Normal Fare (1.2) which travel was at an IATA Normal Fare (1.4) Report: The % of passenger trips at an IATA Normal Fare ((1.2+1.4)/(1.1+1.3)x100 The % of passenger trips at an IATA Normal Fare which were interlined 1.4/(1.4+1.2)x100 Flight Coupons of own tickets issued in the EEA, and with all Fare Construction Points within the EEA (1) Flight Coupons having a fare component (one way or round trip) between (20 identified origin/destination markets) (2) AND Own flown coupons, at which travel was Billed coupons, at at a Normal Fare (2.1) which travel was at a Normal Fare (2.3) AND Own flown coupons, at which travel Billed coupons, at was at an IATA Normal Fare (2.2) which travel was at an IATA Normal Fare (2.4) EQUALS: Flight Coupons of own tickets issued in the EEA, and with all Fare Construction Points within the EEA (1) Flight Coupons having a fare component (one way or round trip) between (20 identified origin/destination markets) (2) Own flown coupons, at which travel was Billed coupons, at at a Normal Fare (2.1) which travel was at a Normal Fare (2.3) Own flown coupons, at which travel Billed coupons, at was at an IATA Normal Fare (2.2) which travel was at an IATA Normal Fare (2.4) Report: The % of passenger trips at an IATA Normal Fare ((2.2+2.4)/(2.1+2.3)x100 The % of passenger trips at an IATA Normal Fare which were interlined 2.4/(2.4+2.2)x100.