ZED MIBA Working Group Frankfurt, Germany 29 September 2015.

ZED MIBA Working GroupFrankfurt, Germany

29 September 2015

Agenda

Working Group 29 Sep 2015

• Financial Statement• Memorandum of Cooperation• New Members• Fares• myIDTravel Interface• Comms & Admin• APD• Taxes• Gala dinner Financing• AGM 2015 Survey• ZMAC Council recruiting

Agenda




Financial Statement

Agenda



Memorandum of Cooperation


SITUATION

The original Service Level Agreement (SLA) between ZED-MIBA Forum (ZMF) and IATA was valid for a two year term expiring in April 2010. After April 2010, the SLA was renewed twice, however, the term of the last version expired in April 2014. During the discussion with IATA, both the Advisory Council and the IATA felt that the document needs an in-depth revision.

PROPOSAL

Together with the legal and finance department of IATA as well as the legal departments of Advisory Council members, the document has been reviewed. As one of the outcomes, the document has now a better, more legal-like structure with clearly defined relationship between ZMF and IATA including responsibility paragraph.

The compensation for services remains unchanged, i.e. each Member has to pay an administration fee of USD 250 and to provide IATA with ZH level ZED tickets for their employees and eligible persons.

Memorandum of Cooperation


• The online voting will be available on the ZEDMIBA website tomorrow and the members can cast their vote until 10 October 2015.

• Please cast your vote !

Agenda



Agenda



Fare adjustments on November 1st 2015

10Working Group 29 Sep 2015

Fares adjustment voted at AGM 2015

1- Fares adjustment on levels 1, 8 and 9 for space available and positive space faresExample of the changes for ZMR2 Economy and Business fare Space available:

11

Fare type: Economy Space Available (YIDZ**R2) Baseline

ZM ZMUSD Fare USD Fare1-nov.-14 Scale AGM 15

8 6101 - 7100 YIDZM8R2 126 116 Z7 + + 20 $

9 7101 - 9999 YIDZM9R2 131 136 Z8 + + 20 $

Pricing structure 2015

Zone Distance in miles Fare codes

Fare type: Business Space available (CIDZ**R2) Baseline

Medium ZMUSD Fare USD Fare1-nov.-14 Scale AGM 15

1 1 - 450 CIDZM1R2 46 56 Z1

8 6101 - 7100 CIDZM8R2 481 401 Z7 + + 100 $

9 7101 - 9999 CIDZM9R2 491 491 Z8 + + 90 $

Pricing structure 2015

Zone Distance in miles Fare codes



2- Fares adjustment for Positive space ZED/MIBA/DHC Business Medium fares

12

Fare type: Economy Positive space (CIDM**S1/C1- CIDZ**R1) Baseline

Medium ZM/MMUSD Fare USD Fare1-nov.-14 Scale AGM 15

1 1 - 450 CIDMM1S1/C1- CIDZM1R1 286 172 Z1

2 451 - 750 CIDMM2S1/C1- CIDZM2R1 376 202 Z1+ + 30 $

3 751 - 1600 CIDMM3S1/C1- CIDZM3R1 446 302 Z2+ + 100 $

4 1601 - 3200 CIDMM4S1/C1- CIDZM4R1 656 502 Z3+ + 200 $

5 3201 - 4080 CIDMM5S1/C1- CIDZM5R1 956 602 Z4+ + 100 $

6 4081 - 5000 CIDMM6S1/C1- CIDZM6R1 976 702 Z5+ + 100 $

7 5001 - 6100 CIDMM7S1/C1- CIDZM7R1 1056 902 Z6+ + 200 $

8 6101 - 7100 CIDMM8S1/C1- CIDZM8R1 1256 1102 Z7+ + 200 $

9 7101 - 9999 CIDMM9S1/C1- CIDZM9R1 1306 1302 Z8 + 200 $

Zone Distance in milesPricing

structurePricing structure

2015



3- New Fares Level – Premium Economy – Space available and Positive Space

Example for ZMR2

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Fare type: Economy Space Available (xIDZ**R2)

1 1 - 450 xIDZM1R2 Z1 ZH Eco

2 451 - 750 xIDZM2R2 Z2 ZH Eco

3 751 - 1600 xIDZM3R2 Z3 ZH Eco

4 1601 - 3200 xIDZM4R2 Z4 ZH Eco

5 3201 - 4080 xIDZM5R2 Z5 ZH Eco

6 4081 - 5000 xIDZM6R2 Z6 ZH Eco

7 5001 - 6100 xIDZM7R2 Z7 ZH Eco

8 6101 - 7100 xIDZM8R2 Z8 ZH Eco

9 7101 - 9999 xIDZM9R2 Z9 ZH Eco

Zone Distance in milesFare codes

(bilaterally agreed)= ZH

EconomyPricing structure

2015


Fares adjustment NOV 2015When applying the fares adjustment formula (market evolution and fuel price changes), the prices on November 1st 2015 will decrease by 6.2 %

Example of the changes for ZMR2 Economy fare Space available

14

Fare type: Economy Space Available (YIDZ**R2) Baseline

ZM ZM ZMUSD Fare USD Fare New USD Fare1-nov.-14 Scale AGM 15 01-nov-15

1 1 - 450 YIDZM1R2 31 31 29 Z1

2 451 - 750 YIDZM2R2 36 36 34 Z1 + + 5 $

3 751 - 1600 YIDZM3R2 46 46 44 Z2 + + 10 $

4 1601 - 3200 YIDZM4R2 66 66 64 Z3 + + 20 $

5 3201 - 4080 YIDZM5R2 76 76 74 Z4 + + 10 $

6 4081 - 5000 YIDZM6R2 86 86 84 Z5 + + 10 $

7 5001 - 6100 YIDZM7R2 96 96 94 Z6 + + 10 $

8 6101 - 7100 YIDZM8R2 126 116 114 Z7 + + 20 $

9 7101 - 9999 YIDZM9R2 131 136 134 Z8 + + 20 $

Zone Distance in miles Fare codesPricing structure

2015


Quick update on ZED Fares in NUC


Agenda



myIDTravel interface with on-line concurrence form



Solution proposed by Infonia

Universal XML file, that can be processed by any software tool.

One day for communication with Lufthansa Systems is required.

QUOTE = approximately 1,500 EUR


Open issue

• Termination of concurrence

• Updates of an existing concurrence

• Non-standard rules

Agenda



Montreal Convention



Known as MC99, The Montreal Convention establishes airline liability in the case of death, injury or delay to passengers or in cases of delay, damage or loss of baggage and cargo., It modernizes and unifies all of the different international treaty regimes covering airline liability that have developed haphazardly since 1929. In short, it was designed to be a single, universal treaty to govern airline liability around the world. As of July 2015, there are 114 parties to the Convention. Included in this total is 112 of the 191 ICAO Member States plus the European Union. The states that have ratified represent 111 UN member states plus the Cook Islands.


Scope of ApplicationThis Convention applies to all international carriage of persons, baggage or cargo performed by aircraft for reward. It applies equally to

gratuitous carriage by aircraft performed by an air transport undertaking.

https://www.youtube.com/watch?v=xEfrMIXjJeQ#action=share

DamagesUnder the Montreal Convention, air carriers are strictly liable for proven damages up to 113,100 special drawing rights (SDR), a mix of currency values established by the International Monetary Fund (IMF). Where damages of more than 113,100 SDR are sought, the airline may avoid liability by proving that the accident which caused the injury or death was not due to their negligence or was attributable to the negligence of a third party. This defense is not available where damages of less than 113,100 SDR are sought. The Convention also amended the jurisdictional provisions of Warsaw and now allows the victim or their families to sue foreign carriers where they maintain their principal residence, and requires all air carriers to carry liability insurance.

Lost BaggageThe Montreal Convention changes and generally increases the maximum liability of airlines for lost baggage to a fixed amount 1,131 SDR per passenger (the amount in the Warsaw Convention is based on weight of the baggage). It requires airlines to fully compensate travelers the cost of replacement items purchased until the baggage is delivered, to a maximum of 1,131 SDR. At 21 days any delayed baggage is considered lost, even if the airline delivers it after that period.

Disabled Passengers and Mobility EquipmentThe limitation of compensation for damage to baggage to 1,131 SDRs means that the value of damaged mobility equipment may often significantly exceed available compensation under the Montreal Convention, while the effect of the loss, even temporarily, of mobility equipment places disabled passengers at a substantially increased disadvantage in comparison to other passengers suffering damaged baggage.

https://www.youtube.com/watch?v=xEfrMIXjJeQ#action=share


Baggage Survey - US Carriers Does your carrier deliver bags?

AA NO (new policy)

AS NO

B6 NO

DL NO

F9 NO

G4 NO

HA YES

NK NO

WN NO

Is there compensation for lost/damaged bags?AA YES

AS YES

B6 YES

DL YES

F9 YES

G4 NO

HA YES

NK NO

WN NO


Situation:Currently there is nothing in the ISTA to ensure our employees are protected under the terms of the Montreal Convention. There have been documented cases where transporting airlines have denied compensation for lost baggage under the premise that the employee did not qualify as a non-revenue passenger.

Proposal:Amend the ISTA to require all carriers with operating certificates issued in member states to adhere to the terms and conditions of the Montreal Convention once a passenger is accepted for carriage.

Amendment:B.3 Rights and Privileges

*NEW* B.3.a.ii Any Eligible Person accepted for carriage will be compensated under any global and/or local regulations (included, but not limited to Montreal Convention).

B.3.b Baggage B.3.b.iii Compensation payable by the Transporting Airline to commercial passengers for delayed, misrouted, damaged or lost baggage shall apply also to eligible Persons traveling under the terms of this Agreement.





Agenda



ZED MIBA - Identifying person age 12-15 in order to exempt from UK APD wef 01Mar16

Presented by Julie Williams (BA )


32


The facts:

• UK departure tax (GB) will be exempt for persons aged 12-15 travelling in economy (not premium economy or business class)

• UK HMRC need to be able to validate the exemption - by recording the date of birth and the age of the passenger in the PNR – or they will charge the transporting airline

• Cost = GBP13.00 for European departures/GBP71.00 for rest of world



If ZMF does nothing:

• There will be no way to price these and omit the APD

• As the adult fare applies to this passenger group, there will be no way to know that these passengers are exempt. So, for example, if YIDZxxRx/ZEA is shown on the ticket and GB tax is omitted, it will be billed to ticketing airline

• Listing PNRs don‘t provide HMRC with the information they need to validate the exemption so the transporting carrier will have to pay the tax to HMR


34


This will affect members who:

• Operate flights from the UK

• Have concurrences with airlines who operate flights from the UK


35


ZMF needs to resolve :

• Autopricing (Fares Filing)

• Identifying exempted passengers on the ticket


36


IATA Working Group:

Had several conference calls to work towards a common approach for:

• Ticketing and Sales Reporting• Pricing• Reservations• Sales Audit and Revenue Accounting


37


Results: recommendations – no resolution or long term solution

• Pricing - Use of a specific passenger type with numeric value

• Reservations - Date of birth in the SSRDOCS

• Ticketing - Record the age in the passenger name field


38


ZMF

What can we pick from these to meet our needs?


39


Identifying exempted passenger on the ticket

New ticket designator (PTC) ZYP has been created in anticipation

e.g. YIDZM3R2/ZYP

This alerts the transporting airline that a valid exempt person is travelling

N.B. by using ZYP we cannot identify exact relationship of the traveller to the employee. The benefit outweighs the disadvantages. Alternative would have been to create a PTC for a young person travel partner, young person sibling in addition to young person (offspring) of employee


40


Autopricing (Fares Filing)

New passenger type Znn has been added to Record 8


41 41Working Group 29 Sep 2015

42


Autopricing (Fares Filing)

Of Category 25





Amadeus Pricing

• Pricing Command Amadeus FXP/RZ13,UU*ZED

• Quotes a private ZED fare for a young person of 13 years, with or without Account Code ‘ZED’

• GDS will read Z13 in the entry and find the Znn provision in CAT25 of the fare rule. This will trigger 100% of the ZEA fare.

• It will also trigger the APD exemption because Passenger Type Znn should match to ‘NIL UK APD’ in the GDS tax database.

• ZYP will appear in the Ticket Designator



Sabre Pricing

FQLONBOS01MAR-BA¥PZNN/D*USD

LON-BOS CXR-BA TUE 01MAR16

BA LONBOS.AT 01MAR16 MPM 3927

ZNN-ZED YOUNG PERSON V FARE BASIS BK FARE TRAVEL-TICKET AP MINMAX RTG

1 ¤YIDZL5R2/ZYP Y X 56.00 ---- - -/ 3M AT01

GB tax still collected – BA will contact Sabre/ATPCo to fix

Unable to store PQ fare – BA will report to Sabre



Galileo

Fares are stored in Galileo, but still collects GB tax – BA will report this to ATPCo

Worldspan

Cannot validate ZNN - does anyone use it?


48


Identifying exempted passengers in the PNR

HMRC will use the PNR to identify exempted passengers

They will need to be able to identify person‘s age and DOB at the time of travel

Commercially the industry is edging towards a common approach which ZED members might want to consider adopting in order to reduce variation and comply with this standard


49


BA approach

Name field to contain Cnn

e.g. SMITH/JAMES MR (C14)

Date of birth must be captured in the SR DOCS field

e.g. SSR DOCS BA HK1 ////21FEB05/F//WILLIAMS/LUCY/P3


50


Revenue Accounting

Your Revenue Accounting departments probably have not made the system changes to deal with this due to costs and unusual nature of the exemption

Therefore you need to make them aware that they must develop a way to be able to interrogate PNR or ticket data to assist in identifying these tickets.


51


Next steps for ZMF

Online vote for new ZYP designator (PTC)

(We cannot wait to vote at our next AGM due to effective date being 01March16)

Ideally we need an answer by 01Nov to allow time for members to implement the solution in time

(N.B. tickets issued on 01Dec15 will be valid for travel on 01March16 – the first day the exemption applies)


52


Considerations to help Members understand the implications

For standby travel we will have to take some chances as we will not know the exact date of travel – but we should encourage our industry to work to intended date of travel

Whilst PNR compliance is up to you as individual airlines (e.g the Cnn and SRDOCS recommendation), the need to annotate affected passengers on the ticket (the ZYP idea) must be agreed since a common standard will be required, especially for IET


53


Your thoughts.......?


Agenda



Tax Non Revenue Travel


ProblemThe wording of the US Ticket Tax Box Service (TTBS) is vague and confusing. The descriptions of non-revenue and no-revenue are interchanged, making it unclear when to exempt specific taxes.


Example

Rule 124 (partial) from the TTBS:124

IDMC13 Non-revenue passengers. (A passenger receiving air transportation from

an air carrier or foreign air carrier for which remuneration is not received by the

air carrier or foreign air carrier as defined under the Department of Transportation

Regulations or as otherwise determined by the Administrator. Air carrier

employees or others receiving air transportation against which token services are

levied are considered non-revenue passengers.) In addition No public agency

may impose a PFC on any passenger who is a non-revenue passenger or

obtained the ticket for air transportation with a frequent flyer award coupon.



US Taxes Exempt:• $5.00 XA applies for non-rev passengers entering the United States-excluding crew

on duty and airline staff traveling on duty.

• $5.50 YC applies for non-rev passengers entering the United States-excluding crew on duty and airline staff traveling on duty.

• $7.00 XY applies for non-rev passengers entering the Unites States-excluding crew on duty and airline staff traveling on duty.

Not applicable to non-rev (when ticket value is zero)ZPAYXF

US (international and domestic)

ProposalZED-MIBA will not be making changes to the wording of the US tax table, however, as a group we might give a better explanation for our members. "The TTBS is mandated to be an industry reference of taxes, fees and charges", IATA has published. Access to the database is purchased through IATA. Since it is "mandated" most revenue accounting departments currently have access to the database.

For consistent application/exemption of certain taxes, should we survey members to establish the areas of concern?


Agenda



Agenda



ZED-MIBA Forum Workshop

Frankfurt, 29th September 2015

AGM 2015 Survey results


63

New topics for break-out sessions

• Newcomers

• Small Airlines

• Regional topics


64

The AGM to be more interactive

• Subject Matter Expert

• Motivational speaker

• Guest from the Airline Industry (i.e. Airbus)


65

• More time for bilateral negotiations

• No vendors anymore

• GALA dinner to be organised

• Written feedback to be available during the AGM for those not willing to speak. Suggestion is to invite people to send MSC an email during the session

• Limited terms for participation in ZMAC - decide a workable way forward within ZMAC


66

Other suggestions

• Align with myIDTravel meetings whenever possible

• Create a document on what to expect at the AGM

• After each session and presentation, create an interactive session at each table moderated by chosen leader. This will generate discussions and encourage people who do not like to speak, to say something within a smaller group.


Agenda



Agenda


• Cooperation with IATA Passenger Conference

• Update on New Members

• Update on ISTA Appendix Concurrence Form

• AOB





• AOB

Agenda





• AOB

Welcome to our new members

Customer Name Code Membership Name CountryACT Airlines 9T* Associate Semra Gülünmez Turkey

Blue Air 0B*-475 Full Tudor Constantinescu Romania

Airnorth TL* Associate Terry White Australia

Insel Air 7I-958 Full Ryan Harris Curacao

NORRA FC Associate Marcos Elvila Finland

Tigerair Australia Associate Adam Rowe Australia

Wamos Air SA EB-460 Full Salvador Martinez Spain


Agenda





• AOB

Agenda





• AOB

74

AOB

• Clarification on Leave of Absence

• NIET Ticket Acceptance

• 6 months waiting period for Leisure Travel

• IATA Reso 788


Employee – specifically excludes consultants, general sales agents, and employees of other companies who are on assignment for the Member or its SAF but employed by another party. Other exclusions, such as employees on leave of absence and employees who have given notice or have been given notice, are in accordance with the rules and regulations of the Authorizing Airline. Otherwise, an individual must be: a person who is employed by a Member or its SAF, fulfills the Minimum Service Requirement and is compensated for full-time or part-time permanent services provided on a continual (i.e. not seasonal or provisional) basis. a person based in the People’s Republic of China who is employed by a Member or its SAF through the Chinese company FASCO, fulfills the Minimum Service Requirement and is compensated for full-time or part-time permanent services provided on a continual (i.e. not seasonal or provisional) basis For Personal Travel, employees on a contract of less than six (6) months, Consultants, board members and other persons not included on the company payroll are excluded. For Duty Travel, employees on temporary contract are eligible. Consultants, board members and other persons not included on the company payroll are excluded.

76

AOB


Reso 788IATA article 2.2-2.5 - says that any carrier can issue a tix to: any member of the immediate family including the legal guardian of a personinjured or killed in an accident involving the operation of scheduled carrier ,where the objectis to transport such a person in connection with such accident.

ZED MIBA Working Group Frankfurt, Germany 29 September 2015.

Documents

zed fares

business fare space

positive space faresexample

finance department of

zedmiba forum zmf

zh level zed tickets

positive spaceexample

fuel price changes