Order 99-2-16

Order 99-2-16

International Air Transport Association

Order 99-2-16
OST-98-4428 R-12

Issued February 16, 1999
Served February 19, 1999

Order

Currency Matters

Clearing House circulates "IATA Rates of Exchange" (IROE's) in February, May, August and November of each year to be used for such conversions during the following quarter. In addition, IATA monitors these IROE's and if a variation of six percent or more between an effective IROE and the market rate of exchange for that IROE occurs, IATA issues an updated IROE. In both cases, the IROE's become effective for ticket sales on the first day of the second month following the month that they are issued. However, under the terms of the proposal, these IROE's will now become effective for sales on the first day of the next month following the month that they are issued.3/ IATA states that recent currency ¿revaluations in Asia and in the Pacific have severely affected carrier revenues, and that earlier effectiveness dates for IROE revisions are needed to facilitate a quicker response to currency fluctuations.

By: Charles Hunnicutt