OST-02-13007

OST-02-13007

International Air Transport Association

OST-01-13007

July 31, 2002

Application for Approval of Agreements

PTC COMP 0946

By: David O'Connor

International Air Transport Association

Order 03-3-22
OST-02-13007

Issued March 26, 2003
Served March 31, 2003

Order

Microsoft Word

Agreement Relating to Passenger Fares Matters

The agreement increases the service charges for the issuance of prepaid ticket advices, applicable on a worldwide basis, to offset the increased costs of providing this service. PTA's are "the notification by teletype, commercial wire or mail that a person in one city has requested issuance of prepaid transportation as described in the authority, to a person in another city," i.e., a means for a person, at one location to pay for another person's ticket at a different location. 2/ The agreement would increase the IATA-agreed PTA service charge in the United States from $50 to $75, and by various amounts in local currencies in other countries.

While the ease and simplicity of electronic ticketing has diminished the importance of PTA's, carriers still offer PTA's if customers request them. However, PTA's are manually intensive and incur relatively high costs. Thus, many carriers have increased their PTA charges in recent years. All of the U.S. carrier members of IATA participating in IATA tariff coordination currently charge $100 for issuing PTA's, and foreign carriers we have surveyed have PTA charges ranging from $35 to $100.

By: Paul Gretch