IATA Basic Fare Construction Formula

Here is the IATA-UFTTA Basic Fare Construction Formula, We strongly recommend you use it where applicable.

FCP	Determine the city pair used as Fare Construction Points for each fare component.
NUC	Determine the NUC of the predominant carrier using correct global indicator and the type of fare specifiles.
RULE	Write down rule number shown opposite the NUC, if any. Indicate if a specified routing exist. If none write NIL.
MPM	Note the Maximum Permitted Mileage and correct Global Indicator.
TPM	Show the total of the ticket Point Mileages.
EMA	Show the TPM Deduction if any.
EMS	It TPM is still higher than MPM, divide TPM by the MPM to determine the % of the surcharge.
HIP	Identify the HIP sector and its fare if any if none write NIL.
RULE	Show rule Number and follow stopover/transfer condition whenever using secondary fare levels for the HIP.
AF	Show the Applicable fare in NUC for the component.
CHECK	Identify the applicable minimum fare check and show the highest fare as required by such check . if there is no Plus-up or no higher fare write NIL. if the Check does not apply  write NA. Note:  Whenever the backhaul applies show the complete BHC formula and the plus up if any.
Total	Add the AF of all fare components including Q surcharges and show the final.
IROE	Convert NUC into local Currency Fare at the IATA Rate of Exchange of the country of commencement of international travel.
LCF	Write down the final Local Currency Fare with the correct number of decimal places. Don’t forget to round according to prescribed procedure for such currency

How to determine an Excess Mileage Surcharge-EMS

1. Divide the TPM by the MPM
2. If the result is:                                        Surcharge the fare

           over 1.00000 but not higher than 1.05………………...5%

           over 1.05000 but not higher than 1.10……………….10%

           over 1.10000 but not higher than 1.15……………….15%

           over 1.15000 but not higher than 1.20……………….20%

           over 1.20000 but not higher than 1.25……………….25%

           over 1.25 - use the lowest combination of fare

Example: TPM 7836 and MPM 7102: 7836/7102=1.10335 = surcharge of 15%

note:        When using this formula you must check up to five decimal places in your calculator.