AIR FRANCE KLM ADM POLICY 2010

Air France KLM ADM Policy 2010 In compliance with IATA resolution 850m

Revenue Revenue Integrity

May 2010 Air France KLM ADM Policy Air France and KLM would like to update you on the ADM policy for 2010. General The objective of the various Revenue Integrity policies is to ensure that the fare rules and other agreements made between the Travel Agent and AFKL are respected and in case of the contrary, to settle the difference in an adequate and logical way, equal for all distribution channels. The checks are performed on 057 and 074 documents issued or refunded, fare quoted automatically or manually. In addition after-sales documents (reissued and revalidated docs) can be subject to audit as well. Legal Position The obligations of the Travel Agents are described in IATA Resolution 824 in which is stated that the Agent should issue tickets in compliance with Carrier’s fares, fare rules, General conditions of carriage and the written instructions of the carrier as provided to the Agent. Airlines have the right to audit and send ADM’s for all tickets issued. The IATA Resolution 850m obliges airlines to publish and communicate in writing their ADM policies in particular all fees and fixed amounts. For Air France KLM this concerns: - Sales Audit/Fare Control which includes: o Overview with fixed amounts for incorrect Baggage allowance o Misplating: an ADM is sent in case of misuse of AF/KL ticket stock that can be a fixed amount depending on the cases. - Overview with fixed amounts for Subclass abuse (KLM only) - Overview with fixed amounts for Breaking of Married Segments (audit of tickets sold as O&D) - ADM administrative fee of EUR10. - Fare readjustment on fixed amounts may be reviewed with higher amount by AFKL based on the real revenue leakage for AFKL. ADMs will be raised for the following reasons: Sales Audit / Fare Control All fare rule elements are subject to audit, including correct application of the fuel surcharge, commissions/discounts if applicable, misplating, baggage allowance and taxes. o

Validating Carrier (VC) is linked to the fare owner. Missing or incorrect fuel surcharge YR/YQ as a consequence of the modification of the VC of the fare quote will result in an ADM.

o

Baggage allowance ADMs In case incorrect baggage allowance in kilos or unjustified Piece Concept is shown on the ticket, an ADM will be sent according to below overview (with fixed amounts per direction). It is applied worldwide. per O&D and per direction (ADM amount in euros) Incorrect baggage allowance (Piece instead of weight or incorrect weight or incorrect piece) Missing baggage allowance (except for infants) Infants - missing baggage allowance Infants - incorrect baggage allowance (piece or weight)

Intra FR & intra NL

Europe short + North Africa + Caribbeans & Indian Ocean

Europe long + Middle East

All Other countries (long haul)

40

80

140

200

25 10

25 10

50 25

50 25

25

25

50

50



Misplating subject to IATA resolution 852 AFKL check if the use of AF/KL ticket stock for issuing on both manual and automatic fare quotes is permitted and done correctly. 1. If the marketing carrier is not permitted to be used in AF/KL/DL/KQ private or public fares, the amount to be raised is based on the first applicable public fare.

o

(Reason ADM: misplating - carrier not permitted in this deal)

2. If other airlines fares are not permitted: Private fares of other airlines, but also airlines public fares which are restricted to be issued only on the carriers own stock. The amount to be raised is based on the IATA rule Revenue Accounting Manual being the first applicable public fare. (Reason ADM: misplating - fare not permitted on AF/KL ticket stock) Fares of the airlines for which AF or KL is GSA may be issued on AFKL respective ticket stock and check2 will not result in an ADM: o For AF, please refer to GGAIRAFGSAAIRLINES or GGAIRAFGSACOUNTRY o For KL, please refer to GGAIRKLGSAAIRLINES

Subclass Abuse All tickets sold are checked on correct application of booking class. KLM only: Misuse of the inventory system is charged using an overview with fixed amounts: charge in EURO per one way

A) B)

EUR-flight ICA flight

Tail-end 1

Tail-end 2

basic charge M and C-cabin

100

200

0

0

charge per subclass skipped, within M-cabin charge per subclass skipped, within C-cabin

50 50

200 700

100 300

100 150

Breaking of Married Segments (Audit of tickets sold as O&D) In cases where Travel Agents break segments that are ‘married’, an ADM will be sent. A fixed amount of EUR 300 applies (per direction and per passenger).

Ticketing Time Limit (TTL) In the event of misuse of the OS remark AIR FRANCE and KLM will propose an ADM for a fixed amount of EUR 100 per PNR.

Airport checks Air France and KLM also perform controls at airport to check the respect of fare rules and conditions of carriage. ADM will be sent in case of responsibility of the Travel Agent. In Particular, ADM will be sent to travel agent in case of passengers holding tickets with special Tour Operator fares without being eligible to travel with such fares. This ADM will be raised in case a TO fare is sold without any additional services or if the minimum required for these services (regarding AF/KL rules) is not reached. These ADM are to be charged using fixed amounts for these specific cases: - Short and medium haul flights in economy cabin: EUR 100 per ticket and per passenger - Long haul flights in economy cabin : EUR 250 per ticket and per passenger - For travel in other cabins, fare will be readjusted to the first unrestricted public fare in the same cabin.

ADM for non-materialisation of groups Cancellation fees for non-materialisation of group travel are charged retrospectively per ADM according to the group contract agreed and signed between the Agent and AIR FRANCE and KLM.



Credit Card Chargeback In case Air France and KLM are debited by the credit card acquirer for purchase rejection by passenger, credit card misuse or fraud case on a ticket issued by the agent, Air France KLM will charge the agent for the cost. The agent is always responsible for checking the validity of the credit card and to ensure that the card holder’s signature is provided or to secure the eligible website for e-tickets purchase.

Ticket not Reported/Miscellaneous In case any non-quality is found in the sales information/reporting of agents which leads to discrepancies in settlement between agent and airline, an ADM is issued. This can be due to several reasons such as an unreported ticket or cases in which flown tickets are missing in BSP sales reporting.

The following applies for AFKL RI processes: Minimum ADM amount In case deviations of the fare rules are found on the tickets during the audit process, Air France KLM will systematically generate ADM’s reflecting the value of the difference between the real applicable fare and the applied fare (except for ADM based on fixed amounts mentioned above). The minimum amount, for which an ADM is raised, is EUR 8. If different, unrelated charges apply, Air France KLM can issue more than one ADM for one and the same original ticket. In case of a persistent practice of under collection (multiple occurrences of underpayments of less than EUR 8) by the same IATA, Air France KLM reserves the right to recover these underpayments per ADM. (KLM only): It is possible to combine several cases of under collection (multiple occurrences of underpayments of less than EUR 8) for the same reason and the same IATA number on one ADM, under the condition that the total amount of all occurrences equals or exceeds the value of EUR 8. (AF only): In the cases where the ADM is for reason of under collection of the fuel surcharge, commissions and taxes, no minimum applies and an ADM will be generated for the real difference in amount due. For other reasons, no ADM below EUR 8 is sent. Administrative fee To cover the cost of the audit process, a fixed amount of EUR 10, is added to each ADM, with the exception of Breaking of Married Segment. (KLM only): Subclass Abuse no Administrative fee applies. (AF only): The administrative fee will not apply to ADM’s under the minimum amount of EUR 8 raised for undercollection of the fuel surcharge, commissions and taxes. Compensation fee In the event of an incorrect ADM due to an Air France or KLM error, an extra EUR 10 will be reimbursed for inconvenience next to the amount of the whole ADM (including the EUR 10 administration fee).

ADM process in BSP In compliance with IATA resolution 850m » An ADM can be sent out by the airline via BSP within 9 months after the final travel date. When the final travel date cannot be established, the expiry date of the document will be used. After this period payments will be settled between the agency and the airline directly. » In line with IATA Resolution 850m, Air France KLM will send the ADMs via BSP link with no financial consequences during the latency period of 30 days. » Disputes can only be done via BSP link within the latency period of 30 days. Attach any enclosures via BSP link only as this will ensure an optimal service from AIR FRANCE and KLM.



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When making a dispute, a valid and clear justification must be provided at all times in the “Dispute Reason” box. Otherwise the dispute cannot be handled. Responsible behaviour in case of ADM disputes is required from both the Agency and the Airline. Please mention your contact details for an efficient handling by AF/KL. AIR FRANCE and KLM will reply to your dispute within 60 days (conform Resolution 850m) giving a clear explanation of the acceptance or denial of the dispute. Should AIR FRANCE and KLM reject a dispute and Agent wants AIR FRANCE and KLM to re-investigate, agent is requested to respond to AIR FRANCE and KLM within one year to provide additional information. Otherwise the ADM will be submitted for settlement to BSP link.

Contact Information The e-mail address to contact for ADM/ACM questions and issues is: [email protected] or [email protected]

AIR FRANCE KLM ADM POLICY 2010

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