Press Release
JAL Group Applies for Revision of IATA International Fares
Tokyo, February 5, 2008: Today, the JAL Group filed an application with the Japanese Ministry of Land Infrastructure, Transport & Tourism (MLIT) requesting a revision of IATA international normal and PEX airfares applicable for Japan departures.
Based on agreements adopted at IATA Tariff Conferences, the revision will lead to increases in the price of IATA international normal and PEX airfares for flights departing Japan.
The revision will take effect from April 1, 2008, pending government approval.
Example IATA International Normal Airfare % Increase Compared to FY2007
|
Travel from Japan to |
IATA Normal Fares |
Fare Increase % |
|
Europe |
First |
10-14% |
|
Business |
10-17% |
|
|
Economy |
6-15% |
|
|
Restricted Economy |
Discontinued |
|
|
Central & South America/ China/ Korea / Oceania / Southeast Asia |
First / Business/ Economy/ Restricted Economy |
10% |
|
Guam |
First / Business/ Economy |
10% |
|
|
Restricted Economy |
15% |
|
North America / Hawaii |
First / Business/ Economy/ Restricted Economy |
13% |
Note:
1) Comparison of FY2008 roundtrip fares with FY2007 levels. Where there are routes with weekend/weekday fares, we have compared FY2008 weekday roundtrip fares with FY2007 weekday roundtrip fares.
2) Due to the abolishment of weekend/ weekday fares to Europe, the % ranges shown are comparisons with the weekend/ weekday fares in FY2007..
Example Business Class Round-trip IATA Normal Fare Increase
Round-trip Travel from Tokyo to |
Current |
FY2007 |
Revised |
FY2008 |
|
Weekday |
Weekend |
Weekday |
Weekend |
|
|
Bangkok |
JPY368,500 |
JPY396,500 |
JPY405,400 |
JPY433,400 |
|
London |
JPY937,900 |
JPY997,900 |
JPY1,092,800 |
|
|
Los Angeles |
JPY547,700 |
JPY607,700 |
JPY619,000 |
JPY679,000 |
(Pending government approval)
Note: Weekday
N. America, Europe routes >> from Japan: Tue - Fri/ from overseas: Sun- Thu
China / SE Asia routes >> from Japan: Tue - Fri/ from overseas: Mon - Thu
Weekend:
N. America, Europe routes >>from Japan: Sat - Mon/ from overseas: Fri - Sat
China / SE Asia routes >>from Japan: Sat -Mon/ from overseas: Fri - Sun
Other
As for Guam, Hawaii, Korea, Oceania and in FY2008 for Europe, no distinction between weekend and weekday.
<more>
Change in Pricing Mechanism for Japan - Europe IATA Fares
Since 1946, airlines have gathered every year at IATA Tariff Conferences to establish and revise fares conditions and prices for fully flexible interline travel. Governments have understood the consumer benefits of the interline system and as a result agreements on common fares between airlines at IATA Tariff Conferences have been given immunity from anti-trust (competition) laws.
The European Commission Competition Directorate-General has acknowledged the benefits of interlining but wants this joint product priced differently, namely without face-to-face meetings. As of October 2007, the European Commission ended the block exemption for tariff agreements between Europe and the rest of the world including fares on Europe - Japan routes. This means that no longer can face-to-face meetings be held between airlines to agree on common fares affecting Europe.
As a result, IATA has introduced Flex Fares which are produced by a pricing mechanism that automatically calculates interlinable fares based on average carrier fares. The new system enables airlines to calculate market carrier fares using a fixed formula and as result it is no longer necessary for fares to and from Europe, including Japan - Europe IATA fares to be decided at IATA Tariff Conferences.
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