Despite protests from the industry, IATA is pushing ahead with Resolution 024a mandating that airlines file passenger fares and excess baggage charges in USD, with effect from December 10.
Originally introduced on October 7, Amadeus temporarily reversed the decision a week later to allow for consultation. However, following discussions with IATA, Otto de Vries, CEO of Asata told Travel News, it was determined that all airlines operating in South Africa must comply with the USD fare filing requirement.
He added: “South African agents are left exposed because fares quoted in dollars are subject to ROE fluctuations and it places the ROE risk squarely on the agents’ shoulders, from time of quoting to booking and paying.”
Caroline Smallwood, GM Amadeus Southern Africa, confirmed that the global activation for all airlines without exception, was December 10.
“We have started to send communications to all airlines, we will also send notification to all Amadeus customers.”
Smallwood added that airlines should consider the impact of the implementation which could include:
1.Domestic fares intended to be sold in an international itinerary or sold outside South Africa must be filed in USD.
2. It’s recommended that international fares be filed in USD to avoid double conversion (from ZAR to USD and back to ZAR).
3.Pricing will show USD as currency of commencement for all international itineraries starting in South Africa, regardless of the airline/s and the fare filing currency.
4.Fare Display (FQD) will display fares filed in USD. If the fares are filed in ZAR, the option FS-ZAR must be used to convert the fare to USD to issue.
Mixed response from airlines
While some airlines are aware of the change, others say they are still awaiting formal communication from IATA.
Boris Ogursky, Lufthansa Media Spokesperson Europe, Middle East & Africa told Travel News that in accordance with IATA resolution 024a, the Lufthansa Group had aligned its pricing structure from point-of-sale South Africa.
“The adoption of the USD affords airlines a more relevant and immediate pricing mechanism, which allows us to collect equivalent ZAR to base and cover foreign exposures and have better control over foreign exchange developments. We do not expect significant changes in the amount of ZAR our customers will spend in South Africa under this IATA resolution for our tickets,” he said.
“To guarantee the fare quoted to the end customer, we recommend that agencies issue tickets the same day as quoted to the customer. All tickets booked online via our homepage are immediately issued for the fare indicated.”
However, a spokesperson for Kenya Airways told Travel News that no communication had been received from IATA regarding the Resolution and that all Kenya Airways fares were currently selling in ZAR for all routes.
Michi Messner Regional Manager for Qantas Africa, confirmed that the airline had received no further updates on the conversion to USD fares in relation to IATA Resolution 024a.
In a message circulated to travel agents on December 3, Emirates confirmed that all fares would be filed in USD from December 10.
“There will be some variations due to fare re-alignments, but this is only in premium cabins to selected destinations and all un-ticketed bookings will be affected.”
