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How to calculate GI, TPM, MPM, EMS and EMA - YouTube
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The first step when calculating an
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international airfare is to determine
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what is your G I or your global
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indicator for the journey your global
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indicator is determined because of your
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origin city and where you're travelling
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to and your via points so if we look at
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this first itinerary
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we've got a route from Perth just
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going straight through to Jakarta.
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Perth is in Australia which is in area 3
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traveling through to Jakarta which is
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also in IATA Area 3. So in travel is
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wholly within Area three, the global
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indicator is EH. That stands for travel
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via the eastern hemisphere so look at
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this next itinerary. We have Sydney,
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Singapore to London. With this particular
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journey we're starting in Sydney which is
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an Area three going by Singapore which
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is also an area three and we're traveling
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through to London which is in Area two.
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When you check your global indicator
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table you'll see that when journeys from
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Area 3 to Area 2 are also known as
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EH journeys. We've still traveled wholly
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within the eastern hemisphere. So Perth to
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Jakarta can only be one global indicator.
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We're traveling wholly within Area three but
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with this journey Sydney Singapore
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London. Let's say we change it. And we
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travel a different way to London and
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we're going to go via LA. So we now have
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Sydney LAX through to London. So we've
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got Sydney in Area three, LAX which is in
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IATA Area one traveling through to
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London in Area 2. So we've gone from Area three
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to Area two via Area one and that
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becomes an AP global indicator.
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AP standing we've gone by the Atlantic
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and Pacific Oceans so it's really
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important to note that depending on your
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origin and destination cities there can
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be multiple potential global indicators
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Sydney LA London is AP the first
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itinerary with Sydney - Singapore - London
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and that was EH. So always check to make
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sure you've got the right global
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indicator. It's the first step in
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calculating your airfares. Using our same
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journey from Sydney Singapore to London
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we establish we had an EH global
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indicator. The next thing is to look up
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what our fare is or our nuk. Now a nuk is a
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neutral unit of construction. It's a
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fictitious currency that is used around
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the world by all airlines and travel
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agencies so we can all calculate airfares
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using the same currency. As a matter of
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interest one NUC is equivalent to one
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US. dollar. So I've gone to the
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companion fares manual which you find on
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the OLS or the Online Learning site and
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I've looked up an economy class one way
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EH fare from Sydney to London and that
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NUC is 453 3.22 The next step of our fare
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calculation is to work out what is the
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maximum permitted mileage you're allowed
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to travel between our origin of Sydney
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and the destination of London. So we need to
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find out what is the MPM. So again, I've
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gone to the companion fares manual and I
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look up Sydney to London global
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indicator of EH and the MPM is 13222.
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Next we have to see actually how many
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miles have we traveled on this journey?
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So from Sydney to Singapore we've got
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3,900 and Singapore to London 6102. Those
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mileages are called the TPMs
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or the Ticketed Point Mileages. That's
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the actual distance you're traveling on
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your journey from your origin between
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intermediate points like Singapore
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through to the destination of London. So
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when I went to add up my TPMs that comes to
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10,002. You'll see our TPM is
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lower than the MPM. In this case
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that's great that means our fare does
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not need to be surcharged. We write an M
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here saying our journey is in on miles.
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Now they will be instances when your
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fare or your NUC needs to be
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surcharged. This happens when your TPM
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exceeds the MPM. It's called an EMS
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or an Excess Mileage Surcharge. We've got
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a formula that we use to work out how
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much we have to surcharge our NUC or our
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mutual unit of construction by. We take
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the TPM, multiply it by 100 and divide it by the NPM.
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This will give you a resulting figure that
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you need to look at on a chart that you
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find in your notes under EMS. This
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figure will tell you whether you have to
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charge a 5, 10, 15, 20 or 25 percent
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surcharge on to your NUC. It's a really
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important point to remember your
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surcharging the fare. You only ever have
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to surcharge this fare is when your
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TPM is higher than your MPM. I've got a new
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itinerary now it's still a journey from
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Sydney to London but we're now going by via
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Johannesburg. So Sydney to London via
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Johannesburg still falls under the
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global indicator of EH. Our nuk remains the
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same our MPM
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remains the same. All that's changed
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now because we have a new journey is our
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actual ticketed point miles.
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Now remember the TPM is the actual
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distance traveled on the journey. So we have
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Sydney to Johannesburg 8893 and
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Johannesburg to London 4817. My TPMs
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actually now exceed my MPM. There's one
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more step we can do prior to looking at
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adding an EMS onto our NUC. This is
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called an EMA or an Excess Mileage
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Allowance. An Excess Mileage Allowance
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is permissible only on certain journeys.
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And this is one of those journeys. And
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I'll show you why. If we've got Sydney
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here and then we're traveling over to
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Johannesburg and then up to London,
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look at the way we're traveling. All the
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way over to South Africa and up to
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London against if we'd gone by Singapore
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and we go directly. So when we did Sydney
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to Singapore to London our journey was
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in on miles. Our TPM. was less but because
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we've gone out of the way via South
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Africa Johannesburg through to London
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we're actually allowed to give our
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customers a TPM deduction because we
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don't want to penalize people flying via
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South Africa on that route through to
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London. So looking at your notes under EMA
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which is Excess Mileage Allowance i
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look at the chart and it says for travel
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between Australia and the UK and Europe
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via Johannesburg. I'm actually allowed a
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deduction of 518 miles so what that
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means is i can deduct 518 from my TPM of
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13 710 and i have a new TPM of now 13 192.
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My new TPM is lower than my NPM so
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the next step was normally working out
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have we got an excess mileage search and
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in this case it's in on miles. Our TPM
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or our new TPM is lower than the MPM and
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this is because we've been entitled to
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this excess
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mileage allowance. You'll find in
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your notes with excess mileage
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allowances that it normally happens
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between particular cities so from
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Australia traveling through Europe. It's
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via Johannesburg or Harare. And if
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travels wholly within Area three the key
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cities to look at on your journeys are
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normally Delhi and Mumbai and Karachi
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and Islamabad. They're the sort of
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warning cities that you might be
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entitled to reduce your total TPMs by
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using an EMA.
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