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TTM 153

Airlines Ticketing and Fare Construction

TU BTTM · Semester 2 · Recent BTTM syllabus series

Requirement
required
Credits
3
Study Guide
7 units available

Chapter notes

Authoritative study guide across 7 syllabus units

Open a unit to read its study notes.

Unit 1: Civil Aviation and Travel Organization· 7 LHs· ~9 marks

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Pass path: Master definitions of Chicago Convention 1944, Warsaw Convention 1929, and Gaucharan 1949 in Part 1. Top path: Diagram Evolution of Civil Aviation in Nepal, contrast IATA International Air Transport Assoc. vs ICAO International Civil Aviation Org. in Part 3, and solve the Essential Requirements for a Nepalese Travel Agency to Attain IATA Accreditation ladder in Part 4.

Part 1: Core Concepts (2 Marks)

  • ★ Chicago Convention (1944): The landmark international civil aviation treaty signed by 52 nations establishing the International Civil Aviation Organization (ICAO) and codifying global air navigation safety rules, airspace sovereignty, and the Freedoms of the Air.
  • Warsaw Convention (1929): The foundational international convention regulating airline liability for international carriage of passengers, baggage, and cargo, establishing strict financial liability limits for passenger injury or death.
  • Gaucharan (1949): The historical grass pasture in Kathmandu where the first aircraft (a four-seater Beechcraft Bonanza carrying the Indian Ambassador) landed in Nepal, which later became Tribhuvan International Airport (TIA).
  • IATA Accredited Agent: A travel agency that meets rigorous financial, security, and staff professional qualification standards set by IATA, authorized to issue international airline tickets and participate in the Billing and Settlement Plan (BSP).
  • Agency Sales Agreement: The legally binding commercial contract between an airline and an accredited travel agency outlining ticket distribution terms, commission structures, and default penalties.

Part 2: Structural Frameworks (10 Marks)

Evolution of Civil Aviation in Nepal

NEPALESE CIVIL AVIATION MILESTONES

  1. DAWN OF AVIATION (1949 - 1957)
  • 1949: First single-engine aircraft lands on grass pasture at Gaucharan.
  • 1950: First scheduled commercial flight (Indian National Airways).
  • 1955: King Mahendra inaugurates Gauchar Airport as TIA.
  • v
  1. NATIONAL FLAG CARRIER ERA (1958 - 1991)
  • 1958: Royal Nepal Airlines Corporation (RNAC) established with DC-3 Dakota.
  • 1972: RNAC enters jet age with Boeing 727; expands to Europe and Asia.
  • High STOL expansion to remote mountain airfields (Lukla, Jomsom).
  • v
  1. DEREGULATION & MODERN MULTI-CARRIER MARKET (1992 - Present)
  • 1992: National Aviation Policy introduces open skies and private carriers.
  • 1998: CAAN established as autonomous civil aviation regulator.
  • Private carriers boom: Buddha Air, Yeti Airlines, Tara Air, Shree Air.

Part 3: Distinction Tables

Basis of Comparison IATA (International Air Transport Assoc.) ICAO (International Civil Aviation Org.)
Founding Instrument Established in Havana, Cuba (1945). Chicago Convention on Civil Aviation (1944).
Entity Classification Private commercial airline trade association. Sovereign intergovernmental agency of the United Nations.
Membership ~300 commercial passenger and cargo airlines. 193 sovereign state governments.
Core Functions Ticketing, BSP clearing, IATA fare construction, codes. Air safety standards, airport treaties, air law.
Headquarters Montreal (Executive) & Geneva (Operations). Montreal, Canada.

Part 4: Worked Problems & Exam Traps

★ Essential Requirements for a Nepalese Travel Agency to Attain IATA Accreditation

  1. Financial Solvency: Submission of audited balance sheets demonstrating adequate net liquid capital and posting a bank guarantee to the IATA Clearing House.
  2. Qualified Personnel: Employing at least two certified staff members holding recognized IATA/UFTAA Foundation or GDS Ticketing Diplomas.
  3. Office Security: Maintaining fireproof safes for accountable ticket stock, secure premises, and dedicated GDS terminal connections.
  4. Regulatory Registration: Valid operating licenses from the Department of Tourism and Central Bank foreign exchange permits from Nepal Rastra Bank.

TU Exam Trap: On aviation regulatory questions, do NOT state that IATA inspects airport runways and flight safety compliance! ICAO and CAAN oversee physical safety and airport runways; IATA is a commercial trade association handling airline business, ticketing, and financial settlement.

Students lose marks here because they state that IATA inspects airport runways and flight safety compliance.