NP-PF-06 · Surcharge & Tax Management

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Process Flow Diagram (BPMN)

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L4 Process Steps

Step	Step Name	Role / Swim Lane	System	Input	Output	KPI	Dec?	Exc?
Phase 1 1.1	Monitor ATPCO tax circulars and government notices	Pricing Analyst	ATPCO Tax Information System	ATPCO Circular alerts, IATA Tax Monitor notifications, government tax authority bulletins	Change alert log with effective dates, affected markets, and change type classification	Alert intake within 2 hrs of ATPCO circular publication; 100% circular coverage	N	N
1.2	Classify surcharge/tax change type and geographic scope	Pricing Analyst	ATPCO Tax Information System	Change alert log	Classified change record: government tax (TC3), fuel surcharge YQ (TC35), carrier surcharge YR (TC36), or airport levy	Classification accuracy ≥99%; misclassification rate <1 per quarter	N	N
1.3	Assess effective date urgency and regulatory deadline	Senior Pricing Analyst	ATPCO Airfare Insight	Classified change record, regulatory effective date	Filing priority flag: emergency (<24 hrs), standard (3–7 days), or scheduled (>7 days)	100% of government-mandated tax changes filed before regulatory effective date; zero late filings	Y	Y
Phase 2 2.1	Model fuel surcharge (YQ) rates by sector distance band	Pricing Manager	PROS RM	Jet fuel price index (IATA Fuel Monitor), sector distance bands, current YQ rate table	Proposed YQ rate schedule by sector range (short/medium/long-haul) and cabin class	YQ cost recovery rate ≥95% of actual fuel surcharge exposure per sector	N	N
2.2	Calculate carrier-imposed surcharge (YR) per market and cabin	Pricing Manager	PROS RM	Operating cost variance report, competitor YR benchmarks from ATPCO Airfare Insight	Proposed YR rate schedule by market pair, cabin class, and booking class	YR revenue contribution maintains ≥8% of total ticket revenue per long-haul market	N	N
2.3	Benchmark proposed rates against ATPCO peer submissions	Senior Pricing Analyst	ATPCO Airfare Insight	Proposed YQ/YR rate schedule, competitor published rates from ATPCO database	Benchmark comparison report: proposed rate vs. market range (min/median/max per sector)	Proposed rates within ±10% of market median for ≥90% of benchmarked sectors	Y	N
2.4	Obtain VP Pricing and revenue management sign-off	VP Pricing	SAP S/4HANA Finance (FI/CO)	Benchmark comparison report, finance impact analysis, fuel cost exposure data	Approved surcharge rate schedule with authorisation record and timestamp	Sign-off cycle time <24 hrs for standard changes; <4 hrs for emergency filings	N	N
Phase 3 3.1	Configure government tax codes in ATPCO Tax Engine (TC3)	ATPCO Filing Specialist	ATPCO	Approved tax change record, regulatory bulletin, affected market list	ATPCO TC3 tax records configured for correct tax code, rate, currency, and effective date	TC3 record accuracy rate ≥99.9%; zero miscoded tax records in quarterly ATPCO audit	N	N
3.2	File YQ/YR surcharge records to ATPCO (TC35/TC36)	ATPCO Filing Specialist	ATPCO	Approved YQ/YR rate schedule, effective and discontinue dates, geographic scope	ATPCO TC35 (YQ) and TC36 (YR) records submitted with ATPCO confirmation reference	Filing submission within 2 hrs of sign-off approval; 100% of records submitted before effective date	N	N
3.3	Validate ATPCO filing acceptance and record integrity	ATPCO Filing Specialist	ATPCO Airfare Insight	ATPCO submission confirmation, filing reference number	Validation report: all records accepted, no rejection codes, effective dates confirmed	Filing rejection rate <0.5%; all rejections resolved and resubmitted within 1 hr	Y	Y
3.4	Monitor GDS pick-up and cross-channel distribution lag	Pricing Analyst	Sabre GDS	ATPCO filing confirmation, effective date/time, GDS polling schedule	GDS pick-up confirmation for Sabre, Travelport, and Amadeus GDS; distribution lag report	GDS distribution lag ≤4 hrs post ATPCO effective time for all three major GDS channels	N	Y
Phase 4 4.1	Update surcharge and tax tables in Amadeus Altéa PSS	PSS Configuration Analyst	Amadeus Altéa PSS	ATPCO filing confirmation, GDS distribution confirmation, approved rate schedule	Altéa PSS surcharge and tax tables updated; configuration change log created	Altéa configuration update completed within 2 hrs of ATPCO effective time; zero stale rate records in PSS	N	N
4.2	Update NDC API gateway tax calculation rules	NDC Integration Analyst	NDC API Gateway	Approved rate schedule, Altéa PSS configuration update confirmation	NDC API tax rules updated; API response test package generated	NDC API tax calculation matches ATPCO reference for 100% of test fare builds	N	N
4.3	Execute end-to-end fare build test across all channels	QA Pricing Analyst	Amadeus Selling Platform	Test itinerary set (20 representative market pairs), ATPCO reference tax/surcharge totals	Channel test report: fare total vs. reference for GDS, NDC, and IBE channels	Test pass rate 100% across all 20 itineraries on first run; zero price discrepancies exceeding €0.01	Y	Y
Phase 5 5.1	Audit post-effective-date fare calculations via ATPCO	Pricing Compliance Analyst	ATPCO Airfare Insight	Live sold-fare sample (T+1 day), ATPCO reference tax and surcharge records	Audit report: percentage of sold fares with correct surcharge and tax applied by market and channel	Surcharge accuracy on sold fares ≥99.5% within 24 hrs of effective date	N	N
5.2	Reconcile BSP/ARC settlement data against surcharge revenue	Revenue Accounting Analyst	SAP S/4HANA Finance (FI/CO)	BSP/ARC settlement reports, ATPCO-expected surcharge revenue by market	Surcharge revenue reconciliation report: collected vs. expected, variance by market and channel	Surcharge revenue variance <1% of expected monthly collection; reconciliation completed within T+5 business days	N	N
5.3	Investigate variance and initiate corrective ATPCO filing or ADM	Senior Pricing Analyst	ATPCO	Surcharge reconciliation report, variance-flagged markets and booking references	Root cause analysis, corrective ATPCO filing or PSS configuration patch, variance closure report	Revenue variance >1% resolved and corrected within 5 business days; zero repeat variances for same market within 90-day window	Y	Y

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Process Attributes

Identification

Process IDNP-PF-06

L1 DomainNetwork Planning & Scheduling

L2 ProcessPricing & Fare Management

L3 NameSurcharge & Tax Management

L4 Steps17 across 5 phases

Decision Gates5 (all with iteration loops)

Exceptions5 documented

Swim Lanes (Roles)

Pricing Analyst

Senior Pricing Analyst

Pricing Manager

VP Pricing

ATPCO Filing Specialist

PSS Configuration Analyst

NDC Integration Analyst

QA Pricing Analyst

Pricing Compliance Analyst

Revenue Accounting Analyst

Systems & Tools

ATPCO Tax Information SystemATPCO Airfare InsightPROS RMSAP S/4HANA Finance (FI/CO)ATPCOSabre GDSAmadeus Altéa PSSNDC API GatewayAmadeus Selling Platform

Key Performance Indicators

Monitor ATPCO tax circulars and government noticesAlert intake within 2 hrs of ATPCO circular publication; 100% circular coverage

Classify surcharge/tax change type and geographic scopeClassification accuracy ≥99%; misclassification rate <1 per quarter

Assess effective date urgency and regulatory deadline100% of government-mandated tax changes filed before regulatory effective date; zero late filings

Model fuel surcharge (YQ) rates by sector distance bandYQ cost recovery rate ≥95% of actual fuel surcharge exposure per sector

Calculate carrier-imposed surcharge (YR) per market and cabinYR revenue contribution maintains ≥8% of total ticket revenue per long-haul market

Benchmark proposed rates against ATPCO peer submissionsProposed rates within ±10% of market median for ≥90% of benchmarked sectors

Obtain VP Pricing and revenue management sign-offSign-off cycle time <24 hrs for standard changes; <4 hrs for emergency filings

Configure government tax codes in ATPCO Tax Engine (TC3)TC3 record accuracy rate ≥99.9%; zero miscoded tax records in quarterly ATPCO audit

Airline-Specific Risks & Pain Points

ATPCO Tax Information System does not auto-push alerts to the PSS — manual monitoring is required, creating risk of missed effective dates on government-mandated tax changes

YQ vs. YR distinction is frequently misclassified under IATA Resolution 728, triggering incorrect tax calculation in Amadeus Altéa PSS and downstream GDS fare builds

Government tax changes in high-growth markets (e.g., APAC airport levies, EU ETS surcharges) often arrive with <48 hrs notice, requiring emergency ATPCO filing protocols that bypass the standard 3-day review cycle

Fuel price volatility (±15% intra-quarter) makes static YQ tables misaligned with actual cost within weeks of filing; PROS RM lacks native YQ recalculation — analysts must run Excel models outside the system

YR surcharges are commercially discretionary but are often misread by consumers as government taxes, generating EU Regulation 1008/2008 fare transparency complaints and compliance team workload

ATPCO Airfare Insight competitor data lags 24–48 hrs, so benchmarking is retrospective; carriers can undercut within hours of filing, invalidating the benchmark before the rate is published

Inputs / Outputs

Primary InputATPCO Circular alerts, IATA Tax Monitor notifications, government tax authority bulletins

Primary OutputRoot cause analysis, corrective ATPCO filing or PSS configuration patch, variance closure report

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