NP-PF-07 · Interline & Codeshare Fare Proration

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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	Load interline & SPA agreement terms into RA system	Revenue Accounting Analyst	Amadeus Revenue Accounting (ARA)	Signed interline agreement or Special Prorate Agreement (SPA) from commercial team	Active prorate factor set and SPA parameters loaded in ARA	Agreement setup lead time ≤5 business days from signature	Y	N
1.2	Ingest ATPCO prorate factor tables (PF Tables)	Revenue Accounting Analyst	ATPCO Prorate Data	IATA Resolution 850 prorate tables published via ATPCO filing cycle	Validated prorate factor file loaded into ARA for IATA-standard interline tickets	Prorate table update cycle ≤24 hours after ATPCO publication date	N	Y
1.3	Classify ticket as interline, codeshare, or hybrid	Revenue Accounting Analyst	Amadeus Revenue Accounting (ARA)	Issued electronic ticket (ET) with multi-carrier coupon segments and validating carrier code	Ticket classified with proration method assigned: IATA standard, SPA override, or codeshare split	Auto-classification rate ≥95% of interline tickets without manual intervention	Y	Y
Phase 2 2.1	Extract OD fare components and fare basis codes	Revenue Accounting Analyst	Amadeus Revenue Accounting (ARA)	ET record with fare breakdown, applicable fare basis codes, and coupon sequence	Per-segment fare basis code, ticketed point mileage (TPM), and applicable fare component isolated per coupon	Fare extraction error rate <0.5% of processed interline tickets	N	Y
2.2	Apply IATA mileage proration to derive carrier percentages	Revenue Accounting Analyst	ATPCO Prorate Data + Amadeus Revenue Accounting (ARA)	Per-segment ticketed point mileage (TPM), total OD fare amount, ATPCO PF tables	Carrier-specific proration percentage and prorated revenue amount per segment	Mileage calculation accuracy ≥99.5% against IATA TACT reference data	Y	N
2.3	Apply Special Prorate Agreement overrides where eligible	Pricing Analyst	Amadeus Revenue Accounting (ARA) — SPA Module	SPA terms: flat-rate splits, percentage overrides, minimum/maximum guarantees per route and cabin	SPA-adjusted revenue allocation per carrier segment, superseding IATA mileage proration where SPA applies	SPA override application rate = 100% for all tickets on SPA-covered routes during SPA validity period	N	Y
2.4	Allocate taxes and YQ/YR surcharges per carrier rules	Revenue Accounting Analyst	Amadeus Revenue Accounting (ARA)	Tax and surcharge breakdown from ET record: government taxes, YQ fuel surcharge, YR carrier-imposed surcharge	Tax allocation per carrier — carrier-specific government taxes retained by respective carrier; YQ/YR allocated per agreement or IATA Resolution 728	Tax allocation error rate <0.1% of total ticket value across processed interline tickets	Y	Y
Phase 3 3.1	Generate interline billing memo for ICH submission	Revenue Accounting Analyst	IATA Clearing House (ICH)	Prorated revenue amounts per carrier, tax allocations, coupon status from GDS	Billing memo submitted to ICH for each partner carrier within IATA Resolution 743 deadline	Billing memo submission within T+30 days of travel date per IATA Resolution 743; late filing penalty avoidance rate ≥98%	N	Y
3.2	Validate billing memo against ET coupon at ICH	Revenue Accounting Supervisor	IATA Clearing House (ICH)	Submitted billing memo, original ET coupon data from issuing carrier, IATA prorate factor tables	ICH validation result: accepted billing memo or rejection with error code	First-pass ICH billing acceptance rate ≥92% of submitted memos	Y	Y
3.3	Issue ADM or ACM to resolve billing discrepancy	Revenue Accounting Analyst	IATA BSP Link / Amadeus Revenue Accounting (ARA)	ICH rejection reason code, original ET data, partner airline's counter-claim if applicable	Agent Debit Memo (ADM) or Agent Credit Memo (ACM) issued to partner; revenue amount moved to suspense account pending resolution	ADM/ACM resolution within 45 days per IATA Resolution 850m; suspense account balance <0.5% of monthly interline revenue	Y	Y
Phase 4 4.1	Submit net interline settlement to IATA Clearing House	Revenue Accounting Manager	IATA Clearing House (ICH)	Validated billing memos net of ADM/ACM, ICH monthly settlement calendar, partner net positions	Net settlement amount per partner airline forwarded to ICH for multilateral netting and disbursement	ICH settlement submission on-time rate = 100% (ICH settlement runs on fixed monthly calendar with no grace period)	N	Y
4.2	Post interline settlement to SAP General Ledger	Finance Analyst	SAP S/4HANA Finance (FI/CO)	ICH settlement confirmation file with net amounts per partner, tax allocation breakdown	Journal entries posted to GL — interline revenue recognition per IFRS 15, accounts receivable/payable updated per partner	GL posting within T+5 business days of ICH settlement confirmation; period-close accuracy = 100%	N	Y
4.3	Reconcile prorated actuals against RM interline forecast	Revenue Management Analyst	Amadeus Revenue Management (NRM) + SAP S/4HANA Finance (FI/CO)	ICH settlement actuals by partner and route, RM system interline revenue forecast by O&D pair	Variance report: actual vs forecast interline yield per route and partner, flagging routes with structural mis-valuation	Interline yield variance ≤±3% of RM forecast; routes exceeding threshold reviewed within 10 business days	Y	N
4.4	Audit SPA performance and flag renegotiation triggers	Pricing Manager	Amadeus Revenue Accounting (ARA) + Tableau	12-month rolling SPA settlement actuals, guaranteed minimum revenue thresholds per SPA, partner traffic volumes	SPA performance scorecard per partner; renegotiation recommendation package for routes where guarantees are at risk or partner volumes have shifted >15%	SPA guarantee achievement rate ≥90% of active agreements; annual SPA review completion by Q1 for all agreements expiring in the calendar year	Y	N

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Process Attributes

Identification

Process IDNP-PF-07

L1 DomainNetwork Planning & Scheduling

L2 ProcessPricing & Fare Management

L3 NameInterline & Codeshare Fare Proration

L4 Steps14 across 4 phases

Decision Gates8 (all with iteration loops)

Exceptions10 documented

Swim Lanes (Roles)

Revenue Accounting Analyst

Pricing Analyst

Revenue Accounting Supervisor

Revenue Accounting Manager

Finance Analyst

Revenue Management Analyst

Pricing Manager

Systems & Tools

Amadeus Revenue Accounting (ARA)ATPCO Prorate DataATPCO Prorate Data + Amadeus Revenue Accounting (ARA)Amadeus Revenue Accounting (ARA) — SPA ModuleIATA Clearing House (ICH)IATA BSP Link / Amadeus Revenue Accounting (ARA)SAP S/4HANA Finance (FI/CO)Amadeus Revenue Management (NRM) + SAP S/4HANA Finance (FI/CO)Amadeus Revenue Accounting (ARA) + Tableau

Key Performance Indicators

Load interline & SPA agreement terms into RA systemAgreement setup lead time ≤5 business days from signature

Ingest ATPCO prorate factor tables (PF Tables)Prorate table update cycle ≤24 hours after ATPCO publication date

Classify ticket as interline, codeshare, or hybridAuto-classification rate ≥95% of interline tickets without manual intervention

Extract OD fare components and fare basis codesFare extraction error rate <0.5% of processed interline tickets

Apply IATA mileage proration to derive carrier percentagesMileage calculation accuracy ≥99.5% against IATA TACT reference data

Apply Special Prorate Agreement overrides where eligibleSPA override application rate = 100% for all tickets on SPA-covered routes during SPA validity period

Allocate taxes and YQ/YR surcharges per carrier rulesTax allocation error rate <0.1% of total ticket value across processed interline tickets

Generate interline billing memo for ICH submissionBilling memo submission within T+30 days of travel date per IATA Resolution 743; late filing penalty avoidance rate ≥98%

Airline-Specific Risks & Pain Points

No standard digital handoff format for SPA terms — analysts manually transcribe flat-rate splits and minimum guarantees into ARA, introducing keying errors that cause systematic mis-proration

ATPCO publishes 26 fare filing cycles per year; delayed ingestion causes mis-proration on interline tickets issued in the gap window — revenue impact typically discovered only at quarterly ICH reconciliation

Codeshare tickets with separate operating vs marketing carrier codes require different proration logic than pure interline; misclassification routes codeshare revenue through ICH instead of bilateral settlement, triggering partner disputes

Mixed class of service within a single ticket (e.g., J class on carrier A, Y class on carrier B) complicates fare basis assignment under IATA Resolution 762 — ARA auto-extraction fails on ~8% of mixed-cabin interline itineraries requiring manual override

Mileage discrepancies between IATA TACT mileage tables and GDS-routed itineraries (reroutes, diversions) cause variance — airlines typically absorb or dispute the difference at quarterly ICH reconciliation rather than fixing source data

Airlines maintain 50–200+ active SPAs; no automated expiry alerting in ARA means analysts continue applying lapsed SPA terms, generating overpayments recovered only at annual SPA audit — average recovery lag is 14 months

Inputs / Outputs

Primary InputSigned interline agreement or Special Prorate Agreement (SPA) from commercial team

Primary OutputSPA performance scorecard per partner; renegotiation recommendation package for routes where guarantees are at risk or partner volumes have shifted >15%

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