OVERVIEW

In an effort to facilitate consistency across the transatlantic Joint Venture, KL will reintroduce KL 074 ticket stock in the U.S. and Canada, effective August 1, 2018. As a reminder, AF ticket stock is widely used in US/CA point of sale today.

FREQUENTLY ASKED QUESTIONS (FAQs)

A. Why is KL’s code being re-introduced in US/CA?

• The reintroduction of the KL 074 ticket stock facilitates consistency across the transatlantic Joint Venture, where carriers have their own ticket stock in all online markets – KL was the exception in US/CA. As a reminder, AF ticket stock is widely used in US/CA point of sale.
• This change follows the same process as when KL 074 ticket stock was reintroduced in Mexico in 2017. 
• The benefits of offering KL 074 ticket stock include greater flexibility to:

1. Sell KL ancillary products (seats and bags) using EMDs in the GDS – seat products include Economy Comfort, seats with extra leg-room, Preferred Seats and Standard Seat Selection.

2. Use re-validation in case of voluntary changes (when no change fee applies) or when involuntary changes are made (on AF and KL).

3. Rebook/Reissue (using the KL Standard Schedule Change Handling guidelines) without a waiver code in case of schedule changes.

B. Will agencies be charged a GDS surcharge when using KL 074 ticket stock?

• The GDS surcharge will apply on all AF and KL marketed flights (AF* and KL*) regardless of the validating carrier ticket stock.
• Agencies who have not signed Private Channel Agreements (PCA’s) with Air France/KL, may opt to book DL marketed/KL operated (DL*/KL) or DL marketed/AF operated (DL*/AF) fights to avoid the surcharge.

C. What are the advantages of offering KL 074 ticket stock to travel agencies in the US and Canada?

The benefits of offering KL 074 ticket stock include greater flexibility to:

• Sell KL ancillary products (seats and bags) using EMDs in the GDS. Seat products include Economy Comfort, seats with extra leg-room, Preferred Seats and Standard Seat Selection.
  • Today, if a customer wants to purchase a seat on KL marketed/operated flights validated on 006 ticket stock, they can only purchase the seat on klm.com or by calling Global Sales Support (GSS).
  • August 1, 2018, if the ticket is validated on 074 ticket stock, the agency will have the functionality to issue a 074 EMD to purchase the seat in their GDS.
• Use re-validation in case of voluntary changes (when no change fee applies) or when involuntary changes are made (on AF and KL).
  • Today, Delta is unable to revalidate KL space when validated on DL 006 ticket stock. If the itinerary is validated on 074 ticket stock, the segments may qualify for revalidation.
  • Revalidation eliminates the need to reissue the ticket and the travel agency is able to maintain control of the ticket.
• Rebook/Reissue (using the KL Standard Schedule Change Handling guidelines) without a waiver code in case of schedule changes.
  • Please note, neither DL nor KL require the use of a waiver code when reaccommodating due to a schedule change or irregular operations.
    • When applying KL’s Rebooking Policy to assist proactively due to special events (i.e. Amsterdam weather, political unrest, etc.) no waiver code is required.
    • When applying DL’s Travel Exception Policy to assist proactively due to special events (i.e. weather, political unrest, etc.) a waiver code is required to reaccommodate.

D. Can KL ancillary products be sold via the GDS today when the customer is ticketed on DL 006 ticket stock? 

• Please refer to the answers in questions B and C above.

E. When KL ticket stock is reinstated, will the benefits mentioned for 074 ticket stock be available if the itinerary is sold as a DL marketed/KL operated (DL*/KL) flight vs. a KL marketed/KL operated (KL*/KL) flight?

• If issued on KL 074 ticket stock, there are certain benefits outlined in Section C (above) that are available on KL marketed/KL operated (KL*/KL) flights that are not currently available on DL marketed/KL operated (DL*/KL) flights.

F. Will the reintroduction of KL 074 ticket stock have any impact on AF/KL itineraries currently issued on AF 057 ticket stock?

• KL 074 ticket stock is aligning with the existing AF 057 ticket stock model in the U.S. and Canada. 
• This change follows the same process as when KL 074 ticket stock was reintroduced in Mexico in 2017.
• The benefits of offering KL 074 ticket stock in the U.S. and Canada markets are mentioned in Section C (above).

G. How does KL 074 ticket stock differ from how AF 057 ticket stock is handled today?

• KL 074 ticket stock will be handled the same as AF 057 ticket is handled today; see above for details.

H. Are there any scenarios in US/CA where agencies must validate on KL 074 ticket stock?

• All KL operated transatlantic flights to and from the U.S. and CA, carry both the KL and DL marketing codes, so the travel agency has the option to book either marketing code (DL*/KL or KL*/KL).
• After August 1, 2018, when an itinerary is sold with the KL marketing code, the GDS will automatically default to KL (074) validation. For itineraries that include both KL marketed (KL*) and DL marketed (DL*) segments, most GDSs will default to validate on the outbound fare owning carrier (over the water) in the itinerary.

I. Will KL tickets be eligible for point of sale commissions? How will this impact my backend incentives?

• Yes, KL tickets will be eligible for PoS commissions. PoS commission programs (including applicable evergreen legalese) will be updated to include KL ticket stock (074) in terms and conditions with at least 30 days’ notice to accounts. Back-end agreements will not be impacted. Teams are currently reviewing back-end agreement legalese and will issue amendments if necessary to include KL ticket stock if not already included. 

J. How will agencies receive an updated contract? Do agencies need to sign an amendment?

• Agency back-end contracts will not be amended for the KL ticket stock reintroduction; instead, an update letter will be issued by the SAEs notifying the agencies that KLM 074 ticket stock will apply to the terms and conditions of the agreement. Signature will not be required. Additionally, agency pricing programs are currently being updated to include KLM 074 ticket stock where applicable and are expect to be completed prior to August 1. 

K. Are Corporate or SME contracts impacted by this change?

• GMNA and SME contracts will NOT be impacted by this change and will not require adjustment during renewals as ticket stock is not included in relation to ticketing functionality or discount negotiation.   
• National and MSA legalese do not currently include KL ticket stock, however, sellers will be provided with a simple update letter to share with CTMs to address this.  Signatures will not be required. 
• However, in no situation listed above will discount application be impacted.

L. Agencies are currently using DL 006 ticket stock as a default ticket stock to issue tickets for KL* itineraries. On August 1, 2018, should agencies begin using the new default logic to issue a KL* itinerary?

• Yes. Effective August 1, 2018, travel agencies should begin using the default logic for validation noted below:
  • If all segments in the itinerary are KL-marketed (KL*), the default validating carrier is KL (074 ticket stock).
  • If all segments in the itinerary are DL-marketed (DL*), the default validating carrier is Delta Air Lines (006 ticket stock).
  • If the itinerary includes both KL-marketed (KL*) and DL-marketed (DL*) segments, the default validating carrier will be the outbound fare owning carrier (over the water). For Example, if the itinerary is KL* MSPAMS and DL* AMSMSP, the validating carrier would default to KL (074 ticket stock).

M. Will DL Global Sales Support continue to service and support tickets issued on KL 074 ticket stock in North America?

• Yes. The process for agency support remains the same. Delta’s Global Sales Support (GSS) will continue to provide excellent customer service for agencies in the U.S. and Canada, regardless of ticket stock. While the overall impact of this change is small, we have been working with KL and other impacted stakeholders to ensure a smooth rollout.
• Travel agencies will continue to contact GSS for assistance with itineraries issued on 074 ticket stock as they do today for KL itineraries issued on DL 006 ticket stock.
  
• In addition, travel agencies in the U.S. and Canada may email GSS regarding KL itineraries issued on 074 ticket stock using the email address provided by your Delta Sales Account Executive.
  
• GSS waiver guidelines for tickets issued on DL 006, KL 074 and AF 057 ticket stocks are aligned.
• GSS Associates will be trained on KL tools, such as Oscar, to ensure that travel agencies continue to receive the highest level of service.

N. Is there any action required now by travel agencies?

• No action is required. A reminder communication will be issued closer to the reinstatement date of August 1, 2018.

O. May a customer apply a wholly unused KL 074 ticket toward the purchase of a new itinerary where all segments are booked with the DL marketing code (DL fares)?

• As long as the fare rules for both the original KL 074 ticket and the new DL fare are followed, a travel agency may reissue a DL fare (for either domestic or international travel) using the original KL 074 ticket; allowing the travel agency to maintain control of the ticket.
• If the travel agency wants the KL 074 ticket to be reissued to DL 006 ticket stock, they will have to contact Delta Global Sales Support for assistance.

P. Will the reintroduction of KL 074 ticket stock have any impact on customer’s SkyMiles or Flying Blue benefits?

• There will be no impact with the exception that mileage accrual on DL marketed flights (DL*) is based on the dollar value of the ticket while mileage accrual for AF or KL marketed flights (AF* or KL*) is based on the booking class.

Q. Are agencies required to do anything with BSP/ARC/GDS to start selling on 074?

• Agencies are not required to do anything with BSP/ARC/GDS to start selling on 074.

R. Can DL’s UATP cards be used by TMC accounts to book 074 ticket stock?

• Yes. DL’s UATP cards will allow TMC accounts to book 074 ticket stock.  The UATP guidelines will be updated to coincide with the effective date of August 1, 2018. 

S. Can DL’s eNCI be used by TMC accounts to book 074 ticket stock?

• DL’s eNCI is limited to DL/006 ticket stock

T. How will ticket exchanges be handled for KL itineraries issued on DL 006 ticket stock if changes are made on/after August 1, 2018?

• Ticket exchanges will be handled the same as today. If a KL itinerary is issued on DL 006 ticket stock, after changes are made, the ticket will be reissued to DL 006 ticket stock. 
• On/after August 1, 2018, any itineraries issued on KL 074 ticket stock that are subsequently changed will be reissued to KL 074 ticket stock.