===== Overview of GDS Fees applicable in Hong Kong and Macau Market =====

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1 Dear Travel Agent Partners, To enhance the correct use of GDS, Lufthansa has introduced, since 2010, a policy of GDS Fee in adherence to the IATA Travel Agent s Handbook and the IATA Resolution 830a. We have well informed the trade through our experts Newsletters and GDS vendors. This newsletter serves as a reminder and provides updated information. We are attaching a 3-page leaflet which gives the background information of introducing GDS Fee and a guideline of proper handling of booking and correct use of GDS. The amounts of the fee contained in the leaflet are different from the ones charged by our market. ===== Overview of GDS Fees applicable in Hong Kong and Macau Market ===== 1. Noshow (Effective 01 May 2010) Only Non-ticketed booking is subject to this fee. Fee: HKD200 per seat per segment A noshow booking which contains a ticket which is found to have been voided or refunded will be subject to the charge of fake ticket number (see below) in addition to the noshow fee. 2. Inactive segment (Effective 01 May 2010) Segment which still contains any status of HX / UC / UN / NO at 48 hours before departure time is subject to this fee. 3. Fake ticket number (Effective 01 May 2010) Booking which contains a fake ticket number will be subject to this fee even the booking is cancelled subsequently by our system upon ticket deadline. 4. Fictitious name (Effective 01 May 2010) Booking made with fictitious names will be screened. Once identified, such a booking is subject to automatic cancellation and this fee. In case of wrong cancellation, we will reinstate the booking upon request from travel agent with the passenger name verified. 5. Fake Booking (Effective 01 February 2011) Any booking or segment booked without a real demand and/or without real passenger is subject to this fee even such bookings are identified and cancelled. A typical abuse is blocking seats on a same flight by making individual bookings which eventually are not ticketed. 6. Churning Booking (Effective 01 February 2011) This is the action aiming at bypassing the ticketing deadline by repeatedly cancelling and rebooking the same segment without prior cancellation of the previously held segment. Whether or not the newly booked segments are done in the same PNR or in a new PNR, this fee will be applied. The previously booked segment must be cancelled before the new segment is booked.

2 7. Breaking Married Segment Control (Effective 01 April 2012) Once the abuse of GDS to break the origin & destination (O & D) selling on Lufthansa flights is identified, it will lead to following action from Lufthansa: Unticketed booking - Immediate booking cancellation without prior notice. Booking agent will be charged a penalty. Ticketed booking - Booking will be kept. Booking agent will be charged a penalty. The penalty is determined by the routing and class of travel : European Economy - Eur 150 per passenger / per O & D break European Business - Eur 250 per passenger / per O & D break Intercontinental Economy - Eur 250 per passenger / per O & D break Intercontinantal Business/First - Eur 400 per passenger / per O & D break Example: Routing O&D break Penalty HKG-FRA-HAM-FRA-HKG in Economy HKG x/fra CCS availability is manipulated, only HKG-FRA is booked Eur 250 charged for FRA - CCS If multiple breaks are identified in the same booking, charges will increase accordingly. Furthermore Lufthansa will terminate the agent's access to Lufthansa inventory in order to avoid reoccurence of such abuse. ===== End ===== In case booking which has been cancelled by our system due to any mal-practices still contains HX status at 48 hours before departure time, the inactive segment fee will be applied in addition. Above fees are applied on all classes on Lufthansa-operated flight or LH code-share flight under LH flight number. The fees will be collected via ADM to BSP travel agents. Non-BSP travel agents will receive an invoice. There is an administration fee of HKD100 to each ADM or invoice issued. Lufthansa reserves the right to disconnect the access to Lufthansa inventory in case of any unsettled payment. Our policy aims at offering you and your customers a better seat availability by reducing the bookings which are not materialized or are not handled in a proper manner, but are merely blocking up the valuable seats. We appreciate your utmost attention to adhere to the correct use of GDS, which will support our joint sales efforts. Should you have any question, please do not hesitate to contact us at Thank you very much for your cooperation. Best regards Lufthansa German Airlines Hong Kong 06 March 2012

3 Booking Errors cost Lufthansa 7 Million Euros a Year Imagine if every year 2,000 fully booked Airbus A380s took off without a single passenger on board. This is exactly what would happen if we do not take action against booking errors. For this reason we kindly ask you for your support to avoid unnecessary costs both for your travel agency and for Lufthansa. Every year Lufthansa faces more than 1 million misused booking segments which according to the IATA Travel Handbook and IATA Resolution 830a, are considered to be misuse 1. As a consequence, Lufthansa decided in 2010 to introduce a Compensation fee for booking misuse in some countries. It is charged to travel agents through ADM. This is an established practice that has been used for years by many airlines throughout the world. Lufthansa intends to introduce the fee worldwide in all markets later this year. Compensation fees what needs to be taken into account from now on Travel agents will be charged the following amounts for booking errors: Booking error Charge or compensation fee 2 No-shows without ticket Other reservation manipulations 10 euros per passenger / segment 5 euros per passenger / segment Breaking the segments 250/500 euros per ticket Arriving at your destination without booking errors Please avoid the following booking errors by observing these simple rules: * Do not create a test booking just to obtain a price or to print an itinerary. Use passive segment for fare quotations. The CRS offer passive segments for pure fare quotings: * Clean - For the PNR Amadeus promptly; see delete under: all lufthansaexperts.com/pricecalculation inncts. inactive segments. * Clear - reservations Sabre: WQHELP that are no longer required as well as waiting lists. - Galileo: H/FQP - See Help pages of other reservation systems (CRS) 1 Under the heading Consequences of Violation of Ticketing and Reservation Procedures, IATA Resolution 830a states that airlines can charge travel agencies fees for the misuse described therein. 2 The fees are charged to IATA agents by ADM and invoiced to non-iata agents. See the local Lufthansa communication for the current Compensation fee status in your country.

4 Use seating capacities responsibly avoid booking errors Play your part: avoid booking errors and eliminate the risk of having to pay compensation fees! Possible booking errors and how you can avoid these Fake Booking Fictitious Groups Ticket Time Limit (TTL) No-show Inactive Segment Breaking the Segments a) Do not create a test booking to obtain a price, to print an itinerary or to test something. A guide on how to proceed correctly is available on lufthansaexperts.com/pricecalculation b) Do not create a booking without real demand. Do not try to block a class or compartment. c) Double or multiple bookings for one and the same passenger are not allowed. d) Always insert full name and surname. request a group booking. Pay attention to the ticket time limit. If the time limit us up, your options are: a) Issue the ticket and insert ticket number, or b) If customer doesn t want to buy now, cancel the booking. Do not book for someone who never intended (or no longer intends) to travel, or cancel the booking as soon as you become aware of this. These are segments with one of the following status codes which are still held on the PNR face (the active part of the PNR) within 24 hours of departure. Unless they are cancelled these will be charged to Lufthansa as active segments: HX (holding cancelled) NO (no action taken) Clean out PNRs that contain such status codes! the segments may not be split again. Class Manipulation The booking class on the ticket must match the class in the PNR. 3 Miles & More The Miles & More status is bound to the person and thus not transferable. No reservation other than that of the member may hold the Miles & More status. 3 No compensation fee is yet in place for this.

5 Obtain fare information with passive segments Fare information i.e. fare calculations for pure price information can be obtained very easily with passive segments (in Amadeus: ghost Fare segments). information The - i.e. result fare is calculations the same as for in pure a PNR price with information active segments! - can be obtained very easily with passive segments. The result is the same as in a PNR with active segments! the Transfer previous time-dependent test bookings taxes with active are correctly segments. calculated, travel schedules can be produced - until "Best Buy" everything works just like the test bookings with active segments. The correct way to get fare information using the example of Amadeus: In Passive Amadeus ( non-billable this works ) very segments simply: can after be the generated Standard in availability GDS, Please request, contact create your a GDS ghost Help segment Desk with for the status instruction code GK. of creating passive segments. 1. Start with: ANLH25OCTFRALHR ** LUFTHANSA - AN ** LHR HEATHROW.GB 210 TU 25OCT LH 900 J9 C9 D9 Z9 I9 R9 Y9 /FRA 1 LHR E0/320 1:35 B9 M9 H9 X9 Q9 N9 VL SL P9 G9 K9 2 LH 902 J9 C9 D9 Z9 I8 R8 Y9 /FRA 1 LHR E0/321 1:35 B9 M9 H9 X9 Q9 N9 V9 W9 U9 S9 P9 G9 K9 L9 2. Then enter: SS1K1/GK/NW (GK = status code ghost segment/nw = employee initials) 3. The test PNR might therefore look like this before the FXP is entered: RP/FRALH0989/FRALH0989 NW/SU 29MAR11/0753Z 732ZFF 1.MUSTERMANN/PETER MR 2 LH 900 K 25OCT 2 FRALHR GK NW 3 AP XXXXXXX 4 TK OK29MAR/FRALH0989 in Amadeus under: HE PNR, then: GP PAS in Sabre under: WQHELP in Galileo under: H/FQP in all other reservation systems (CRS) under their Help pages