SECTION 6 REVISED PTA/VMPD/ETKT NOTICE

SECTION 6 REVISED PTA/VMPD/ETKT NOTICE 6.1 SAA 083 DOCUMENT ISSUANCE AT ALL SELLING LOCATIONS POLICY AND PROCEDURE All Selling locations using the SAA 083 Carrier Identification Plate (CIP) must take note of the revised administrative service charge which is applied to a Prepaid Ticket Advice (PTA) request. Effective on/after 01 August 2007 the SAA PTA Service charge (XP tax code) will increase and apply to all PTAs forwarded in South Africa, Swaziland, Lesotho and Namibia by any 083 Ticketing office and Travel Agents selecting our 083 CIP. The PTA service charge must be collected per MCO / MPD / VMPD and the XP as tax code must reflect in the other services box on the MPD / VMPD (-for Travel Agents) and for airline own use as code S in the fare and tax breakdown string in the MCO mask. THE REVISED SAA PTA SERVICE FEES FOR: South Africa Domestic - ZAR 228 including VAT Regional / International - ZAR 200 Namibia / Lesotho / Swaziland For all PTA s / TOD - NAD 200 / LSL 200 / SZL 200 Note: Each country will have their own PTA charge. We refer you to an extract of Resolution 836 of the Passenger Agency Conference Manual, which specifically relate to such charges levied by the Carrier: "Resolution 836" Traffic Document issuance for agents at airports PAC2 (36) 836 PAC3 (36) 836 (Except Japan) Type: B Expiry: Indefinite Resolved that, Notwithstanding anything to the contrary in the Passenger Sales Agency Rules, a member may levy an administrative service charge from an Accredited Agent for pre-arranged ticket issuance at an airport by a member. In order to eliminate the above charges, all markets must please be reminded and also educate their customers that SAA supports E-ticketing as the PAGE 1 / 13

mandatory default for ticketing on all e-ticket eligible routes, including the routes as per our Interline Electronic Ticketing (IET) agreements. THEREFORE TO STREAMLINE THE TICKETING PROCESS FOR THE AIRLINE AND TRAVEL TRADE AND TO ENFORCE ALL TO USE LESS PAPER, SAA HAS IMPLEMENTED THE FOLLOWING: 1. South African Airways abolished the PTA facility for domestic travel on South African Airways, SA Express and Airlink as all these sectors are eligible for Electronic Ticketing. Global distribution systems (GDS) have now been set to default all tickets to E-tickets and the Trade must make use of this functionality to issue E-Tickets on all e-ticket eligible routes. 2. The VMPD (Virtual Multi Purpose Document, an IATA BSP Product found on BSP link) which we only permit the use for PTAs and Tour Order (Group Deposits), currently only applicable to the BSPZA market. 3. The DU tax code for fare rule penalty / revalidation fees reflected as a TAX on the 083 ticket (as a non standard implementation). 4. The Exchange of paper documents to electronic tickets. 6.2 THE SAA PREPAID TICKET ADVICE (PTA) FACT SHEET EFFECTIVE 01 AUGUST 2007: APPLICABLE TO ALL NON E-TICKET ELIGIBLE ROUTES OR COUNTRY RESTRICTIONS REQUIRING PTAS 1. PTA REGULATIONS A PTA must be sent from a country to another if it is allowed by the fare rule and the Exchange Authority of the country where the monies are collected and Currency exchange rules are not contravened. (Reference: The IATA PAT Currency ruling). PTA s can be sent (subject to above) at published fares (disclosed on the ticket) which does not require special coding and the fare from the point of origin of transportation is maintained and the correct equivalent is collected in the country of sale. This also includes PTA s to other airlines and or offline stations. The reason is to ensure proper alignment of the value finally recognised as income versus the amount collected on the MCO / MPD / VMPD. The PTA must cover basic airfare and taxes and other related services. You can also issue a PTA to collect additional funds for extra charges, such as upgrades and excess baggage. The sale of passenger tickets in the republic: The Reserve Bank Exchange Control Circular No. 23/2006 issued to Authorised Dealers on 2006-10-20, with immediate effect, the rule is now updated and allows SAA, SA Express, Airlink and our Travel agents to issue passenger tickets and e-tickets in the Common Monetary Area (CMA consisting of South Africa, Lesotho, Swaziland and Namibia) for travel commencing outside the borders to or from the CMA. PAGE 2 / 13

- Note as per the circular B (ii): For the sale of passenger tickets where the agents sell journeys to their clients for travel between destinations outside the republic, the following rule will apply: - Agents may accept payment in Rand to cover the cost of passenger tickets for travel between destinations outside of the Republic for their clients. Such tickets may only be issued where it is necessary for the corporate client and/or contractor to second foreign-based personnel to fulfill contractual obligations. - The ticket may be issued and paid for in Rand in the Republic or the ticket may be issued abroad against a Prepaid Ticket Advice (PTA) paid for in Rand. - PLEASE NOTE ALL TICKETING OFFICES ARE ONLY PERMITTED TO ISSUE E-TICKETS ON OUR E-TICKET ELIGIBLE ROUTES. THEREFORE WE DO NOT OFFER AN OPTION TO THE PASSENGER AND WILL ALSO NOT FORWARD PTAS WHICH COULD HAVE BEEN ISSUED AS PTAS. - In the event where a passenger/sponsor requests the ticketing office to issue a ticket for travel commencing on a non e-ticket eligible route, first consult the fare rule and applicable government order and if permitted, clearly explain to the passenger/sponsor the risk factor and that SAA will not be responsible for any lost / misplaced tickets and that SOTO (posted) tickets are not permitted in all countries (example Lagos, Nigeria), due to local policies. SOTO (posted) tickets will only be accepted with prior authority from the Station Manager. Failure to do so will result into the passenger to purchase a new ticket, and therefore PTAs should be forwarded to the local ticketing office. Please note that not all airports have ticketing facilities and therefore sufficient time should be granted to allow the passenger to collect the ticket from the applicable town office. 2. PTA XP SERVICE CHARGE FEES WILL BE APPLICABLE ON ALL PTAS Each country will have their own PTA charge. This charge must be collected and reflected on the MCO / MPD / VMPD at time of forwarding a PTA but please do not reflect this XP code on the ticketing mask (TST) of the ticket. The PTA charge (XP code) is non-refundable. The PTA charge must be inserted by travel agents in the OTHER CHARGES box on the MPD / VMPD as XP e.g. XP ZAR 200 or NAD 200 which ever is applicable, and the airline must reflect the XP charge in the MCO mask as code S as part of the Fare and Tax breakdown string. Ensure that the PTA / TOD XP charge is clearly shown as above on the MCO / MPD / VMPD as failure to do so will result in a non-disputable ADM / E&O. PAGE 3 / 13

3. FARE GUARANTEE OBTAINING A GUARANTEE ON FARES: A travel agent must always first obtain a fare guaranteed by SAA Fares before the PTA office can forward such payment. For additional collection or date change penalty fees and due to endorsement issues and different fare rules, when sending an additional collection to other airlines for any change SAA can Not be held responsible when such an airline refuses the PTA. If the PTA is sent within 48hours and receiving carrier refuses the PTA, the passenger will be responsible for any payments directly to the onward carrier. No additional collections under the amount of ZAR1000 will be processed or forwarded to other carriers. Exception to SAA online offices. This rule is subject to the PTA office discretion. 4. RESERVATIONS o o o SAA requires the fare calculation as one pricing unit, meaning the ticket to be issued when pricing an entire itinerary as one whole journey or one quote. In short one quote per PNR irrespective of the amount of passengers in the reservation allowing one / conjunction ticket(s) to be issued per passenger for the entire journey / itinerary according to the fare rules and regulations governing the entire routing. The aim of implementation is to guarantee smooth handling of reservations and to avoid inconvenience to the customers, travel agents and ticketing agents. In the event of the ETKT or PTA request only applicable to certain sectors of the itinerary separate booking to be made in order to ticket each itinerary individually. This means that one will have two different bookings / PNRs with relevant ticket numbers for the different itineraries. The reason for implementing this rule is to eliminate: The incorrect issuance of tickets of all sectors where only certain sectors are applicable to the PTA. To adhere to the E-ticketing rule stipulating in order to use Electronic ticketing that the passenger's complete journey must be e-ticket eligible. Also if the fare is a through fare (meaning the total fare from point of departure to point of destination) with domestic and international flights, one can not make use of E-ticketing if all segments are not E-ticket eligible. 5. FORMAT OF THE PTA REQUEST Correct formats must be used by agents when forwarding PTAs as if not done correctly the PTA will not generate to the PTA office for action. PAGE 4 / 13

One may not include the XP code in your GDS PTA request entry. Example RQ.PTA the reason being it causes a lot of confusion, as your total is not according to the FARE and Standard applicable Taxes, which we must ticket. 6. TIME LIMIT Please note a PTA may only be issued once the PTA mask has been completed and acknowledged by the ticketing office. Should a change be required by the sponsor, changes will be accommodated with the additional payment and the additional PTA creation. A PTA is only valid as per the original booking. At the time of ticket issuance against a PTA, if the passenger then requires a change, e.g. upgrade, that would result in an additional collection one must then: issue the ticket for the Specified Amount of the PTA and then re - issue the ticket to reflect the Additional Collection. SAA has a time limit of 48 hours for PTAs forwarded to Regional (Africa) and 72hours to International destinations. PTAs forwarded within these time limits will not be guaranteed as the receiving office must first acknowledge receipt of the request and should any discrepancies be raised the forwarding office must investigate and consult with the sponsor/agent. As a reminder that for ADC PTAs the request must contain the published old and new fare calculations to enable the forwarding of such PTAs. Any PTA received from a Travel Agent within this time limit will unfortunately be refused and therefore not processed and the passenger must pay at the point of departure. 7. ADDITIONAL COLLECTION / REROUTE / UPGRADES Agents must not split a PTA booking prior to all tickets issued as it will not be possible to create a subsequent PTA within this PNR. Therefore a totally new reservation will have to be created. 8. COLLECTION OF PTA TICKETS / ISSUANCE The ticketing office will ensure that the PTA received shows the correct applicable published fare, equivalent currency and amount, in the local currency of the country of commencement of transportation and issue the ticket in exchange for the related MCO or MPD or VMPD. Most airports does not offer ticketing facilities at the airports (such as Perth, Sydney and others in Africa) therefore a PTA must be forwarded within sufficient time to enable the passenger to collect the ticket at the Town office. PAGE 5 / 13

9. CANCELLATION / REFUNDS OF PTAS A PTA can be fully or partially refundable subject to the fare rules or if an over-collection were processed. FOR AIRLINE OWN USE: If a ticket has been issued and there is a remaining value on the PTA, then the agent must issue an MCO for the remaining value, and this MCO can then be refunded. Rapid will not allow a refund against a PTA when a ticket has already been issued. SAA PTAs may delete a PTA issued by a Travel Agent on the same day of the agent inserting the RQ.PTA or PTA request message. It will be the responsibility of the SAA PTA CSA to ensure to delete the PTA and all PTA details in the booking (provided that a ticket has not been issued) and advice the Travel Agent to forward a new PTA request in a new booking / reservation. FOR VMPDS: the Agent must apply the standard BSP Refunds process for same day VMPD cancellations. Agents must contact the PTA office for any void/cancel or changes regarding the PTA payment/refund. If a travel agent needs a refund on a PTA, a request letter with a copy of MPD/VMPD must be faxed to the PTA CSA for refund authority. Only once an authorisation is received from the issuing/ticketing office, will the authorisation letter for refund be returned by fax to the agent requesting the refund. Agent must attach refund auth to refund fare voucher along with copies of all relevant documents and forwarded to SAA refunds department. 10. CONTACT DETAILS Contact Details for the JOHANNESBURG PTA department: Forwarding PTAs: +27 11 978-9350/1/2/3/2161/2151/2150/2157/2155/5942/2162/2178 Fax Number: +27 11 978 9354 Team leader: +27 11 978 9355 PTAs after hours please contact JNB Ticket sales directly on + 27 11 978 9356 Office hours: Monday to Friday 0730-17h00, Saturday 0800-1300, Sunday 0800-1300 and Public holidays 0800-1300 If in need of an airport issue at OR Tambo International Airport, it is recommended that Agents or travel Consultants make use of the ASATA (Association of South African Travel Agents) airport office. 11. PTA ERRORS REFLECTED ON THE TRAVEL AGENT BILLING AND APPLICABLE ADMS PAGE 6 / 13

ADMS will be issued when the PTA fee (XP code and amount) does not reflect on the MPD / VMPD. When submitting an MPD for upgrades and reissues to BSP and the exchange value coupon(s) are not attached to the passenger s valid flight coupon, but to the audit coupon of the MPD, such action will be seen as a PTA and an ADM will be raised for the PTA XP charge. Travel agents are reminded to reflect the ticket number in the issued in connection with box and other information as per the IATA ticketing handbook for when completing a MCO / MPD / VMPD. SAA will NOT issue ADMs for XP PTA charges on MPDs issued if the Exchange coupon is presented for the following transactions: Indemnity fees submitted with the refund application for lost tickets, Hotel and Car hire, Group deposits and Excess baggage. Before SAA issues an ADM for a non-collection of the XP service charge on a MPD, SAA will first verify if BSP is in possession of the actual MPD s Audit and Exchange coupon. The Travel Agent will not receive an ADM for a PTA service charge if he/she inserted and collected the XP amount at time of MPD / VMPD issuance. 6.3 ONCE SAA AUTHORISES A BSP MARKET TO ISSUE VMPDS THE FOLLOWING PROCESS APPLIES In order to ensure that all our stations and our trade understands SAA s requirements pertaining to the VMPDS and PTA service charge the following section must be understood. HOW DOES THE VMPD WORK? Step 1: The Travel Agent access the IATA VMPD located on the IATA BSPLink site. (Travel agents must only contact IATA for BSPLink and VMPD system support. SAA will not entertain any system related question as this is an IATA product.) Step 2: The Travel Agent selects the SAA 083 Carrier Identification Plate (CIP) in the drop down box and insert the user ID and Password as provided by IATA. Step 3: SAA will only permit and process VMPDs for PTAs (40) and Tour Orders (30) (Group deposits) and Agent Refund Voucher (51). The Travel Agent must check / select the applicable box (either PTA or Tour Order, and insert all details (same details to be completed as when writing out the "old" MPD. The only difference is that the Travel Agent is now typing the details into the applicable boxes and still needs to complete all the boxes as per the PAGE 7 / 13

IATA Ticketing Handbook instruction). Therefore the VMPD replaces the manual handwritten MPD. The Agent Refund Voucher VMPD (code 51) may be used where an electronic ticket requires reissue and there is a refundable balance the V-MPD may be issued as an ARV in accordance with carrier policy in order to account for the residual amount. Such ARV may then only be processed as a refund via BSPLink in accordance with current procedures. Do note: The XP PTA Service Charge (R228 including VAT for Domestic Travel and R200 for International Travel which must be reflected on the "service charge/tax on MPD box of the VMPD) will be applicable on all PTAs. It is important to ensure that the "service charge/tax on MPD box" is completed at time of the VMPD mask creation as no subsequent changes will be permitted. Travel Agents may not insert or reflect their own service fees on any 083 SAA validated document. The XP PTA Service Charge is at all times non-refundable. The VMPD for PTA must reflect the Equivalent currency and amount. The VMPD must be completed with the entire reservation details and applicable fare breakdown or if applicable for additional collection PTAs, the old fare breakdown and the new fare breakdown must be reflected. Once all the information is completed on the VMPD screen the Travel Agent must select the send option which will conclude the transaction (save and submit) and the system will allocate a system generated VMPD number. Do note no check number is reflected on the VMPD form and serial number therefore the agent must use the IATA check digit module 7 to calculate the check digit which will be required at time of ticketing. Step 4: FOR GROUP DEPOSITS AND PTA TRANSACTIONS: The Travel Agent must ensure to insert the VMPD details into the PNR in order for the airline (SAA) to see the details in the OSI remarks field. The standard SAA BSPZA PTA request procedure will still apply. The Travel agent may now use the VMPD Group Deposit fee as part payment for the Group Tickets / E- Tickets. It is important to note that none of our SAA ticketing offices (worldwide) will accept copies of VMPDs due to the possibility of fraud. Only PTAs will be applicable and the XP service charge will therefore also be applicable. In Other BSPs (not BSPZA): For our other BSP Markets the same rules will apply for the acceptance of VMPDs only once each Market has been authorized and approved by the Head of Revenue Accounting as each Market must first be set up with a responsible user and e-mail address at the receiving SAA station as our station must first verify each VMPD number PAGE 8 / 13

against the e-mail received as per office set up prior to processing. The XP PTA Service Charges will be applicable in each BSP market as per their standard fee. Note: Groups Tickets can now be issued against a VMPD. VMPD for date change/ upgrade will not be permitted if not issued as a PTA. Do note that the XP PTA Service Charge will apply. ADMs will be issued for non collection of the XP PTA Service Charge. Paper documents may be issued in exchange for E-tickets. All exchange documentation must be attached to the audit coupon of the e-ticket and forwarded to BSP as per the standard process as SAA scans all exchange documents and also use the exchange documents for the verification of the billing. SAME DAY Cancellation / Void requests for VMPDs will not be permitted therefore the normal BSP refund process will be applicable. Please note all VMPDs issued are binding and should unauthorised utilization of the VMPD take place an ADM will be issued to recover any financial losses to the airline. 6.4 THE USAGE OF THE DU TAX CODE REPLACES THE VMPD ON 083 STOCK SAA will now allow our BSPZA Travel Agents, (as a non standard implementation) to reflect and reissue fare rule penalty fees on the ticket / e-ticket as a tax code "DU" instead of issuing a VMPD or MPD or MCO. As per the IATA ticketing handbook the DU Ticket code used for a TAX/FEE/CHARGE NAME is currently classified as one of the Miscellaneous codes which reflects as "Not to be assigned for industry use." SAA has taken the initiative to use this code on the SAA 083 CIP to eliminate the issuance of additional PTAs and also as we will not permit the issuance of the VMPD for solely reissue penalty fees due to the potential risk of fraud. The Reason why SAA will allow the BSPZA Travel Agents to use the tax code DU for the reissue penalty fee is as follows: Our current scenario: The Travel agent issued a ticket or e-ticket. Now the passenger is requesting a date change. The fare rule stipulates charge penalty fee of ZAR750.00 The Travel Agent then books the new flight and issues an MPD for R750.00. The original ticket or e-ticket print out is then forwarded to the airport with the MPD for the R750.00. PAGE 9 / 13

The SAA ticketing counter then first verifies the fare rule, penalty amount and MPD and then revalidate the flight coupon concerned with a revalidation sticker and attach the MPD to the flight coupon concern. Or with an e-ticket revalidates the e-ticket record and retain or attach the MPD coupon to the print out of the e-ticket record. This is not a user friendly process. Therefore to simplify the process we are implementing the "DU" tax code to our Travel Agents in the BSPZA market which will not only relief the congestion at our ticketing counters at the airports but also eliminate Travel Agent and possible passenger inconvenience. Example of the new scenario effective 18 February 2007: The Travel agent issued a ticket or e-ticket. Now the passenger is requesting a date change. The fare rule stipulates charge penalty fee ZAR750.00 (Note: for South Africa the DU tax must be included of VAT. The VAT should always be rounded to the nearest rand).the Travel Agent then books the new flight and reissues the ticket or e-ticket reflecting the original fare, all the original taxes as paid and the additional penalty fee as a tax: zar750.00du. Therefore the travel agent collects the ZAR750 from the passenger as an additional collection which is reflected on the ticket as the tax code "DU". When SAA sees the tax code "DU" on the ticket we will be able to identify that the penalty for the date change has been collected. SAA accounts for the DU tax code as a standard tax as per our current DU / DV tax codes reflecting on our own tickets. In addition, the audit company will also be able to audit the penalty fee amount, Refunds will be advised that the DU tax is a non refundable amount and no additional commission will be earned by the travel agent. Note: The above DU procedure is only applicable to Revenue tickets and not on Award tickets. For Airline own use the DV code for Award related non-revenue tickets. 6.5 PAPER DOCUMENT EXCHANGES (MPDS / VMPDS / MCOS / TICKETS) MAY NOW BE USED AS FORM OF PAYMENT (EXCHANGES) FOR E-TICKETS With immediate effect, SAA permits the exchange transaction of paper documents into E-tickets. This new functionality will be implemented by your GDS accordingly. Do note that all exchange documentation must be attached to the audit coupon of the e-ticket and forwarded to BSP as per standard process as SAA scans all exchange documents and also uses the exchange documents for the PAGE 10 / 13

verification of the billing. Failure to forward the applicable documentation will result into an ADM. 6.6 THE SAA WHAT WE WANT YOU TO DO ORGANOGRAM ALL Ticketing offices must be reminded that prior to any changes to an itinerary that the Agent must first display the fare rules of the ticket presented for change. If the fare rule permits changes at a cost example: upgrade to the next higher fare, penalty fee for revalidation or penalty for a date change, the agent may effect the booking change and then has the options as per the SAA What we want you to do organogram. PLEASE REFER TO THE FOLLOWING ORGANOGRAM WHICH HAS BEEN CREATED TO GUIDE THE TICKETING AGENT / TRAVEL AGENT TO EITHER ISSUE A PTA OR TO REISSUE THE TICKET IN THE TICKETING AGENT / TRAVEL AGENTS OFFICE WHEN THE TICKET IS A PAPER TICKET OR E-TICKET WHICH IS PRESENTED FOR A CHANGE. PAGE 11 / 13

WHAT SAA WANTS YOU TO DO PERTAINING TO THE REISSUING/EXCHANGING OF A TICKET OR TO FORWARD A PTA? FIRST ASK YOURSELF WHERE IS THE PASSENGER? IS THE PASSENGER IN YOUR OFFICE? YES NO IS YOUR PASSENGER HOLDING A PAPER TICKET? IS YOUR PASSENGER HOLDING AN E-TICKET? REISSUE / EXCHANGE THE TICKET ACCORDINLY AS PER THE FARE RULE AND CHARGE THE APPLICABLE PENALTY REISSUE / EXCHANGE THE TICKET ACCORDINLY AS PER THE FARE RULE AND CHARGE THE APPLICABLE PENALTY NOTE: INSTEAD OF ISSUING AN MCO/MPD FOR THE PENALTY REFLECT THE DU TAX CODE ON THE TICKET WHICH REPRESENTS THE PENALTY ON THE TICKET NOTE: INSTEAD OF ISSUING AN MCO/MPD FOR THE PENALTY REFLECT THE DU TAX CODE ON THE TICKET WHICH REPRESENTS THE PENALTY ON THE TICKET IS YOUR PASSENGER HOLDING A PAPER TICKET? IS YOUR PASSENGER HOLDING AN E-TICKET? YES REISSUE / EXCHANGE THE TICKET ACCORDINLY AS PER THE FARE RULE AND CHARGE THE APPLICABLE PENALTY NOTE: INSTEAD OF ISSUING AN MCO/MPD AND FORWARDING A PTA FOR THE PENALTY REFLECT THE DU TAX CODE ON THE TICKET WHICH REPRESENTS THE PENALTY ON THE TICKET ISSUE AN MCO / VMPD. REFLECT AND COLLECT THE PTA XP SERVICE CHARGE AND FORWARD THE PTA AS PER THE SAA PTA PROCEDURE PAGE 12 / 13

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