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Glossary for the airline industry

From A-Z, this glossary covers definitions and explanations for common airline industry terminology.

dynamic fare adjustment

A subset of dynamic price adjustment, this change adjusts only the fare (not the total price including taxes and fees) according to certain criteria.

dynamic offer

The information presented to a customer before a sale (including the fare product, price, attributes, ancillaries, and other data) that was dynamically assembled and priced using dynamic pricing methods (optimized, adjusted, or continuous pricing).

dynamic price adjustment

A dynamic pricing method where the system selects a price from a pre-defined menu of possible price points. Then, for certain customers or in certain situations, this price is adjusted through either a discount or an increment. All adjustments are made in reference to a price from the fixed menu, and some customers are shown an unadjusted price.

dynamic pricing

The methodology that is used in the airline industry to set the price that most closely matches the marketplace conditions at the time of the product offer.

dynamic pricing engine

An airline or vendor-supplied tool to calculate dynamic price adjustments (increments or discounts) based on the airline’s independent business logic and datasets.


Electronic Data Interchange For Administration, Commerce and Transport. An international standard for data exchange developed under the United Nations.


The portion of a computer program that checks the data being entered against the directory levels or for correct coding format before the master file is affected.

effective date

The first date on which a segment is in effect.

embedded segment

A change instruction that is made, but never filed in GFS. The unfiled segment becomes embedded and cannot be filed until it is corrected.


Electronic Miscellaneous Document. One or many coupon electronic documents that may be associated to a flight coupon, referenced to a ticket, or issued separately to document a sale and track usage of optional services and other miscellaneous fees.


1. (Subcategory 104, US/CA fares) Combination of pricing units that are shown separately on the ticket and that need not have a common fare break point. End-on-End includes A-B-A combinations. Note: A-B-A validation is based on city codes. See also combinations. 2. (Subcategory 104, International fares) Combination of pricing units that are shown separately on the ticket that need not have a common fare break point. Not applicable to A-B-A combinations. Note: A-B-A validation is based on city codes. See also combinations.


A piece of standards work that involves a change in processing by at least one of the consumers of the standard.

equipment code

A three-character IATA-managed designator indicating which type of aircraft is used on a particular flight. Although most commonly found in Schedule Data, these codes also exist in Rule and Service Fee provisions.


European Union Payment Services Directive II. A European Commission mandate that requires between not only personal and corporate cards, but also between cards issued inside or outside the European Economic Area (EEA). EU-PSD II will prohibit surcharges on consumer credit/debit cards issued inside the EEA.


According to IATA Resolution 017f, an exchange is a change to the carrier, flight, date, class of service or sector of the first flight coupon. The new fare shall be calculated from origin to destination of the new journey based on the fares applicable at the time of commencement of the new transportation (that is, using current fares). See also reissue.


Criteria portion of a query coded to specify fares you do not want to find.


Filing advice.


Federal Aviation Administration.


Filing advice number.


1. The charge for a passenger to fly from origin to destination. 2. The amount a passenger pays, including the conditions for travel at this amount (that is, the rules and restrictions that must be satisfied in order to qualify for a specific fare). Together, fares and rules form an infrastructure used for autopricing (identifying a fare electronically). A fare has 11 components: including market (city pair), rule number, fare class, one-way/round-trip indicator, MPM or routing number, footnote (optional), currency, fare amount, effective date, discontinue date, and mileage. Also called ATPCO fare record. 3. The published tariff fare amount. 4. The charge for a passenger to fly a given segment (city pair). See also fare basis code, domestic US/CA fare, international fare.