Airline Fare Construction Certification
Exam Practice Questions And Correct
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1. What is the primary purpose of airline fare construction under IATA
tariff rules?
A. To determine aircraft fuel consumption costs
B. To calculate the correct published or constructed airfare for an
itinerary
C. To assign seat numbers on flights
D. To regulate airport security charges
The correct answer is B because fare construction is used to
systematically determine the applicable airfare for a passenger’s
routing using published tariffs and routing rules.
2. What does NUC stand for in fare construction?
A. National Unified Currency
B. New Universal Code
C. Neutral Unit of Construction
D. Net Unit Conversion
NUC stands for Neutral Unit of Construction, which is a standard
, accounting unit used to calculate international airfares before
converting into local currency.
3. What is the role of the Rate of Exchange (ROE) in fare construction?
A. It determines baggage allowance
B. It assigns fare basis codes
C. It converts NUC into local currency
D. It calculates taxes on tickets
ROE is used to convert fares expressed in NUC into the local selling
currency of the point of sale.
4. What is a fare basis code primarily used for?
A. Identifying aircraft type
B. Defining fare rules and conditions of a ticket
C. Calculating airport taxes
D. Assigning boarding priority
Fare basis codes indicate the rules, restrictions, and booking class
conditions associated with a specific fare.
5. What does the term “HIP” refer to in fare construction?
A. Highest Itinerary Price
B. Higher Intermediate Point
C. Historic International Pricing
D. Half Itinerary Pricing
HIP refers to Higher Intermediate Point, a rule ensuring a passenger
does not pay less than a higher fare for a more direct routing.
6. What is a “Mileage System” used for in fare construction?
A. Calculating baggage fees
B. Determining flight delays
C. Constructing fares based on permitted mileage between points
D. Assigning aircraft seating
, The mileage system is used to construct fares by comparing actual
flown miles against permitted mileage for pricing validation.
7. What does a “constructed fare” mean?
A. A fare only used for domestic flights
B. A fare calculated by combining multiple fare components under
rules
C. A fare set manually by airline staff
D. A discounted promotional fare
A constructed fare is built by combining multiple fare segments
according to published fare construction principles.
8. What is a “tariff” in airline fare construction?
A. Aircraft maintenance schedule
B. Airport security regulation
C. Published list of fares and rules
D. Passenger boarding document
A tariff is an official publication containing airfares, rules, and
conditions governing air transport pricing.
9. What does “backhaul” mean in fare construction?
A. Return flight cancellation
B. A higher fare applied when routing passes beyond the destination
before returning
C. Discounted round-trip fare
D. Airport transfer service
Backhaul occurs when a passenger travels beyond the point of
destination, often resulting in higher fare recalculation.
10. What is a “higher intermediate point rule” designed to prevent?
A. Overbooking of flights
B. Fuel surcharge manipulation
C. Cheaper indirect routing being less expensive than direct routing
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. What is the primary purpose of airline fare construction under IATA
tariff rules?
A. To determine aircraft fuel consumption costs
B. To calculate the correct published or constructed airfare for an
itinerary
C. To assign seat numbers on flights
D. To regulate airport security charges
The correct answer is B because fare construction is used to
systematically determine the applicable airfare for a passenger’s
routing using published tariffs and routing rules.
2. What does NUC stand for in fare construction?
A. National Unified Currency
B. New Universal Code
C. Neutral Unit of Construction
D. Net Unit Conversion
NUC stands for Neutral Unit of Construction, which is a standard
, accounting unit used to calculate international airfares before
converting into local currency.
3. What is the role of the Rate of Exchange (ROE) in fare construction?
A. It determines baggage allowance
B. It assigns fare basis codes
C. It converts NUC into local currency
D. It calculates taxes on tickets
ROE is used to convert fares expressed in NUC into the local selling
currency of the point of sale.
4. What is a fare basis code primarily used for?
A. Identifying aircraft type
B. Defining fare rules and conditions of a ticket
C. Calculating airport taxes
D. Assigning boarding priority
Fare basis codes indicate the rules, restrictions, and booking class
conditions associated with a specific fare.
5. What does the term “HIP” refer to in fare construction?
A. Highest Itinerary Price
B. Higher Intermediate Point
C. Historic International Pricing
D. Half Itinerary Pricing
HIP refers to Higher Intermediate Point, a rule ensuring a passenger
does not pay less than a higher fare for a more direct routing.
6. What is a “Mileage System” used for in fare construction?
A. Calculating baggage fees
B. Determining flight delays
C. Constructing fares based on permitted mileage between points
D. Assigning aircraft seating
, The mileage system is used to construct fares by comparing actual
flown miles against permitted mileage for pricing validation.
7. What does a “constructed fare” mean?
A. A fare only used for domestic flights
B. A fare calculated by combining multiple fare components under
rules
C. A fare set manually by airline staff
D. A discounted promotional fare
A constructed fare is built by combining multiple fare segments
according to published fare construction principles.
8. What is a “tariff” in airline fare construction?
A. Aircraft maintenance schedule
B. Airport security regulation
C. Published list of fares and rules
D. Passenger boarding document
A tariff is an official publication containing airfares, rules, and
conditions governing air transport pricing.
9. What does “backhaul” mean in fare construction?
A. Return flight cancellation
B. A higher fare applied when routing passes beyond the destination
before returning
C. Discounted round-trip fare
D. Airport transfer service
Backhaul occurs when a passenger travels beyond the point of
destination, often resulting in higher fare recalculation.
10. What is a “higher intermediate point rule” designed to prevent?
A. Overbooking of flights
B. Fuel surcharge manipulation
C. Cheaper indirect routing being less expensive than direct routing
