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Air France KLM ADM Policy 2014 – effective immediately

February 11, 2014 Corporate No Comments Email Email

AirfranceThe objective of these Policies is to ensure that the fare rules and other agreements made between the Travel Agent and AFKL are respected and in case of the contrary, to settle the difference in an adequate and logical way, equal for all distribution channels.

Checks are performed on the following:
 All 057 and 074 documents issued, refunded, exchanged and revalidated with automated or manual fare quotes
 All fare elements for published and negotiated fares ( including corporate )
 Booking Procedures ( eg. Advance Purchase)
 Credit Card Acceptance procedures
The obligations of the Travel Agents are described in IATA Resolution 824 in which is stated that the Agent should issue tickets in compliance with Carrier’s fares, fare rules, General  conditions of carriage and the written instructions of the carrier as provided to the Agent.

Airlines have the right to audit and send ADMs for all transactions. The IATA Resolution 850m obliges airlines to publish and communicate in writing their ADM policies in particular all fees and fixed amounts. All fare rule elements are subject to the audit process , including :
 incorrect Baggage allowance
 Misplating
 Subclass abuse
 Breaking of Married Segments (audit of tickets sold as O&D)
 Incorrect application and / or missing fuel surcharges and all other relevant taxes , and credit card fees
 Incorrect application of commission
 All Issues/ Reissues/ Revalidation transactions with automated and/or manual fare quotes
 refunds
 Incorrect collection of administrative charges or other fees
 Booking procedures
 Credit card chargeback
 Fare elements – eg DOB for child if child discounts applied
 Flight Application, misplating, routing and booking class application on third carriers ( in accordance with IATA resolution 852)
ADMs are subject to IATA resolution 852 “designation and selection of ticketing airline” , which defines the rules and issuing priorities. It determines clearly the agent is responsible for the ticket issued.

Flight Application
Travel agent must check if the marketing carrier is permitted to be used in AF/KL private or public fares ( refer to “Flight Application” paragraph in your respective GDS) If a marketing carrier is not permitted, an ADM is proposed whereby the amount will be the difference between fare ticketed and the first published fare in which the other carrier is permitted without “Flight Application “ restriction )

ADM reason shown: INCORRECT FARE

Please note:

Validating Carrier ( VC) is linked to the fare . Missing or incorrect fuel surcharge as a result of the VC modification in the fare quote will result in an ADM.

 Baggage allowance ADMs
In case incorrect baggage allowance shown on the ticket, an ADM will be send according to below fixed amounts per direction. Applicable worldwide.


For certain destinations weight concept still applies. In that case, the maximum weight concept allowed is equivalent to 1PC.
 Misplating ( subject to IATA resolution 852)
 Misplating occurs when private fares of other carriers are used on AF/KL ticket stock, or for any other fare for which AF/KL plate is not permitted . Refer to “ sales restriction “ paragraph in your respective GDS.

AFKL check if the use of AF/KL ticket stock for issuing on both manual and automatic fare quotes is permitted and done correctly.

An ADM will be raised in the following instances:
1. Tickets issued with a carrier that does not participate / is not permitted on AF/KL/DL/KQ private or published fare. Amounts raised will be based on the first applicable published fare, without plating restrictions, as per IATA rules.
2. tickets issued with other carrier fares ( published or private ) which are not permitted on AF/KL stock,and where the other carrier restricts issuance on their own documents only. Amounts raised will be based on the first applicable published fare, without plating restrictions, as per IATA rules.
3. tickets issued without at least one long haul carriage on AF and/ or KL.
4. Exception: HOP! ( A5 ) sectors and fares can be issued on 057 stock without any AF carriage.
The above cases will be considered as Misplating even though the GDS will not prevent systematically issuing these fares on AFKL ticket stock.

ADM reason: Misplating : fare not permitted on AF/KL ticket stock.

Incorrect booking class on third carrier/ routing not permitted on third carrier
In case of incorrect booking class used or incorrect routing applied, ADM will be raised on the applicable fare per cabin for sector flown.

ADM reason: Incorrect booking class or routing not permitted Sub class abuse All tickets sold are checked on correct application of booking class.

Charges for the misuse of the inventory system will be based on fixed amounts.

Breaking of Married Segments (Audit of tickets sold as O&D)
The Agent undertakes to only book from the availability display for the Origin and Destination concerned and not by subverting married segment controls before or after EOT(End of Transaction) on other Origin and Destinations.

In case a Travel Agent is issuing tickets based on PNR with broken married segments that were initially married, an ADM will be sent. The ticketing agent will be responsible even if booking was made by a sub-agent.
The following fixed amounts apply (per direction and per passenger) :

– 300 EUR ( or equivalent in local currency)

The following fare control audits will also apply:

 Airport checks
Air France and KLM also perform controls at airports to ensure that fare rules and conditions of carriage are respected. ADM will be sent in case of responsibility of the Travel Agent. In Particular, ADM will be sent in case of passengers holding tickets with special Tour Operator fares without being eligible to travel with such fares. Proof of eligibility produced after ADM issuance will not be accepted.

ADMs raised will be based on fixed amounts for these specific cases:
 Short and medium haul flights in Economy cabin : EUR100 per ticket/passenger
 Long Haul flights in Economy cabin: EUR250 per ticket /passenger.
For travel in other cabins, fare will be readjusted to the first unrestricted published fare in same cabin.
 Credit Card Chargeback / Credit Card Fraud
In case Air France and KLM are debited by the credit card company as a result of credit card misuse or fraud on a ticket issued by the agent, Air France KLM will charge the agent for the cost. The agent is always responsible for checking the validity of the credit card and to ensure that the card holder’s signature is provided or to secure the eligible website for e-tickets purchase.
 Missing / Unreported tickets
In case any discrepancies are found in the sales information/reporting of agents in the settlement between agent and airline, an ADM will be issued. This can be due to several reasons such as an unreported ticket or cases in which flown tickets are missing in BSP sales reporting.

Missing information
An ADM in the amount of 50EUR ( equivalent in local currency) will apply if :

 Missing date of birth when the fare requires it’s introduction
 Missing Ticket Designator
 Missing Ticket number on VMPD or missing VMPD number on the ticket in case of reissues
 Missing corporate information ( ei OIN reference )

Inactive Segments
The agent undertakes to delete from the PNR all flight segments with the status HX/NO/UC/UN latest 24 hours prior departure.
Inactive segments remaining in the PNR within 24 hours prior to departure will be subject to a fixed fee of EUR3.50 per seat per passenger:

Inactive segments are notified via GDS queue with a status:
HX= holding cancelled
UC= unable / flight closed
UN= unable/ flight cancelled
NO= no action taken

Minimum ADM amount
In case deviations of the fare rules are found on the tickets during the audit process, Air France KLM will systematically generate ADMs reflecting the value of the difference between the real applicable fare and the applied fare. (except for ADMS based on fixed amounts)

If no reference fare available, a fixed amount of 100EUR ( or equivalent in local currency) ADM will be raised for Economy class and 300 EUR ( or equivalent in local currency) ADM for Premium Economy/ Business/ First class.

The minimum amount, for which an ADM is raised, is AUD11.00. If different, unrelated charges apply, Air France KLM can issue more than one ADM for one and the same original ticket. In case of a persistent practice of under collection (multiple occurrences of underpayments of less than AUD11.00 ) by the same IATA, Air France KLM reserves the right to recover these underpayments per ADM.

In the cases where the ADM is for reason of under collection of the fuel surcharge, commissions and taxes, penalties and fees, no minimum applies and an ADM will be generated for the real difference in amount due. For other reasons, no ADM below AUD11.00 will be raised.

Administrative fee

AUD25.00 applies per ADM.
ADM process in BSP
In compliance with IATA resolution 850m
» An ADM can be sent out by the airline via BSP within 9 months after the final travel date. When the final travel date cannot be established, the expiry date of the document will be used. After this period payments will be settled between the agency and the airline directly.
» In line with IATA Resolution 850m, Air France KLM will send the ADMs via BSP link with no financial consequences during the 14 day dispute period .
» Once the dispute period has passed, the ADMs will be processed for settlement in BSP-link automatically.
» Disputes can only be done via BSP link. Attach any enclosures via BSP link only as this will ensure an optimal service from AIR FRANCE and KLM.
» When making a dispute, a valid and clear justification must be provided at all times in the “Dispute Reason” box. Otherwise the dispute cannot be handled
» Please mention your contact details for an efficient handling by AF/KL.
» AIR FRANCE and KLM will reply to your dispute within 60 days (conform Resolution 850m) giving a clear explanation of the acceptance or denial of the dispute.
» In case of denial of the dispute by the airline, the ADMs will be automatically processed for settlement. If Agent wishes to continue disputing the ADM, he/she must contact AFKL with additional supporting information. Supporting documentation must be submitted within 2 weeks of original ADM having been received. Failure to do so, will result in the ADM being submitted for settlement to BSP link.

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