INDEX

1. INTRODUCTION .......................................................................................................................... 2
2. GENERAL CONCEPTS ................................................................................................................... 2
2.1 WHAT IS AN UNPRODUCTIVE BOOKING OR SEGMENT? ................................................................................... 2
3. UNPRODUCTIVE PRACTICES AUDIT BY AVIANCA......................................................................... 2
3.1 INACTIVE SEGMENTS .............................................................................................................................. 2
3.2 CHURNING ........................................................................................................................................... 3
3.3 DUPLICATES .......................................................................................................................................... 3
3.4 PASSIVE SEGMENTS ................................................................................................................................ 4
3.5 INFORMATIVE SEGMENTS ........................................................................................................................ 5
3.6 SPECULATIVE PNRS AND FAKE NAMES....................................................................................................... 5
3.7 FAKE TICKETS ........................................................................................................................................ 5
3.8 WAITLIST ............................................................................................................................................. 5
3.9 HIDDEN GROUP..................................................................................................................................... 5
3.10 NO SHOW ............................................................................................................................................ 6
3.11 INVENTORY ABUSE PRACTICES .................................................................................................................. 6
3.12 CANCELLATION RATIO ............................................................................................................................. 7
3.13 UNCOMMITTED BOOKINGS ...................................................................................................................... 7
3.14 MULTIPLE GDS ..................................................................................................................................... 7
3.15 TIME LIMIT TO ISSUE TICKETS ................................................................................................................... 7
3.16 TIME LIMIT TO ISSUE SERVICES .................................................................................................................. 8
3.17 NAME CORRECTIONS .............................................................................................................................. 8
3.18 INCOMPLETE USAGE OF THE TICKET ........................................................................................................... 8
4. PRODUCTIVITY ANALYSIS............................................................................................................ 8
4.1 TRAVEL AGENCIES PRODUCTIVITY ............................................................................................................. 8
4.2 REACTIVATION OF ACCESS TO AIRLINE INVENTORY ........................................................................................ 9
5. DISPUTE PROCESS ..................................................................................................................... 10
6. TICKETING THROUGH ONLINE SALES CHANNELS ....................................................................... 10
6.1 BORDER SALES OF AVIANCA PRODUCTS AND SERVICES ................................................................................. 10
6.2 UNDERCUTTING................................................................................................................................... 10
6.3 IMPROPER USE OF THE AVIANCA BRAND IN SEARCHERS ................................................................................ 11
6.4 AUCTION OFFER WITH KEYWORD AVIANCA ............................................................................................... 11
6.5 AUDITING AND EVIDENCE ...................................................................................................................... 12
7. POLICY VALIDITY ....................................................................................................................... 12

1
 1. Introduction

The purpose of this document is to inform Travel Agencies about Avianca’s Policies
in order to ensure the airlines inventory integrity, and promote good practices that
contributes an efficient sales process

For the creation of the Avianca Unproductive policy, IATA Resolutions 824, 830a and
850m have been considered. In section 3.2 of resolution 824, it is established that
the travel agency must adhere to the policies and regulations of the airline, for this
reason this document is published in Avianca.com, help pages of the Distribution
Systems and in BSP Link for agencies to have access.

This document applies to both IATA/ARC and Non IATA/Non ARC travel
agencies, Online and Offline agencies.

The consolidating agencies and/or agencies that make sales or issuance of tickets on
reservations made by third-party agencies, will be solely responsible to AVIANCA for
the reservations made by the third-party agencies, for the sole fact of issuance, and
in the event that these reservations do not comply with the requirements of this
policy and/or with the procedures and regulations published by AVIANCA, the
consolidating agencies and/or issuing the tickets will be subject to the sanctions
established in this policy.

The values indicated of each unproductive may be modified by the airline at any
time.

2. General Concepts

2.1 What is an unproductive booking or segment?

An unproductive booking is a booking that does not generate any revenue to the
airline; instead, it generates an additional cost and / or blocks seats.

3. Unproductive practices audit by Avianca

3.1 Inactive Segments

Inactive segments are those sent to an agency queue, with the following status UC,
UN, NO, US, HX. These segments should be cancelled according to what has been
described in this policy to avoid incurring in this unproductive practice.

Segments booked by travel agencies may be cancelled for the following reasons:

• Expiration of time limit for issuing the tickets

• Duplicate reservations or segments
• Fictitious names or tickets
• Married Segments Abuse
• Speculative bookings

2
Travel agencies are responsible for reviewing the queues and canceling all those
segments in order to avoid debit memos due to non-cancelled segments

The applicable charge for non-cancelled segments is USD $25 per

segment/passenger.

If the PNR contains an issued ticket, the charge for non-cancelled segment will not
proceed. The charges will only apply for those PNR without an issued ticket.

The segments that are received on the queue must be cancelled according to the
following:
• The travel agency must cancel all messages status HX, UC, UN, US, NO
during the same month in which segments are received in the
corresponding queue.
• If the flight date on the reservation occurs during the current month, HX, UC,
UN, US, NO segments must be cancelled at least 24 hours prior to the
scheduled flight departure time.

Recommendation:
To avoid debits we recommend that agencies check the queues in the respective
systems every day and cancel all HX, UC, UN, US, NO status segments on a
daily basis.

3.2 Churning

Only five cancellations and five bookings will be allowed for the same segment-
passenger, same flight date and same or different flight number and service class,
in one or more PNRs o GDS. Churning will be considered from the sixth booking.
Transactions performed by the airline will be excluded.

Applicable charge will be USD $30 per passenger regardless of issuing a ticket or
passenger has traveled.

Recommendations:

• Before performing receive from transactions or making changes on the

service class, verify the availability of the desire class in order to avoid
unnecessary bookings
• Do not avoid ticket time limit by cancelling and rebooking segments.

3.3 Duplicates

Duplicate segments or PNRs for the same passenger with non-flyable itinerary that
are active simultaneously on system, are not allowed by Avianca

The applicable charge will be USD $20 per segment/passenger, regardless of

issuing a ticket.

3
Recommendations:

• Avoid multiple reservations for the same passenger with non-flyable

itineraries
• In the case that father and son have the same name and last name, it is
recommended to include in the contact field, a different contact associate to
each passenger or frequent flyer number of each passenger.
• In accordance with IATA resolution 830d, it is recommended to include
contact data for each passenger
• In order to verify if there is another active reservation for the same passenger
within the same Pseudo/Office ID, it is recommended to consult the
commands with your GDS

3.4 Passive Segments

The “Claim PNR” tool is used to manage groups in Sabre and in Galileo is used the
“LADT” tool (Limited Access Drop Through) based on the airline's group reservation
procedure.

Avianca audits the issuance of group reservations in Apollo and Worldspan GDS for
the following passive status: AK, BK, BL, GK, GL, MK, PK, PL, DS, YK.

After the issuance of tickets, it is required to cancel the passive segments of a

group reservation and their respective splits; otherwise, those segments will
be subject to Debit Memos.

Avianca does not allow creation of segments with passive status for individual
reservations for any reason

All reservations, individual or group, with passive status that are not canceled, will
be debited with a charge of USD $ 10 per segment/passenger.

Recommendations:

• Use the passive segments only to issue tickets for Group bookings in Apollo
and Worldspan GDS.
• If the flight date occurs in a different month from the month of the ticket
issuance, the segments must be canceled during the same month in
which the ticket was issued.
• In the event that the flight date of the reservation is within the month in
which the tickets were issued, must cancel the segments at least 24
hours before the departure time of the flight.
• Ensure that both reservations, the one created in the GDS of the travel
agency as the created in the airline system, are exactly the same including
the groups format in the name field.
• For the issuance of group reservation tickets for the GDS Sabre use “Claim
PNR” and for Galileo LADT

4
 3.5 Informative Segments

Avianca does not allow the use of informative segments under any circumstances

3.6 Speculative PNRs and Fake Names

Are reservations created without the intention of making a trip, Names entered
incorrectly and/or incomplete names, or with a high probability of not being the name
of a real passengers, for example: AAAA / BBB, Cotizacion, NAME, PAX, TEST,
PRUEBA or similar.

AV does not allow the creation of speculative reservations or for training purposes,
it is recommended to use the Test / Training environment provided by each GDS.

The applicable charge for speculative PNRs or reservations created with Fake Name
is USD $30.00 per passenger on the reservation.

Recommendations:

• Please include the passenger's full name according to the identification

document required at the time of the trip (with a maximum of 26 characters in
the passenger name field).
• When a real name could be considered as fake, please save documents that
proves that passenger name is real.

3.7 Fake tickets

Fake tickets are those that contain false numbering or tickets with invalid status and
that are blocking spaces in Avianca's inventory.

The charge for fake tickets will be USD $50.00 per passenger in PNR.

Recommendations:

Please refrain from creating reservations with invalid ticket numbers.

If a ticket is voided, cancel the reservation immediately after in order do not block
space

3.8 Waitlist

Avianca does not allow waiting list segments, if segments created from the GDS are
detected, a fee of USD $25 per segment/passenger will be applied

Recommendation:
Avoid requesting segments on classes already closed (0).

3.9 Hidden Group

A group refers to 10 or more passengers traveling together.

5
The airline policy considers a group when 10 or more passengers are traveling with
the same Origin-Destination in business or economic cabin regardless of the fare
paid.

Avianca audits hidden groups created through individual reservations and reserves
the right to cancel the associated individual reservations. The applicable charge is
USD $20 per passenger.

Recommendations:
• The group reservations (10 or more passengers) must be required according
to the Avianca group procedure.
• Refrain to create speculative reservations that blocks spaces in airline
inventory.

3.10 No Show

It is considered a No Show when a passenger will not use a reservation and it is not
cancelled on time, therefore this block spaces in the inventory. Reservations that do
not have a ticket issued are included in the audit.

The applicable charge is USD $25 per passenger.

3.11 Inventory Abuse Practices

Avianca may provide a level of availability on Origin/Destination and Point of

Commencement level that may differs from the level of availability provided if the
segments were sold separately. When creating or modifying a PNR the travel
itinerary must be booked in sequence of travel times.

The segments of an Origin / Destination must be reserved together, regardless if a

reservation involves only Avianca flights, Codeshared and / or flights from other
airlines. The segments of an itinerary can become married segments, however, it
must reflect and secure authorized Minimum Connecting Times.

Avianca audits itineraries that are not booked from the provided Origin / Destination
availability and that have been manipulated before or after EOT to confirm service
classes not available for sale.

Avianca strictly forbids any manipulation of bookings and subsequent ticketing of

itineraries identified as inventory abuse. Such manipulations will be subject to
cancellation of the PNR when a ticket is not issued and/or the issuance of a Debit
Memo / Invoice.

Travel agencies that issue tickets of reservations identified with inventory abuse are
responsible for malpractices even if they are not the creator agency. The penalties
are applicable for both, the creator agency of the booking and the issuer agency of
the tickets.
6
The applicable charge will be USD$175 per segment/passenger, regardless of
issuing.

Recommendations:

• Book Origin/Destination based on availability display

• When rebooking o need to change the itinerary, all segments must be cancelled
and a new itinerary must be booked based on the availability display
• Do not circumvent the logic of Origin / Destination trying to get a space in a
closed class, in order to obtain a lower rate that does not apply because it is no
longer available in the requested service class
• Book the segments of the itinerary in chronological order

3.12 Cancellation Ratio

Avianca audits the cancellation ratio that is defined as the number of cancelled
segments vs. the number of booked segments. This ratio shall not exceed 75% for
Offline and 50% for online Travel Agencies.
Cancellations should be done at least 48 hours before departure.

3.13 Uncommitted Bookings

Uncommitted bookings are bookings that are not finalized with EOT and they keep
being held by the creator agency.

If the blocking of segments by Uncommitted Bookings are taking longer than the
average time necessary to close the sale, these seats are not available for other
sales channels, which represents a high opportunity cost for the airline.

In order to reduce the blocks of spaces associated with this malpractice, the
number of unconfirmed reservations that are held by agents is regularly monitored,
including the time that those keeps active.

In case the reservation is not confirm, it is recommended to remove them

immediately. Avianca reserves the right to terminate sessions of uncommitted
bookings at any time.

3.14 Multiple GDS

Agencies with multiple GDSs must book and issue tickets using the same GDS. This
practice contributes to the productivity of the agencies and to avoid unproductive
bookings in the Avianca inventory.

3.15 Time limit to issue Tickets

The time limit of a PNR reflects a specific date and time to be able to issue the ticket.
Each fare has its own ticketing time limit, however, in case of discrepancy between
the time limit set in the system and the reflected in the fare, the most restrictive
ticketing time limit will apply

7
Avianca use an automated process to cancel segments when ticketing has not
occurred by applicable time limit.

In case of PNRs with multiple passengers and partial ticketing, the PNR will be split
and the non-ticketed bookings will be cancelled.

3.16 Time limit to issue services

Avianca sets a date and time deadline for the issuance of EMDs (Electronic
Miscellaneous Document) required for certain chargeable services (SSR).

This charge and the time limit messages set to issue the special service are shown
in the PNR, however, the service time limit set by the system does not necessarily
match the ticket time limit. The non-issue services will be cancelled.

3.17 Name Corrections

The name of the passenger must be entered in the PNR according to the travel
document, preferably the passport.

Name change is not permitted in reservations that already have a ticket

issued, however, if a correction name is needed, it is considered the following
process: the original PNR must be cancelled and a new PNR must be created, based
on current availability. In case of the original ticket, it may be use as a part of the
payment to the new ticket, plus penalties fee according to policies and restrictions
owns of the fare acquired and the corresponding name correction fee.

For name corrections it is allow to modify up to 3 characters in issued PNRs and only
when the passenger name is misspelled

3.18 Incomplete Usage of the ticket

It is not permitted to make reservations including fictitious segments that will not be
flown for the passenger and that are booked in the itinerary with the aim to obtain
lower fares. This includes booking and issuing round-trips for the purpose of one-
way use or partial travel only.

Travel agencies must book the itinerary only with the segments to be used by the
passenger, please abstain to book segments that will not be used.

4. Productivity Analysis

4.1 Travel Agencies Productivity

Avianca monitors costs generated by a travel agency regards to the sales generated
during a specific period.

When measuring a travel agency’s productivity, the following costs will be included:
* Availability of flights request
* Bookings creation, modification and cancelation
* Tickets issued

8
* Credit card commissions
* Sales commissions

Cases to be evaluated:
Case 1. Travel agency with generated costs exceeding 15% of its sales, which is the
acceptable industry parameter for agency productivity
Case 2. Travel agency with generated costs and no sales.

In case of inefficiency, Avianca reserves the right to apply any of the following
actions:
• Suspend access to seamless availability Requests
• Full or partial inhibit access to inventory
• Modification of business relationship
• Warning letter

Recommendations

Make correct use of reservation systems on Avianca flights, with the aim of executing
an efficient sales process without malpractices

4.2 Reactivation of access to Airline Inventory

Avianca reserves the right to block and inhibit access to inventory for any of the
following reasons:
• Lack of productivity
• Unproductive practices on Avianca’s inventory
• Fraud
• IATA/ARC status default
• Irregularities in payments to Avianca
• Voluntary deactivation

In case the Travel Agency requires to have access again to airline inventory, it will
have to cancel a fee of USD $300.

Avianca reserves the right to not reactivate the access to inventory depending on
the severity of the case.

The following steps are required to reactivate access to Avianca inventory:

• The travel agency asks the local Sales Manager to reactivate Avianca
inventory.
• Avianca will analyze if it is possible to return the inventory access depending
on the reason for inhibition.
• In case Avianca accepts to reactive access to inventory, the airline will send
an ADM* or invoice** with a USD $300.00 reactivation fee.
• Once payment has been received, travel agency access will be reactivated.

*ADM (Agency Debit Memo) applies only to IATA travel agencies.

**Invoice applies to non-IATA agencies.

9
 5. Dispute Process

Travel Agencies can dispute the received Debit Memos through the following options:

• BSPLink
The ADM can be dispute during the following 14 days, through the active
option in the system to submit comments and attach the support that sustains
the dispute, which must be requested to Agency GDS.

• E-mail
After 14 days, the option to dispute through BSP will be disable, however the
agencies can send their cases to the following e-mail according to the country
they belong:
• Colombia ADMs not Billed: notasdecargo@avianca.com
• Colombia Credit Note Request: notasdebaono@avianca.com
• United States: arc.solutions@avianca.com
• Rest of the word: soluciones.bsp@avianca.com

Dispute must be supported with the complete PNR history which must be required
to the GDS, and all other supports that prove the travel agency did not incurred in
the audited practice.

6. Ticketing through Online Sales Channels

To ensure transparent and consistent publicity with the final customer, and pursuant
to the power established in numeral 1), IATA Resolution 830a and Subsection 11.3
of the ARC’s “Agent Reporting Agreement”, the following practices will be considered
by Avianca as infringement against adequate ticketing through online sales channels
and will be sanctioned pursuant to the provisions of this document.

6.1 Border sales of Avianca products and services

The agency must offer, book and issue tickets according to Avianca fares published
in the country where the sale is made and pursuant to the IATA code registered by
the agency for the respective country.

The agency must offer, book and issue available fares applicable to the country
where the sale is made.

The office used to create the booking and issue the ticket must belong to the same
country.

6.2 Undercutting

To market and sale the airline’s air fares, agencies with a website or online travel
agencies are free to make agreements with third parties for which the benefit inures
in the final customer; however, in any publicity and ads regarding said benefits
Avianca’s air fare must be announced at 100% of its value (pursuant to the
publication and parametrization loaded by Avianca in the ATPCO and sent to Global
Distribution Systems), regardless of the final price as per the benefits offered by the
travel agency.
10
As of the effective date of this policy, information offered by travel agencies in their
portals regarding fares for Avianca’s air transportation service must be governed by
the following:

a) Display and promotion of fares in the agency’s website search process,

metasearchers, aggregators and price purchasers must be consistent
with the fares published and parameterized by Avianca or fares
negotiated with the agency if applicable.

b) The benefits offered to final customers by the agency resulting from

third-party partnerships or fare discounts must be shown during the
purchase process on the agency’s website, and duly informed in the
search processes pursuant to this policy.

6.3 Improper use of the Avianca brand in searchers

A travel agency or any website it may own or operate is not authorized to use the
commercial name or brand at the beginning of the domain name. Travel agencies
are also not allowed to alter or make changes to the word Avianca, such as, but not
limited to, “Avianka”, “Abianca” to avoid this prohibition.

The Avianca brand on online ads must be used according to Google’s Trade Mark
policy, where Avianca has registered its brand.

It is considered poor practices to index meta titles with “Avianca.com”. We

recommend including “Avianca” after the travel agency’s main brand in the meta
title. This applies for third parties in their own website or one operated by the travel
agency.

6.4 Auction offer with Keyword Avianca

We suggest that travel agencies do not make offers with the keyword “Avianca” or
“Avianca.com” in any market on digital ad platforms who market text ads in search
engines such as Google.com (Google Ads) or Microsoft Advertising (previously known
as Bing Ads).

If making an offer with the word “Avianca” or “Avianca.com”, in order to keep a

healthy relationship regarding investment costs, we suggest the travel agency
always places it in a second position, keeping an “IS” impression share (understood
as the number of impressions received, divided by the estimated number of
impressions it may have received) under 20%.

Impression share is measured on a monthly basis for desktop computers, as well as

for tablets and mobile phones. We suggest a 20% impression share to be maintained
daily, in all time zones, as an upper limit established based on the cost increment
relationship for Avianca which represents a strong participation from other
stakeholders.

11
 6.5 Auditing and evidence

If we identify a travel agency is incurring in any of the previously mentioned poor

practices, evidence will be collected and sent attached to a warning notification with
a due date to cease said practices. If there is evidence of recidivism of the poor
practice, the applicable sanctions mentioned below will be enforced.

General audits will be performed monthly.

We will consolidate evidence and send it attached to a warning notification with a

due date to cease these practices. If there is evidence of recidivism of the poor
practice, the applicable sanctions mentioned below will be enforced:

a) Issue an ADM (Agency Debit Memo) pursuant to the provisions of IATA

Resolution 830a and 850m.

ADMs will be issued for a % of total daily sales of the travel agency registered
in ARC/BSP, for the day(s) in which evidence of poor practices is collected.
As evidenced in the following table, the % will increase as recurrence of the
poor practice does not cease.

Penalty (ADM) Frequency

0,5% of total sales First incurrence
1,0% of total sales Second incurrence
1,5% of total sales Third incurrence and above

Modify, retain payment and/or event deactivate the travel agency’s incentives
plan.
b) Inhibit access to the airline’s inventory. This inhibition may be temporary or
permanent, at Avianca’s discretion.
c) Avianca reserves the right to cancel the authorization to issue tickets
pursuant to the provisions of numeral 7.2.3. in IATA Resolution 812, and
therefore, to rescind the Travel Agency agreement or the ticket sales agency
agreement (IATA Resolution 824 - Numeral 13).

7. Policy Validity

The information contained in this document is current as of the date of publication.

Avianca reserve the right to modify at any time and without notice, effective to the
future, the guidelines and general conditions, for the adequate use of the distribution
systems contained in this document.

AGENCY NAME ___________________________________________________ PSEUDOS _________________________________

LEGAL REPRESENTANT SING ___________________________________________________ DATE _________________________________
LEGAL REPRESENTANT NAME ___________________________________________________ AGENCY SEAL
FEIN NUMBER ___________________________________________________
AGENCY ADDRESS ___________________________________________________
CONTACT NUMBER ___________________________________________________

Please send a copy of your legal document, as FEIN/RUT/RUC/NIT

12