What are the conditions to apply to the NDC by LATAM connecting Financial Aid? 

Update DEC/2023: We would like to inform you that we officially closed the 2023 NDC by LATAM's techfund applications, and therefore, the form submit is now closed.

The transition to NDC by LATAM can result in extra costs for you and LATAM is willing to provide financial aid with a technological fund to cover the development costs of being able to connect to NDC by LATAM through our API or through NDC participating aggregators, in some determined cases and subject to following conditions: 

• Agency must sign the NDC by LATAM agency connection contract, in which the agency commits to develop the NDC by LATAM solution depending on the chosen connection type.
• Agency must satisfy a minimum of annual passengers sold with LATAM. The amount of the financial aid granted will be determined depending on the type of connection chosen by the agency and the volume of passengers sold with LATAM, according to the following table:

• For qualified agencies, 40% of the Financial Aid will be paid when the agency signs the development contract and the remaining 60% will be paid after the agency first 100 (one-hundred) tickets are issued in NDC by LATAM.
• LATAM has a limited budget for payment of the Financial Aid. Thus, Financial Aid is subject to availability on a first come, first served basis. Once the budget is extinguished, no more applications will beaccepted.
• You may only request financial assistance one time.  Any future connectivity changes, such as switching from one participating aggregator to another, or changing the connection method, will not receive additional financial assistance.  Only one financial assistance will be paid per agency group.

What are the conditions that apply to the NDC by LATAM base incentive?

The base incentive is US$0.50 per domestic passenger-segment (except domestic routes in Brazil and BASIC fares for domestic flights), US$1.50 per regional passenger-segment and US$2.00 per long haul passenger-segment. Applies from May 1 to April 30, 2024. Subsequently, new conditions may apply or the incentive may not be renewed. See the following examples:

No applicable to passenger-segment in Basic Bundle for domestic routes and passenger-segment in Brazil domestic flights.

What are the conditions that apply to the NDC by LATAM Incentive by targets?

For the periods of NOV23-JAN24 and FEB24-APR24, two levels of targets will be established, allowing you to earn these incentives:

1. From minimum 40% participation and up to maximum 60% participation of the total emissions made on NDC by LATAM. In this case, the incentive will be USD $0.50 for each passenger-segment issued after 40% participation and up to 60% participation.
2. From minimum 60% participation and up to 100% participation of the total emissions made on NDC by LATAM. In this case, the incentive will be USD $1.50 for each passenger-segment issued after 60% participation.
   

In both cases, the participation is measured as the total of NDC by LATAM issued passenger segments over the total of LATAM issued passenger segments for any connection, during the aforementioned period. Here are some examples of how these extra incentives will work:

Case 1: The agency issues 100 passenger segments in total with LATAM but only 25 passenger segments through NDC, therefore the usage rate is 25%. With this result, the agency does not meet the minimum target of 40%, therefore the target incentive payment would not be applicable.

Case 2: The agency issues 100 passenger segments in total with LATAM but only 50 passenger segments through NDC, therefore the usage rate is 50%. With this result, the agency meets the minimum target of 40%, therefore the incentive payment is USD $5, calculated as follows:

Number of passenger segments above 40% but below 60%: 10 passengers

Incentive to be paid for those passenger segments: USD $0.5

Total incentive per target = 10 *0.5 = USD $5

Case 3: The agency issues 100 passenger segments in total with LATAM but absolutely all of them were through NDC, therefore the usage rate is 100%. With this result, the agency meets both targets, therefore the incentive payment is USD $70, calculated as follows:

Number of passenger segments above 40% but below 60%: 20 passengers

Incentive to be paid for those passenger segments: USD $0.5

Total incentive 1 = 20*0.5 = USD 10

Number of passenger segments above 60%: 40 passengers

Incentive to be paid for those passenger segments: USD $1.5

Total incentive 2 = 40*1.5 = USD $60

Total incentive 1+2= USD $10 + USD $60 = USD $70

What are the conditions that apply to the NDC by LATAM ancillaries sales incentive?

We will pay 5% of the seat and baggage revenue you issue through NDC by LATAM. Applies from May 1 to April 30, 2024. Subsequently, new conditions may apply or the incentive may not be renewed.

What will be the payment method for the NDC by LATAM?

The incentive will be paid via ACMs to the agencies. Base and ancillary incentive will be paid at the same moment as the back-end performance incentive payment. That means, depending on the POS, it will be paid at the end of each month or quarter. The incentive for meeting NDC by LATAM usage targets will be paid at the end of each 6 months period.

Is there additional restrictions to NDC by LATAM incentives?

• Non-IATA agencies do not apply for the incentive payment as there is no feasible payment method.
• Incentives applicable only to passenger-segment issued via “NDC by LATAM" and only to flights operated by LATAM.

For global agencies, how is the incentive for meeting NDC by LATAM usage targets applied?

The targets are set by POS, which means that the agency will access the incentive if the target of passengers issued is met in a specific POS. Issuings in different POS are not aggregated when calculating the usage of NDC by LATAM.

What happens if I have in my ticket a domestic Brazil leg or a BASIC leg? Is the incentive paid for this legs?

No, because the incentive is paid at a leg level. The incentive will be paid only to the legs that don’t fall into one of the exceptions. Please see the following examples:

What happens with the incentive in the cases in which tickets issued in NDC by LATAM, who were incentivized, are refunded?

In the case of a refund, the incentive value will be discounted of the refunded amount or in the next period of payment.