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

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:

In May 2023, we applied an additional incentive to the NDC base incentive for US $1.00 for each passenger-segment. The additional incentive of May 2023 will be extended for the month of June 2023 and its amount will be increased to US $1.50 for each passenger-segment, without changing the conditions described above.

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

Every passenger-segment once the penetration target of NDC by LATAM is achieved. The penetration target is achieved, once an agency's NDC by LATAM issued passenger segments exceeds 25% of an agency's total LATAM passenger segments. On this surplus of more than 25%, the incentive will be US$1.00 for all passengers-segment. Applies from May 1 to April 30, 2024. See the following examples:

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.
• The incentives apply only to the passenger-segments 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.