Airlines engaged in the interlining of passengers and cargo depend on settlement agreements to assist in the determination of each airline's revenue. These agreements are referred to as the Multilateral Prorate Agreement-Passenger and the Multilateral Prorate Agreement-Cargo.
IATA's Prorate Agency
The Prorate Agency maintains the passenger and cargo prorate agreements on behalf of airlines signatory to the Prorate Agency Agreement (PAA). The PAA is an agreement between the carriers and IATA to allow for the creation of the Prorate Agency to oversee these agreements on behalf of the signatories. The Prorate Agency is located in Geneva and consists of three people.
There are over 200 signatory airlines to the PAA. Signatory to the PAA is required before being able to sign one or both of the multilateral prorate agreements.
Why Become a Signatory?
Signatory airlines are permitted to vote at prorate meetings. Non-signatories can attend prorate meetings, but cannot vote. Not being able to vote can negatively affect your interline yield as a result of decisions made at prorate meetings.
How to Become a Signatory
- Prorate Agency Agreement (pdf)
- Multilateral Proration Agreement - Passenger (pdf)
- Multilateral Proration Agreement - Cargo (pdf)
For more information on proration, please contact: email@example.com