IATA

IATA: International Air Transport Association

Year of Establishment: April, 1945 in Havana, CUBA

Head Quarter: Montreal, CANADA

Director General and CEO (Chief executive officer): Mr. Giovanni Bisignani

About IATA: IATA is an international trade body, created some 60 years ago by a
group of airlines. Today IATA represents some 230 airlines comprising 93% of
scheduled international air traffic. The main objective behind the establishment of IATA
was to promote safe, reliable, secure, economic air services for the benefit of the world
consumers.

History, growth and development: IATA was founded in Havana, Cuba, in April 1945.
The modern IATA is the successor to the International Air Traffic Association founded in
Hague in 1919-the year of the world’s first international scheduled services. At its
founding, IATA has 57 members from 31 nations, mostly in Europe and North America.
Today it has some 230 members from 126 nations in every part of globe.
IATA was founded as a result to overcome the complexities and problems arising as a
result of the airlines in the years following the World War II. Therefore a need for the
worldwide organization was felt which could handle these complexities related to air
travel.
A convention was organized in Chicago, USA in 1944. The convention constituted two
permanent bodies namely International Air Transport Association (IATA) and
International Civil Aviation Organization (ICAO).
The most important tasks of IATA during its earliest days were technical, because safety
and reliability are fundamentals to airline operations. After that IATA helped in
standardization of documentation and procedures. IATA also made standards formats and
procedures for passenger and cargo services, currency, fare construction etc.

Objectives/Aims/Mission of IATA

• To promote, safe, regular, and economical air transport for the benefit of the
people of the world.
• To provide assistance among the air transport enterprises engaged directly or
indirectly in international air transport services.
• To co-operate with the International Civil Aviation organization
• To achieve recognition of the importance of air transport world wide

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IATA Membership

Formal IATA membership only applies to airlines. But other industry partners can
participate in different IATA programs.

1. Airlines: IATA Membership is open to both scheduled and non-scheduled

airlines, covering the following categories:

a) Active Members: This membership is open to airlines operating

international and/or domestic services.
b) Associate Members: This membership is open for the airlines operating
domestic services only.

2. Airports: Here membership is open to all privately and publicly managed

airports.
3. Travel agencies: IATA Accreditation programmes are open for travel agencies.
After taking this membership the travel agents can become IATA approved and
can issue air ticket.
4. Cargo agents/freight forwarders: IATA membership is also open for cargo
agents and IATA accreditation provides industry recognition for cargo agents.
5. Industry suppliers: IATA strategic partnership programme allows suppliers and
service providers to interact with IATA and member airlines as well as other
tourism service providers.

Benefits of IATA membership:

1) International recognition and lobbying: IATA provides a powerful, unified and

experienced voice to support and promote airlines and other members. IATA
membership gives global recognition. Supported by over 80 offices in 110
countries, IATA actively lobbies governments, and other international bodies on
key issues such as safety, security, taxation, etc.
2) Helps in reducing costs: IATA offers a number of financial services at reduced
fees to help contain costs, improve cash flow and maximize efficiency.
3) Provides Training: IATA provides training in major fields such as passenger,
cargo and safety.
4) Discounts: IATA members receive discounts up to 30% on a number of IATA
products and services.
5) Use of Logo: IATA members can use the logo of IATA. Today there are about
81000 IATA agents world wide.
6) Communication: IATA members can participate in conferences, and
conventions, etc. The IATA annual general meeting brings together
representatives from leading international airlines.
7) Market research information: IATA provides market research information to its
members from time to time. It collects industry statistics. It publishes
international manuals, survey reports, books, newsletters, etc.

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 Areas of activity/ services/functions/activities of IATA:

1. Global planning of international time tables

2. Single formula for tickets, and airway bills.
3. Standardization of documentation and procedure.
4. Airline operations: It includes IATA airline codes, flight operations, fuel,
ground handling in-flight services, etc.
5. Airport services: These includes Air traffic management, airport
development etc.
6. It includes cargo, cargo safety, cargo security, dangerous goods, etc.
7. Passenger activities: It includes e – ticketing, reservations, simplifying
passenger travel, passenger and baggage processing, etc.
8. Finance activities: IATA’s financial committee deals with all aspects of
finance activities like settlement of dues between airlines and other
members.
9. Legal activities: IATA’s legal committee deals with international laws like
air law etc.
10. Medical activities: IATA medical committee consists of medical officers
and takes care about illness of passengers, water and food supplies,
sewage disposal, etc.
11. Traffic activities: It is headed by traffic committee. For this purpose the
IATA has divided the world into Traffic conference areas.

IATA Traffic conference areas or IATA TCA/ TC areas:

For administrative purposes IATA has divided the whole world in to three areas known
as IATA traffic conference areas or TCAs.
TC Area 1: North America, South America and Islands of Greenland, Bermuda, West
Indies, Caribbean, Hawaii islands.
TC Area 2: All of Europe, Africa, Iceland, part of Asia lying west of and including Iran.
TC Area 3: All of Asia and islands except the portion in Area 2, East Indies, Australia,
New Zealand, Islands of Pacific Ocean, except in Area 1.

Organization Structure of IATA:

• The organization structure of IATA is the formal network of relationships for
performing various types of activities and powers/duties associated with each role
in this network.
• The main source of authority is IATA is its annual general meetings, in which all
active members have an equal vote.
• Members of various IATA committees like legal committee, financial committee,
Technical committee, medical committee, traffic conference committee are
nominated by individual airlines.
• IATA administrative and management is carried out under a director general who
is supported by other executive officers, like treasurer, financial director,
secretary, technical director, traffic director, etc.

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 • The main IATA Head Quarter is in Montreal, Canada while administrative HQ of
IATA traffic conference and IATA clearing house are located in Geneva.

Rules and conditions for IATA approval/ IATA Accreditation for Travel agents:
• The application for recognition should be submitted to the secretary, IATA
agency Investigation panel.
• The place or office of the company should be safe and secure.
• There should be security on premises like a strong room and safe, burglar alarm
system etc.
• The place of business under application shall be open for business on regular
basis.
• There should be at least one qualified staff member to be present at the place of
business during working hours.
• The companies should be financially sound.
• The location of the agency must be freely accessible and clearly identified to the
tourists.
• The travel agency has to be in business for the last two or three years.
• The decision of the IATA shall be final. The association may refuse to recognize
any travel agency without any reason.

IOSA Programme:
• The IATA operational safety audit progamme is an internationally recognized
and accepted evaluation system designed to assess the operational management
and control system of an airline. IOSA uses internationally recognized quality
audit principle and is designed to conduct audits in a standardized and consistent
manner.
• Benefits of IOSA Programme to airlines and regulators:
• A reduction of costs and audit resource requirements for airline and regulators
• Continuous updating of standards
• A quality audit programme under the continuing stewardship of IATA.
• Development of auditor training courses for the airlines industry.