What do You mean by GDS?

A global distribution system (GDS) can be defined as a centralized and permanently upto-
date database that is accessible to its subscribers through computing terminals. A GDS
provides all kinds of tariffs and tourism services to subscribers everyday, allowing the users to
make, change and cancel reservations, as well as to print tickets and avail themselves of any kind of rights related to services and products. Traditionally, travel agencies have been the main
subscribers, with airline companies being the owners, creators, hosts or salesmen for GDSs. It
be noted that this situation has been undergoing important alterations .The GDSs constitute at the present time the evolution and natural adaptation of the traditional computer reserve systems (CRS) to the market. The origin of these distribution systems comes from the 1960s in the United States as a consequence of the inefficacy of manual systems for the control of seat availability in the wake of the growth experienced by the aviation industry .With the goal of creating an automated system for the capacity administration of their  airplanes, American Airlines and IBM developed a joint program that became the SABRE, considered the first CRS . The original purpose of these systems was to facilitate through an automated system the storage and administration processes of all the information related to flights, lodging availabilty, and schedules or prices. Beginning in 1987 and as a consequence of the increase in demand for the application of such information to other types of tourism products (e.g. hotel rooms), and of the internationalization of their operations, CRS moved towards a new and enlarged concept which we know today as the global distribution systems. Traditionally, inside the distribution channels a GDS operates as a retail wholesaler because its sales are addressed to the travel agencies. However, at the present time all the major players have developed direct access to consumers through the Internet, and as a result of this reorientation a GDS should now also be considered as a retailer.

GDS constitutes the main working tool for travel agencies, providing them all the necessary
information to carry out their job, from the moment a client asks for a service until the potential
sale and follow-through. The GDSs provides a valuable instrument for travel agencies, increasing their productivity. Moreover, this wholesale element in the distribution channel is also a very positive tool for hotel companies, airline companies, car rental business, etc. Some have argued, however, that the effectiveness of global distribution systems for hotel products has not been proven . Disadvantages of this distribution channel include utilization costs, and the ‘halo effect’ may obscure the reality of its different effectiveness for different tourism products. The rise of computerized reservation systems sponsored by the hotels themselves, with a clear specialization in this kind of tourism product, has decidedly begun to revolutionize the way such central reservation systems operate.
The GDS industry is consolidated under the control of four powerful organizations, three of
them – Galileo, Sabre, and Amadeus – comparable in dimension. The fourth element, Worldspan, keeps a certain distance from the others. Beyond these exist another five systems: Abacus Distribution Systems, Axes International Network,GETS, Infini Travel Information, and TOPAS. Parallel to these companies, however, whose origins are in the airline industry, another ninety some regional reservation systems which emulate the original GDSs have important coverage. These regional systems (RICIRMSs – Regional Integrated Computer Reservation Management Systems), according to Buhalis’s denomination , constitute a strategic tool for the small and medium-size companies of the tourism sector.
These new developments in the organization of the tourism industry confront the GDSs with a
panorama to which they must respond. The GDSs will have to develop new strategies that will allow them to continue being the nucleus of tourism distribution. To reach such a goal, providers of GDSs should understand, among others things, that they must: continue to evolve their technological experience; reduce utilization costs; simplify the utilization processes; enlarge the products and services range; establish strategic alliances with the new competitors; and develop a more effective relational marketing policy with travel agencies; etc.

What are the Benefits of BSP for IATA Accredited Agents

There are many ways travel agents benefit from participating in IATA's Billing and Settlement Plan:

Simplification

• Neutral Standard Traffic Documents (STDs) replace dedicated airline ticket stocks.
• Agent sales are reported electronically to central point

Savings

• Less resources are required for airline sales reporting
• Electronic distribution of billing reports

Enhanced control

• Reporting of standard traffic documents under BSP control
• Consolidated document flow, permitting accelerated quality controls
• Overall process monitoring by a neutral body - IATA BSP. 

What is BSP System ?

The Billing and Settlement Plan is a system designed to facilitate the sale of airline tickets issued by IATA Accredited Agents and to simplify the reporting and remittance (payment) of these transactions to IATA Member and non-IATA airlines.

The Billing and Settlement Plan and its Data Processing Centres (DPCs) make it possible for IATA Accredited Agents to sell air transportation and to report their sales to the BSP participating airlines through the BSP.

The BSP is a system whereby IATA Accredited Agents can sell many airline services and report these sales to each airline through the BSP system.

In general, most merchants pay for their supplier products and services before selling them to consumers.

However, in the case of travel agencies, airline products and services are paid for after they have been re-sold to their travel customers

Here is how the selling of airline services takes place:

·         Customer requires an air transportation service

·         Travel agent offers advice, flights and fares

·         Customer makes a decision to purchase the service

·         Travel agent makes a reservation through a Global Distribution System (GDS) or a Ticketing System Provider (TSP) and issues a ticket

·         Ticket details are sent automatically to the Data Processing Centre (DPC) of the BSP

The BSP Data Processing Centre receives airline ticket sales information from the Global Distribution System or TSP when the ticket is issued by a travel agent. The DPC processes the information to produce a billing report of the tickets sold by the agent for each BSP participating airline.

In the BSP system the agent pays one amount to a central point - IATA BSP.

BSP participating airlines receive one billing report from the IATA BSP, which contains detailed information of each travel Agent's sales for each airline.

• The BSP DPC produces and delivers electronically one sales report (Airline Billing Analysis) for each Participating Airline detailing sales issued by all IATA Accredited Agents.
• The BSP DPC also produces a billing report (Agent Billing Analysis) detailing each ticket transaction issued by the agent for all the BSP participating airlines. 

RESERVATIONS

GENERAL

A ticket will be valid only for flight(s) for which reservation(s) shall have been made, and only between the points named on the ticket or applicable flight coupons. A passenger holding an unused open-date ticket or portion thereof or exchange order for onward travel, or who wishes to change his ticketed reservations to another date, shall not be entitled to any preferential right with respect to the obtaining of reservations.

CONDITIONS OF RESERVATIONS

1. A reservation for space on a given flight is valid when the availability and allocation of such space is confirmed by a reservation agent of the carrier, and entered in the carrier's reservation system. Subject to payment or satisfactory credit arrangement, a validated ticket will be issued by the carrier indicating such confirmed space, provided passenger applies to carrier for such ticket at least 30 minutes prior to the scheduled departure time of a flight within the Continental U.S. to which such reservation applies, or at least 60 minutes prior to the scheduled departure time of a flight to or from a point outside the Continental U.S. to which such reservation applies. Such reservation for space is subject to cancellation by the carrier without notice if the passenger has not purchased (through direct payment or other satisfactory credit arrangement) a validated ticket indicating confirmed seat(s) at least sixty (60) minutes before scheduled departure of the flight or 30 minutes prior to departure time of a flight within the Continental U.S. or earlier, if a greater time limit is specified.
EXCEPTION 1: If the passenger agrees to apply to the carrier or agent of the carrier for a validated ticket indicating such reserved space at a time earlier than the time limit specified above, such earlier time limit will be entered into the carrier's reservations system. The reservation for space of such passenger is subject to cancellation by the carrier without notice if the passenger has not applied to the carrier or agent of the carrier for a validated ticket specifying thereon the confirmed reserved space prior to the agreed time in advance of the scheduled departure of the flight to which such reservation applies.
Unless prior authorization is received, Airlines prohibits the practice of confirming reservations as follows:

2. FRAUDULENT, FICTITIOUS AND ABUSIVE RESERVATIONS -
These types of reservations are defined as any reservation made without having been requested by or on behalf of the named passenger. Additionally, creating reservations to hold or block seats for the purpose of obtaining lower fares, Upgrades that may not otherwise be available or to circumvent any of Airlines' fare rules or policies is prohibited.

3. DUPLICATE AND IMPOSSIBLE/ILLOGICAL RESERVATIONS -
A duplicate or impossible/illogical reservation includes, but is not limited to: reservations for the same passenger on flights traveling on or about the same date between one or more of the same or nearby origin and/or destination (such as JFKDFW and LGADFW or DFWLAX and DFWONT); or reservations with connections that depart before the arrival of the inbound flight.

1. Overbooking
   Carrier may accept reservations of space for specific flights in excess of available space on board the aircraft. The number of excess reservations planned by the carrier for a particular flight is based upon the anticipated booking pattern for such flight. The determination of this pattern takes into consideration current conditions which may affect the expected utilization of space on the flight as well as historical factors such as the rate of late cancellations for the flight, failure of persons with confirmed reservations to show for the flight and the absence of any record for certain reservations in the carrier's inventory of the flight. In the event that the number of persons presenting themselves with confirmed reservations for carriage on a flight exceeds the number of seats available, those passengers with confirmed reservations who are not accommodated may be eligible to receive denied boarding compensation provided in Rule 87 (DENIED BOARDING COMPENSATION).
2. Seat Allocation
   Carrier does not guarantee allocation of any particular space in the aircraft.
1. CANCELLATION OF RESERVATIONS
1. Carrier will cancel the reservation of any passenger whenever such action is necessary to comply with any governmental regulation, or to comply with any governmental request for emergency transportation in connection with the national defense, or whenever such action is necessary or advisable by reason of weather or other conditions beyond its control.
2. The Transportation Security Agency's (TSA) Secure Flight Program requires that American collect the following additional information from passengers when making a reservation to fly within, into or out of the United States and reservations for point-to-point international flights operated by U.S. based airlines:

1.      Full Name (required), as it appears on government-issued I. D. approved for use when traveling

2.      Date of Birth (required)

3.      Gender (required)

4.      Redress Number (optional)

American may cancel your reservation if the reservation does not include the required Secure Flight Passenger Data (full name, date of birth and gender) at least 72 hours prior to your scheduled departure. This cancellation policy applies to all Airlines tickets, including tickets for our flights operated by our codeshare partners.

                        Failure to Occupy Space
If the passenger fails to occupy space which has been reserved for him on a flight of any carrier and such carrier fails to receive notice of the cancellation of such reservation prior to the departure of such flight, or if any carrier cancels the reservation of any passenger in accordance with paragraphs of this rule, such carrier will cancel all reservations held by such passenger on the flights of any carrier for continuing or return space, provided such carrier originally reserved the space.

                        Carrier is not liable when it cancels the reservation of any passenger in accordance with this rule, but

 .        if such reservation was cancelled pursuant to paragraph (C)(1) of this rule, such carrier will take such action as is provided in Rule 80 (REVISED ROUTINGS, FAILURE TO CARRY AND MISSED CONNECTIONS).

a.       if such reservation was cancelled pursuant to other paragraphs of this rule, such carrier will refund in accordance with Rule 90-(E) (REFUNDS - VOLUNTARY).

                        (Applicable to reservations made in the Western Hemisphere, except in the US/Canada, by authorized travel agents.) Carrier will assess a fee of USD 25.00 for any un-ticketed reservation not cancelled prior to departure.

                        TIME LIMIT FOR TICKET ISSUANCE/PAYMENT
Passenger must apply for a validated ticket at least 30 minutes prior to the scheduled departure time of the flight within the Continental U.S. to which reservations apply, or at least 60 minutes prior to the departure time of a flight to/from a point outside the Continental U.S.

                        COMMUNICATION CHARGES
The passenger will be charged for any communication expense paid or incurred by carrier for telephone, telegraph, radio, or cable arising from a special request of the passenger concerning a reservation.

                        CHECK-IN TIME LIMITS
Airlines recommends, for flights within the United States, a 90 minute advance check-in time for passengers checking baggage, and a 60 minute check-in time for passengers traveling with hand-carried baggage only. Airline recommends, for all passengers departing from the state of Hawaii, a 180 minute check-in time. Airline will cancel the reservations of any passenger who fails to present himself for check-in at the boarding pass lifting point with the appropriate boarding pass at least 15 minutes prior to the scheduled or revised-posted departure time of a U.S. domestic flight, and 30 minutes for a departure to or from an international destination, notwithstanding that such passenger may have checked-in for the same flight at another location designated for such purpose. Airline will cancel the reservation and seat assignment of any passenger who is not on board and in the assigned seat of the aircraft of a U.S. domestic flight for which he holds a boarding pass at least 10 minutes prior to scheduled or revised-posted departure time.
NOTE 1: For the purpose of this rule, the boarding pass lifting point is at the point which the passengers’ boarding pass is lifted and retained by the carrier.
NOTE 2: Passengers must arrive at the airport sufficiently in advance of a flight departure time to permit completion of government formality and departure procedures. Departures will not be delayed for passengers who are either improperly documented, or are not ready to travel at time of scheduled departure. Carrier is not liable to the passenger for loss or expense due to passenger's failure to -comply with this provision. 

Free IATA GDS/ Air Ticketing Training

Supplier Central Reservation Offices

The growth of travel in the 1960s that prompted airlines to develop computerized reservation systems put similar pressures on hotel chains and other travel service vendors.  Hotels and car rental offices were receiving growing numbers of telephone calls, letters, and telexes from their customers wanting to book their services.  Hotel chains and other travel service suppliers determined that the best way to serve the consumer, and provide a valuable service to the hotels within the chain, was to develop their own central reservation offices (CROs).
    Facilitating this growth in CROs was the introduction of toll-free telephone services in the United States in the mid-60s.  Hotel chain and hotel representation company executives, with those at Holiday Inn in the lead, recognized the new telephone technology as an opportunity to gain a competitive advantage by offering greater service to the traveling public as well as their hotel properties.
    Before the development of their own computer reservation systems, telephone calls to the first hotel company central reservation offices were answered by agents who responded to room requests by looking at walls covered with "Availability Blackboards" or at massive books, which were updated by hand.  As call volumes steadily grew, these operating methods were quickly overwhelmed.

    The same factors, that had prompted airlines to develop computerized reservation systems, led executives of car rental, hotel, and other travel companies to build similar systems.  In the early 1970s, Westin Hotels and Resorts (then Western International Hotels) developed a hotel version of United Airline's APOLLO reservation system.  The result was "Westron", which was activated in December 1974.  In subsequent years Westron was licensed to seven major hotel chains and became the industry standard.

The Evolution of GDS

As recently as the early 1960s, most travelers and travel agents made their reservations directly with their chosen airline, hotel, or car rental office via letter, telex, or telephone.  The growing popularity of air travel in the mid-60s forced airlines to establish huge reservation centers to handle telephone calls and also to develop computerized systems (GDS) to accept and store flight reservations.

    When a traveler (or a travel agent) telephone an airline, the reservation agent would use a GDS terminal to book the flight.  The traveler or travel agent would then make additional telephone calls to book hotel accommodations, a rental car, and the other travel services required.

    As air travel continued to grow, calls to the airline reservation centers increased dramatically.  To reduce costs and further increase their bookings, airlines began installing computer terminals in the offices of their most productive travel agencies.  Airline managers understood it would be less expensive to have travel agents book the reservations directly into the airline systems than it would be to hire additional staff at airline reservation centers.  They also knew that travel agents were more likely to book reservations on the airline that supplied the GDS terminals.

    Then the first in a series of GDS system content expansions were implemented to meet travelers' interests in comparative flight information and price quotes from a variety of airlines.  This first enhancement was the addition of inventory and fare information for other major air carriers.  Travel agents quickly realized that their computer terminals, with which they had grown comfortable booking airline reservations, could be a convenient tool for booking other travel services as well.  Their requests for additional options prompted the airlines to add booking capabilities for rental cars and, later, for hotels, and other travel products.

    Suppliers also were enthusiastic about the opportunity to present and sell their services to the thousands of travel agents using airline reservation systems.  It became clear, however, that those systems, designed to list and sell airline flights, were not structured for easy listing and selling of other travel services.  When the capability to sell non-air travel services were introduced, GDSs functioned only as electronic lists of availability and rates, with a booking capability.  Product and service descriptions in plain, understandable English, were not available.

    Hotels, in particular, require display formats that can present a wide variety of room types, complex rate structures and detailed text descriptions that effectively portray a property.  Car rental companies face similar challenges in adequately portraying their fleets, rules, and booking opportunities.  Nonetheless, the potential of the distribution opportunity was immediately apparent and non-air supplier companies became major participants in airline reservation systems.

Introduction of GDS

A global distribution system (GDS) can be defined as a centralized and permanently upto-
date database that is accessible to its subscribers through computing terminals. A GDS
provides all kinds of tariffs and tourism services to subscribers everyday, allowing the users to
make, change and cancel reservations, as well as to print tickets and avail themselves of any kind of rights related to services and products. Traditionally, travel agencies have been the main
subscribers, with airline companies being the owners, creators, hosts or salesmen for GDSs. It
be noted that this situation has been undergoing important alterations .The GDSs constitute at the present time the evolution and natural adaptation of the traditional computer reserve systems (CRS) to the market. The origin of these distribution systems comes from the 1960s in the United States as a consequence of the inefficacy of manual systems for the control of seat availability in the wake of the growth experienced by the aviation industry .With the goal of creating an automated system for the capacity administration of their  airplanes, American Airlines and IBM developed a joint program that became the SABRE, considered the first CRS . The original purpose of these systems was to facilitate through an automated system the storage and administration processes of all the information related to flights, lodging availabilty, and schedules or prices. Beginning in 1987 and as a consequence of the increase in demand for the application of such information to other types of tourism products (e.g. hotel rooms), and of the internationalization of their operations, CRS moved towards a new and enlarged concept which we know today as the global distribution systems. Traditionally, inside the distribution channels a GDS operates as a retail wholesaler because its sales are addressed to the travel agencies. However, at the present time all the major players have developed direct access to consumers through the Internet, and as a result of this reorientation a GDS should now also be considered as a retailer.

GDS constitutes the main working tool for travel agencies, providing them all the necessary
information to carry out their job, from the moment a client asks for a service until the potential
sale and follow-through. The GDSs provides a valuable instrument for travel agencies, increasing their productivity. Moreover, this wholesale element in the distribution channel is also a very positive tool for hotel companies, airline companies, car rental business, etc. Some have argued, however, that the effectiveness of global distribution systems for hotel products has not been proven . Disadvantages of this distribution channel include utilization costs, and the ‘halo effect’ may obscure the reality of its different effectiveness for different tourism products. The rise of computerized reservation systems sponsored by the hotels themselves, with a clear specialization in this kind of tourism product, has decidedly begun to revolutionize the way such central reservation systems operate.
The GDS industry is consolidated under the control of four powerful organizations, three of
them – Galileo, Sabre, and Amadeus – comparable in dimension. The fourth element, Worldspan, keeps a certain distance from the others. Beyond these exist another five systems: Abacus Distribution Systems, Axes International Network,GETS, Infini Travel Information, and TOPAS. Parallel to these companies, however, whose origins are in the airline industry, another ninety some regional reservation systems which emulate the original GDSs have important coverage. These regional systems (RICIRMSs – Regional Integrated Computer Reservation Management Systems), according to Buhalis’s denomination , constitute a strategic tool for the small and medium-size companies of the tourism sector.
These new developments in the organization of the tourism industry confront the GDSs with a
panorama to which they must respond. The GDSs will have to develop new strategies that will allow them to continue being the nucleus of tourism distribution. To reach such a goal, providers of GDSs should understand, among others things, that they must: continue to evolve their technological experience; reduce utilization costs; simplify the utilization processes; enlarge the products and services range; establish strategic alliances with the new competitors; and develop a more effective relational marketing policy with travel agencies; etc.

Types of Travel & Tourism

Travel and tourism provide services of all types for both inbound and outbound travellers, and have become one of the world's fastest growing industries. International travel and tourism are the world's largest export earner and an important factor in the balance of payments in most nations. The market is increasingly diverse, covering not only traditional sunshine tourism and business trips but also many new types of travel that have developed in recent years. Tourism has become one of the world's most important sources of employment. It covers a wide range of jobs, including all branches of the travel industry, hospitality in hotels and restaurants, entertainment and recreation, as well as the tourist attractions in a particular region. But the areas of work include ………

Travel Agencies , Tour Operators

Tourist Boards and Tourist Information Centers 

Transport Companies

Tour Guides & Tourist Attractions.

Importance of knowledge on Fares & Ticketing to Airline and Travel Agency management

1.                  It helps to make proper planning. It helps to estimate the revenue share or revenue yield from the aircraft operation.

2.                  It helps to make proper marketing. The knowledge on the fare & ticketing helps to produce the competitive prices in the market to compete with the competing airlines.

3.                  It helps to make ground service more capable & active. A staff having proper knowledge fare & ticketing can deal the passenger properly.

4.                  It helps to make proper accounting of sold documents & flown documents.

5.                  It helps to detect short deposit to the airlines from sales offices.

6.                  It helps to verify the correctness of billing from the two or more airlines carriers. It saves from excess payment to other airlines.

7.                  It helps to make proper billing to the interline carriers for the services provides to the passenger issued from other airlines. Also

-          To determine the air fare

-          To calculate/ recalculate the airfare

-          To share/ prorate the airfare

-          To read, act and write the ticket.

IATA ( International Air Transport Association)

IATA – The International Air Transport Association- was founded in Havana, Cuba, IN April 1945. It is the prime vehicle for inter-airline cooperation in promoting sage, reliable, secure and economical air service – for the benefit of the world’s consumers. The international scheduled air transport industry is now more than 100 times larger than it was in 1945. Few industries can match the dynamism of that growth, which would have need much less spectacular without the standards, practices and procedures developed within IATA.

At its founding, IATA had 57 Members from 31 nations; mostly in Europe and North America Today it has over -270 Members from more than 140 nations in every part of the globe.

The modern IATA is the successor to the International Air Traffic Association founded in The Hague in 1919 – the year of the world’s first international scheduled services.

IATA is the world organization of the schedule of airlines. The organization was established under a special act of the Canadian parliament which got Royal assent in Dec 1945.

-IATA is the Non- Governmental organization

-IATA is non political organization.

-IATA does not deal with any political aspect matters.

-IATAs function start only when two countries enter into air service agreement. Then after IATA function starts.

-IATA is a democratic organization where any type of decision is made on the basis of voting from active members.

-IATA is closely associated with ICAO  in organization & activities.

IATA:

Today 50 million international air passenger pay for their ticket in one place in one currency but complete their journey using at least two or more airlines from different countries using different countries using different currency.

The Multilateral interline traffic agreement ( MITTA) are  the basic for the airline interline network, close to 300 airlines who signed them accepting each other’s ticket & airways bills.

The fares & rates established by IATA Tariff coordination committee are known as normal fare/ or international fares/ Multilateral fares which are varied for all over the world for selling & accepting services of any airlines.

Multilateral interline Traffic Agreement (MITA)

NYC---LON----DOH------KTM------PKR

Role & Activities of IATA

IATA’s activities relate to reduce the cost of airline operation, & the prices carriers charges to the public as low as possible
Also commencement whit safety.

1.                   Operations & Commerce( easy & low price)

IATA’S operational tasks is to ensure that the aircraft utilized to carry the world’s passenger & goods which are able to operate with maximum safety & efficiency,

Under clearly define & universally understood regulation.

IATA’s commercial objective is to ensure that passenger, cargo & mail can move on time best Global network as easily as if they were on single airline within a single country.

IATA makes it constant & a progressive effort is simplify & standardize procedures documents within the airline themselves, among government & manufactures & collaboration with other international organization.

2.                  Technical Activities

IATA has played & continuous to play an important part in the drafting of the IC standards & recommended practices which comprise the technical regulation of civil aviation.

For on-time journey & contribute to cost efficiency, IATA deals with air – to – ground -ground – to – air communication & radio navigation & landing olds.

3.                  Engineering & environment

IATA activities help to cover the latest technology both on board (inside aircraft) & on ground & also developing airline policy on important environmental issues.

4.                  Airports

IATA develops its policy on airline requirement for airport terminal expansion of existent terminal for the development of new ones & also to minimize the “ user cost “ of airports because it directly reflects the operating cost of airlines.

5.                  User Cost /Charges

The charges imposed by airport authority (normally the government) to the airline for the use of airport for the purpose of landing, take off & parking of the aircraft & for the space being used at airport terminal building & or / any space being used within the airport territory. This directly effect operating cost of the airlines.

6.                  Flight Operation

IATA deals with a factors worldwide that affect the safe operation of aircraft, such and traffic control ( ATC) system, procedures for operating in low visibility, operating equipment to be provided at airports, & flight crew trainings, IATA will try to allow airline to fly the shortest possible routes between one point to another point.

7.                  Medical

IATA emphasize on monitoring of health standard for flight crew, hygiene & sanitation in aircraft catering, making travel easier for disable passenger.

8.                  Security

IATA security activities include the development of anti-hijacking (Revence crime, Property crime) measures, counter act, fraud & theft in a variety of forms.

9.                  Air Law

The activities include the formulation of the airlines view in the development of international conventions affecting such matters at a liability of the air carriers their customers & other parties & preparing the legal foundation for the present system of uniform traffic documents that can be used throughout the worldwide network of IATA members routes.

10.              Financial

IATA financial activities include all aspects of accounting & settlements of transaction between airlines though ICH so that one airline can sell the service of another airline.

Besides this IATA helps to standardized practice in fixing & circulation of currency exchange rates taxes & charges etc IATA also monitor to user charges.

11.              Tariff coordination

One of the main activities of IATA includes the negotiation of international fares & rate to submission to government.

12.              Traffic Service

IATA activities includes their continuous efforts on the standardization measures for ticket formats, air way bills & other documents related to air transport.

13.              Air Traffic Service

IATA helps to create uniform procedures worldwide for passenger, baggage, cargo & mail & airport.

One of the most important achievement of the IATA is the creation of MITA (Multilateral interline traffic agreement)

14.              Travel Agency

IATA’s activities are also related to develop the selling agents to help distribution of airline seats in this vast global market. IATA gives an industry accreditation to the agents who meet the requirement or criteria established by the IATA.

15.              BSP

IATA also introduces the system of selling reporting a ticket by the agent easily billing & settlement plan(BSP) & Cargo accounts settlement system (CASS) are be vital example to it.

Processing of Billing & Settlement by IATA

If UA’s Ticket and CX (Issuing Airlines) holding te fare amount carrying airlines monthly billing to ICH ( IATA Clearing House) – Geneva ICH presents details statements with ticket coupon to issuing airlines (holding the fare amount) because they charge IATA fare amount which is more in price as compared to domestic charge.

1.      Issuing airlines received 7% commission from carrying airlines which is known as interline service charge (ISC)

2.      This is interlining billing & settlement process which is done through IATA clearing House non- IATA members and airlines can also participate in ICH. But ICH members have follow MITA arrangement.

MITA-------------ICH-----------------IATA--------9% Commission.

16.              Training

IATA activities also include the continued operation of different training program through IATA aviation training & development institute.(ADTI)

17.              Developing nations

IATA also helps to the airlines in developing countries. Launching of the Programmed developing nation airlines (PDNA) in 1981. It has three mail objectives.

a.       To identify the needs of airlines in a developing nation for training assistance.

b.      To assist these airlines in updating funds for training program.

c.       To provide training course for airline staff member.