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.
