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.