TOPIK B

INTRODUCTION TO IATA
• International Air Transport Association
• Founded in 1919
• reorganized in 1945
• trade body comprising 80% world airlines
which operate on international route
• head office in Montreal, Canada
• main function:
“ to simplify ticketing procedures and to
 HISTORY OF IATA

• IATA was founded in Havana, Cuba, in April 1945.

• It is the prime vehicle for  inter-airline cooperation in
promoting safe, reliable, secure and economical  air
services - 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.
•  At its founding, IATA had 57 Members from 31
nations, mostly in Europe and North America.
• Today it has over 230 Members from more than 130
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 brings together approximately 280 airlines,
including the world's largest. Flights by these
airlines comprise more than 95 percent of all
international scheduled air traffic.
 Mission is to "represent and serve the airline
industry".
 IATA helps to ensure that Members' aircraft can
operate safely, securely, efficiently and
economically
 IATA’s FUNCTIONS
1. Control over air-fares on international route
2. Promote safe, regular and economic air
transport
3. Provide means for collaboration between air
carrier (airlines)
4. Cooperate with International Civil Aviation
Association (ICAA) and other international
bodies for the promotion of safety and
effective communication
c) Cabin crew uniform
5. Control many aspects of airline’s operation
such as: d) entertainment
a) leg room
6. Monitor areas of:
a) safety & security
b) environment
c) medical
d) legal
e) finance and accounting
g) standardization of fares, documentation
and code of ethics.
FARE CONSTRUCTION – IATA
AREAS
• IATA has divided the world into three
areas
• They are called Area 1, Area 2 and
Area 3
• Also known as TC 1, TC 2 and TC 3
• TC stands for Traffic Conference
• The purpose : fare construction
 AREA 1 (TC 1)

Covers the following sub areas of

- North America
- Central America (excluding Panama)
- South America (including Panama)
- Carribean
- Greenland
 AREA 2 (TC2)

Covers the following sub areas of

- Europe ( including Morocco, Algeria,
Tunisia and West Russia)
- Middle East (including Egypt and Sudan)
- Africa
 AREA 3 (TC 3)

Covers the following sub areas of

- Asia (including East Russia)
- South Pacific Islands
- Australia
- New Zealand
 BILATERAL AGREEMENT

Definition:
“ Permission for each nation to
take advantage of the traffic
potential of the point granted
in each country”
 BILATERAL AGREEMENT
 based on the Chicago Convention 1944
 also known as “open sky policy” or
‘freedoms of the air”
 each is subject to the specific conditions,
that are determined through bilateral
agreements between any two of the
countries that are parties to the Convention.
 BILATERAL AGREEMENT
The needs for bilateral agreement are to:
1) Maximize regulation of the routes
2) Control flight frequency
3) Control market shares
4) Encourage healthy competition between
airlines.
5) Encourage development of route.
6) Discourage over capacity.
7) Protect profitability of the national flag carrier
(airline owned by any government)
 THE FREEDOM OF THE AIR
(OPEN SKY POLICY)
‘RULES OF THE ROAD’ – Chicago Convention
in 1944
Open sky policy is designed to:
a) Promote world air services.
b) Reach agreement on standard operating.
procedures for air services between countries.
c) Secure diplomatic relation between countries.
d) Protect flag carrier company.
FREEDOMS OF THE AIR

3 things to determine each freedom

as follows:
1) An airlines
2) Origin @ Country of
commencement (COC)
3) Destination
Try to find the below cities
i. Mexico
ii. Brazil
iii. London
iv. Miami
v. Brazil
vi. Tokyo
vii. Seoul
viii.San Francisco
 FREEDOMS OF THE AIR
IATA has introduced 8th freedoms as follows:

First Freedom:
The right of an airline to overfly one country to get to
another .

US Mexico Brazil
A US airline bound for Brazil overflies Mexico
 FREEDOMS OF THE AIR
Second Freedom:
The right of an airline to land in another country for a
technical stopover (fuel, maintenance,etc) but not to
pick up or drop off traffic.

US Mexico Brazil
A US airline lands in Mexico for refueling
 US

MEXICO

BRAZIL
 FREEDOMS OF THE AIR
Third Freedom:
The right of an airline, registered in country X, to drop
off traffic from country X into country Y.

US Mexico Brazil
A US airline carrying US citizens to be dropped off in Mexico
 FREEDOMS OF THE AIR
Fourth Freedom:
The right of an airline, registered in country X, to carry
traffic back to country X from country Y

US Mexico Brazil
A US airline carrying visitors from Mexico into the US
 FREEDOMS OF THE AIR
Fifth Freedom:
The right of an airline, registered in country X, to
collect traffic in country Y and fly on to country Z, so
long as the flight either originates or terminates in
country X

US Mexico Brazil
A US airline destined for Brazil may stop to pick up
passengers in Mexico along its route
 US

MEXICO Pick up passenger

BRAZIL
 FREEDOMS OF THE AIR
Sixth Freedom:
The right of an airlines, registered in country X, to carry
traffic to a gateway-a point in county X- and then
abroad to a third country. The traffic has neither its
origin nor ultimate destination in county X.

London Miami Brazil

A US airline carrying British passengers from London
destined for Brazil may stopover in Miami as a gateway to
South America destinations
 US

MEXICO Pick up passenger

BRAZIL
 FREEDOMS OF THE AIR
Seventh Freedom:
The right of an airline, registered in country X , to
operate entirely outside of country X in carrying traffic
between two other countries.

US Tokyo Seoul
A US airline flies a shuttle service Tokyo and Seoul
 FREEDOMS OF THE AIR
Eighth Freedom:
The right of an airline, registered in county X, to carry
traffic between any two points of country Y. This right is
often referred to as cabotage. The 8th freedom is
generally viewed as an infringement on the rights of
domestic carriers.

Japan Honolulu San Francisco

A Japanese airline carries traffic between Honolulu and San
Francisco.
 ICAO (INTERNATIONAL CIVIL
AVIATION ORGANISATION)

Introduction:

 Also a result of Chicago Convention

 Signed on 7 December 1944 by 52 States

Develop in a safe and orderly manner and that

international air transport services may be
established on the basis of equality of opportunity
and operated soundly and economically
 ICAO (INTERNATIONAL CIVIL
AVIATION ORGANISATION)

THE PURPOSE OF ICAO:

1. Help to create and preserve friendship and

understanding among the nations and peoples
of the world,
 
 
2. To avoid friction and to promote that co-
operation between nations and peoples upon
which the peace of the world depends.
 CAA (CIVIL AVIATION
AUTHORITY)
-  CAA is a public corporation, was
established by Parliament in 1972 as an
independent specialist aviation regulator
and provider of air traffic services
      the CAA is the UK’s specialist aviation
regulator

-         world leader in its field

Its specific responsibilities include:

 -         Air safety
-         Economic Regulation
-         Airspace Regulation
-         Consumer Protection
-         Environmental Research &
CAA(CIVIL AVIATION AUTHORITY)
The purpose of CAA:
 
-  ensures that UK civil aviation standards are set and
achieved
 
- regulates airlines, airports and National Air Traffic
Services economic activities
 
- manages the UK’s principal travel protection
scheme, the Air Travel Organiser’s (ATOL) scheme,
licenses UK airlines and manages consumer issues
 
-  Brings civil and military interests together to ensure
that the airspace needs of all us as equitably as