Sample Aviation Report Paper on IATA

IATA

Background and Structure

The International Air Transport Association (IATA) is an international trade association whose membership is the world’s airlines. The organization began its operation in 1945 in Havana; Cuba is the replacement of International Air Traffic Association (IATA, 2017). At its founding, IATA aimed at being the Primary Avenue through which different airlines could cooperate particularly in the promotion of safe, reliable, secure and economical air services, for the benefit of all aviation stakeholders. During its founding in 1945, IATA’s membership was only 57 from about 31 countries mainly in Europe and North America; over the years, however, group has grown to 275 hailing from 117 countries across the world (IATA, 2017).

In its governance, IATA follows a unique structure that allows it to carry out its daily activities. At the helm of the organization are the Director General and CEO, who oversees the overall running of the organization (IATA, 2017). Currently, Alexandre de Juniac holds the position. Flanking the CEO are senior vice presidents in charge of people, performance and development, CS and CFO, and corporate communications. At the same levels as the vice presidents are the General Counsel. Directly below the vice president people, performance and development are three directors who oversee Business engagement, learning and development and employee engagement. The senior vice president, CS, and CFO, on the other hand, have six directors reporting to him including director for corporate, planning and support; ITS director and CIO; director of finance; director audit services; director corporate taxation; and the director of corporate administration and procurement. Further, reporting to the CEO are regional vice presidents for different regions including North Asia, Asia Pacific, Africa and the Middle East, Europe, and the Americas. Additionally, senior vice presidents are reporting to the CEO but responsible for different fields including the SVP MER & corporate secretary; SVP financial & distribution services; SVP airport, passenger, cargo & security; SVP safety & flight; and SVP marketing and commercial services. Below the regional VPs are regional directors, a fact that is also true for the directors below the SVPs.

Role in International Traffic Rights and Air Services Agreements

As an international aviation organization, IATA has been instrumental in the negotiations on worldwide traffics rights and air services agreements. IATA negotiated and brought into force the General Agreement on Trade in Services (GATS), which covers hard rights. The hard rights are necessary authorization required for the operation of services to and from another country (IATA, 1999). Through GATS, IATA’s policy wishes to appeal to governments, regulators and the public on the need for striking a balance between the protection of consumer rights, while at the same time protecting airline to ensure they not only have flight traffic rights but also have sustainable air services. GATS, therefore, not only provide there are appropriate globally coordinated regulations, but also restore confidence in passengers about their safety while giving airlines the freedom to fly.

Role in Aviation Safety and Security and Environmental Issues

IATA’s role extends to aviation safety, security and environmental issues. In concert with ICAO (International Aviation Organization), IATA has established standards aimed at ensuring aviation safety and security. The concerted efforts have also been instrumental in producing guidance material for security and safety, creating global standards and recommended practices. IATA works with airlines and industry partners in the implementation of best practices and raising measures to ensure security and safety of passengers (IATA, 2017). For the environment, IATA has been collaborating with stakeholders and governments in the development of practical environmental policies aimed at enabling and promoting a sustainable eco-efficient aviation industry (IATA, 2017). For the environment, particularly on climate change, IATA has set targets for its members including improvement of fuel efficiency as well as reducing the net aviation carbon dioxide emission by 50 percent by 2020 (IATA, 2017).

Role in Industry Operational Standards, Training and Best Practice

As an international airline organization, IATA plays a significant role in setting industry operational standards, training, and best practices. IATA publishes several operational guidelines for its members. One of the publications is the Cabin Operations Safety Best Practices Guide, which acts as the central reference source for industry best practices for industry operations (IATA, 2017). IATA has also been instrumental in training not only the cabin crew but too airline management staff in the efficient running of services. Through IATA Training and Development Institute (ITDI) established in 2004, aviation industry professionals get training on different subjects including project management (McGuire, 2014). The training offered in the Institute covers several courses and is aimed at providing aviation professionals and their organizations with tool and skills that will enable them to stay relevant even with the difficult challenges that plague the aviation industry (McGuire, 2014).

Role in Ticket Pricing, Tariffs and Financial Reconciliation

IATA’s role also covers ticketing, pricing, and financial reconciliation through the publication of PAT (Passenger Air Tariff). The publication is a joint effort by IATA and SITA, using data sources to supply industry and carrier rules on fares to the airline, agent, and training industry (IAT, 2017). PAT essentially provides the industry with rules and regulations on ticking and pricing and is usable by all industry professionals including revenue management, accounting, taxation, administration, business travel, passenger service, finance, and marketing among others. The rules contained in PAT are especially important in setting ticketing and pricing for airlines and travel agents, as well as for financial reconciliation for accounting, finance and management staff.

Relevance in Aviation Industry

The evolution of the aviation industry calls for an overall oversight of the industry for safety and standardization of the industry. IATA exists for this reason, and in the current aviation environment, the association remains relevant. IATA’s role in the aviation industry cuts across different issues including the environment, safety, pricing, and ticketing among others. It also covers engineering and maintenance, where it considers design, certification, and airworthiness of planes. The association does all these to ensure the safety of the passengers and a level playing field for all the players in the industry.  With such massive roles and responsibilities, IATA remains more relevant than ever in the current aviation industry. Even more is that IATA acts as a negotiator between the aviation industry and governments and regulatory authorities. Through their work with different parties, IATA ensures removes hurdles in operations, providing that there is smooth operation within the industry, and that the sector remains independent, but operating within the confines of set regulations.

Recommendation for Future Development

So far, IATA plays a significant role in the aviation industry, and it will continue to play this role in the future. For its development, there should be more collaboration with international aviation bodies such as ICAO and Air Transport Action Group (ATAG). Such partnerships help in creating and enforcing standards to ensure passenger safety and profitability for the players. Additionally, with a future relying on data IATA should invest in IT infrastructure that will enable it to predict future trends in the aviation industry, as well as allowing it efficiently coordinate its role within the aviation industry.

References

IATA (2017).The Founding of IATA. Retrieved from http://www.iata.org/about/pages/history.aspx.

IATA. (1999). Liberalization of Air Transport and the GATS: IATA Discussion Paper. Geneva: IATA.

McGuire, D. (2014). International Air Transport Association (IATA): Case Study. Project Management Institute. Retrieved from https://www.pmi.org/-/media/pmi/documents/public/pdf/case-study/iata.pdf.