IATA Full Form
IATA Full Form-What is IATA ? What You Need to Know About the IATA : IATA a trade association of the world’s airlines founded in 1945. IATA organized tariff conferences that served as a forum for price fixing.
IATA Full Form
|International Air Transport Association|
The History of the IATA
In April 1945, the newly founded International Airlines Group (IAG) organized the first meeting of commercial airlines. The IATA was then founded in December 1945, with the purpose of establishing a common technical code of practices for the air transport industry and lobbying governments for lower airfares. Today, the IATA is a 501(c)(3) organization funded by member airlines. It claims to be “the most international trade association in the world, providing leadership in building an open, international, and competitive global air transport system.” The Growth of the IATA Over the past 65 years, the IATA has grown from just a handful of airlines to a membership of 278. At the turn of the 21st century, airlines were flying over 50,000 routes.
Why is the IATA so important?
The origins of IATA can be traced back to the earliest days of the jet age, when the major airlines of the United States, Great Britain and West Germany, among others, signed an agreement for coordinating air traffic control (ATC) and providing for national ATC. As a result, no more than two aircraft or two airports can be in the same airspace at the same time. This was in keeping with a 1929 international treaty to increase air safety, which was the first and foremost goal of the treaty, but it also addressed two secondary goals. These secondary goals were that airlines would no longer have to pay each other a share of the revenues from landing and takeoff slots at international airports, and that the ATC costs would be shared in the same proportion.
ICAO [the International Civil Aviation Organization] is the “federal aviation agency” of the United Nations. Its role is similar to that of the Federal Trade Commission in the United States. IATA and ICAO are organized along the lines of a cartel. The purpose of the cartel is to ensure a monopoly on air transport. ianet.org/airtransport/ Despite being described as a cartel, IATA and ICAO do not meet to set prices. Instead, they set guidelines that their members must follow in setting their prices and practices. The principle of a cartel is that prices are not to be set and the cartel never communicates with each other about the market. ianet.
IATA’s Tariff Conferences
IATA used its annual tariff conferencing to set air passenger duty (APD) and fuel surcharges, which vary significantly across the world. The Air Passenger Duty is a tax on every ticket sold, ranging from about US$0.50 in Europe to more than $11 in Australia. The United States has the highest passenger duty at $2.50, although more than half of U.S. carriers (57 percent) did not impose a passenger duty between 2009 and 2012. Despite accounting for less than one-fifth of global passenger volumes, the U.S. carriers collected US$3 billion in APD in 2012. These fares are not regulated by the government, but set by an industry body whose members are largely the large, international carriers that operate across the globe.
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