The International Air Transport Association - Free Essay Example

Introduction

International air travel is managed by the International Air Transport Association (IATA), promoting economical, reliable and safe transport across the globe. International Air Transport Association currently has the largest share in air traffic, constituting over 82% of the total air traffic and represents at least 299 functional airlines (Baere, 2018). Airline travel regulations and policies are set by the organization regulating all the operational activities carried out across the countries it operates. International Air Transport Association headquarters are located in Montreal, Canada (Dresner, 2019). However, the company's executive offices are situated in Geneva, Switzerland. The paper analysis IATA history, its long-term impacts, and its importance in the commercial aviation industry.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Problem Definition

International air travel agencies serve as the common international market share point encouraging navigation across multiple countries. However, there are a vast number of organizations currently working towards achieving a common goal in the air transport industry. International Aviation Transport Association is one of the largest organizations working towards ensuring safety while regulating other important aspects arising from the international travel industry. The main concern is how the company maintains collaboration and cooperation to enhance smooth operations at a global level.

Research Objectives

1. To identify economic, regular, and safe air transport techniques adopted by IATA in ensuring all the stakeholders are satisfied.
2. To identify collaboration means used by IATA to operate with other air transport agencies involved indirectly and directly in offering air travel services.
3. To evaluate cooperation advantages with the International Civil Aviation Organization as well as other international companies.
4. To identify how a common travel platform is created from tour and travel agencies operators.
5. To investigate how IATA has developed and promoted the International tourism industry.

Literature Review

International Aviation Transport Association is formerly known International Air Traffic Association was created in 1919, starting as a small regional organization operating only under the European dimension until 1939 when Pan American society joined. IATA was later founded two years later in Havana, Cuba. The organization had to take the responsibility of designing a large infrastructure and a systematic organization. IATA's main challenging task was to maintain reliability while promoting safety.

The first drafted practices and standards were flight, airport infrastructure, and air navigation operations. In late 1949, the Chicago convention reflected which is still adopted in the international civil aviation. The flight was changed to public usage as compared to scientific phenomenon between 1940 and 1970 (Pearce, 2019). Due to the increasing demand for business travel, leisure travel, and other usages, there was a need for modification in the IATA Traffic Conference. IATA was therefore formed based on Tariff coordination (coordination and charges, traffic services, cargo rate, and passenger fare), a Trade Association (including agency matters, traffic services, financial, legal, and technical aspects). In early 1994, the company's goal and the mission were redefined, focusing on aspects such as industry support, procedures and standard, services and products, financial visibility, industry recognition, and safety concerns.

Methodology

The paper uses qualitative research in assessing the operational dimensions of the International Aviation Transport Association. The study involves the use of existing scholarly sources to establish consistent study results. The various historical analysis will be based on the company's existing information found on the company's repositories. The results will be based on the analysis of findings from various scholarly articles' conclusions.

Hijacking and terrorism have been common among airplanes. IATA is composed of protocols and standards that tighten security against dangers associated with airplanes. It was strengthened after several hijacking and terrorist attacks such as the 9/11 attack. It is a system that functions based on passenger risk assessment and differentiation (Pearce, 2019)

To generate and regulate energy-efficient engines, the IATA system formulated a team that encompassed aircraft manufacturers. The team's effort was oriented to improving fuel usage with an efficiency of 1.5 per annum. The team is also responsible for regulating carbon dioxide emissions to the atmosphere. The reason for this is because the global aviation industry emits a total of 2% Carbon dioxide. When comparing to all human-induced carbon dioxide emitted, the percentage emitted by the aviation industry is relatively large. As a result, IATA focuses on reducing the emission of CO2 by 50%. (Pearce, 2019).

There are other reasons why IATA has supplemented the standards and protocols of air travel and airlines at large. To enforce these standards, IATA provides consulting and training services to its members. The reasons are shown below:

• The organization has automated the approval of travel professionals and travel agents. It is done while differentiating them from fraudulent and unauthorized travel agencies or agents.
• To monitor revenue made by airlines, a financial system that runs a total of 300 billion was established. The financial system offers settlement and billing services.

A database for airlines, which is the Trinidad and Tobago Bureau of Standards, manages how tax is allocated and spent. Also, a ticket tax box service is used while managing the tax expenditure. IATA has several functions. They are diverse too because it offers students studies which act as an opportunity when they are seeking to be hired in any major airline or travel organization. The syllabus that IATA serves helps the students to be enrolled for authentic, and industry-approved courses. After completing the courses, the ones with IATA certification stand a fairer chance of getting hired.

All these functions of IATA are oriented and include security, safety, services, and the environment. Therefore, through these functions, IATA achieves its mission; the mission of serving, representing, and leading the airline industry. Due to this, IATA contributes a lot to the commercial aviation industry.

The Long-Term Impacts on the Commercial Aviation Industry

An annual general meeting (AGM) is funded and held by IATA. Its objectives are to solemnize the positions of industries, focus on emerging industry issues, and provide assistance where required and provide public policies on issues affecting the commercial aviation industry (Pearce, 2019).

The meeting is attended by industry associate partners, regional and international associations, more than 800 IATA representatives, and other members. Since October 1945, there have been annual general meeting. During that time, it was held in Montreal, Canada. As a long term impact, IATA has provided places for debating and reporting current issues entailed in the commercial aviation industry.

IATA publishes a multitude of information that encompasses comprehensive subjects. The published information includes guidelines, manuals, economics, standards, annual review, airline magazines, newsletters, blogs, and directions ((Havel, 2018). Also, following the annual meeting, IATA publishes a report on annual review on issues, success, downfalls, and commercial air transport state (Havel, 2018).

The other publications are important since they are related to future forecasts. An example is the 20-year passenger forecast. It is a forecast which is associated with identifying major traffic trends, eligible to be implemented within the next 20 years. IATA accomplishes this by analyzing fundamental drivers of air travel alongside other scenarios to establish valuable resources needed for long term decision-making strategies (Pearce, 2019). As a result, IATA controls both the current and future situation in the commercial aviation industry.

Findings

The International Aviation Transport Association maintains a strong belief in cooperating with other agencies to ensure sustainable, secure, and safe air transport while enriching and connecting the entire world. IATA, therefore, aims at serving, leading, and representing the airline industry at a global level. As discussed earlier, IATA represents over 82% representing 299 airlines of the total air traffic across the globe (Inglada, 2016). IATA is taking responsibility for questioning charges and unreasonable rules on behalf of airlines. To allow airlines to simplify the various processes, IATA has developed global commercial standards to increase convenience in the passenger domain while improving efficiency and reducing cost. IATA assists airlines to operate economically, efficiently, and securely under clearly defined procedures and regulations.

Conclusion

In conclusion, the international air transport association was founded in 1945. Since then, it has contributed to development in the commercial aviation industry through controlling both current and future situations in the sector. Through that, IATA's mission of serving, representing, and leading the airline industry has been achieved. Stakeholders are satisfied since IATA ensures safe air transport techniques. Furthermore, IATA has identified collaboration means while offering air travel services. The impacts of IATA on the commercial aviation industry, have led to cooperation among international aviation companies. However, IATA should set industry policies to support airline activities.

References

Baere, G. D. (2018). CJ's Judgment in Air Transport Association of America and the International Legal Context of the EU's Climate Change Policy, The. Eur. Foreign Aff. Rev., 18, 389. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.kluwer/eurofa0018&section=30

Dresner, M. (2019). Modeling and testing the effect of market structure on price: The case of international air transport. Journal of Transport Economics and Policy, 171-184. https://www.jstor.org/stable/20052978

Havel, B. F. (2018). International air transport association. In Handbook of Transnational Economic Governance Regimes (pp. 755-763). Brill Nijhoff. https://brill.com/content/books/10.1163/ej.9789004163300.i-1081.664

Inglada, V. (2016). Liberalization and efficiency in international air transport. Transportation Research Part A: Policy and Practice, 40(2), 95-105. https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(16)00080-5/fulltext

Pearce, B. (2019). The state of air transport markets and the airline industry after the great recession. Journal of Air Transport Management, 21, 3-9. https://www.jstor.org/stable/174926

Sabri, H. (2017). Jordanian managers' leadership styles in comparison with the International Air Transport Association (IATA) and prospects for knowledge management in Jordan. International Journal of Commerce and Management. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/jalc25&section=9