The International Air Transport Association (IATA)

In logistics and transportation industry, we have five modes of transportation, which is, rail, road, air, pipeline and sea. As we know, air cargo is a premium transport service used when speed is paramount and cost is a secondary consideration. The advantages of air cargo movement are highest movement speed, warehousing cost are reduced and insurance premium in air transportation is lower.

In air cargo industry, the rate is stated by the International Air Transport Association (IATA). The International Air Transport Association is a non-government trade association for the world’s airlines which representing some 240 airlines or 84 % of total air traffic. IATA’s stated mission is to “represent, lead and serve the airline industry”. All the Airlines rules and regulation are defined by IATA.         

The main objective of this organization is to assist airline companies to achieve lawful competition and uniformity in prices. IATA acts as a price setting body through bilateral government agreement. IATA fare calculation divided into 3 regions:

1.      South, Central and North America

2.      Europe, Middle East and Africa

3.      Asia, Australia, New Zealand and Pacific Ocean’s Islands

IATA involved in a charity and humanitarian. They manages $20 billion in industry settlements annually in the Japan market, minimize the impact of taxation impose by government, have the policy on aircraft noise and other emissions, and advice the industry on new aircraft and system for hijacking and sabotaging. It also regulates and publishes Dangerous Goods Regulation Manual for global standardization, coordinate scheduling process of slot at congested airports and imposed IATA Safety Operational Audit (ISAO) as a mandatory requisite for all the members.

Dangerous goods often called hazardous materials may be pure chemicals, mixture of substances, manufactured products or articles which can pose a risk to people, animals or the environment if not properly handled in use or transport. It can be in form of liquid, solid and gas.

One of the objectives of the IATA is to help decision makers be informed and understand more about the industry by increasing awareness of the contribution of aviation to the economies of different countries in the world. IATA takes up the causes of airlines across the world, fighting their case when charge or taxes are unreasonably high and tries to advocate pro airline regulations. They also aims to help airlines simplify their systems and processes and serve passenger better, while at the same time reducing costs and increasing their efficiency.

They works with its member airlines to ensure the easy travel and transfer of goods and services across different airlines and across the world to make sure they move with ease traveling within a country in the same airlines. It also helps airlines to train staff, offer consultation and has publications that provide similar support.