Professional Documents
Culture Documents
Tony Tyler
Director General & CEO
International Air Transport Association
Annual Review 2016
72nd Annual General Meeting
Dublin, June 2016
Note: Unless specified otherwise, all dollar ($) figures refer to US dollars (US$).
CONTENTS
4 6 8 10 15
Members List Chairmans Message Director Generals Industry Story Safety
Message in 2015
21 25 30 35 39
Security Regulation Infrastructure Environment Cargo
and Taxation
42 46 49 53 57
Passenger Experience Financial Services Aviation Solutions IATA 70th IATA Offices
Anniversary
MEMBERS LIST
a Air Tahiti
Air Tahiti Nui c
Ethiopian Airlines
Etihad Airways
InselAir
Interjet
Air Transat Euroatlantic Airways Iran Air
ABSA Cargo Airline AirBridgeCargo Airlines C.A.L. Cargo Airlines European Air Transport Iran Aseman Airlines
Adria Airways Aircalin Camair-Co Eurowings Israir Airlines
Aegean Airlines Airlink Capital Airlines EVA Air
Aer Lingus Alaska Airlines Cargojet Airways
Aero Contractors Alitalia Cargolux
Aero Repblica All Nippon Airways Caribbean Airlines j
Aeroflot AlMasria Universal Airlines Carpatair f
Aerolineas Argentinas ALS Cathay Pacific Japan Airlines
Aerolineas Galapagos S.A. American Airlines China Airlines Federal Express Jazeera Airways
Aerogal Arik Air China Cargo Airlines Fiji Airways Jet Airways (India)
Aeromexico Arkia Israeli Airlines China Eastern Airlines Finnair Jet Lite (India)
Afriqiyah Airways Asiana Airlines China Postal Airlines flybe JetBlue
Aigle Azur Atlas Air China Southern Airlines flydubai Jordan Aviation
Air Algerie Atlasjet Airlines CityJet Freebird Airlines JSC Nordavia-RA
Air Arabia Austral Comair Juneyao Airlines
Air Astana Austrian Condor
Air Austral
Air Baltic
Avianca
Avianca Brasil
Copa Airlines
Corendon Airlines g
Air Berlin Azerbaijan Airlines Corsair International k
Air Botswana Azul Brazilian Airlines Croatia Airlines Garuda Indonesia
Air Burkina Cubana Georgian Airways Kenya Airways
Air Cairo Czech Airlines Germania Kish Air
Air Caledonie Gulf Air KLM
Air Canada b Korean Air
Air China Kuwait Airways
Air Corsica Bahamasair d
Air Europa Bangkok Air h
Air France BelaviaBelarusian Airlines Delta Air Lines
Air India B H Air DHL Air Hahn Air l
Air Koryo BimanBangladesh Airlines DHL Aviation Hainan Airlines
Air Macau Binter Canarias Dniproavia Hawaiian Airlines LACSA
Air Madagascar Blue Air Donavia Hi Fly LAMLinhas Areas de Moambique
Air Malta Blue Panorama Dragonair Hong Kong Airlines LAN Airlines
Air Mauritius Blue1 Hong Kong Express Airways LAN Argentina
Air Moldova bmi Regional LAN Cargo
Air Namibia
Air New Zealand
Boliviana de AviacinBoA
Braathens Regional Aviation AB e LAN Colombia
LAN Per
Air Niugini British Airways i LANEcuador
Air Nostrum Brussels Airlines Egyptair LIAT Airlines
Air Serbia a.d.Beograd Bulgaria air EL AL Iberia LLC Nordwind
Air Seychelles Emirates Icelandair LOT Polish Airlines
4
MEMBERS LIST
p
Lufthansa S7 Airlines Ural Airlines
Lufthansa Cargo Sichuan Airlines UTair w
Lufthansa CityLine Silk Way West Airlines Uzbekistan Airways
Luxair Philippine Airlines Silkair Wamos Air
Pegasus Airlines SKY Airline Westjet
PGAPortuglia Airlines South African Express Airways White Airways
PIAPakistan International Airlines SriLankan Airlines v Wideroe
m Precision Air Sudan Airways
PrivatAir SunExpress Vietnam Airlines
x
Mahan Air Surinam Airways Virgin Atlantic
Malaysia Airlines SWISS Virgin Australia
q
Mandarin Airlines Syrianair VLM Airlines
Martinair Cargo Volaris Xiamen Airlines
MAS AIR Volga-Dnepr Airlines
MEAMiddle East Airlines Qantas VRG Linhas Areas
t
y
Meridiana fly Qatar Airways Vueling Airlines
MIAT Mongolian Airlines
Mistral Air TAAGAngola Airlines
r
Montenegro Airlines TACA Yemenia
Myanmar Airways International TACA Peru
TACV Cabo Verde Airlines
Rossiya Airlines TAMTransportes Areos del
IATA membership is growing. The association is attracting airlines from
n
Royal Air Maroc Mercosur
all corners of the globe and from all varieties of business model. The first
Royal Brunei TAM Linhas Areas quarter of 2016 alone saw 10 airlines join IATA.
Royal Jordanian TAMELinea Area del Ecuador
In Europe, three airlines joined IATA: Blue Air, Nextjet, and Mistral Air,
NESMA Airlines RwandAir TAP Portugal
which principally operate out of Bucharest, Stockholm, and Rome,
Nextjet TAROM respectively. Blue Air was established in 2013 and flies to over 30 European
NIKI Tassili Airlines destinations, while Nextjet is Swedens largest regional carrier. Mistral Air
operates charter flights and scheduled international flights. It is a 100%
s
Nile Air Thai Airways International subsidiary of Poste Italiane and has its main hub at Leonardo da Vinci-
Nippon Cargo Airlines (NCA) THYTurkish Airlines Fiumicino International Airport.
Nouvelair Tianjin Airlines
Africa-Middle East likewise saw the arrival of flydubai, Air Burkina, and
SAASouth African Airways TNT Airways Camair-Co. Flydubai was set up in 2008 by the Dubai government and
Safair TransAsia Airways serves a network of 95 destinations in the Middle East, Africa, Asia, and
Europe. Air Burkina, the national airline of Burkina Faso, was privatized in
o
Safi Airways TUIfly
2001 and is based at Ougadougou Airport. Camair-Co was established in
Santa Barbara Airlines Tunis Air 2006 and began operations under its present structure in 2011 at Douala
SAS Tway Air International Airport.
Okay Airways SATA Air Aores Okay Airways, Tway Air, and Capital Airlines joined IATA from the
Olympic Air SATA Internaional North Asia region. These airlines have their main bases at Tianjin Binhai
Oman Air Saudi Arabian Airlines International Airport, Gimpo International Airport, and Beijing Capital
Onur Air Shandong Airlines u International Airport, respectively. Capital Airlines is a subsidiary of
Hainan Airlines.
Orenair Shanghai Airlines
IATA also welcomed WestJet from the Americas. WestJet, based in
Shenzhen Airlines Ukraine International Airlines
Calgary, is Canadas second-largest carrier. The airline operates to over
SIASingapore Airlines United Airlines 100 transatlantic destinations using scheduled and charter flights.
SIA Cargo UPS Airlines
5
CHAIRMAN ANDRES CONESA
Meeting
airline needs
What have been your top priorities as Do enough governments understand
Chairman of the Board of Governors? aviation as a strategic asset?
Safety is always the top priority for IATA. I am There are governments that do not see
proud to say that last year was very positive airlines as a source of growth but as a source
and airline safety improved on the five-year of revenue in the short term. IATA needs to
rolling average. We had two unfortunate work with the governments of all countries
events: Metrojet and Germanwings. Those across all regions to help them understand
were deliberate acts, but even so we need to the importance of aviation.
work together as an industry to help prevent
such incidents going forward. It is essential to have a sustainable industry
that can generate employment and growth
Sustainability is our license to grow. So at in the long term rather than have an industry
the ICAO Assembly later this year, it is very that contributes to the government coffers
important that we continue to build on the in the short term.
progress made at COP21 in Paris.
IATA turned 70 during 2015. How can
Finally, I am also proud of the results of the association stay relevant over the
the financial systems that IATA manages. next 70 years?
Airlines get their money on time, and that is IATA has been successful because it
important from the point of view of IATAs has followed its guiding principles:
Board and of an airline. collaboration, partnership, and global
standards. In my view, it needs not only to
How important is it that a global market- continue adhering to those principles but
based measure framework is agreed to at the also to get ahead of the curve. It needs to
39th ICAO Assembly in September 2016? be proactive and look at those areas where
As an industry, we want to achieve carbon- we can build a stronger industry.
neutral growth by 2020. And for that to
happen, we need to have a global market-
based measure (MBM) agreed to at the ICAO
Assembly in September. We need to stand
firm on our industry targets and keep insisting
on the importance of the global .
6
CHAIRMAN ANDRES CONESA
IATA has made progress in attracting new-model airlines. What are your thoughts on the leadership transition? What are the potential areas of focus for IATA in
How important is this for the association? Tony Tyler did a great job. His achievements are outstanding. the year ahead?
In this industry, there are many different business models, In line with IATA principles, he improved partnerships and One of the pillars of IATA is global standards. We have,
from full-service network carriers to low-cost carriers. But collaboration. And he guided a new global standard for instance, successfuly implemented a global standard
there are many aspects of the industry where the distinction New Distribution Capabilityfrom its launch to the point in safety. It is important to continue along these lines,
between the different models becomes blurred and almost today where it is being implemented in many airlines. He and I think that it will be key to have a global standard in
ceases to exist. All airline business models need the right strengthened the industry and also strengthened IATAs consumer rights.
infrastructure, for example, or low taxation. management and corporate governance.
And there are still opportunities to improve IATAs main
I hope that every airline in every corner of the world sees We expect Alexandre to follow a similar path but in his functionthe financial systems. I am looking forward to
IATA contributing toward those goals. And so I would own style. He has great experience in the industry and in continual upgrades in the on-time performance and cost-
encourage all airlines to join IATA because they will benefit government, so I am convinced that he will also do a great efficiency of processing airline funds.
from membership and provide additional experience to job in leading IATA.
those of us who are already members. The importance of the organization is huge. Having served
on the IATA Board for a number of years and in the last
year as Chairman has given me many opportunities to
observe how my airlineAeromexicocan do things better,
implement global standards, and strengthen its operations.
7
DIRECTOR GENERAL TONY TYLER
A historic
year for
IATA
and its
members
I
n 2015, the worlds airlines safely transported
3.5 billion people and 51 million metric tons of
cargo. They accomplished this with a workforce of
nearly 10 million people managing a fleet of 26,000
aircraft averaging 100,000 flights a day over a global
network of 51,000 routes.
8
DIRECTOR GENERAL TONY TYLER
Financial Performance Safety is a team effort. Airlines are working with partners in The Association
Despite this, airlines have long struggled to reward their government and across the value chain to address emerging Whether it is safety, security, or sustainability, IATA is where
investors appropriately. But in 2015 a major milestone was issues, such as the safe carriage of lithium batteries, pilot the airlines come together to create and deliver value.
achieved. At the industry level, airlines generated a return mental health, and the establishment of a regulatory
on invested capital exceeding the cost of that capital. Put framework for drones. That value extends to the consumer through global standards
simply, for the first time in history airlines made a normal and processes. IATAs financial systems enable global
level of profitability. In real terms, a $35.3 billion net profit on Security distribution and reliably handled $362.9 billion in 2015. The
revenues of $718 billion. Sadly, security threats continue to loom. Recent months New Distribution Capability (NDC) standards are moving into
have seen terrorists laying claim to bringing down an airliner the deployment stage. And by year-end, Fast Travel self-
Thats good news. Profitable airlines are able to invest and to severely disabling a major air hub. The list of security service solutions are anticipated to cover 40% of travelers
in product improvements, fund the growth of stronger challenges also includes cyber-attacks, the movement of and e-air waybill penetration is expected to reach 56% on
networks, and purchase modern, fuel-efficient aircraft. foreign terrorist fighters, and the overflight of conflict zones. available trade lanes.
And it helps passengers to continue to enjoy great deals
on air travel, the cost of which has fallen 57% over the last As with safety, the solutions to keep flying secure are I have had the privilege of leading IATA for five years. In
two decades. being driven by strong government-industry partnerships. that time, IATAs membership has grown to 264 airlines,
The focus is on risk-based measures backed up by solid constituting 83% of global traffic, coming from all regions,
The spread of profitability, however, is far from even. intelligence, a prerequisite of which is effective information and covering the complete spectrum of business models. We
Geographically, about two-thirds of the industrys profits sharing among governments. have strengthened our partnerships with regional and global
are generated by airlines based in North America. And stakeholders and set out an agenda to remind the world of
while passenger traffic is enjoying robust growth, the cargo Sustainability aviations role. We must not be shy in explaining that aviation is
business continues in the doldrums. A similar partnership approach is propelling progress on a force for good. IATAs standards, expertise, and unique global
sustainability. Advances in technology, operations, and perspective are relevant, and IATAs staff are motivated in their
The fall in the oil price is a major driver of improved infrastructure are improving environmental performance. mission to represent, lead, and serve the airline industry.
profitability. That has been reinforced by airline efforts Governments could boost these efforts by finding ways to
that have raised load factors to all-times highs, increased realize the commercialization of sustainable aviation fuels and Your association is strong, and I look forward to passing
ancillary revenues, and improved aircraft utilization. All by modernizing air traffic management. its leadership to my successor with great confidence. With
indications are that 2016 will see a continued improvement the approval of the 72nd IATA Annual General Meeting,
in financial performance. 2016 presents a major opportunity. A proposal for a Alexandre de Juniac, the Chairman and CEO of Air France-
carbon offsetting scheme for international aviation has KLM, will become IATAs seventh Director General and CEO in
Safety been developed through the International Civil Aviation September.
Another key marker of improved performance is safetythe Organization (ICAO). It is a critical tool for aviation to meet its
industrys top priority. Looking at jet operations, there was commitment to cap net emissions with carbon-neutral growth I thank the Board, all the IATA members, our many partners,
one major accident for every 3.1 million flights in 2015. Thats from 2020. The industry is united in asking governments to and the IATA staff for their help, support, and wise counsel.
a significant improvement on the five-year average (2010 formalize this proposal at ICAOs 39th Assembly later this year. And I wish Alexandre all the best in leading IATA to even
2014) of one accident for every 2.2 million flights. greater heights.
9
INDUSTRY STORY IN 2015
Continuing
recovery:
challenges
remain
10
INDUSTRY STORY IN 2015
Passenger market surpasses 3.5 billion Aviations center of gravity Freight has another start-stop year
The two branches of the commercial air transport industry continues to shift eastward Transpacific air freight benefited in early 2015 from a
passenger and freighthad contrasting fortunes in 2015. Aviations center of gravity continued to shift eastward disruption to seaports on the US West Coast. However, the
Industry-wide revenue passenger kilometers (RPK) grew in 2015, with 7 of the top 10 increasing origin-destination rest of the year proved weaker for air freight, and industry-
7.4%. This was the greatest increase since the rebound (O-D) passenger markets located in Asia. Despite well- wide freight tonne kilometers (FTK) increased just 2.3%
from the depth of the global financial crisis in 2010 and documented signs of slowing growth in Chinas economy, year on year in 2015.
well above the long-run average of 5.5%. Altogether, more Chinas domestic air passenger market saw the biggest
than 3.5 billion passenger segments were flown in 2015, an incremental rise in journey numbers in 2015, with 36 million The minimal growth in air freight seen since the global
increase of 240 million compared with 2014. more passenger journeys made than in 2014. This increase financial crisis has coincided with weakness in world trade
was more than in the next two largest-gaining markets growth. It was considered normal for world trade to grow at
combined: domestic Indonesia and domestic India. Popular around twice the pace of global output. But this relationship
markets for Chinese outbound tourism also grew strongly; has changed in recent years, and trade volumes now grow
specifically, journeys to and from Thailand and Japan. broadly in line with global output. In fact, global trade grew
just 2.0% in 2015slower than the estimated pace of global
By virtue of the United States position as the worlds largest GDP growth.
air passenger market, even modest year-on-year passenger
growth of 1.7% in 2015 translated into almost 8 million
additional passenger journeys in the US domestic market.
1. RPK versus world GDP growth 2. Top 10 increasing O-D 3. Air freight versus global
(Sources: IATA BIS, IMF)
markets in 2015 (Source: IATA PaxIS+) trade growth (Sources: IATA BIS, IMF)
% year on year
Domestic Thailand 34.0%
6 3 5
2 China - Thailand 72.9%
4
0
1 Domestic Vietnam 29.2%
2
0 China - Japan 41.8% -5
0
-1
Domestic Turkey 11.7% -10
-2 -2
United States - Mexico 14.1% -15
-4 -3
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0 5 10 15 20 25 30 35 40
Absolute increase in O-D journeys (million)
11
INDUSTRY STORY IN 2015
Oil price and exchange Adjusting for distortions caused by the strong rise in the By contrast, growth in freight capacity outstripped demand,
rates falls dominate 2015 US dollar, global airfares fell around 4.5% on average in partly reflecting ongoing additions to belly-hold capacity
The sharp decline in jet fuel prices that occurred in late 2014 constant exchange rate terms during 2015 compared in the passenger fleet. Available freight kilometers in 2015
continued in 2015, such that the average price of a barrel of with a year earlier. This was largely because competition increased 5.8% year on year.
jet fuel in 2015 was 42% lower than in 2014. Jet fuel prices intensified in markets that did see decreases in local
fell further in the final months of 2015 and ended the year at currency fuel costs. IATA estimates that the resulting As a result, the freight load factor dropped to 47.4%, 1.6
around $48 a barrelthe lowest level in more than 11 years. surge in demand accounted for around half of the annual percentage points lower than in 2014 and the lowest
growth in passenger traffic seen in 2015. annual average since 2009. This kept intense pressure on
The declines in jet fuel prices, however, were not felt evenly freight yields.
across airlines and regions globally. This partly relates to
different hedging practices within the industry, which can Divergence between passenger
delay the benefits of lower oil prices translating into lower and freight loads Financial performance driven by
unit costs. But sharp drops in the value of many currencies Airlines added capacity cautiously in 2015 despite strong load factor and productivity
against the US dollar were another complicating factor passenger demand. Available seat kilometers flown Fuel is a major expense for airlines and accounted for,
in 2015, as the exchange rate declines offset the benefits increased 6.7% compared with 2014, and the industry-wide on average, 27% of an airlines costs in 2015. This means
of cheaper US dollarbased oil prices for many airlines. passenger load factor increased 0.6 percentage points over that the reduction in fuel costs in 2015 lowered the
This was particularly the case for Brazil and Russia, whose the 2014 percentage to an all-time high of 80.4%. industry-wide break-even load factor.
currencies fell 30%40% against the US dollar.
140 85 68
130 80 67
Jet fuel prices (Index Jan 2014 = 100)
65
100
65 64
90 Passenger load factor Freight load factor
Russia
60 63
80
55 62
70
R$ Brazil 50 61
60
Euro 45 60
50
India
40 China 40 59
$ US dollar
30 terms 35 58
2000
2002
2004
2006
2008
2010
2012
2014
Jul - 14
Oct - 14
Apr - 15
Jul - 15
Oct - 15
Jan - 14
Apr - 14
Jan - 15
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
12
INDUSTRY STORY IN 2015
Changes in industry structure and more returns-focused In 2015, airlines posted their strongest financial performance Divergence in financial performance
behavior on the part of airlines also exerted downward pressure on record. The $35.3 billion net, after-tax profit that the at a regional level
on the break-even load factor and helped to keep load factors industry generated was almost more than double that The aggregate industry picture in 2015 masked a wide
at historically high levels. The industry, moreover, has seen in 2014. The corresponding operating margin of 8.3% of spread in financial performance at the regional level
capital productivity trend upward over the past few years, with revenues was also a record for the industry, up from 4.7% and that high investor returns are not evenly distributed
airlines generating increasing revenue from their capital bases. in 2014 and almost three times that achieved in 2012. throughout the industry. Once again, the strongest financial
performance was delivered by airlines in North America. US
The widening gap between break-even and achieved But the bigger picture is that the industrys $35.3 billion carriers have driven much of the rise in industry profits in
load factors has driven the improvement in the industrys profit still only represented $9.89 of profit per passengera recent years. European and Asia-Pacific airlines generated
financial performance. slim margin compared with other industries. The industrys moderate profits in 2015, in spite of further weakness in
highly leveraged balance sheets, furthermore, will in most cargo yields, which particularly affected Asia-Pacific airlines.
cases require a prolonged period of profitability to improve. Latin American and African airlines posted net after-tax
A strong year for industry profitability Only a handful of airlines are rated investment grade by losses in 2015 due to challenging conditions in major energy
Such is the intensity of competition and the challenges of doing ratings agencies. export dependent economies.
business in aviation that air industry equity investors have
typically seen their capital shrink. It is noteworthy that 2015 was
the first year in which the industry paid its investors a return
on capital that exceeded the cost of capital. In most other
industries, this performance would be regarded as the norm.
6 Cost of capital 12
10 Net after-tax profit per passenger (US$)
% of revenues
2
5 10
$ billion
0 0 8
4
-2 6
-10
3 4
-4
-20 2
2 -6
0
1 -8 -30
-2
0 -10 -40 -4
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Industry
N. America
Asia-Pacific
Europe
Latin America
Middle East
Africa
13
INDUSTRY STORY IN 2015
Wide choice, lower costs to consumers Air transport is crucial to international trade Aviations wider benefits
Air transport boosts economic development. The Air transport is a vital link for international trade and plays for the global economy
ongoing increase in unique city-pair routes has enabled a a critical role in facilitating tourism. Lower transport costs Another impact of aviation on the wider economy is the
corresponding increase in the flow of goods, people, capital, and improving connectivity have boosted trade flows by influence that increased airline activity has on job creation,
technology, and ideas. Time savings and more nonstop globalizing supply chains and associated investment. in the aviation value chain and in other, related sectors, as
connections have increased choice for consumers. The spending ripples through the economy. It is estimated that
number of unique city-pair connections exceeded 16,600 IATA estimates that the value of international trade shipped aviation supported 63 million jobs in 2015 and underpinned
in 2015, 350 more than in 2014 and almost double the by air in 2015 was $5.7 trillion. And tourists traveling by air $2.7 trillion of GDP.
connectivity by air 20 years ago. The price to users of air spent over $620 billion in 2015. Both values were lower than in
transport continues to fall, meanwhile, after adjusting for 2014 because of the distortion from 2015s stronger US dollar.
inflation. Compared with 20 years ago, real transport costs
have more than halved.
10. Unique city pairs and real 11. Value of trade carried by air
transport costs (Sources: IATA, ICAO, Boeing, SRS Analyser) and tourist spending (Sources: IATA, WTTC, IHS)
1.5
Number of unique city pairs
14,000
550
12,000
Unique city pairs (LHS) 1.3 500 5,000
10,000 Real transport costs (RHS)
450 4,000
8,000 1.1
400
3,000
6,000 350
0.9
4,000 2,000
300
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
14
SAFETY
Flying safely:
the number
one priority
15
SAFETY
Safety Yet 2015 was also a year in which the world was shocked Aircraft tracking
The 2015 safety performance was marked by divergent by the deliberate destruction of aircraft and the murder The focus on aircraft tracking following the disappearance
themes. The global jet accident rate (measured in hull of passengersby a suicidal pilot (Germanwings 9525) of MH370 culminated in November 2015 with the adoption
losses per 1 million flights) was 0.32, the equivalent of one and by what is believed to have been an act of terrorism by ICAO of a tracking standard. Beginning November 2018,
major accident for every 3.1 million flights. This was a 30% (Metrojet 9268). These two events resulted in the deaths of the standard requires operators to provide the position of
improvement compared with the five-year rate from 2010 374 passengers and crew. Neither event is included in the aircraft at least every 15 minutes for the portion of flights
through 2014 of one major accident for every 2.2 million flights. accident statistics for the year because they are classified through oceanic and remote airspace.
as deliberate acts of unlawful interference. But each casts a
Although aviation professionals work hard to prevent any shadow on the industrys safety performance. Crucial to the development of this standard was the
loss of life, the industry experienced four fatal hull loss industry expertise provided through ICAOs Normal Aircraft
accidents in 2015, all involving turboprop aircraft and In this way, 2015 was reminiscent of 2014, which was one of Tracking Implementation Initiative (NATII), which included
totaling 136 fatalities. This compares with an average of 17.6 the industrys safest years ever in terms of fatal accidents a tabletop exercise to test the proposed standard in real-
fatal accidents for jets and turboprops and 504 fatalities per but marred by the disappearance of one aircraft and the world scenarios. The industry and ICAO are partnering again
year in the five years from 2010 through 2014. shooting down of another. There are no easy solutions to through NATII 2 to develop complementary standards,
the issues revealed in each of these tragedies. The aviation recommended practices, and guidance material to support
industry nevertheless continues to work to minimize the risk the tracking standard. It is also expected that new systems
that such events will happen again. and technology, if adopted universally by air navigation
service providers (ANSPs), will enable global surveillance.
16
SAFETY
Concurrently, the EC asked the European Aviation Safety Following the data Loss of control in flight is not a common accident, but it
Agency (EASA) to set up a task force to look into the As stakeholders work to address the issues discussed, has the highest number of fatalities. LOC-I accounted for
Germanwings tragedy. The EASA task force comprised senior it is important that the industry continues to dedicate just 8% of accidents in the five years from 2011 through
representatives from airlines, flight crew associations, medical resources to areas that safety data show will have the 2015, but 97% of those LOC-I accidents involved fatalities to
advisory bodies, and other authorities. The principle of two biggest impact in reducing the risks of an accident. In 2015, passengers and crew. The IATA Training and Qualification
persons in the cockpit at all times is one of six task force efforts to reduce operational risk again focused on runway Initiative (ITQI) provides guidance for enhanced pilot
recommendations. Also recommended is that pilots undergo excursions (RE), loss of control in flight (LOC-I), and training to help address factors contributing to LOC-I. IATA
a psychological evaluation before entering airline service, that controlled flight into terrain (CFIT). is also developing guidance materials and best practices to
pilot support systems be implemented within airlines, and that support the awareness and mitigation of LOC-I occurrences.
there be more defined guidance on drug and alcohol testing. Almost all LOC-I and CFIT accidents lead to fatalities and
hull losses, whereas most other accidents mainly damage Controlled flight into terrain accidents are as much a
EASA conducted a first international workshop on the medical aircraft, though this, too, can lead to hull losses. From concern as LOC-I. CFIT accidents represented 7% of the
fitness of pilots to get feedback from stakeholdersincluding 2011 through 2015, for example, 3% of runway and taxiway accidents in the five years from 2011 through 2015 but
IATAon the best ways to implement its recommendations excursions caused fatalities, making them the third source accounted for 20% of fatalities. Most CFIT accidents occur
and a technical meeting on several initial regulatory proposals of fatal accidents. Runway and taxiway excursions, however, in the approach and landing phase of flight and are often
where IATA contributed to the development of a balanced were the main source of hull losses during that period, with associated with imprecise approaches.
enhancement of risk mitigations. A second workshop is hulls lost in 25% of all such events.
planned in mid-2016, after which EASAs intent is to implement The industrys efforts to reduce CFIT incidents include the
the task force recommendations with a mix of regulatory and In 2015, hard landings and runway excursions were the development of a CFIT Accident Reduction Strategy, which
nonregulatory measures. most frequent categories of accidents, at 24% and 22%, was endorsed by IATAs Safety Group members in 2015.
respectively. Hard landings may cause aircraft damage but Numerous factors contribute to CFIT events. Typically,
IATA will work closely with its member airlines and do not typically result in serious injuries to passengers. aircraft malfunction is not their main cause. Causes rather
regulators to achieve the best possible outcomes in The survivability of runway excursions likewise is high; RE are most often attributed to flight crew or human error, such
protecting and enhancing flight safety. This includes working represented less than 1% of fatalities in the five years from as noncompliance with standard operating procedures, poor
to prevent or minimize unintended negative consequences 2011 through 2015. crew resource management (CRM), inadequate flight path
in the event of safety failures. management, and the like. From 2011 through 2015, 60% of
The industry is implementing reports and guidance CFIT accidents involved situations where the ground-based
An outcome of the investigation by Frances civil aviation materials that establish best practices in support of Nav-Aid malfunctioned or was unavailable, which would
authority, the BEA, into the Germanwings accident is mitigating runway safety risks. And IATA continues to work contribute to an imprecise approach.
the BEAs recommendation in its final report that IATA with international organizations to analyze and develop
encourage its member airlines to implement measures to mitigation strategies to reduce runway excursion and The industry continues to focus its operational safety
mitigate the socioeconomic impact for pilots who lose overall fatality risks in commercial aviation. efforts on reducing CFIT accidents and employs mitigation
their license for medical reasons. There is no clear global strategies to that end. IATA is developing guidance materials
consensus on this recommendation. But it should be noted Flight data monitoring (FDM) indicators can be powerful to enhance awareness of the contributing factors and
that there are no global standards for providing workplace tools for an airline in improving and monitoring operational outcomes of unstable approaches and best practices in
insurance for pilots. This varies greatly by country based on safety. As such, the IATA Operational Safety Audit (IOSA) CRM aimed at establishing a multilayered defense against
several factors, including national healthcare policies. requires that operators have a flight data analysis (FDA) undesirable conditions.
program that is nonpunitive and that contains adequate
safeguards for data sources.
17
SAFETY
Emerging safety risks Most RPAS operators pose no risk. But a smart approach Other emerging issues
Addressing emerging safety issues is an important element to regulation and a pragmatic and firm method of In February 2016, ICAO adopted a measure that prohibits on
of IATAs Six-Point Safety Strategy. enforcement for those who disregard rules and regulations an interim basis all loose shipments of lithium-ion batteries
and put others in danger are required. Education is an as cargo on passenger aircraft. The prohibition does not
Remotely piloted aircraft systems important tool in this regard. So IATA is supporting the apply to lithium-ion batteries packed with or contained in
The use of unmanned aircraft is expanding rapidly beyond their Know Before You Fly campaign to teach people about the equipment. It also does not apply to the lithium-ion batteries
initial military functions. Drones, or remotely piloted aircraft safe and responsible operation of RPAS. in personal electronic devices carried by passengers and
systems (RPAS), are increasingly being used in environmental crew. The carriage of lithium-ion batteries on freight aircraft
and fishery operations, disaster response, law enforcement, Governments have agreed that a globally harmonized continues to be permissible provided the batteries do not
firefighting, and many other civic and commercial activities, approach through the ICAO process, including the carry a charge beyond 30% of their capacity.
and this trend is forecast to grow exponentially. development of standards and recommended practices, is
vital to safely and efficiently integrating drones into civil In a related issue, new consumer devices powered by
There has also been a notable increase in the recreational airspace. Stakeholders also agree that such steps need to lithium-ion batteries, such as hoverboards and balance
operation of RPAS. More than 340,000 people have be taken on an accelerated basis. In February 2016, a joint boards, have shown in a series of incidents to be a fire
registered small drones in the United States since the FAA statement was released by the International Federation risk. IATA recommends that these devices be restricted to
announced its registry in late 2015. And the rise in the of Air Line Pilots Associations (IFALPA), Airport Councils cabin baggage only.
number of reports of RPAS operating dangerously close to International (ACI), and IATA to raise safety awareness
manned aircraft and airports coincides with the growth in among RPAS users. IATA continues to work with regulators to ensure that
the number of RPAS overall. Regulators must ensure that the manufacturers of faulty or fake batteries and anyone
RPAS do not interfere with the airways or pose a safety risk shipping batteries in contravention of the Dangerous Goods
to airline passengers. Regulations are punished by the authorities. The industry is
also working on solutions to contain and eliminate lithium-
ion battery fires so that these batteries can again be safely
carried on passenger aircraft.
18
SAFETY
19
SAFETY
1 4
LATIN AMERICA/CARIBBEAN standards and recommended practices (SARPS). As of the NORTH ASIA
In 2015, five years ahead of time, the Latin American end of January 2016, only 21 African countries had at least In 2015, the Civil Aviation Administration of China
and Caribbean region achieved its 2020 target of a 50% 60% SARPS implementation. enhanced Chinas safety management system by
fatality risk reduction compared with the 20092011 rolling introducing new safety oversight measures. IATA is
3
average. The regions fatality risk, based on a 20132015 EUROPE/CIS working with airlines to cooperate with the administration
three-year rolling average, was 0.28, compared with 1.05 in An aim in Europe is greater clarity of the EU safety to improve the adaptability and applicability of these
the 20092011 period. In addition, the region had no fatalities list of carriers banned from flying into the European measures.
in 2014 and 2015. The 2020 target was included in the 2013 Union. A success in this regard was the removal of Air
Bogota Declaration and 2014 Port of Spain Declaration, which Astana from the list in 2015. Other safety initiatives in Russia
were signed by all of the regions countries and confirmed and the CIS included a safety conference in Kazakhstan at
by member airlines in the Latin America/Caribbean (LATAM/ which area stakeholders developed a theory-to-practice
CAR) and North Atlantic and North American (NATNAM) concept of safety.
regional coordination groups. The declarations took aim at
reducing the RE, LOC-I, CFIT, and traffic collision avoidance In line with the fifth of its six safety strategy points, IATA co-
system events that are the main contributors to fatalities in organized an evidence-based training (EBT) implementation
the Latin America and Caribbean region. workshop at ICAO in Paris. The shift from established,
traditional training methods to fact-based, competency-
The regions successes in 2015 highlight the effectiveness focused methods faces challenges. Nevertheless, through
of the partnership approach taken by the Regional Aviation the ICAO regional office many willing airlines, especially
Safety GroupPan American. Governments and the from eastern Europe, have benefited from the shared
aviation industry are working as equal partners toward experience of operators that have implemented EBT.
a shared level of safety. This entails a representative of
the regions nations and a representative of the industry
cochairing a balanced working structure where everyone
has the same rights and responsibilities.
2
AFRICA
3
Africa had the highest accident rate among regions
in 2015, at 7.88 accidents per million sectors. This,
however, was a substantial improvement over its five-
year average, from 2010 through 2014, of 11.64 accidents
per million sectors. The improvement coincides with the
signing of the Abuja Declaration, which commits African 4
nations to improve aviation safety.
20
SECURITY
Security processes:
effective, efficient
21
SECURITY
Security Conflict zones The aviation industry is working to reduce the risk of
We live in an increasingly complex world, where the threat Information and countermeasures are particularly important anything resembling the MH17 event. Operators and
of terrorism is a fact of life. No part of the globe is immune, regarding the risks to aircraft overflying conflict zones, as was regulators know that risk can never be eliminated entirely.
and aviation remains a special target. We were reminded tragically borne out in the shooting down of MH17. In 2015, The objective must be to minimize risk. Airlines have
of that with the attacks in Brussels in March 2016 and the the report of the Dutch Safety Board concluded that MH17 developed proven approaches to effective risk mitigation.
attempted destruction of a Daalloo Airlines aircraft in was destroyed by a ground-to-air missile while operating in This includes cultivating effective information sharing
February 2016 and, earlier, with the downing of Metrojet airspace open to commercial aviation. The Dutch investigators and significant investments to develop mechanisms and
9268 in October 2015 in what is believed to have been an also confirmed that in the months leading up to this event no methodologies to evaluate, assess, and exchange threat
act of terrorism. nation or international organization explicitly warned of risks to information across communities of interest.
civil aviation in the airspace involved and no nation restricted
Governments are aviations closest partners in security. or prohibited its airlines from using that airspace. All 264 IATA members and 145 non-IATA airlines, moreover,
Ultimately, security is the responsibility of national hold IATA Operational Safety Audit (IOSA) certification.
governments, which have vastly more resources and IATA supported the efforts of the Dutch Safety Board IOSA is an important, proactive, and robust mechanism that
capabilities than the industry, including access to to reveal the causes behind the downing of MH17 and to includes an assessment of airlines security management
information from intelligence agencies. Aviation thus ensure that such an event is not repeated. IATA was most systems (SeMS) and, as of an update in 2015, conflict
relies on governments to provide it with the guidance and supportive of the boards recommendations that countries zone risk management practices. IOSA compliance is also
information to help it manage risks and keep its passengers, strengthen their mechanisms for monitoring and maintaining documented through a publicly accessible registry.
crews, and cargos secure. Governments and aviation the security of their airspace.
must work together to ensure that information relevant to
security is shared. One such mechanism is the Conflict Zone Information
Repository established by ICAO in 2015. The repository
This is especially so given that threats to security are
constantly evolving. The emergence of cyber-attacks and
allows countries to share their conflict zone information,
and some nations are indeed beginning to provide useful
Acceptable queuing
the movement of foreign terrorist fighters (FTFs) have information. But more countries need to participate to time at security checks
added new dimensions to the challenges. Aviation is well ensure a more complete picture of the security situation.
aware of this through its work on countermeasures with
governments and other security stakeholders. 27% 25%
44% 45%
51% 49%
48% 48%
21% 24%
2% 2% 7% 1% 7% 1%
2012 2013 2014 2015
22
SECURITY
23
SECURITY
Wave 1
Program Inception
Inception
Concept Definition
Componenet Testing & Evaluation
Wave 2 Proof of Concept &
Guidance Material
Wave 3
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
24
REGULATION AND TAXATION
Smarter regulation:
the fair way
forward
25
REGULATION AND TAXATION
26
REGULATION AND TAXATION
More fundamentally, devising regulations should involve Unruly passengers Montreal Convention 1999 (MC99)
the partnership of all participants in the value chain, The number of reported unruly passenger events continues MC99 establishes airline liability in the case of the death,
including airlines, airports, air navigation service providers, to increase. Over 38,000 unruly passenger incidents were injury, or delay of a passenger and the delay, damage, or
governments, and passengers. Regulations built in this reported by IATA member airlines between 2007 and 2014. loss of baggage and cargo. It is, moreover, a prerequisite for
way will be more effective than those predicated on the Such incidents disturb other passengers and may disrupt the industrys e-cargo initiatives, such as the e-air waybill
conventional assumption that consumers need to be airline operations, endanger airline crew, undermine airline and e-freight. MC99 modernizes and unifies the international
protected from airlines. This partnership approach changes safety, and increase airline costs. treaty regimes covering airline liability that have developed
the debate on consumer protection and is being spearheaded haphazardly since 1929. In short, it is designed to be a single,
by airlines, using communications materials developed by In 2014, the ICAO member nations recognized the limitations universal treaty to govern airline liability around the world.
IATA in 2015 (see poster examples on page 26). of existing international legislation in deterring unruly
passengers and agreed to Montreal Protocol 14 (MP14) of In 2015, 11 countries ratified MC99: Azerbaijan, Bolivia,
Over 60 nations have some form of passenger rights the Tokyo Convention. MP14 gives countries legal tools Ivory Coast, Equatorial Guinea, Fiji, Guyana, Honduras,
legislation. In May 2015, Chile issued new passenger rights to deal with unruly passengers. Bringing MP14 into force, Kazakhstan, the Philippines, Rwanda, and Sierra Leone.
rules, while the process of revising rules in the European however, requires its ratification by 22 countries. Airlines are This means that 119 of 191 ICAO nations are party to MC99,
Union and the United States stalled in 2015 and remains so. therefore mobilizing governments to ratify the treaty, and and advocacy campaigns coordinated by IATA with local
The development of rules in China and the progress that the IATA has instigated an advocacy campaign to this effect in stakeholders and partner associations are continuing in the
Arab Civil Aviation Commission is making in issuing policy major markets. In 2015, the number of nations signaling their most influential nations that have yet to ratify MC99. Further
guidance to its member nations are being closely monitored intention to ratify MP14 reached 29, and Gabon became the ratifications are expected in 2016, as Ghana, Indonesia,
by the industry. The National Civil Aviation Agency of Brazil, second nation to ratify MP14, after the Republic of Congo. Russia, Sri Lanka, Thailand, and Vietnam have the process of
meanwhile, seeks to revise that nations regulations on ratification in hand.
airline conditions of carriage, and this is a priority concern In the meantime, airlines have access to expanded guidance
for IATA and its members. materials to help them prevent and manage unruly behavior.
Guidance on Safe Service of Alcohol, for example, was
published by IATA in 2015 and complements the previously
published Guidance on Unruly Passenger Prevention and
Management.
27
REGULATION AND TAXATION
1 3 5
UNITED STATES ECUADOR NEW ZEALAND
At the end of 2015, the Animal Plant Health Inspection The international tourism fee was increased 150% from Despite industry efforts strongly protesting the
Service (APHIS) passenger fee was reduced from $5.00 $20 to $50 in mid-March 2016. This is in addition to introduction of a border clearance levy for each
to $3.96. The APHIS aircraft fee, however, increased from the infrastructure tax (also for tourism) of $10 per arriving person arriving and departing New Zealand on international
$70.75 to $228.00 for each landinga significant financial passenger that was introduced earlier in 2016. flights, the government began levying a NZ$18.10 arriving
hit for airlines, especially as this fee cannot be passed on passenger tax and NZ$3.37 departing passenger tax as of 1
4
to passengers. IATA and Airlines for America have filed a INDIA January 2016.
lawsuit to overturn the aircraft fee increase. India plans to introduce a goods and services tax
(GST). It is understood that the GST will replace a
2
EUROPE number of Indian taxes, including the service tax, in late 2016
In Norway, an air transport tax is proposed at NOK80 or early 2017. The industry supports the GSTs introduction,
($11) per passenger departing on a domestic or provided it aligns with value-added tax best practices. In the
international flight. Sweden is also exploring whether to meantime, IATA continues to challenge Indias service tax,
introduce a tax for environmental purposes. Airlines and IATA which applies to passenger tickets, fuel surcharges, airport
are engaging with both nations governments to abandon and air navigation service charges, and excess baggage on
these moves. return flights to India from abroad.
2
introduction of the noise tax.
4
3
28
REGULATION AND TAXATION
29
INFRASTRUCTURE
Meeting
needs:
the right
way to
build
30
INFRASTRUCTURE
Operational and financial improvements The European Commission (EC)s review of the EU Aviation Aligning CAPEX with airline needs
Air transport is a growing industry. According to IATAs 20- Package provided an opportunity to campaign successfully, The lack of approved new airport capacity is in some parts
year forecast, demand for air transport will double by 2034. against assumptions that bilateral commercial agreements of the world an issue of growing concern. The fragmented
The industry, therefore, needs infrastructure developed to between airlines and airports are sufficient for setting way airport authorities, governments, and airlines work
meet capacity and quality requirements at competitive costs. airport charges. cannot continue if approval for infrastructure expansion is
Consultation and collaboration among airlines and their to be won. At the same time, airport expansion must match
infrastructure partnersparticularly airports, air navigation In 2016, airlines will continue to call for more effort by all airline requirements. Unnecessary capital investment leads
service providers (ANSPs), and fuel suppliersare crucial. parties to ensure that ICAO safeguards regarding charges to to higher costs, which can reduce demand for air travel and
airlines and passengers are broadly applied. The industry will weaken the case for investment in required infrastructure.
The air transport industry agenda for infrastructure is to ask the EC specifically to improve the economic regulation Airline and airport owners and operators must partner in
l drive cost efficiency and lower charges at airports, of airports throughout the European Union and to ensure aligning the business plans of the latter with the business
l align airport capital expenditures (CAPEX) with airline needs, that the European Airport Charges Directive is properly needs of the former.
l improve airport operations, transitioned to national law.
l reduce ground damage costs by standardizing procedures, Close airline-airport working relationships do exist. But too
l secure a reliable supply of jet fuel at competitive and often airlines are excluded from airport-related decision
transparent prices, and making. If necessary, airports should be mandated by
l advocate for and assist in implementing modernized, regulators to consult with airline experts to ensure that
efficient air traffic management systems. airport expenditures are necessary, functional, and a
potential good return on investment.
31
INFRASTRUCTURE
Improving airport operations Reducing ground damage costs Reliable jet fuel supply at competitive prices
Constant and close cooperation is also vital to fostering Ground damage costs airlines nearly $4 billion a year. Poor Notwithstanding lower oil prices in 2015, jet fuel continued
understanding between airports and airlines of the drivers handling on the ramp, moreover, poses a danger to health to account for about 27% of an airlines operating costs.
of effective airport operations. Airlines work with airports to and safety. Because airlines increasingly rely on outsourced Many airlines do not reap the benefit of lower oil prices
achieve efficient operations, thorough contingency planning ground service providers (GSPs), IATA is working to because some countries still use posted pricing instead of
and handling, and a repositioning of the airline-airport harmonize ground handling procedures. The intent is to a pricing formula based on international market quotations.
business relationship to that of customer and supplier. improve operational practices and cost efficiencies in ground This, and a lack of transparency to go with it, is a particular
l Airport collaborative decision making (A-CDM). Well- handling and heighten safety, quality, and efficiency for all. problem in parts of Africa and the Middle East. IATA has
implemented A-CDM can increase an airports number of nevertheless had some successes. In Saudi Arabia, estimated
traffic movements and enable a better use of resources The IATA Ground Operations Manual (IGOM) consolidates savings of $151 million annually have resulted from a long-
during aircraft turnaround. In 2016, the focus will be international best practice in ground operations procedures. term campaign to adjust the countrys jet fuel pricing
on ensuring that consistent processes are applied in all IATA is encouraging airlines and GSPs worldwide to adopt formula to reflect international, market-based prices.
A-CDM implementations. IGOM as their minimum standard for ground operations. At
l Baggage handling. Developing common capabilities in all the end of 2015, IGOM was fully adopted by 22 airlines, with An additional issue facing airlines is fuel concession and
IATA members is fundamental to sound baggage handling. a further 65 airlines in the process of implementation. other fees that have no cost basis. These should be removed.
Projects for this purpose include tracking as required In Colombia, the competition authoritys termination of the
by IATA Resolution 753, identifying baggage uniquely, The benefits of IGOMs widespread use include preventing concessionaires contract at San Andrs airport because
and planning the transition to Baggage XML messaging. accidents and injuries, reducing aircraft damage, improving of the concessionaires extortionate 2,500% increase in the
When completed, these projects will help IATA members efficiency, promoting timely performance, and realizing fuel concession fee and abuse of economic power sets a
significantly reduce costs and raise customer service. cost savings in ground operations. IGOMs adoption will precedent for the removal of other unjustifiably high fuel fees.
l Service-level agreements. IATA is benchmarking airport also help realize the full benefits of the IATA Safety Audit
services to determine key performance metrics. Best practice for Ground Operations program. The industry continues to remind governments that it is a tenet
guidelines are the basis for service-level agreements being of the Chicago Convention, of ICAO policies, and of bilateral
concluded at a number of European airports. At the World Cargo Symposium in March 2016, a air service agreements that jet fuel for international flights not
l Emergency response planning. IATA plans to extend campaign to reduce instances of damage to Unit Load be taxed. Campaigns to remove or prevent taxes on jet fuel
its emergency response planning activities to include Devices (ULDs) was launched. The mishandling of ULDs continue in Austria, Ethiopia, Gabon, and Kenya. IATA is also
identifying the issues for airport business communities, costs the industry upwards of $300 million per year. The continuing its advocacy activities in principal markets for the
understanding where and how assistance can be given, and campaign, Its not just a box, aims to raise awareness of liberalization of fuel services and associated regulation. In 2015,
sharing industry best practices. IATA and ACI World are the importance of correct ULD handling, with messages IATA advised the Mexican government of the impact of its
considering developing a joint business continuity manual. relevant to people in the warehouse and the boardroom. energy reform on the countrys jet fuel industry and assisted
l Airport of the Future. Everything that IATA does, with the development of a regulatory framework for the sector.
including its airport development and ground operations
initiatives, contributes to the airport of the future. New Another of IATAs aims is to work with partners to improve
airport design and construction will optimize airline benefits. the safety, quality assurance, and auditing efficiency for
aviation fuel. IATA is cooperating with the oil industrys Joint
Inspection Group and the IATA Fuel Quality Pool to develop
a common industry fueling standard.
32
INFRASTRUCTURE
2 4
Airport development requirements should be agreed on EUROPE MIDDLE EAST
by all parties based on a robust, transparent cost-benefit Amid industry pressure, Amsterdam Airport Schiphol IATA is working with its members to shape proposals
model that is in line with expected demand. Where airport reduced its airport charges an average of 12% for for new economic regulation models in Oman and
privatization is being considered, early consultation, including 20162017, which will save $105 million. Charges reductions at Sudan. The aim is to ensure that the airline perspective
decisions on investment, cost allocation, and charge setting, Spanish airports were also secured and will save $48 million appears in provisions for airport and air navigation charges.
is needed among all parties to avoid unfair concession in 20162017. A successful appeal against a Brussels Airport
5
agreements, which would stifle efficient industry growth. charges proposal will save $28 million in 20162019. ASIA
Airlines welcomed the Indian governments reported
1
AMERICAS Airlines broadly welcomed the UK Airports Commissions decision not to privatize four major Indian airports
Industry efforts saw Colombias international departure recommendation to expand London Heathrow and thereby after it was challenged on inadequate justification for
fee reduced by $54 a passenger. alleviate capacity issues in Southeast England. However, those airports high charges. At Delhis Indira Ghandi
there are concerns over the commissions prefunding International Airport, IATA is continuing its legal challenge
IATA is working with the project teams for Mexico Citys proposals and prescriptive approach to environmental of airport charges. Furthermore, on behalf of the airline
new airport to make sure that airline input and airport mitigation measures. community, IATA supported a peer review of the Delhi
operational parameters are aligned and incorporated in the airports master plan. The airport authority has agreed to
3
new airports development strategy. IATA is also sharing AFRICA review the master plan every five years in accordance with
expertise with security and immigration departments in the A decision on the Airports Company of South Africa international best practice.
government. The Mexican authorities are being encouraged (ACSA)s airport charges for 20152020 urgently
to realign and modernize their processes with global best needs to be made. The airline community expects the In 2015, a decision was made to build a third runway at
practice by adopting and incorporating IATA Fast Travel, regulators recommendation of a reduction to be upheld. Hong Kong International Airport (HKIA). Completion is
Passenger Facilitation, and Smart Security processes into targeted in 2023. Airlines welcome the decision but, to
the design of the new airport. avoid a capacity crunch, are still pushing for reforms to
HKIAs movement cap of 68 aircraft an hour.
5
3
33
INFRASTRUCTURE
2 3
The global vision for air traffic management (ATM) is for a EUROPE: SINGLE EUROPEAN SKY MIDDLE EAST AND NORTH AFRICA
harmonized, cost-efficient, and interoperable ATM system. Development of the Single European Sky (SES) The Middle East is a strategic location with significant
Airlines and ANSPs need to work together if this vision is remains stalled despite over a decade of work. volumes of transiting air traffic. The challenge is to
to be achieved. A number of ambitious regional projects The Single European Sky ATM Research (SESAR) joint increase the overall efficiency of the regions ATM system
are in place to address capacity restraints and the lack undertaking is proceeding with plans to spend up to through improved airspace design and organization.
of efficiency, but political commitment to the success 26 billion developing and deploying technology and Solutions must take into account projected regional traffic
of these projects is essential. There also remain many procedures. But airlines argue that implementing systems flows and not just national interests.
examples where ANSP charges are too high. without accompanying airspace reforms will not produce
the cost-efficiency, environmental, safety, and capacity Technology and processes and institutional arrangements
1
UNITED STATES: NEXTGEN improvements envisaged. Needed reforms, including the can achieve a great deal. IATA, airlines, and other industry
The US Federal Aviation Administration (FAA)s troubled amalgamation of European airspace into functional airspace partners are working with ICAO in helping the Middle East
NextGen modernization program is a decade behind blocs to promote greater efficiency, have been only partially evaluate enablers of air traffic flow management (ATFM)
schedule and will cost two to three times more than the initial implemented because of a lack of political direction. and collaborative decision making. ATM modernization and
estimated $40 billion in public-private investment, according the implementation of operational concepts that support
to a recent US government report. Part of the problem is that To reinvigorate airspace modernization, in 2015 IATA airspace optimization and availability, such as flexible-
the FAA and NextGen are subject to the vagaries and shifting commissioned a report from SEO Amsterdam to look use airspace, harmonized en route performance-based
priorities of the annual federal budgeting process. into the economic benefits to Europe from the successful navigation, and standardized en route aircraft separation,
delivery of the SES goals in 2035. The report concluded that are also vital.
Given the importance of the US market, a modernized Europe stands to gain 245 billion in economic benefits,
and efficient ATM system is vital to the growth of global including a million extra jobs. Throughout 2016 and beyond, Developments in ATM and airspace capacity alone,
commercial aviation. For that reason, IATA and other IATA will be working to build a coalition of European though, are not enough. Harmonization, integration, and
stakeholders support a legislative proposal to modernize the stakeholders to promote the reports main messages in an collaboration among aviation stakeholders are essential to
system by establishing an independent, corporatized nonprofit effort to encourage governments to push for genuine ATM realize the potential of national projects.
entity to perform air traffic services. It appears unlikely, reform and modernization.
4
however, that this will succeed, owing to insufficient support CHINA
in the US Senate. But there are grounds for optimism in the Operations in China remain a notable challenge.
broad coalition of stakeholders supporting the initiative. On-time performance on air routes in China fell in
2015; only about 67% of flights arrived on time. This is a 10
percentage point deterioration in just five years.
34
ENVIRONMENT
Environmental
commitments:
reducing impact
35
ENVIRONMENT
Environment Carbon emission reductions To achieve its three carbon-emission goals, the industry
Aviation has an environmental impact. Flights generate The industry is working hard to decouple the growth in traffic has adopted a four-pillar strategy comprising technology,
noise and air pollution, including greenhouse gas emissions. from the growth in emissions that results. Aviations license to operations, infrastructure, and market-based economic
grow depends on achieving long-term sustainability. measures. Continued investment in new aircraft and
Airlines, though, are united in their determination to manage innovative efficiency improvements are helping the industry
and reduce their impact on the environment in partnership In 2009, the aviation industry committed to three meet its yearly 1.5% fuel-efficiency goal. In the 20152016
with airports, air navigation service providers (ANSPs), and emission-reducing goals: period, significant progress occurred, particularly in
aircraft manufacturers. Tackling carbon (CO2) emissions 1. Improving fuel efficiency an average of 1.5% annually to 2020 formalizing technological efficiency gains through a CO2
is at the top of the agenda, and the industry has a well- 2. Capping net emissions through carbon-neutral growth standard for aircraft and in negotiations to deploy a global
established strategy and globally agreed to targets to from 2020 (CNG2020) market-based measure (MBM) for addressing CO2 emissions.
that end. Noise is addressed through the ICAO Balanced 3. Cutting net emissions in half by 2050, compared with 2005
Approach. To deal with more general environmental issues,
airlines are working together to establish and share best Such ambitious goals place aviation in the forefront of Aircraft CO2 standard
practices, including the use of environmental management industries globally in managing its impact on climate In February 2016, governments took an important step
systems and environmental assessments. change. Through ICAO, moreover, governments worldwide in agreeing, through ICAO, on a CO2 efficiency standard
are aligned with the industrys CNG2020 vision. This is for commercial aircraft. The standard is the result of six
important because the challenges of achieving the second years of technical work by ICAOs Committee on Aviation
and third goals are so significant that they cannot be Environmental Protection. Following the standards
overcome by the industry alone. approval by the ICAO Council, it will apply from 2020 and
ensure that CO2 emissions from new aircraft types do not
exceed a limit defined as a maximum fuel burn per flight
kilometer depending on the size and weight of the aircraft.
Between 2023 and 2028, this standard will also be applied
gradually to aircraft designs that are already in production.
1 2 3
Improving fuel Capping net emissions Cutting net
efficiency through carbon-neutral carbon emissions
an average of growth from 2020 in half by 2050,
1.5% annually (CNG2020) compared with
to 2020 2005
36
ENVIRONMENT
Global market-based measure Sustainable alternative fuels deployment Airline fuel reporting
The 39th ICAO Assembly in September 2016 may mark a The use of sustainable aviation fuels (SAF), especially The airline industry must demonstrate to governments and
milestone in industry efforts to commit governments to biofuels, is crucial to the industrys technological progress. other stakeholders that it is achieving its target of a 1.5%
agree to the implementation of a market-based measure SAF emit CO2 but have the potential over their life cycle to annual improvement in fuel efficiency. To this end, IATA
(MBM). A proposal for a Carbon Offsetting and Reduction save up to 80% in CO2 emissions. member airlines continue to report on their fuel consumption
Scheme for International Aviation (CORSIA) has been through the Fuel Reporting & Emissions Database (FRED),
developed by governments through ICAO and is supported Aviations fuel distribution system, meanwhile, enjoys which was launched in February 2013. FRED has a 94.2%
by the industry. It must, however, be adopted by the advantages over other transport sectors fuel distribution reporting rate among its 207 airline participants. The
assembly, which comprises ICAOs 191 member states, if it is methods. That systems delivery of biofuels to just 190 database allows airlines and IATA to provide credible, de-
to come into force. airports worldwide would cover potentially 80% of all flights. identified CO2 information to governments and other external
stakeholders in support of IATAs advocacy efforts. FRED is
The development of the CORSIA proposal has been a There were a number of important developments in SAF continually enhanced to improve data quality.
considerable technical and political challenge. In addition deployment in 20152016:
to the involvement of national governments, CORSIAs l United Airlines became the first US operator to launch
development included intensive negotiations with and scheduled commercial biofuel-powered flights out of Los A balanced approach to noise
technical input from the aviation industry. It is the view Angeles International Airport. The development in 2013 of ICAOs noise certification
of the industry that a global carbon offsetting scheme l In April 2016, KLM took advantage of Oslo airports new standard for aircraft marked another stage in the ongoing
represents the most effective and practical means to hydrant biofuel supply system to launch 80 commercial process that has reduced aircraft noise some 80% in recent
implement an MBM in time to meet the CNG2020 goal. biofuel flights on its Cityhopper service. decades. Concerns about aircraft noise are nevertheless
The aviation industry, including IATA and the Air Transport l Air New Zealand and Virgin Australia commenced a prominent worldwide.
Action Group, is engaged in explaining the merits of partnership to find opportunities for locally sourced biofuel.
the proposal to national governments and regional l Boeing launched a sustainable fuels research and In April 2014, the European Union (EU) adopted a regulation
governmental organizations. development project with Aeromexico and the Mexican to improve the management of noise at European airports.
government. Boeing also announced a partnership with That regulation enters into force in 2016 and requires
The aviation industrys priorities are to ensure that CORSIA Japanese aviation stakeholders to develop a roadmap for authorities to implement ICAOs Balanced Approach to
is built on the principles of transparency, nondiscrimination, biofuel flights for the 2020 Tokyo Olympic Games. Aircraft Noise Management, which includes such procedural
and cost-effectiveness. CORSIA must also provide for an l The first IATA Alternative Fuel Symposium (AFS) was steps as consulting with stakeholders and assessing
equitable distribution of emission-reduction obligations held alongside the IATA Aviation Fuel Forum in Mexico in noise-mitigation measures. The EU is also reviewing its
between countries and operators. Other important issues November 2015. It brought together airline customers and Environmental Noise Directive (END). While END is not
such as monitoring, reporting, and verification requirements alternative fuel suppliers to discuss opportunities to remove specific to air transport, its revision could have important
and the types of carbon offset units that can be used for barriers to SAF deployment. The second AFS will take place ramifications for aviation, in particular by introducing noise
compliance purposesalso need to be addressed. in Vietnam in November 2016. limits throughout Europe. These limits could prohibit the
operation of certain aircraft or introduce caps on aviation
activities in specific parts of Europe.
37
ENVIRONMENT
Regulatory and benchmarking Three partner airlines, Finnair, LATAM, and South African Endangered wildlife carriage
developments Airways, have achieved certification as IEnvA Stage 2 Airlines have focused over the past year on supporting
The industrys advocacy efforts in 2015 contributed to a Operators. This, the highest-level IEnvA assessment, initiatives related to preventing the illegal trade in protected
number of positive outcomes, notably in Canada, where declares that an airline has implemented all IEnvA standards, wildlife and associated products. Although the responsibility
the imposition of potable water requirements on foreign identified and mitigated its significant environmental for enforcing the rules governing the international wildlife
operators was limited. In Europe, industry efforts are focusing impacts, and set performance targets. Icelandair and Qatar trade is clearly with governments, airline staff can be an
on a smarter regulation approach to the Energy Efficiency Airways have begun the Stage 2 process. invaluable source of information on suspicious passenger
Directive, which, as formulated, will require considerable behavior and unusual shipments. Activities that the industry
duplication of audits and reporting of energy use by airlines. In December 2015, IATA received confirmation from has undertaken in support of initiatives to protect wildlife
SGS, a leading international certification company, that include the following:
The IATA Environmental Assessment (IEnvA) program was IEnvA is compatible with the international Environmental l Signing a memorandum of understanding with the
developed to benchmark environmental performance and the Management System (EMS) standard ISO 14001:2004. Convention on International Trade in Endangered Species
spread of environmental best practices. Airline participation In addition, an IEnvA general training program has been (CITES) of Wild Fauna and Flora to cooperate on reducing the
in this voluntary program continues to grow. Eleven airlines developed, and IATA is working with an online training illegal trade in wildlife and associated products and ensuring
have achieved certification as IEnvA Stage 1 Operators: provider to develop an IEnvA internal assessor course. the safe and secure transport of legally traded wildlife.
Air India, Air Transat, Finnair, Icelandair, Kenya Airways, l Supporting the US Agency for International
LAN, LAN Cargo, Malaysia Airlines, Qatar Airways, South Developments Reducing Opportunities for Unlawful
African Airways, and SriLankan Airlines. Air New Zealand Transport of Endangered Species (ROUTES) program
commenced Stage 1 implementation in August 2015, and in developing standards and training to enable airline
IATA is holding discussions with a number of other airlines personnel to recognize and report efforts to transport
interested in joining Stage 1. endangered wildlife
l Holding two training workshops provided by the Freeland
Foundationin August 2015 in Nairobi in association with
The IATA Environmental Assessment Kenya Airways and in February 2016 in Bangkokthat focused
on providing airline and airport staff with the skills and
knowledge to identify and report illegal trafficking in wildlife.
IEnvA Stage 1 Operators IEnvA Stage 2 Operators
l Participating in the Duke of Cambridges United for
Wildlife Transport Task Force, which aims to identify ways the
transport sector can break the chain between suppliers and
consumers of illegal wildlife products.
The Pride of Africa
38
CARGO
Faster
processes:
faster delivery
39
CARGO
40
CARGO
41
PASSENGER EXPERIENCE
Tailor-made:
the journey
of the future
42
PASSENGER EXPERIENCE
transform the customer journey. The target is to offer at least 80% of passengers Fast Travel 250 140
Indonesia
compliant procedures by 2020. In 2015, 29% of travelers Japan
Brazil
Such transformational change is only achievable through had access to the Fast Travel experience. For year-end 200 Spain 120
Germany
strong partnerships. The StB program has brought together 2016, the industry is targeting Fast Travel access for 40% of France
150 Italy
100
stakeholders from across the industry to revolutionize passengers, which will require a significant acceleration in
business practices and processes, enhance the passenger Fast Travel implementation from previous years. 100
experience, and deliver value. StB is focused on 80
2014
2034
l eliminating or optimizing processes and related wait times Fast Travel services are common practice in many parts of 50
2014
2034
throughout the passenger journey; the world but lacking elsewhere. The main obstacles to their
l providing customers with trusted, accurate, real-time ubiquity are regulatory. Such modern technology as mobile
Million O-D passenger journeys (to, from, and within)
information during their journeys; and boarding passes, for example, is accepted in some countries
l empowering airline retailing and merchandizing. but not in others. Another notable regulatory issue is the (Source: IATA 20 year passenger forecast)
delay in approving self-printed baggage tags for departures
from the European Union. The airline industry is engaging
with regulators around the world for the use of next-
generation technology to offer passengers a smooth and
trouble-free travel experience.
43
PASSENGER EXPERIENCE
Passenger survey
IATAs Global Passenger Survey clearly shows that travelers want more self-service options.
70%
of travelers want
93%
of passengers want
boarding gates and
direct notification
security processing
of up-to-date
to be automated
information
70% 81%
of passengers
of travelers want
to be able to print want the ability to
their own luggage track their bags
tags remotely throughout their
journey
44
PASSENGER EXPERIENCE
New Distribution Capability Travel agents are crucial to the adoption of the NDC, so l helping the business travel community prepare for the
Meeting the demand for air travel and satisfying customers IATA has teamed with seven travel agent associations arrival of the NDC standard and take advantage of the
expectations will require an overhaul of the shopping globally to study how agents view the NDCs opportunities benefits of NDC implementation by airlines and travel agents.
experience. Airlines continue to innovate with bundled and and challenges. A key finding is that the NDC could be an To support these efforts, IATA has launched ndcbiztravel.iata.
unbundled products and with ancillary items and services. enabler of success for travel agents, as it makes them more org, a microsite of tools and information relevant to business
But passengers need to be able to shop and compare the competitive with airline websites and more customer focused. travel agents, self-booking tool providers, and corporate
value of these propositions across airlines, just as when But agents want to know more about the NDC. travel buyers.
shopping for other consumer goods. l continuing the outreach to the travel agent community.
Corporate travel buyers are another important NDC Great progress has been made with travel agent engagement,
The New Distribution Capability (NDC) is intended to stakeholder group. A recent study of corporate travel buyer but there is still a lot more to do. IATA will seek to build
grant passengers this ability through the development of a attitudes commissioned by IATA shows that they recognize the on its survey of close to 1,000 travel agents and to work
modern, Internet-based data standard for communications opportunity the NDC standard offers but that they, too, seek with airlines and agents who have deployed the NDC to
between airlines and travel agents. Air travelers will benefit further information about the NDC and its implications for their understand better their challenges and opportunities and to
from greater transparency and access to airlines offerings business. The Travel Manager Advisory Group, comprising 10 share best practices with them.
when shopping through a travel agent or online travel site, European corporate buyers, has been founded to ensure that
which is not the situation today. And airlines will be able to IATA and corporate travel buyers continue to discuss the NDC To date, IATA has conducted trial runs of the NDC with 24
move beyond the mostly commoditized displays of fares and related issues affecting corporate airline programs. airlines on five continents, and 15 of the worlds top 20 airline
and schedules in the travel agent channel to present their groups, by revenue, have either deployed components of the
products in a more attractive and competitive manner. To support airlines in adopting the NDC, a Change Readiness NDC standard or plan to do so during 20162017. A significant
Guide and an Implementation Guide have been produced. number of NDC deployments are expected to be initiated by
On 1 September 2015, the first official NDC standard airlines globally in 2016 in partnership with travel technology
(PADIS 15.2) was published and approved by the IATA NDC-related activities for 2016 include and travel agency partners.
membership. This was followed in October by the first IATA l monitoring and improving the performance of the NDC
NDC hackathon, in which close to 100 programmers were standard. As IATA receives feedback from early NDC IATA will continue to support airlines in their deployment of
given the opportunity to develop travel apps using the deployments, it is incorporating changes to NDC schemas the NDC by producing marketing material and tools to help
NDC standard. The hackathon is a great illustration of how to ensure that they meet market expectations for scalability, them understand and engage in the NDC. It is also committed
modernizing communication protocols between airlines and security, and ease of use and implementation. to helping airlines find NDC partners across the value chain.
travel agents is creating opportunities for programmers to l introducing the NDC Certification program. IATA will
build innovative solutions around the NDC standard, bringing operate the only certification program for the NDC. This will
new tools and solutions to the air traveler end user. ensure transparency and credibility for all who implement the
NDC standard and who wish to connect with new partners
using that standard.
45
FINANCIAL SERVICES
Settlement
systems:
the financial
backbone
of the industry
46
FINANCIAL SERVICES
IATAs Billing and Settlement Plan (BSP) facilitates and simplifies In 2015, Simplified Invoicing and Settlement (SIS) had more than 1,800
the selling, reporting, and remittance procedures of IATA-accredited participants and processed 1.48 million interline and supplier invoices
$230.3 passenger sales agents and improves financial control and cash flow
for IATAs roughly 400 participating airlines. At the close of 2015,
$70.0 totaling $70 billion. SIS transactions included $54.3 billion from the
IATA Clearing House (ICH). The ICH provides fast, secure, and cost-
billion there were BSPs in 180 countries and territories. The BSP proccessed
$230.3 billion with an on-time settlement rate of 99.999%.
billion effective settlement services to more than 415 airline, airline-associated
company, and airline travel partner participants. In 2015, the new ICH
launched by IATA had a settlement success rate of 99.99999%.
$33.7 repatriate their worldwide sales funds. The ICCS is used by more than
320 airlines and was responsible in 2015 for repatriating $217 million
and collection processes.
47
FINANCIAL SERVICES
48
AVIATION SOLUTIONS
Supporting
success:
solutions
in all areas
49
AVIATION SOLUTIONS
Generating value DDS is the largest repository of airline ticketing data in Timatic helps airlines to comply with border regulations.
IATAs innovative products and services represent unique the world, with more than 5.1 billion transactions available Timatic AutoCheck enables airlines to automate the
competitive alternatives and have consistently generated value to users since 2010. By mid-2016, DDS will cover an passenger travel document check for even the most
in the aviation industry for more than 70 years. The revenue estimated 92% of worldwide agency sales. It is also the most complicated journey and thereby avoid costly fines should
generated by these products and services is reinvested to comprehensive data set in the world, as it includes ticketing they fly an inadmissible passenger. Timatic AutoCheck can
drive and support industry-wide programs in such critical areas details, such as fares and taxes. be integrated with airlines departure control systems and
as safety, security, and the passenger experience. with kiosk, web, and mobile check-in options.
Only airlines that contribute their ticket information to DDS
are able to utilize its data. Its uniqueness is reinforced by In addition to driving the adoption of self-service check-in,
Understanding the passenger carriers contributing their direct sales data and DDS gets Timatic is an enabler of various other Fast Travel initiatives,
Direct Data Solutions (DDS) helps airlines make business stronger with each new participant. involving baggage, flight rebooking, and self-boarding. IATA
decisions based on comprehensive passenger traffic data continues to work with such providers as Amadeus, Sabre,
derived from ticketed passenger information. Airs@t is a comprehensive passenger satisfaction IBM, Embross, Damarel, INK Aviation, and Airline Choice
benchmarking survey designed for the airline industry. It to offer Timatic AutoCheck capabilities through standard
helps airlines to understand passenger preferences on around industry solutions.
80 attributes, including preflight, in-flight, and postflight
experiences. Airlines are able to compare the customer In 2015, 244 million passengers had their travel documents
satisfaction ratings of their passengers with the satisfaction verified and airlines saved 59 cents per passenger by using
ratings of their competitors customers. Annually, more Timatic. This reliable system features full redundancy and
than 60,000 passengers of 30 airlines are surveyed by our cloud-based hosting at sites in Frankfurt and Singapore.
fieldworkers in more than 40 airports worldwide.
A new Timatic solution, Timatic Analytics, was developed in
2015. It enables airlines to mine their Timatic data to identify
enhancements for their operations and check-in procedures.
8% Seat comfort
26% Sleeping comfort
50
AVIATION SOLUTIONS
Global expertise for business challenges Cargo developments Airport data and analysis
IATA Consulting carried out a range of projects in 2015 CargoIS uses data from millions of air waybills, representing AirportIS features the most comprehensive passenger and
to help clients improve their operational and commercial the activity of airlines and freight forwarders on thousands cargo traffic data obtainable and is used by more than
performances in many different areas. Clients encompassed of trade lanes every month, to provide actionable business 70 airports for marketing and air service development
airlines, airports, investors, CAAs, and other aviation intelligence. It sources its data from CASS, the Cargo activities. For organizations outside the air transport
stakeholders. One project involved energizing the launch of a Accounts Settlement System operated by IATA and used by industry, AirportIS is a unique strategic window into
major Middle Eastern airlines turnaround strategy through a airlines to settle with freight forwarders. As such, CargoIS global passenger streams and travel patterns. Its business
comprehensive performance review. In this case, at a modest is the only air cargo intelligence solution based on actual intelligence helps all users to improve their competitive
cost to the carrier, the IATA Consulting team identified $66 transactions. CargoIS Direct Data will be added to CargoIS position. AirportIS continues to be a market leader in airport
million in possible savings, among other recommendations. in 2017 to bring non-CASS transactions into the database. business intelligence, and its new interface ensures best-in-
class customer experiences.
Another project, a fuel efficiency evaluation for a fast-growing The IATA Dangerous Goods Portfolio includes the
European airline, identified potential savings of just over six Dangerous Goods Regulations (DGR), the global reference
million kilograms of fuel per year and a reduction of 19,590 for safe shipping. The DGR is the source for up-to-date IATA training
tons of CO2 annually. In financial terms, the savings total $3.9 information on how to safeguard the entire cargo value In 2015, the IATA Training and Development Institute (ITDI)
million or 2.0% of the carriers annual fuel budget. Other IATA chain, including how to classify, pack, mark, label, and trained approximately 100,000 professionals and students
Airline Consulting projects included assisting the management document shipments of dangerous goods safely. from all over the world in all areas of aviation. ITDIs 350-
of another European airline in its decision to introduce a plus courses and 40-plus diploma programs are developed
premium economy product, and helping airlines in China To ensure cargo chain compliance with the new regulations around IATAs areas of expertise and commitment to
understand the latest developments in ancillary revenues. governing lithium-ion batteries, IATA has developed the promoting global industry standards; helping businesses
Lithium Battery Shipping Guidelines. This document guides operate safely, efficiently, and sustainably; and building
By applying the new Level of Service (LoS) concept, which shippers through the process of efficiently and effectively career opportunities.
is featured in the latest edition of the Airport Development preparing lithium battery shipments. The Lithium Battery
Reference Manual, IATA Airport Consulting and ACI World Shipping Guidelines are available in numerous formats, ITDI course introductions in 2015 included management-
partner to provide objective analyses to airports wanting to including online, as a download, and on CD. They are also focused training through the Cargo Airline Management
optimize resources and expenditure. Using global benchmarks, available in Chinese, increasing their relevance in the largest and Airport Strategic Management Programs. Participants
the LoS assessments identify opportunities to minimize market for lithium battery manufacture. were put through realistic business scenarios. ITDI also
passenger waiting times and to maximize facility processes, inaugurated and expanded a virtual classroom program
for current operations and planned expansions. In some cases, TACT is the source for published rates and rules for air freight. in aviation leadership development in collaboration with
clients were able to minimize, adjust, or postpone costly TACT Online likewise provides the rates and rules but is Harvard Business Publishing. The expansion included a
investments based on these assessments, some of which were also the most comprehensive source for air cargo schedules program in aviation strategy execution. In addition the ITDI
supported with simulation software. In 2015, these assessments available and now features a newly revamped interface. And introduced finance and IT courses focused on the New
took place at several airports, including the Quito, Ashgabat, TACT Net Rates, launched in March 2016, introduces the Distribution Capability and launched diplomas in airline
and Curaao International Airports. dynamic and automated delivery of private air freight rates quality management and quality management in general for
and charges from airlines to forwarders. This avoids the civil aviation authorities and air navigation service providers.
In 2015, IATA Consulting also provided technical assistance cumbersome manual creation and e-mailing of thousands of
to Aerocivil of Colombia for the redesign of its airspace rate sheets. Tact Net Rates is an important step in automating
and optimization of airside capacity at Bogotas El Dorado and digitizing air freight commercial processes.
International Airport. The aim is to ensure that this airport
becomes a highly efficient national and international hub.
51
AVIATION SOLUTIONS
In 2015, the ITDI was awarded ISO 9001:2015 certification Events Strategic Partnerships
for the quality of its training and for its quality management IATAs core conferences cover topics as diverse as law, Over 25 years ago, IATA helped airlines enter an era of
system. ITDIs more than 300 highly qualified IATA instructors cargo, finance, maintenance, ground handling, passenger cooperation with industry suppliers that laid the foundation
teach courses mainly in English, with some courses available experience, airport slots, and safety and flight operations. for IATA Strategic Partnerships.
in French, Spanish, Russian, and Mandarin. To meet varying As such, IATA continues to respond to demand from
needs and budgets, ITDI makes its training available in 20 the aviation supply chain to meet and discuss critical air The IATA Strategic Partnerships program has grown into a
ITDI training centers, through distance learning, in company transport issues and solutions and networking to drive community of more than 400 partners worldwide who share
settings, or through 450 ITDI reseller and partner institutions. commercial success. ideas and collaborate to improve aviation practices and
technologies. This forward-thinking program focuses on more
The ITDI partners with academic institutions to offer In 2015, IATA produced its first World Maintenance than 40 areas of involvement and thus covers a comprehensive
management-level training tailored to working industry Symposium, in conjunction with the IATA Maintenance range of industry activities. Members contribute to the efforts
professionals who require a unique combination of academic Cost Conference. In 2016, IATA will host its first Safety of more than 100 work groups and task forces.
and aviation industry expertise. The ITDI also partners with Management Conference. This event will focus on the
some of aviations leading organizations, such as ICAO, general safety culture within aviation organizations and, Such a collaborative effort has greatly enhanced the
Airports Council International (ACI), and Eurocontrol, to specifically, on safety management systems. quality of IATA standards. Initiatives developed in
address the industrys broad training issues. conjunction with IATA Strategic Partners have delivered
countless operational efficiencies and safety enhancements
The ITDI 2015 by numbers: 2016 events for airlines. Strategic Partners, too, have benefited by
World Cargo Symposium Berlin
l About 100,000 people trained being among the first to receive information on crucial
Legal Symposium Barcelona
l From 1,000-plus organizations OPS Conference Copenhagen
opportunities through their participation in work group and
l In 90-plus countries Cabin Safety Conference Miami task force discussions. Establishing a forum for cooperation
l Across 350-plus courses Fuel Forum Prague has been a win-win situation for all stakeholders. And IATA
l Involving 450 resellers and partnering Ground Handling Conference Toronto Strategic Partners will continue to forge a stronger future
CNS Partnership Conference Nashville
institutions, including for the air transport industry.
World Financial Symposium Singpaore
25-plus regional training partners World Passenger Symposium Dubai
270-plus authorized training centers AvSec World Kuala Lumpur In 2015, IATA Strategic Partnerships launched a number
160-plus accredited training schools Slots Conferences (spring and fall) Hamburg and Atlanta of important new areas of involvement, including in airline
Maintenance Cost Conference Bangkok
industry economics, data and communications, and aviation
Safety Management Conference Abu Dhabi
health and medicine. The program also welcomed a record
number of new Strategic Partners at its flagship event, the
IATA Annual General Meeting in Miami, Florida.
52
IATA 70TH ANNIVERSARY
Flying better.
Together.
53
IATA 70TH ANNIVERSARY
Airlines have worked together for 70 years to establish the links that create social and economic progress
Social and economic progress Membership resolutions arrived at during early IATA Safety and security
IATAs 70th anniversary, from April 2015 to April 2016, annual general meetings (AGMs), moreover, provided Safetyone of the original articles of the association and a
allowed the association to fete the airline members whose input for ICAO and the major conventions that still govern top priority ever sincehas evolved to match the enormous
collaborative work has guided the aviation industry aviation. The Warsaw and Rome Conventions, the Hague growth in air traffic. Despite passenger numbers rising to
through damaging crises and tremendous growth. and Guatemala Protocols, and Montreal Protocol 4 have 3.5 billion, the accident rate has consistently fallen. Some
all been influenced by IATA AGM resolutions. Smarter 100,000 flights take off and land safely every day because
Partnering for airline success is the bedrock of global social regulation is a cornerstone of IATAs work. the industry has never lost sight of the fact that passenger
and economic development. It underpins aviations crucial and crew safety can always be improved.
role in transporting people from the four corners of the IATA member airlines, in effect, quickly put in place the
world to meet for business and pleasure. keystone of aviation: global standards. These standards The IATA Operational Safety Audit (IOSA) has proved to
were especially important as the industry began be a particularly important step since its launch in 2003.
IATA, established in 1945 by 57 airlines from 31 countries, deregulating in the late 1970s. They allowed IATA to be An enhanced version of the audit governs airline safety
is central to this partnership approach. Its early work was effective within a competitive arena and ensured that and stipulates continuous monitoring and compliance
largely prescriptive, however, forming the parameters airlines had a platform for creating value appropriate throughout the two-year IOSA audit cycle. More than 400
that allowed the fledgling industry to function effectively. to the times. airlines are on the IOSA registry, indicating the extent to
Within a few years of IATAs founding, though, IATAs which the program is highly regarded even by non-IATA
growing membership had accomplished much. It members. Data sharing will be the cornerstone for the
had passed some 400 resolutions at the first Traffic next generation of safety advances, heralding a prevention
Conference; established the IATA Clearing House (ICH) to rather than cure approach.
handle airlines money; and set up IATA regional offices
in New York, Paris, and Singapore to represent better the Passenger security, too, is developing to meet changing
increasingly global scope of aviation. needs. Airlines have managed to balance facilitation and
security over the past seven decades. Smart Security,
based on risk assessment rather than prescriptive
measures, will optimize this delicate juggling act.
Air passenger numbers from 1945 through 2015 (Source: ICAO, IATA)
1945
9,000,000
54
IATA 70TH ANNIVERSARY
1987
1,028,000,000
55
IATA 70TH ANNIVERSARY: TIMELINE
April 1945 1945 1947 1947 1947 1955 1959 1966 1965 1972
57 airlines from 31 First AGM elected The first Traffic The IATA IATA set up IATA The IATA Knut IATA Launch
countries voted Sir William P. Conference Clearing regional offices membership Clearing Hammarskjold membership of IATA
into being the Hildred as IATA reached House (ICH) in New York, rose to more House (ICH) took over as surpassed the Billing and
new International Director General agreement on began Paris, and than 70 processed IATA Director 100-airline Settlement
Air Transport 400 resolutions operations Singapore airlines more than $1 General mark Plan for
Association covering all billion for the travel agents,
aspects of air first time in Japan
travel
1975 1978 1980 1983 1984 1985 1985 1992 1995 1996
IATA An IATA IATA IATA Gunter Eser IATA members IATA began Pierre Jeanniot IATA members The IATA
membership Special General launched the began its took over as rose to 150 selling industry became IATA numbered Executive
reached Meeting Program for management IATA Director airlines, services, Director 225 airlines Committee of
110 airlines, made tariff Developing training General which carried such as yield General and representing airline CEOs was
which carried coordination Nations courses 465 million management CEO 140 countries renamed the
317 million optional for Airlines passengers and currency IATA Board of
passengers carriers conversion Governors
2002 2003 2004 2008 2009 2011 2013 2014 2015 2015
Giovanni The IATA Simplifying The IATA Tony Tyler ACI and IATA The ICH The US IATA
Bisignani took Operational the Business industry announced became IATA sign a mem- achieves Department members
the helm as Safety Audit is launched achieved its vision for Director General orandum of an on-time of Transport increased to
IATA Director (IOSA) is 100% carbon-neutral and CEO understanding settlement approved 260 airlines,
General and launched and e-ticketing growth to develop the rate of 100% resolution 787, comprising
CEO from 2009 Smart Security paving the way 83% of all
becomes intitiative for the rollout of commercial
mandatory New Distribution air traffic
for all IATA Capability
members
56
IATA OFFICES
Main offices
Regional offices
57
www.iata.org/2016-review