LECTURE 10: IATA & AIRLINES, AGENTS/FORWARDERS AND

INTEGRATORS

THE INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA) (P.138-140)

FOUNDED IN 1945

THE WORLD INDUSTRY ORGANISATION OF SCHEDULED AIRLINES

REPRESENTS THE COMMON INTERESTS AND CONCERNS OF THE

MEMBERS

ACTS AS A LOBBY GROUP

AIMS OF IATA

TO PROMOTE SAFE, REGULAR, AND ECONOMICAL AIR TRANSPORT

TO PROVIDE THE MEANS FOR COLLABORATION AMONGST MEMBERS

TO COOPERATE WITH THE INTERNATIONAL CIVIL AVIATION ORGANISATION

(ICAO) AND OTHER INTERNATIONAL ORGANISATIONS

IATA ACHIEVEMENTS

TRAFFIC: INTERLINE AGREEMENTS/PAYMENTS

SECURITY LEGAL: WORKS WITH LAW ENFORCEMENT

SAFETY: DETERMINES WHAT CAN AND CANNOT BE CARRIED

AIR FREIGHT: EFFICIENCY FOR AIR CARGO/RATES (TACT: The Air

Cargo Tariff)

CONTAINERISATION AND UNITISATION: EFFICIENCY THROUGH

STANDARDISATION (ULDs: Unit Load Devices)
UNIT LOAD DEVICES (P. 159-162)

the containers of air

less handling, less damage, less time to load/unload

not intermodal

light weight (fragile)

many sizes/shapes to suit different aircraft (see P. 154-156)

smaller than ocean containers (1 5 mt ; 3.5 - 12m3)

generally owned by the airline

MOVING PRODUCT BY AIR: 3 CHOICES

1. AIRLINES

MANY AIRLINES HAVE THEIR OWN CARGO DIVISION (AIR CANADA

CARGO)
MAY CHARGE CUSTOMERS AIRLINE (IATA) RATE (TACT)

2. AGENTS AND FORWARDER (S) (P. 142-143)

AN AGENT CHARGES AIRLINE RATES AND RECIEVES A

COMMISSION
BOOKS SHIPMENT WITH CARRIER
PRESENTS CARGO READY FOR SHIPMENT TO THE AIRLINE

A FORWARDER SPECIALISES IN CONSOLIDATION

NEGOTIATES AN ANNUAL TONNAGE RATE WITH AIRLINES
OFFERS CUSTOMERS LOWER RATES THAN TACT
 OFFERS DOOR TO DOOR SERVICE (vs READY for CARRIAGE)
OFFERS OWN FLIGHT SCHEDULES

3. INTEGRATORS:

OWN AND OPERATE AIRCRAFT

SPECIALISE IN SMALL, INDEPENDENT, TIME SENSITIVE SHIPMENTS
FED EX (5th largest fleet of aircraft in world), DHL, UPS
HIGH SERVICE (OVERNIGHT)
HIGH PRICE