Usman Nadeem Year 2023

LOW COST CARRIER LEC

2
USMAN NADEEM
YEAR 2023
 Usman Nadeem Year 2023

AIRLINE AND GOVERNMENT

• The International Air Transport Association (IATA )is a trade

association of the world's airlines founded in 1945.
• IATA has been described as a cartel since, in addition to
setting technical standards for airlines, IATA also organized
tariff conferences that served as a forum for price fixing
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CONTD

• Consisting in 2016 of 290 airlines, primarily major carriers,

representing 117 countries, the IATA's member airlines
account for carrying approximately 82% of total available seat
miles air traffic.
• IATA supports airline activity and helps formulate industry
policy and standards. It is headquartered in Canada in the city
of Montréal, with executive offices in Geneva, Switzerland.
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AIRLINE AND GOV:

• By partnering for mutual benefit, IATA works with

governments, international organizations such as the
International Civil Aviation Organization (ICAO), and other
relevant authorities to help the development of global value
chains and to define the correct regulatory framework for the
industry.
• ​Air transport generates incredible social and economic
benefits for a lot of different people, governments, national
economies, large and small businesses, and travelers who
simply want to visit family or enrich their lives being seeing
new places and experiencing new cultures.
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CONTD:

• That is why we as an airline believe that by partnering with

governments we can work together to coordinate industry and
government needs, regulate our industry in a harmonized way
and to facilitate the global aviation systems that are so
important to modern life.
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IATA POLICY ON 6 KEY AVIATION

ISSUES
• Air transport generates incredible social and economic
benefits for a lot of different people, governments, national
economies, large and small businesses, and travelers who
simply want to visit family or enrich their lives by seeing new
places and experiencing new cultures. To this end we are
actively pursuing our ‘value of aviation’ campaign to highlight
these benefits – to encourage governments to help air transport
unleash its value.
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CONTD:

• One way that governments can help is to regulate our industry

in a harmonized way, facilitating the global aviation system that
is so critical to modern life - our ‘smarter regulation’ campaign
is aimed at working with governments to drive this agenda
forward.

• Some of the areas where we see a need for a smarter regulation

approach are consumer protection, ratification of the 1999
Montreal Convention, unruly passengers, the management of
airport take-off and landing slots, taxes on air transport and
problems that airlines have in repatriating the money they make
in overseas markets.
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CONSUMER & PASSENGER ISSUES

• The aviation industry recognizes that regulation benefits

consumers and the industry alike by providing clarity and
certainty for all.

• But where regulation is poorly designed or enforced, it can

induce confusion rather than clarity and add expense without
creating value.
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TAXATION

• Aviation supports trade, employment and economic growth. In

2020, airlines and their customers are forecast to generate
$136 billion in tax revenues. That’s the equivalent of 45% of
the industry’s GVA (Gross Value Added, which is the firm-
level equivalent to GDP), paid to governments.

• Unwarranted or excessive taxation on international air

transport has a negative impact on economic and social
development.
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AVIATION AND ENVIRONMENT POLICY

• Air transport connects the world, bringing people and goods

together. But the benefits of aviation also have an
environmental downside. Emissions, noise, industrial
processes, and waste must be managed by the industry,
reduced, and where possible eliminated. In addition, aviation
has a role to play in tackling the global issue of wildlife
trafficking. IATA and its members have policies and programs
in place to address all these issues and many more.
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INFRASTRUCTURE

• IATA takes a leadership role in influencing airport and

airspace planning and development projects worldwide to
meet airline requirements for safety, efficiency and
functionality.

• IATA seeks to establish and maintain a global plan that

addresses high level, long-term strategy and near-term issues,
as well as harmonized regional development.
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AIRPORT OWNERSHIP & REGULATION

• Historically, there has been a lack of clear guidance within the

aviation industry or for governments on ownership and operating
models for airports, and the appropriate regulatory framework to
govern them.

• The Airport Ownership and Regulation Guidance Booklet (pdf) is

designed as a manual for decision-makers in government
institutions, airlines and airports who are considering, or are
impacted by private sector participation and airport privatization. It
sets out recommendations for alternative ownership and operating
models for airports globally, improved governmental decision-
making, and required regulatory safeguards for privatized airports.
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AIR TRAFFIC MANAGEMENT

• IATA works globally with airlines, other organizations, airport

and air navigation service providers, and the International
Civil Aviation Organization (ICAO) to promote cost effective
environmentally responsible improvements to the global Air
Traffic Management environment.

• We play an active role in making sure we have a responsible

aviation industry. By working closely with our airline
members, we have developed best practices that will benefit
everybody and that will help reduce aircraft noise and
emissions.
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ICAO GUIDELINES

• The guidelines follow principles of transparency, consultation,

efficiency, and productivity in establishing the need for an
equitable charges structure. They also help airports align their
development plans and capital expenditures with airline needs
and expected passenger demand.
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AIRPORTS

• For IATA, it is essential that airport planning and

infrastructure development supports safe, functional, capacity
balanced and user-friendly airports. Working closely with
airport authorities, IATA seeks to ensure that they provide
flexible facilities that meet airline requirements in a cost-
effective manner.
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AIRLINE DEREGULATION
 Usman Nadeem Year 2023

VIDEO LINK AIRLINE DEREGULATION

 Usman Nadeem Year 2023

AIRLINE DEREGULATION

• Airline deregulation is the process of removing government-

imposed entry and price restrictions on airlines affecting, in
particular, the carriers permitted to serve specific routes. In the
United States, the term usually applies to the Airline
Deregulation Act of 1978.
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AIRLINE DEREGULATION

• Pioneers including Southwest Airlines Co. (LUV) ushered in

mass air travel in the U.S. during the 1970s. In that same
decade, the deregulation of the U.S. airline industry
accelerated the widespread use of low-cost carriers. The 1978
Airline Deregulation Act partly shifted control over air travel
from the government to the private sector. That led to the
termination of the once all-powerful Civil Aeronautics Board
(CAB) in 1984.
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CONTD

• The CAB previously had an iron grip on critical aspects of the

U.S. airline industry. It controlled the pricing of airline
services, agreements between carriers, and mergers within the
industry. Airlines were only able to compete on tangible
factors, such as food, service quality, and cabin crew. Their
hands were tied concerning the most crucial consideration for
most consumers—ticket price.
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THE RESULTS OF DEREGULATION

• The liberalization of the airline industry yielded spectacular

results. The number of U.S. air traveler enplanements soared
from 205 million in 1975 to a record 927 million by 2019.
• That's a decline of about 35%, but the drop mostly took place
between 1990 and 2005. Airlines also went from filling about
54% of seats in 1975 to using 85% of their seating capacity in
2019.
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LETS END