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AIR CARGO MANAGEMENT Unit-5 Intermediaries/Regulatory Bodies in Air Cargo

AIR CARGO MANAGEMENT

UNIT V: Intermediaries/Regulatory Bodies in Air Cargo

AIR FREIGHT FORWARDERS ASSOCIATION

The Airforwarders Association (AfA) serves as the voice of the air forwarding industry. As an
alliance of indirect air carriers, cargo airlines and related businesses operating across the global
transportation community, they represent member companies dedicated to moving air cargo through
the supply chain. The members include not only airforwarders, but truckers, airlines, warehouse
operators and businesses delivering a range of supporting services including technology, training,
compliance, insurance and legal, just to name a few industries.

Members range from small businesses with fewer than 20 employees to large companies
employing more than 1,000 people and business models varying from domestic to worldwide freight
forwarding operations. In short, they are the travel agents for freight shipments, moving cargo in the
timeliest and most cost efficient manner whether it is carried on aircraft, truck, rail or ship.

A wide variety of goods are shipped via air cargo – from organs for medical transplants to mail
to live animals to manufactured goods such as clothing. Increasing, e-Commerce goods are moved by
air from the manufacturer direct to the consignee. Airforwarders participate in this rapidly growing
sector of the industry as well. Manufacturers rely heavily on air cargo shipments to ensure timely and
secure delivery of goods, which is necessary to remain competitive in the global market.

As security is and always has been the first priority of this industry, airforwarders are
experienced professionals who maintain full control over cargo in secured facilities until it is delivered
directly to the aircraft for transport.

Unlike a broker or agent, Airforwarders (also known as airfreight forwarders and Indirect Air
Carriers) act as common carriers* who under a contract of carriage provide air freight transportation
services internationally and domestically.

As non-asset operations, Airforwarders have the flexibility to offer many services using a
broad range of transportation options and opportunities. While most of our members use cargo
services offered by the scheduled passenger airlines, many use other forms of transportation as well.
These offerings include arranging shipments by freighter aircraft, truck, ship, and rail.

-R. Ravichandran
Assistant Professor
AIR CARGO MANAGEMENT Unit-5 Intermediaries/Regulatory Bodies in Air Cargo

Airforwarders provide flexible, collaborative, and creative solutions designed to meet specific
customer needs. Speed is not always the controlling factor as shipments often demand time-definite
delivery, accommodating special size and packing requirements as well as temperature control.

Shippers rely on Airforwarders to handle a multitude of ancillary services that include:


* Assembly and distribution
* Fulfillment or “pick and pack” services
* Warehousing
* Retail product distribution
* Financial services and insurance support
* Customs clearance
* Trade regulation assistance
Specific industry focus such as pharmaceuticals, trade shows, artwork, pets, livestock, and more

In the United States alone there are over 3,500 registered freight forwarders. The industry
employs over 100,000 people with thousands of offices located throughout the world. While air cargo
represents less than 5% of freight flown by volume, the segment represents 30% of global shipment
value with almost 80% managed by airfreight forwarders. Each member of the Airforwarders
Association serves as a valuable team affiliate to customers, improving their supply chain efficiency,
negotiating competitive rates, and helping them speed products to market quickly and efficiently.

FFFAI (Federation of Freight Forwarders Association in India)

The main object if the Federation is to organise united action to project and promote the
interests of the profession in all its aspects at the national level; and for that purpose to co-ordinate the
activities of the Customs House Agents Associations and their members ; to collect and disseminate
information to members on subjects of common interest ; to take part in conferences; to help members
and to acquaint the authorities with their common problems, to protect and to improve the common
benefits, to get redressal of legitimate grievances by all peaceful and constitutional means and
procedures to exercise beneficial supervision over the clearing trade with a view to maintain a high
standard of integrity and public confidence; to evolve a code of ethics for the Customs House Agents
and/or members of the Federation.

-R. Ravichandran
Assistant Professor
AIR CARGO MANAGEMENT Unit-5 Intermediaries/Regulatory Bodies in Air Cargo

Associate Membership

Any person, firm, company or corporation approved by the Government of India as Customs
Brokers shall be eligible for Associate Membership of the federation provided that such person,
company or corporation is an ordinary member of the association which is an ordinary member of the
Federation. Any licenced Customs Brokers who is a member of the Customs Brokers Association
which is not an ordinary member of the Federation and any licenced Customs Brokers of a center
where there is no Customs Brokers Association shall also be eligible for Associate Membership of the
Federation. Such Members will not enjoy any voting rights in any of the meetings of the Federation
nor shall they participate in any election process held by the Federation.

Allied Member

Any person, firm, Company, Association or Corporation engaged in the business of the
multimodal transport operator, air/sea cargo agent, freight broker, rail/road transport, airfreight,
shipping, inland container depot/container freight station operator, crane forklift etc., operator,
underwriter, insurance agent, or any other allied business connected with the work of Customs
Brokers shall be eligible for Allied Membership of the Federation. Such members will not enjoy any
voting rights in any of the meetings of the Federation nor shall they participate in any election process
held by the Federation.

Ordinary Member

Any association of Customs Brokers by whatever name shall be eligible for Ordinary
Membership of the Federation. However, only one association will be eligible from each custom
station. The first applicant will have rights over the others barring exceptional cases.

 Honorary Member

The committee may, in their sole and absolute discretion, admit any person, firm, company,
corporation or association to Honorary Membership of the Federation and an Honorary Member shall
not be liable to pay any entrance fee, subscription or other dues of the Federation. Such members will
not enjoy any voting right in any of the meetings of the Federation nor shall they participate in any
election process held by the Federation.

-R. Ravichandran
Assistant Professor
AIR CARGO MANAGEMENT Unit-5 Intermediaries/Regulatory Bodies in Air Cargo

Membership fee structure


I) Associate Membership 

Head Office
Annual Subscription GST 18% Total Fees Enclosure
Rs. 2500/- Rs.450/- Rs. 2950/- Xerox copy of CB License

Branch Office  
Annual Subscription GST 15% Total Fees Enclosure
Rs. 1250/- Rs. 225/- Rs. 1475/- Xerox copy of CB License

II) Allied Membership

Annual Subscription + One time GST 18% Total Fees Enclosure


4 years subscription in Admission fee
advance + GST
Rs. 25000/- Rs. 20000/- Rs.4500/- + Rs.53100/- Xerox copy of MTO
License,
Rs. 3600/-
IATA Registration,
Console Agent
Registration, CFS
Registration

III) Ordinary Membership 

Member strength Annual Fees GST 18% Total Enclosure


Below 50 Rs. 5000/- Rs. 900/- Rs. 5900/- Membership list,
Managing Committee
51-100 Rs. 12500/- Rs. 2250/- Rs. 14750/- list, Constitution, Copy
101-250 Rs.20000/- Rs.3600/- Rs.23600/- of Commissioner of
Customs approval in
251-500 Rs.37500/- Rs.6750/- Rs.44250/- whose jurisdiction
Associations falls,
501-1000 Rs.50000/- Rs.9000/- Rs.59000/-
Registration Certificate.
1001 and above Rs.75000/- Rs.13500/- Rs.88500/-

-R. Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

The History of ICAO and the Chicago Convention

The Convention on International Civil Aviation, drafted in 1944 by 54 nations, was


established to promote cooperation and “create and preserve friendship and understanding
among the nations and peoples of the world.”

Known more commonly today as the ‘Chicago Convention’, this landmark agreement
established the core principles permitting international transport by air, and led to the creation of
the specialized agency which has overseen it ever since – the International Civil Aviation
Organization (ICAO).

The Second World War was a powerful catalyst for the technical development of the
aeroplane. A vast network of passenger and freight carriage was set up during this period, but
there were many obstacles, both political and technical, in evolving these facilities and routes to
their new civilian purposes.

Subsequent to several studies initiated by the United States, as well as various


consultations it undertook with its Major Allies, the U.S. government extended an invitation to
55 States to attend an International Civil Aviation Conference in Chicago in 1944. These
delegates met at a very dark time in human history and travelled to Chicago at great personal
risk. Many of the countries they represented were still occupied. In the end, 54 of the 55 States
invited attended the Chicago Conference, and by its conclusion on 7 December, 1944, 52 of them
had signed the new Convention on International Civil Aviation which had been realized.
 
Known then and today more commonly as the ‘Chicago Convention’, this landmark
agreement laid the foundation for the standards and procedures for peaceful global air
navigation. It set out as its prime objective the development of international civil aviation “…in a
safe and orderly manner”, and such that air transport services would be established “on the basis
of equality of opportunity and operated soundly and economically.”
 
The Chicago Convention also formalized the expectation that a specialized International
Civil Aviation Organization (ICAO) would be established, in order to organize and support the

R.Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

intensive international co-operation which the fledgling global air transport network would
require.
 
ICAO’s core mandate, then as today, was to help States to achieve the highest possible
degree of uniformity in civil aviation regulations, standards, procedures, and organization.
Because of the usual delays expected in ratifying the Convention, the Chicago Conference
presciently signed an Interim Agreement which foresaw the creation of a Provisional ICAO
(PICAO) to serve as a temporary advisory and coordinating body.
 
The PICAO consisted of an Interim Council and an Interim Assembly, and from June
1945 the Interim Council met continuously in Montreal, Canada, and consisted of representatives
from 21 Member States. The first Interim Assembly of the PICAO, the precursor to ICAO’s
triennial Assemblies in the modern era, was also held in Montreal in June of 1946.
 
On 4 April 1947, upon sufficient ratifications to the Chicago Convention, the provisional
aspects of the PICAO were no longer relevant and it officially became known as ICAO. The first
official ICAO Assembly was held in Montreal in May of that year.
 
During this march to the modern air transport era, the Convention’s Annexes have
increased in number and evolved such that they now include more than 12,000 international
standards and recommended practices (SARPs), all of which have been agreed by consensus by
ICAO’s now 193 Member States.
 
These SARPs, alongside the tremendous technological progress and contributions in the
intervening decades on behalf of air transport operators and manufacturers, have enabled the
realization of what can now be recognized as a critical driver of socio-economic development
and one of humanity’s greatest cooperative achievements – the modern international air transport
network.
The ICAO, whose membership includes virtually every state in the world, has several
component bodies:
(1) An Assembly of delegates from all member countries that meets every three years

R.Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

(2) A Council of representatives from 33 member states, elected by and responsible to the
Assembly, that sits in continuous session at ICAO headquarters
(3) An Air Navigation Commission appointed by the Council for addressing technical
matters
(4) Various standing committees, including a Committee on Joint Support of Air
Navigation Services and a Finance Committee.

The ICAO’s Secretariat is headed by a secretary-general selected by the Council for a


three-year term. The five main sections of the Secretariat are
The Air Navigation Bureau
 The Air Transport Bureau
The Technical Co-operation Bureau
The Legal Bureau
The Bureau of Administration and Services

These 5 sections provide technical and administrative guidance and assistance to the various
national representatives.

The ICAO’s activities have included establishing and reviewing international technical
standards for aircraft operation and design, crash investigation, the licensing of personnel,
telecommunications, meteorology, air navigation equipment, ground facilities for air transport,
and search-and-rescue missions. The organization also promotes regional and international
agreements aimed at liberalizing aviation markets, helps to establish legal standards to ensure
that the growth of aviation does not compromise safety, and encourages the development of
other aspects of international aviation law.

Vision:
Achieve the sustainable growth of the global civil aviation system.

Mission:

R.Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

To serve as the global forum of States for international civil aviation. ICAO develops
policies and Standards, undertakes compliance audits, performs studies and analyses, provides
assistance and builds aviation capacity through many other activities and the cooperation of its
Member States and stakeholders.

The ICAO Council


The Council is a permanent body of the Organization responsible to the Assembly. It is
composed of 36 Member States elected by the Assembly for a three-year term. In the election,
adequate representation is given to States of chief importance in air transport
The Council has numerous functions, notable among which are to submit annual reports
to the Assembly; carry out the directions of the Assembly; and discharge the duties and
obligations which are laid on it by the Convention on International Civil Aviation (Chicago,
1944). It also administers the finances of ICAO; appoints and defines the duties of the Air
Transport Committee, as well as the Committee on Joint Support of Air Navigation Services, the
Finance Committee, the Committee on Unlawful Interference, the Technical Co-operation
Committee and the Human Resources Committee. It appoints the Members of the Air Navigation
Commission and it elects the members of the Edward Warner Award Committee.

Another key function of the Council is to appoint the Secretary General. As one of the
two governing bodies of ICAO, the Council gives continuing direction to the work of ICAO. In
this regard, one of its major duties is to adopt international Standards and Recommended
Practices (SARPs) and to incorporate these as Annexes to the Chicago Convention. The Council
may also amend existing Annexes as necessary.

On occasion, the Council may act as an arbiter between Member States on matters
concerning aviation and the implementation of the provisions of the Convention; it may
investigate any situation which presents avoidable obstacles to the development of international
air navigation and, in general, it may take necessary steps to maintain the safety and regularity of
international air transport.

The Assembly

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Assistant Professor
AVIATION INDUSTRY Unit 2

The Assembly, comprised of all Member States of ICAO, meets not less than once in three years
and is convened by the Council at a suitable time and place. An extraordinary meeting of the
Assembly may be held at any time upon the call of the Council or at the request of not less than
one-fifth of the total number of Member States.

The Assembly has numerous powers and duties, among them to: elect the Member States to be
represented on the Council; examine and take appropriate action on the reports of the Council
and decide any matter reported to it by the Council; and approve the budgets of the Organization.
The Assembly may refer, at its discretion, to the Council, to subsidiary commissions or to any
other body any matter within its sphere of action. It can delegate to Council the powers and
authority necessary or desirable for the discharge of the duties of ICAO and revoke and modify
the delegations of authority at any time; and deal with any matter within the sphere of action of
ICAO not specifically assigned to the Council. In general, it reviews in detail the work of the
Organization in the technical, administrative, economic, legal and technical cooperation fields. It
has the power to approve amendments to the Convention on International Civil Aviation
(Chicago, 1944), which are subject to ratification by Member States.

International Air Transport Assosiation


History
IATA was founded in Havana, Cuba, on 19 April 1945. It is the prime vehicle for inter-airline
cooperation in promoting safe, reliable, secure and economical air services - for the benefit of the
world's consumers. The international scheduled air transport industry is more than 100 times
larger than it was in 1945. Few industries can match the dynamism of that growth, which would
have been much less spectacular without the standards, practices and procedures developed
within IATA.

At its founding, IATA had 57 members from 31 nations, mostly in Europe and North America.
Today it has some 290 members from 120 nations in every part of the globe.

Vision
Working together to shape the future growth of a safe, secure and sustainable air transport

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Assistant Professor
AVIATION INDUSTRY Unit 2

industry that connects and enriches our world


Mission
IATA’s mission is to represent, lead, and serve the airline industry.

Representing the airline industry


We improve understanding of the air transport industry among decision makers and
increase awareness of the benefits that aviation brings to national and global economies.
Advocating for the interests of airlines across the globe, we challenge unreasonable rules and
charges, hold regulators and governments to account, and strive for sensible regulation.

Leading the airline industry


For over 70 years, we have developed global commercial standards upon which the air
transport industry is built. Our aim is to assist airlines by simplifying processes and increasing
passenger convenience while reducing costs and improving efficiency.

Serving the airline industry


We help airlines to operate safely, securely, efficiently, and economically under clearly
defined rules. Professional support is provided to all industry stakeholders with a wide range of
products and expert services.

Our brand values


Our Brand Values define what we value and how we behave to help us deliver the IATA mission
and vision. We all have different personalities, styles and areas of expertise, are at different
levels of the organization, and play different roles.

But you will recognize us by the consistent way in which we act and behave. We live our values
and embody the supporting behaviors to make IATA a great place to work:

To build standards through expertise


To champion the global big picture
To partner for mutual benefit

R.Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

To act with a simple human touch

Early Days
The old IATA was able to start small and grow gradually. It was also limited to a European
dimension until 1939 when Pan American joined. The post-1945 IATA immediately had to
handle worldwide responsibilities with a more systematic organization and a larger
infrastructure. This was reflected in the 1945 Articles of Association and a much more precise
definition of IATA's aims than had existed before 1939.

To promote safe, regular and economical air transport for the benefit of the peoples of the
world, to foster air commerce, and to study the problems connected therewith;
To provide means for collaboration among the air transport enterprises engaged directly
or indirectly in international air transport service;
To cooperate with the newly created International Civil Aviation Organization (ICAO -
the specialized United Nations agency for civil aviation) and other international
organizations.

The most important tasks of IATA during its earliest days were technical, because safety and
reliability are fundamental to airline operations. These require the highest standards in air
navigation, airport infrastructure and flight operations. The IATA airlines provided vital input to
the work of ICAO, as that organization drafted its Standards and commended Practices. By 1949,
the drafting process was largely complete and reflected in "Annexes" to the Chicago convention,
the treaty which still governs the conduct of international civil aviation.

In those early days, ICAO coordinated regional air navigation and support for airports and
operational aids in countries which could not themselves afford such services. IATA provided
airline input to ICAO and to sessions of the International Telecommunications Union on
wavelength allocation.

The standardization of documentation and procedures for the smooth functioning of the
world air transport network also required a sound legal basis. IATA helped to mesh international

R.Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

conventions, developed through ICAO, with US air transport law which had developed in
isolation prior to World War Two. The Association made a vital input to the development of
Conditions of Carriage the contract between the customer and the transporting airline. One early
item on the legal agenda was revision and modernization of the Warsaw Convention - originally
signed in 1929 - on airline liability for passenger injury or death and cargo damage or loss. This
work continues.

Once they were operating within a sound technical and legal framework, airlines' next
requirements were for answers to questions such as: who can fly where? What prices are to be
charged? How is the money from multi-airline journeys - that is, interlining - to be divided up,
and how do airlines settle their accounts?

The Chicago Conference of 1944 which gave birth to the Chicago Convention tried to
achieve a multilateral answer to the first two questions, but failed to do so. The questions of who
flies, and where, were resolved on a bilateral basis. The benchmark Bermuda Agreement of 1946
between the US and the UK was the first of almost 4,000 bilateral air transport agreements so far
signed and registered with ICAO.

In the early days, governments insisted on the right to oversee the prices charged by
international airlines but could not, in practical terms, develop those prices for themselves. IATA
was delegated to hold Traffic Conferences for this purpose, with all fares and rates subject to
final government approval. The aim was twofold: ensuring that fares and rates would not involve
cut-throat competition, while ensuring that they could be set as low as possible, in the interests of
consumers.

A coherent pattern of fares and rates pattern was established, avoiding inconsistencies
between tariffs affecting neighboring countries - and thereby avoiding traffic diversion. The
predictability of fares and rates in this pattern also enabled airlines to accept each others' tickets
on multi-sector journeys and thus gave birth to interlining. Today, 50 million international air
passengers a year pay for their ticket in one place, in one currency, but complete their journey
using at least two, and sometimes five or more, airlines from different countries using different

R.Ravichandran
Assistant Professor
AVIATION INDUSTRY Unit 2

currencies.

The first worldwide Traffic Conference was held in Rio de Janeiro in 1947. It reached
unanimous agreement on nearly 400 resolutions covering all aspects of air travel.

Fare construction rules for multi-sector trips, revenue allocation - pro-rating - rules, baggage
allowances, ticket and air waybill design and agency appointment procedures were typical details
agreed at this pioneering meeting.

Today, that pioneering work is reflected in the currently applicable IATA Resolutions
dealing with these and many other subjects. Notable examples are:
The Multilateral Interline Traffic Agreements: These are the basis for the airlines' interline
network. Close to 300 airlines have signed them, accepting each others' tickets and air waybills -
and thus their passenger and cargo traffic - on a reciprocal basis.
Passenger and Cargo Services Conference Resolutions: These prescribe a variety of standard
formats and technical specifications for tickets and air waybills.
Passenger and Cargo Agency Agreements & Sales Agency Rules: These govern the relationships
between IATA Member airlines and their accredited agents with regard to passenger and cargo.
Debt Settlement between airlines, largely arising from interlining, takes place through the
Clearing House, which began operations in January 1947. During its first year, 17 airlines
cleared (US) $26 million. The IATA Clearing House today.

Increased demand for air travel led to increased activity for IATA
Technical work evolved into seven broad areas. Avionics and Telecommunications
included the vital air navigation function; Engineering and Environment developed IATA policy
on aircraft noise and other emissions; Airports defined airline requirements for airport terminals;
Flight Operations worked on safety factors such as minimum aircraft separation standards and air
routings; Medical monitored health standards for flight crews and facilitated air travel for
disabled passengers; Facilitation attempted to speed the flow of people and goods through
airports - particularly, customs and immigration; Security worked on measures to safeguard
passengers and cargo by preventing hijacking and sabotage and on minimizing fraud and theft of

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Assistant Professor
AVIATION INDUSTRY Unit 2

tickets.

IATA's legal efforts anticipated the effects of new technology associated with the period
of rapid growth. It was able to advise the industry on new aircraft and systems, electronic data
processing and advances in sales and marketing techniques. Since acts of hijacking and sabotage
became more frequent during this period, IATA assisted in the development of the Tokyo, Hague
and Montreal Conventions, the first international legal counter-measures.

Automation became commonplace in airline operations during the 1960s. Standardization


in its use was less commonplace and IATA began its involvement in perfecting standard message
formats for inter-company data exchange, which continues to this day.

The goal has been to save money for the airlines, while enhancing airline service. This
philosophy was carried over to many activities during the 1950s and 1960s. Development of the
Clearing House was followed by the establishment of Billing and Settlement Plans and Cargo
Accounts Settlement Systems - in effect, one-way clearing houses to speed the flow of revenue
from agents to airlines. Sales Agents were given the opportunity to prove their professional
status under an accreditation process, and training - in conjunction with the Universal Federation
of Travel Agents' Associations and the Federation of Freight Forwarders' Associations - was
introduced. The pattern for airline-agent relations was set with the introduction of the Standard
Agency Agreement in 1952. There are now nearly 81,000 IATA agents worldwide and 135,000
students have enrolled for IATA-sponsored agency training courses since they were introduced.

International air transport creates special problems of taxation. This was a concern even
before World War Two. IATA makes specific challenges to the legality of certain taxes and
points out to governments the counter-productive effect of excessive aviation taxation in general.
User Charges - payment for using airports and air navigation services - mushroomed during the
1960s and 70s. IATA's task is to minimize their impact by ensuring that the charges are for
facilities actually required, that charges are cost-related and that productivity improvements are
built into cost projections. Currency earned by airlines abroad is sometimes blocked by the
central bank of the country in which it is earned. IATA works to free it, for transfer back to the

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Assistant Professor
AVIATION INDUSTRY Unit 2

airline that earned it.

Unit Load Devices, or ULDs - principally, containers - allow rapid, economical cargo
handling. IATA Members developed the technical specifications for containers and created a
ULD control centre, to keep track of their movements. Until 1955, there was a complete embargo
on the air transport of toxic, flammable or corrosive materials. Then IATA developed Dangerous
Goods Regulations for their safe carriage. A decade later, Live Animals Regulations provided for
suitable standards for the in-flight welfare of animals.

A Two Tier IATA


The international dimension of the US review resulted in a "Show Cause Order".
Hearings took place in 1979, at which IATA was called upon to show cause why anti-trust
immunity should not be removed from its Tariff Coordination activities. The outcome mainly
affected North Atlantic passenger fares which, for some years, were subject to special rules
under an inter-governmental Memorandum of Understanding (MoU) between the US and ECAC
states.
In October 1979, IATA was reorganized on a two-tiers basis. The tiers comprised:

Trade Association (technical, legal, financial, traffic services and most agency matters)
Tariff Coordination (passenger fares, cargo rates, and related conditions and charges)

Tariff coordination had been automated to produce YY fares—a standard industry reference fare
established in 1945. As technology developed to support the ever intensifying competition,
IATA’s role in tariff coordination became completely redundant. 

IATA’s Priorities
Safety
Reducing the 5-year all accident rate (2016-2020 compared to 2017-2021).

Financial Resilience
Securing government relief measures for airlines that generate cash or reduce costs and taxes by

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AVIATION INDUSTRY Unit 2

up to US$75-95 billion. US$50 billion of this should be achieved in the first half of 2021.

Industry Restart
Working with governements to complete roadmaps to reopen borders to travel for the top 33
passenger markets. These represent 82% of passengers globally. 60% of these markets should be
open without quarantine measures.

Environmental Sustainability
Achieving 2.2M tons of CO2 offset through the IATA Aviation Carbon Exchange.

IATA membership benefits


Members benefit in several ways. Most importantly, IATA provides a powerful, unified and
experienced voice that supports and promotes the interests of its members through:

International recognition and lobbying


Targeting key industry priorities
Driving industry change
Reducing costs
Communication campaigns
Training and other services

IATA's Corporate Governance Structure


This section contains the formal reference materials covering the IATA corporate
governance structure.

Act of Incorporation
On December 18, 1945 assent was given to a special Act of the Canadian Parliament
incorporating IATA.

Articles of Association
The Articles of Association regulate the activities and affairs of IATA. The Articles are amended

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Assistant Professor
AVIATION INDUSTRY Unit 2

from time-to-time by the Annual General Meeting. The most recent amendments were adopted
by the 76th Annual General Meeting held virtually in Amsterdam on 24 November 2020.

The Nominating Committee


The Nominating Committee is appointed to make recommendations to the Annual General
Meeting for appointments of members to the Board of Governors.

Rules of Procedure of General Meetings


The Rules of Procedure of General Meetings sets the composition, agenda, conduct of business,
etc. for IATA's Annual General Meetings.

Board of Governors
The IATA Board of Governors is IATA's government. Its members exercise an oversight and
executive role on behalf of the membership as a whole in representing the interests of the
Association.

Advisory Councils
Rules and Regulations of the nine Advisory Councils: Cargo; Digital Transformation;
Distribution; Industry Affairs; Industry Financial; Legal; Safety, Flight, and Ground Operations;
Security; Sustainability and Environment.

ICAO vs IATA
Although the ICAO and IATA often cooperate to streamline international air traffic, their
designation is markedly different and they serve different purposes — the former is concerned
with regulating international travel at a state-level, whereas the latter is focused on the private
sector.

The most obvious distinction between the reporting codes used by the ICAO and IATA is
very simple — ICAO codes are four (4) letters, whereas IATA codes are three (3) letters.
Confusingly, many international airports, airlines, and web-based flight radars employ BOTH
ICAO and IATA codes for the same things — making it sometimes difficult to discern the

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AVIATION INDUSTRY Unit 2

purpose and distinction.


ICAO codes are used in place of IATA codes for “official” purposes — such as with air
traffic control (ATC), company flight plans, and airline identification in case of emergencies.
IATA codes are used in place of ICAO for “commercial” purposes — such as with airline
ticketing, baggage checks, travel itineraries, domestic flight numbers, and more.
It is also important to clarify that IATA codes are much more accessible and common —
particularly in the United States and smaller countries without robust air travel industries —
because ICAO codes are primarily assigned to larger airports in their member states with
“international” designation and therefore used to facilitate major cross-border trips or respond to
emergencies.
In some cases, smaller general aviation airports or private airfields do not have an ICAO
code, nor an IATA code.

FIATA (International Federation of Freight Forwarders Association)


FIATA's objectives are fivefold:
to unite the freight forwarding industry worldwide;
to represent, promote and protect the interests of the industry by participating as advisors or
experts in meetings of international bodies dealing with transportation;
to familiarize trade and industry and the public at large with the services rendered by freight
forwarders through the dissemination of information, distribution of publications, etc.;
to standardize and improve the quality of services rendered by freight forwarders by
developing and promoting uniform forwarding documents, standard trading conditions, etc.;
to assist with vocational training for freight forwarders, liability insurance problems, tools for
electronic commerce including electronic data interchange (EDI) and barcode.
FIATA has different categories of members:
Association Members
are organizations representing the entire (or part of) the forwarding sector in a country/territory
and/or a region. Each Association Member holds the right to present motions, as well as
nomination and voting rights.

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Individual Members
are forwarding and logistic companies, as well as legal entities closely associated with the
forwarding and logistic branch.

Group Members
Group members can be:

International organizations representing the forwarding branch of a group of countries if all


members are national associations, which in turn are FIATA Association Members

International forwarding groups representing the same or similar interests to FIATA 

International associations whose members are active only in a sub-sector of the forwarding
branch 
Honorary Members
are persons who have been of particular service to FIATA or the forwarding industry.

FIATA documents
Already 50 years ago, the freight forwarding community felt that there was a need for certain
harmonization and guidance in freight forwarding transport documents. FIATA has developed a
corpus of documents and forms available for members to use in their daily business. These
documents, which include the FIATA Multimodal Transport Bill of Lading, enjoy an excellent
reputation and are highly regarded for their integrity and traceability.

These documents are distributed by licensed FIATA Association Members in their respective
territories. Where this is not possible, FIATA documents may be obtained directly from FIATA
by individual members and members of FIATA Association Members.

Training
Education is central to the development of the freight forwarding industry and to the
improvement of the lives of freight forwarders and logistics professionals. Education is
important in promoting sustained, inclusive, and equitable economic growth and sustainable
development. Increased efforts towards accessibility, quality, and affordability of education in
our industry are part of the FIATA presidency's priorities.
At FIATA, training and education activities take place under the umbrella of the FIATA
Logistics Institute (FLI). FLI equips the industry workforces with the necessary skills and

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Assistant Professor
AVIATION INDUSTRY Unit 2

competences through initiatives such as the FIATA Diplomas, the ICAO-FIATA Dangerous


Goods by Air Training Programme, and the Young Logistics Professionals Award.

ACAAI (Air Cargo Agents Association of India)


ACAAI is the premier recognised National Association representing the air cargo industry in
India.  Founded in 1970 with 16 members, ACAAI  currently has a strength of almost 600
members.  ACAAI endeavors to safeguard and promote the interests of it’s members by
providing them  professional assistance and guidance on relevant matters of concern to them and
the industry. ACAAI has it’s Head Office  at Mumbai, and has 8 Regions located at New Delhi,
Mumbai, Chennai, Kolkata, Bangalore, Kerala (Trivandrum & Cochin), Ahmedabad and
Hyderabad. It strives to facilitate the growth and smooth functioning of the air cargo industry,
and plays a pivotal role in achieving the export targets of India. In this context, ACAAI works
closely with a number of Government Ministries and Departments, airlines, international
Associations such as IATA, FIATA and FAPAA on behalf of it’s members.

SCOPE OF ACTIVITIES
The Association liaises regularly with the Union Ministries of Finance, Commerce
and Civil Aviation, CBEC, CBDT, AERA, BCAS, AAI, Ground Handling agencies of
airports, Export Promotion Council, IATA, FIATA, FAPAA, airlines, etc. in order to
resolve issues of concern to it’s members, and to facilitate the smooth
functioning of the industry.

AREAS OF THE ASSOCIATION'S ACTIVITIES

ACAAI promotes the growth, development and professionalism of the air cargo
industry in India. The Association provides a regular medium for dialogue with
the members’ principals, the airlines, their customers, the exporters and
importers, and various Government Departments and Authorities.

ACAAI maintains close contacts with world bodies related to the air cargo trade,
and represents matters affecting our country's air freight forwarding industry at
various international fora. ACAAI gathers useful information about different

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Assistant Professor
AVIATION INDUSTRY Unit 2

aspects of the industry, and disseminates the same to it’s members through
regular circulars and updates. ACAAI is an invited member of various
Government Committees such as the Standing Committee on Promotion of
Exports by Air (Scope Air), Air Cargo Logistics Promotion Board (ACLPB),.

Advisory Committees of the Indian Customs such as Trade Facilitation


Committee (TFC), Cargo Facilitation Committees of the Airports Authority of
India (CAFAC), amongst others

TRAINING
ACAAI conducts regular training programmes for it’s members in job-related
subjects such as Basic Cargo, Dangerous Goods Regulations (DGR) and DGR
Refresher to equip the employees to carry out their job functions professionally
and competently.

AIRPORT AUTHORITY OF INDIA


Airports Authority of India (AAI) was constituted by an Act of Parliament and came
into being    on 1st April 1995 by merging erstwhile National Airports Authority
and International Airports    Authority of India. The merger brought into existence a
single Organization entrusted with the    responsibility of creating, upgrading,
maintaining and managing civil aviation infrastructure both    on the ground and air
space in the country.
AAI manages a total of 137 airports which include 24 International airports (3 Civil
Enclaves), 10 Custom Airports (4 Civil Enclaves) and 103 Domestic airports (23
Civil Enclaves). AAI provides air navigation services over 2.8 million square
nautical miles of air space. During the year 2019-20, AAI handled aircraft
movement of 1314.23 Thousand [International 156.0 & Domestic 1158.23],
Passengers handled 159.59 Million [International 22.26 & Domestic 137.33] and the
cargo handled 909.32 thousand MT [International 452.46 & Domestic 456.85].  
Further, all Indian airports taken together have  handled aircraft movement of
2587.05 Thousand [International 431.85 & Domestic 2155.20], Passengers handled

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Assistant Professor
AVIATION INDUSTRY Unit 2

341.05 Million [International 66.54& Domestic 274.51] and the cargo handled
3328.63 thousand MT [International 2003.12 & Domestic 1325.51].

1. Passenger Facilities

The main functions of AAI inter-alia include construction, modification &


management of passenger terminals, development & management of cargo
terminals, development & maintenance of apron infrastructure including
runways, parallel taxiways, apron etc., Provision of Communication, Navigation
and Surveillance which includes provision of DVOR / DME, ILS, ATC radars,
visual aids etc., provision of air traffic services, provision of passenger
facilities and related amenities at its terminals thereby ensuring safe and secure
operations of aircraft, passenger and cargo in the country.
2. Air Navigation Services

In tune with global approach to modernization of Air Navigation infrastructure


for seamless navigation across state and regional boundaries, AAI has been
going ahead with its plans for transition to satellite based Communication,
Navigation, Surveillance and Air Traffic Management. A number of co-
operation agreements and memoranda of co-operation have been signed with US
Federal Aviation Administration, US Trade & Development Agency, European
Union, Air Services Australia and the French Government Co-operative Projects
and Studies initiated to gain from their experience. Through these activities
more and more executives of AAI are being exposed to the latest technology,
modern practices & procedures being adopted to improve the overall
performance of Airports and Air Navigation Services.

Induction of latest state-of-the-art equipment, both as replacement and old


equipments and also as new facilities to improve standards of safety of airports
in the air is a continuous process. Adoptions of new and improved procedure go
hand in hand with induction of new equipment. Some of the major initiatives in
this direction are introduction of Reduced Vertical Separation Minima (RVSM)

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in India air space to increase airspace capacity and reduce congestion in the air;
implementation of GPS And Geo Augmented Navigation (GAGAN) jointly with
ISRO which when put to operation would be one of the four such systems in the
world.
3. Security

The continuing security environment has brought into focus the need for
strengthening security of vital installations. There was thus an urgent need to
revamp the security at airports not only to thwart any misadventure but also to
restore confidence of traveling public in the security of air travel as a whole,
which was shaken after 9/11 tragedy. With this in view, a number of steps were
taken including deployment of CISF for airport security, CCTV surveillance
system at sensitive airports, latest and state-of-the-art X-ray baggage inspection
systems, premier security & surveillance systems. Smart Cards for access
control to vital installations at airports are also being considered to supplement
the efforts of security personnel at sensitive airports.
4. Aerodrome Facilities

In Airports Authority of India, the basic approach to planning of airport


facilities has been adopted to create capacity ahead of demand in our efforts.
Towards implementation of this strategy, a number of projects for extension and
strengthening of runway, taxi track and aprons at different airports has been
taken up. Extension of runway to 7500 ft. has been taken up to support
operation for Airbus-320/Boeing 737-800 category of aircrafts at all airports.
5. HRD Training

A large pool of trained and highly skilled manpower is one of the major assets
of Airports Authority of India. Development and Technological enhancements
and consequent refinement of operating standards and procedures, new
standards of safety and security and improvements in management techniques
call for continuing training to update the knowledge and skill of officers and

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AVIATION INDUSTRY Unit 2

staff. For this purpose AAI has a number of training establishments, viz.
NIAMAR in Delhi, CATC in Allahabad, Fire Training Centres at Delhi &
Kolkata for in-house training of its engineers, Air Traffic Controllers, Rescue &
Fire Fighting personnel etc. NIAMAR & CATC are members of ICAO
TRAINER programme under which they share Standard Training Packages
(STP) from a central pool for imparting training on various subjects. Both
CATC & NIAMAR have also contributed a number of STPs to the Central pool
under ICAO TRAINER programme. Foreign students have also been
participating in the training programme being conducted by these institution
6. IT Implementation

Information Technology holds the key to operational and managerial efficiency,


transparency and employee productivity. AAI initiated a programme to
indoctrinate IT culture among its employees and this is most powerful tool to
enhance efficiency in the organization. AAI website with domain
name www.airportsindia.org.in  or www.aai.aero  is a popular website giving a
host of information about the organization besides domestic and international
flight information of interest to the public in general and passengers in
particular.
The functions of AAI are as follows:
1. Design, Development, Operation and Maintenance of international and domestic
airports and civil enclaves.
2. Control and Management of the Indian airspace extending beyond the territorial
limits of the country, as accepted by ICAO.
3. Construction, Modification and Management of passenger terminals.
4. Development and Management of cargo terminals at international and domestic
airports.
5. Provision of passenger facilities and information system at the passenger
terminals at airports.
6. Expansion and strengthening of operation area, viz. Runways, Aprons, Taxiway
etc.

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Assistant Professor
AVIATION INDUSTRY Unit 2

7. Provision of visual aids.


8. Provision of Communication and Navigation aids, viz. ILS, DVOR, DME, Radar
etc.

WAREHOUSE AGENTS
If carrying a heavy load poses no problem for you, then you might want to think about becoming
a warehouse agent. A warehouse agent is responsible for accurate receiving, loading, and storing
of shipment orders. The warehouse agent is frequently relied upon for loading and unloading
shipments or cargo, improving inventory logistics, and processing the orders.

As a warehouse agent, you may also be expected to use specialized equipment, such as forklifts,
to assist in moving large packages. You'll also need to maintain the equipment and ensure that
warehouse areas are neat, clean, and kept in an orderly fashion.

Of course, being safety conscious is also important, as you'll need to ensure safe and efficient
operation of equipment. You'll also need to be good at keeping accurate records since you'll
often assist in physical inventories and cycle counts. If you think that being a warehouse agent
might be the job for you, all you'll need is high school diploma or equivalent.
There is more than meets the eye when it comes to being a Warehouse Agent. For example, did
you know that they make an average of $14.69 an hour? That's $30,556 a year!

Between 2018 and 2028, the career is expected to grow 1% and produce 46,900 job opportunities
across the U.S.
There are certain skills that many Warehouse Agents have in order to accomplish their
responsibilities. By taking a look through resumes, we were able to narrow down the most
common skills for a person in this position. We discovered that a lot of resumes listed
Communication skills, Customer-service skills and Detail oriented.

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Assistant Professor
AVIATION INDUSTRY Unit 2

OAG Cargo Guide

OAG Cargo Guide is a comprehensive book providing worldwide cargo flight schedules and
valuable support when planning cargo routings. Updated monthly, every cargo flight is clearly
listed to help you locate the best schedule for your shipment quickly and easily. Every six
months you also receive an updated Cargo Rules Supplement which includes country
regulations, document requirements, aircraft restrictions and much more. Designed for busy
cargo professionals, OAG Cargo Guide provides easy access to comprehensive and unbiased
cargo information in a clear and concise format.

Features:
Contains over 56,000 direct and connecting worldwide flight schedules including cargo flights,
wide-body passenger flights and road feeder schedules
User friendly format with clear design layout
Updated edition delivered every month
Independent and unbiased information you can trust
Search by carrier, connections, equipment and aircraft type
Access airline, aircraft and city codes.
Worldwide city directory and world time zone map
International time calculator
Contact details for worldwide airlines
Bi-annual Cargo Rules Supplement included in your subscription
Benefits:
Comprehensive coverage of worldwide flight schedules and cargo information
Quick reference tool that is easy to use

The Air Cargo Tariff and Rules (TACT)

The Air Cargo Tariff and Rules (TACT) provides air cargo professionals with the comprehensive
information they require to efficiently transport air cargo worldwide.

TACT Online

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Assistant Professor
AVIATION INDUSTRY Unit 2

With TACT Online you can search and consult the entire content of TACT Rules, Rates and
Schedules simply online. No need to call up every airline, handling agent, or airport operator –
here you have one source providing all the information you need as a forwarder. The information
is updated every month in order to ensure that most recent changes in regulations as well as rates
are reflected. It doesn’t get any easier!

Includes:

Industry, country and carrier rules

IATA rules on the "ready for carriage" acceptance of goods and Air Waybill completion

Country rules, regulations and charges on import, transit and export

Airport and storage facilities, handling equipment

Airline, city and airport codes, AWB prefixes

Industry and carrier specific rates

4.5 million rates for 350,000 city pairs

Industry, country and carrier specific charges for charges collect, class rates and dangerous
goods

Information on eAWB and eFreight

Access to the worldwide airline schedule powered by innovata

And many more …

TACT Online Rules

TACT Online Rules allows you to access all rules and guidelines of TACT easily with your
smartphone, mobile device, or PC. Similar to TACT Online the information is updated monthly

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Assistant Professor
AVIATION INDUSTRY Unit 2

to ensure that you will be able to access the latest information from you work space or on the go.
This allows you to carry your single source of air cargo information on your mobile device, so at
any given point in time you can look up regulations or guidelines that concern your operations
and shipments.

Includes:

Industry, country and carrier rules

IATA rules on the acceptance of goods and Air Waybill completion

Country rules, regulations and charges on import, transit and export

Airport and storage facilities, handling equipment

Airline, city and airport codes, AWB prefixes

Information on eAWB and eFreight

R.Ravichandran
Assistant Professor

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