Addendum
IATA attracts two Asian low-cost carriers
October 1st 2016
Traditionally, cost-conscious budget carriers have shied away from joining the International Air Transport Association. But now, two of Asia’s fastest growing budget airline groups have become members of the global airline organization. Read More »
Last month, Thai Lion Air (TLA) and Vietnamese LCC, VietJet, joined the global industry club, decisions that would support their growth, the carriers said.
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TLA managing director, Captain Darsito Hendro, said IATA membership, the first for a Thai-registered LCC, will be instrumental in the airline’s expansion. “Thai Lion is expanding internationally, already covering Singapore, Indonesia and Myanmar, with Vietnam next and India and Australia on our radar screen,” he said.
He said the multiple membership benefits of IATA allowed it to expand through IATA-based travel agents, via global distribution systems and bank settlement plans. The fees for both systems are lower for IATA member airlines.
IATA membership also will motivate Thai Lion to step up to best business practices in the industry and develop interline and code-share opportunities to bring more tourists to Thailand. Thai Lion hoped it would attract business from big international companies as most of them appoint IATA member airlines as their official travel carriers.
TLA and VietJet were two of five members officially welcomed into IATA last month. Their fellow new IATA members are China’s Loong Air, Lao Airlines and Mauritania Airlines International.
Loong Air, which is based at Xiaoshan International Airport in Hangzhou, Zhejiang province, was formerly CDI Cargo Airlines. It launched domestic passenger flights in 2013 and commenced international service, to Vietnam, earlier this year. It flies a fleet of 15 A320s and three B737 freighters.
Lao Air operates four A320s and eight ATR 72-500 and -600 turboprops. IATA offers membership to airlines operating scheduled and non-scheduled air services that are on the registry of the association’s operational safety audit list, or IOSA. Only airlines that have passed the IOSA audit can join IATA. “We have always welcomed all airline business models as members, including low-cost carriers,” said an IATA spokesman.
Airlines pay a non-refundable application fee of $15,000 for IATA membership and another $15,000 when the application is accepted. Annual membership dues begin at $14,450 (reviewed annually). Big airlines that perform more than five million International Revenue Tonne Kilometres (RTKMs) per year pay a combination of the fixed fee and an additional variable charge. The variable dues are calculated on the basis of the carrier’s RTKMs for the previous two years.
IATA was founded with 57 airlines in 1945 and now has 265 members operating in 117 countries worldwide. Its airline members carry 83% of the world’s air traffic.
