Towards a Revival of IATA?
There was some very important news following the last IATA General Assembly in Rio last June: the appointment of Mrs. Saadia Zahidi to the coveted position of Director General from 1 November 2026, replacing Willie Walsh, who left his position on July 31 to take over as CEO of IndiGo, where he replaces Pieter Elbers, himself a former CEO of KLM. In short, this is an interesting game of musical chairs to examine.
IATA is no small organization! Founded in Havana in 1945, IATA is the trade association for the world’s airlines. In fact, out of the 1,200 or so air carriers, only around 370 are members, but they represent 85% of the world’s air transport. And the figures are impressive: global airline industry revenues are set to exceed $1 trillion this year.
To make this whole thing work and, above all, to ensure that operators cooperate with each other while they are intended to be competitors, we need global tools that are efficient and accepted by all. It is not the least merit of IATA to have created them and to ensure their management.
Among the essential services for air transport, I would mention the BSP (Billing & Settlement Plan), which was introduced in the early 1970s and has become the standard system for issuing tickets and settling the sums collected by travel agencies on behalf of carriers. Currently, the BSP is used by more than 400 companies and 59,000 travel agents, with a sales volume of $242 billion and an on-time settlement rate of 99.99%. The equivalent of the BSP for cargo, called CASS (Cargo Accounts Settlement Systems), processed $47.5 billion.
Other financial services have proven their effectiveness: the ICCS (IATA Currency Clearance Service), which allows the repatriation and conversion of the different currencies in which tickets are purchased at the best exchange rates. It processed $43 billion in the last financial year. The Interline Clearing House (ICH) processed $66 billion in transactions between airlines. In addition to the financial services that are essential for the smooth movement of passengers and goods, IATA also plays an important role in aviation safety through the IOSA (IATA Operational Safety Audit) program. IOSA registration is a condition of IATA membership, and members must remain registered to retain their membership.
All these figures show how important IATA is and remains to one of the world’s most prosperous industries and to the exchange between peoples. However, since its inception, this association of airlines, governed by a board of 32 members, was almost exclusively led by men. Her appointment is nevertheless symbolically significant: she will be the first woman to lead IATA.
It must be said that Saadia Zahidi has, at least on paper, all the qualities to lead this organization, even though she has not worked in the aviation sector. Her international career at the World Economic Forum, combined with degrees from Smith College, the Graduate Institute in Geneva and Harvard University, gives her substantial experience in international economic and policy issues.
We expect a lot from her arrival and hope that she will shake up this venerable institution, which sometimes appears to be resting a little too comfortably on its dominant position. The NDC (New Distribution Capability) program still faces challenges in achieving broad adoption. Artificial Intelligence may also compete with traditional training activities, which must represent a significant part of IATA’s financial results, although these results are, incidentally, very difficult to assess. Above all, IATA will need to establish more constructive and friendly relations with the network of travel agencies. It is not normal for such a sector of activity to have conflictual relations with its distributors, to the point that traditional airline commissions to travel agents have been reduced or eliminated in many markets, even though the distribution of airline tickets directly concerns them.
Saadia Zahidi is a bearer of great hopes. Let’s wish her good luck and success in her new position.
