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IATA Requirements for Membership and Capitalization

1. Business Requirements

IATA Accreditation is open for any business that is enrolled as a travel agency. Depending upon
the region and country of the travel agent, there is a set of minimum criteria which need to be
fulfilled.

The local Agency Investigation Panel (AIP), composed of senior local representatives of Member
Airlines operating into the particular territory, have been established in order to assist in collecting the
necessary information concerning applicants. AIPs examine the qualifications of an applicant with
respect to, inter alia:

- Financial record and standing

- Staff qualifications and experience
- Identification and accessibility of premises
- Security and procedures

PREMISES

The place of business under application shall be open for business on a regular basis, be identified
and trade as a travel agency; provided that a place of business which does not meet these conditions
may nevertheless be approved if it meets all other qualifications such as:

a) solely devoted to the organizing of inclusive ours and performs the issuance of traffic
documents related to such inclusive tours only; or
b) an In-Plant Branch Location situated on the premises of an organization, plant or
commercial firm and dedicated substantially to the travel requirements of that organization,
plant or commercial firm

The place of business shall not be located in office space jointly occupied with another travel
agency, an Accredited Agent or an air carrier. The place of business shall not be located at an airport.

MINIMUM SECURITY STANDARDS

An Agent shall take all reasonable precautions to secure its business and prevent access to its
premises or usage of its systems by unauthorized parties.

STAFF QUALIFICATIONS

The applicant must have in its employment at least one (1) competent, qualified staff member to
be present at the place of business under application during the working hours of such place of
business. Such person must meet the criteria of competence and experience determined by the Agency
Investigation Panel (AIP) in respect of the country where such place of business is located.

STAFF

The assessment of staff qualifications is made on the basis of a points system, from
educational training and/or practical experience. A minimum of 35 points must be achieved
by at least one staff member, or by each of 2 staff members (35 points each, not combined)
 when the agent employs 4 or more staff members. The staff members must be permanent full-
time employees of the Agent, and must attend the place of business during all the working
hours of the Agency.

FINANCES

Only companies and firms that are financially sound will be approved.

The applicant shall submit independently produced financial statements prepared in

accordance with local accounting practices. To obtain a satisfactory evaluation, the applicant may be
required to provide additional financial support in the form of recapitalization or of a bank or
insurance guarantee.

NAME

The name used by an applicant must not be the same as or misleadingly similar to that of an
IATA Member airline, or IATA itself. The place of business must not be identified as an office of
Member or a group of Member airlines.

BUSINESS STANDARDS

The applicant, or any of its managers, principal shareholders (or persons for whom they act as
nominees), directors or officers shall have no record of willful violations of fiduciary obligations
incurred in the course of business nor be undischarged bankrupts.

MANAGEMENT

No person who is a director of or who holds a financial interest or a position of management in

the applicant shall have been a director of, or had a financial interest or held a position of management
in an Agent which has been removed from the Agency List, or is under notice of default, and still has
outstanding commercial debts, or in such an Agent whose commercial debts were met solely or in part
by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be
approved if the Agency Administrator is satisfied that such person did not participate in the acts or
omissions that caused such removal or default or if he is satisfied that the applicant can be relied upon
to comply with the terms of the Sales Agency Agreement and other Resolutions of the Conference.

General criteria, staff competence criteria, financial criteria and Safety & Security criteria are the four
major sections which are required to fill up the application form.

Being a licensed IATA travel agent, it will help to gain immediate recognition in the aviation industry
while holding on to the highest industry standards. The documentation required for an aspiring IATA
agent varies geographically but typically includes:

Completed application form

Original documents supporting the legality of the travel agency
Audited Financial Statements such as Balance Sheet, P&L Account, Auditors Report etc
Bank Guarantee
Photographs of the agency location
 After producing the proof of a legally registered travel agency, all the relevant supporting
documents should be submitted. Even if you are an independent travel agent, you need to submit the
business licenses, insurance forms and tax papers. All state and local licensing papers are also
required. Support the fiscal solvency of the agency with the valid financial records. The bank
transactions organized chronologically helps to show the budget plans. The sales record in an
understandable format which should include the records like tickets sold, hotels books, tours arranged
support add to the credentials. All insurance policies should be covered including the omissions and
error files which however in the long run are not required.

The IATA accreditation fee also varies geographically.

Administrative Review

The application form should be completed and returned with the documents listed below:
A certified copy of the Air Operators Certificate (AOC), valid for a minimum of six months,
with ORIGINAL Stamp, date and signature from the issuing Authority (not a notary),
together with the Operational Specifications issued by the State of Registry, if applicable.

A certified copy of the Certificate of Registration with appropriate authority e.g. Chamber of
Commerce or equivalent. Certification by a notary is acceptable.

Audited Financial Statements for the applicant airline, and if majority owned by another
company (including state ownership), the financial statements of the owner company. These
must be certified by a chartered or public accountant. For new airlines, a business plan
prepared by a chartered or public account is acceptable.

The Annual Report of the applicant airline, or company by-laws showing how it is
constituted, or airline profile.

Payment of Fees and Dues

Upon receipt of the application form and all required documents, an invoice for the USD 15,000 non-
refundable application fee will be sent to the applicant airline. When the application fee is received by
IATA, the membership application will be reviewed.

Following a satisfactory review, an invoice for the USD 15,000 entrance fee will be sent to the
applicant airline. This invoice will also include the membership dues pro-rated for the current year
and the compulsory contribution of USD 500 to the International Airline Training Fund (IATF).

Start-up airlines and airlines joining after the following years annual dues for existing members have
been calculated (usually by 1 December), will also be invoiced for the following years dues. All fees
and dues must be fully paid before membership can be approved.

Once all admission criteria have been met, the Membership Office submits the application for
approval. All applications are subject to approval by IATAs Board of Governors or the Director
General upon the Boards delegation.
Membership entry cost summary:
Description
One-time Application Fee
(Non-refundable)
One-time Entrance Fee
Annual Membership Fee:
Minimum fixed fee (applicable
to all IATA members)
PLUS
Variable dues assessment:
Compulsory contribution to the
International Airlines Training
Fund (IATF)
2. Capitalization if IATA Member
P3,000,000.00 (USD 561,000) paid-up capital.
Amount (USD) Comments
15,000 Application review will
commence upon receipt of the
Application Fee.
15,000 Payable when administrative
review is completed and before
final approval.
14,450 Minimum fixed fee for 2017
(varies annually)
Varies. Calculated from Applicable only to airlines
statistics provided in application operating International Revenue
form Tonne Kilometers (RTKMs)
over 5 million, an amount will
be calculated and added to the
Annual Membership Dues
above.
Total dues are pro-rated to
month of entry.
500 Each member contributes to the
International Airline Training
Fund for scholarships to
Members from countries with
developing economies.