What was the role of IATA in the development of air transportation?

The
establishment of the International Air Transport Association was a result of the rapid growth of
air travel from the 1930s through the 1940s, the concomitant expansion in the number of cities
and airports from which commercial aircraft operated, and the need to facilitate better
coordination among carriers so as to avoid disasters and to smooth the process by which flights
are scheduled and operated. It was formally established in 1945 in Cuba, but is headquartered
today in Montreal, Canada.

The IATA did not create air travel; it was a
reaction to the growth of the airline industry. To that extent, it played no role in the
development of air travel. What the IATA did do, however, was make air travel much more
efficient and much safer than would otherwise be the case. Especially with the tremendous
post-World War II growth in air travel by Americans and others, the 1950s was a period of
tremendous pressure on airlines to operate safely. The IATA was instrumental in establishing
procedures for the conduct of all aspects of flight operations, including establishing standards
for passenger conduct. Among the IATAs contributions are the three-letter codes airlines use for
identifying individual airports around the world. It also accredits travel agents and maintains
a database (Timatic) containing information on visa, passport and health requirements for
passengers heading to particular destinations.

As positive a role as the IATA
has played in the growth and operation of the airline industry, it has been criticized for its
role in establishing rates for air travel. As the IATA was founded by and is composed of the
airline carriers, it, by its nature, provides a forum within which the possibility of collusion
in the setting of air fares can occur. While price coordination was one of its founding
functions, concerns about price fixing have been around for many years.