IATA signs agreement with the General Administration of Civil Aviation of China to further air transport

Staff -- Logistics Management, 8/17/2006

BEIJING—The International Air Transport Association (IATA) signed a Memorandum of Understanding (MoU) with the General Administration of Civil Aviation of China (CAAC) to expand strategic cooperation to further the safe, efficient and sustainable development of China's air transportation system.

The MoU focuses on 11 areas, including safety, air traffic management, training, fuel efficiency, and technology.

"The Chinese aviation industry is developing at an incredible pace with double-digit growth anticipated for the foreseeable future, said Giovanni Bisignani, IATA's Director General and CEO. “China will play an increasingly crucial role and [the MoU] ensures that global standards will be at the backbone of that growth.”

The MoU illustrates the recent trend of increased cooperation between China and IATA. In 2005, Minister Yang's support to cooperate in the implementation of IATA's Simplifying the Business (StB) program resulted in e-ticketing penetration increasing from 0.2 percent of transactions, to 60 percent of transactions in just 19 months.

Further, Chinese carriers are committed to making the end-of-2007 deadline for the IATA Operational Safety Audit (IOSA). "China's commitment to aviation safety is strong…In 2005 there were no major accidents. Already 7 carriers from the mainland of China are on the IOSA registry and the others are in the audit process," said Bisignani.

The MoU was signed in Beijing on August 10.