AIRLINE REGULATION

Airline regulation is a subject that is concerned with the activities of airline men and women also airline operations and the travel public

It is being learnt to guide us in our daily functions or duties as men and women. It enables the airline operators to know more about the operating criteria in the industry as well as expose the travel Agents and travel public at large to their obligations and rights.

The Aviation Industry worldwide is governed/controlled by an association called IATA, (International Air Transport Association) that was formed in the early nineteenth century, with the headquarters in Geneva, Switzerland and Montreal in Canada.

 

HISTORY OF IATA

A conference was held in the year 1919 purposely to introduce a unification of ideas,  best mankind could be served in relation to air transport.

The countries that attended the meeting were:- England, Holland (Netherlands) Norways, Germany, Sweden and Denmark.

In a resolution agreed upon by members, was the formation of an organization they called  Air Traffic Association  known as IATA

In 1929, 23 European countries signed as members of IATA, thereby resulting in another conference that year at Warsaw, Poland to discuss how compensation could be effected to the dependants of the victims of air crash or pays who are physically disable due to air crash.

In 1939, Pan-American was the first non-European Airline to join the organization

of IATA.

Due to the problem of the Second World War in Europe, which ended in 1944,

many intersted National carrier/Airline could not join this body after the admittance

of pan-American Airline, not until when the war ended. Immediately after the Second

World War, a convention was proposed by the United Kingdom and other allied power nations to discuss about the re-arrangement of air transport.

The meeting was held at IIIionois State, Chicago in USA between 1-7 NOV 1944,

Which began the formation of  new IATA to replace the old system. The resolution

of the meeting is to change the old name to new name i.e.

 

INTERNATIONAL AIR TRAFFIC ASSOCIATION to the new name INTERNATIONAL AIR

TRANSPORT ASSOCIATION.

The first IATA (old IATA) had nothing to do with the recommendation of fares

and routes and so in 1945, a new IATA this time, which covers all the areas of

International Civil Aviation Operations.

 

PURPOSE OF IATA

Aims of the new IATA were:-

1. i) To promote air transport sales regularly and economically for the

benefit of the people of the world

1. ii) To promote collaborations or corporations among the other air

Transport enterprises engaged directly or indirectly in international air

Transport services.

iii)       To co-operate with other international air transport aviation

organization like ICAO (INTERNATIONAL CIVIL AVIATION         

            ORGANIZATION), UFTAA (UNIVERSAL FEDERATION OF

            TRAVEL AGENTS ASSOCIATION)

1. iv) To foster all commerce among the member airline.

 

FUNCTIONS OF IATA

IATA has laid down standard policies and rules, which are to be observed closely by all members, These are in the areas of:

1. (a) TECHNICAL:- This has to do with electrical and mechanical components of

aircraft. Aircraft servicing and the replacement of used parts of the components and

the duty of aeronautical engineer aircraft is very important because of the passengers

involved.

(b) OPERATION:- This has to do with the keeping schedule of the departure and

arrival that is stated in their current time-table, it also has to do with the maintenance

of runways, control tower information and quickness on the part of the ground

checking officers in handling parts.

2. (a) MINIMUM FARE:- This has to do with regulates the tendencies of airline

charging more fares than other airlines.

(b) MAXIMUM DISCOUNT:- This is to enable many passenger to travel by air

(c) FREE TICKETS:- These are given to airline and travel agent staffs to educate  them more about the services which they are representing to travel public.

3. To establish routes and immediately landing which will be used without additional

charges

4. To establish maximum limit for services rendered e.g seating space baggage allowance

food, gift, and beverages.

5. To appoint inspectors, whose duties are to enforce the agreed resolutions/agreement,

they are also known as compliance officers.

6. To authorize tickets agent for IATA members airline, agency commission, Publicity

and sales conditions for its members.

7. To maintain a clearing house for its members.
8. To represent the airline in negotiation with ICAO and other supernatural, federal,

states, and regional authority.

 

ORGANIZATION OF IATA

The supreme authority resets with the membership conference. The member elects an executive committee, which in turn elects secretary general. The secretary general, its secretariat, the five standing committees and IATA clearinghouse manages the daily activities.

Membership conference

Executive committees

Secretary general

Secretariat

Five standing committee

The five standing committee are made up of the following

(1)       The financial committee

(2)       The legal committee

(3)       The technical committee

(4)       The medical committee

(5)       The traffic committee

 

IATA CLEARING HOUSE

The clearinghouse is another arm of IATA that coordinates the activities of members. It serves the purpose of Central Banks to Commercial Banks.

In every month, the IATA clearinghouse receives monthly reports from the clearing house members and other clearinghouse.

Various coupons of airlines are being sorted out and debit orb credit the airlines accordingly. After clearing, telex messages are sent to the airlines who are debtors to other airlines members so as to effect prompt payment. Delay in

payment result in penalty interest, which be included to the amount owed. If the airline still delay further in payment, warning circular will sent to such defaulting airline.

Finally, if such airline still refuses to pay, such airline will be expelled from the IATA clearing house.

UNIVERSAL FEDERATION OF TRAVEL AGENTS ASSOCIATION (UFTAA)

UFTAA formed in 1966, basically, to examine travel agents members as well as airline members who are fully engaged in the industry.

UFTAA is the research unit in the IATA; they send cost materials to airline and agent Staff member who register with them after which the staff is expected to sit for the examination, which is usually held twice in a year.

UFTAA training unit is located in GENEVA, SWITZERLAND.

 

PURPOSE OF UFTAA

UFTAA promotes accurate and proper completion of IATA document for travel public e.g. tickets, MCO, Airways bill etc.

Provide means of transportation among the IATA airlines to which the travel agent is are representing.

Provide means of examining new entrance in to the industry as agent who wish tp take up travel as a professional carrier.

HISTORY OF FLYING IN THE WORLD

Mans early attempt to fly like birds, such early attempt to fly involved a lot failure but finally it resulted in the manufacturing of aircraft.

In 1783, news of an astounding aeronautical breakthrough spread through Paris the province of France. Two brothers, Joseph Michel and Jacques Etienne Monogolfier discovered that they could make smaller balloon rise swiftly and

smoothly into the sky by inflating them with hot air their first large scale fire balloon, as it was called, was made of paper and linen was inflate with the foul smelling smoke from a large fire.

The unmanned balloon rose to an attitude of more than 1800 meters during it’s inaugural flight on November 21, 1783, they carried two men as the first human passenger and flight lasted for 25 mins,Over Paris at a distance that hydrogen was much lighter than air volume.

During the same year, another investor Jacques Charles unveiled the first gas filled balloon which was inflate with hydrogen or inflammable air. This balloon flew before a record crewed of sight seeing in Paris in 1783. In 1785, Jeanpieree Francois Blanchard successfully crossed the English Channel in a hydrogen balloon carting the world first airmail letters.

 

In 1889, a German engineer, named Otto Lilienthal, inspired by the flight habit of storks, and published Bird Flight as the basis of Aviation. Two years later he built his first simple glider, in 1896, after about 2000 glider flights, Lilienthal was killed while practicing with a monoplane. Octave Chanute a French born American engineer, elaborated on Lilienthal design and developed a double-winged glider that again represented a significant advance in the design of a heavier than flying machine.

 

The Wright brothers, properties of a bicycle shop in Dayton Ohio, USA, O       rville and Wilbur Wright began their first gliding experiments in 1900, building on the accomplishment of Lilienthal next three years, making repeated experiments flights at Kitty Hawk North Carolina. They developed new design with the aid of wind tunnels the first of which they made for themselves from a laundry starch box for their first powered flight, they built their four cylinder 12 horsepower engine and mounted it on the lower wing of a new plane.

On December 14, 1903 the Wright new invention rose off its wooden laundering track for the first time and stayed aloft for three and a half seconds’ three days later the brothers flew the machine again eventually it remained  airborne for nearly a full minutes and covered a distance of 260metres. The air plane was  successful.

Nevertheless, aviation technology advanced rapidly in the years following the Wright brothers’ first flights. within five years the two brother had built a two person airplane that could speed along at 71km per hour and climb to an attitude of 43metres.In 1911 the first Us Transcontinental Airplane crossing was made the trip from New York to California took about 49 days. During World War 1, airways speeds were pushed from 100km/hour to over 230km/hour. Aviation records continue to grab headline in the 1920, Two America army officers made the first non-stop flight across the United States in 1923, journey from coast in less than 27hrs. Four years later Charles A. Lindbergh won instant fame by flying non-stop from New York to Paris in 33hrs and 20mins.

The British introduced commercial turbo jet service in 1952. And jumbo jets, such as the 400 seat being 747 made their debt in 1970.

Another breakthrough came in 1976 when a team of British and French engineer introduced the Concorde Delta Winged jet liner capable of carrying 100 passengers at twice the speed of sound more than 230 km/hour. But step operating cost has limited the widespread use of commercial supersonics.

HISTORY OF FLYING IN NIGERIA

The usual development of air transport in the third world is that foreign airlines usually start operating in the host country before its national airline is formed. Nigeria is no exception of this trend and before the formation of West Africa Airways Corporation (WAAC) in the year 1945, that has was become Nigerian Airways in 23August 1958, a number of overseas airline were already established on our air-route.

 

The first and of course the biggest of all this foreign airline was the British Overseas Airways Corporation (BOAC) which started Weekly flight from London to Lagos in 1936.

BOAC usually comes to Lagos by the Seaplane because it did not require runaway or Airport. It could simply land on any river or lagoon.BOAC usually land on Port-Novo Creeks, near Apapa from London because of large number of ships that cause problem to the seaplane. Up till today, one street in Apapa in Lagos is Named Aerodrome road.

 

The development of Air transport in Nigeria was brought about by Second World War, when the whole North Africa and South Europe were in the hands of Germany. There was no way for British to supply and re-supply ammunition to her troops in Egypt and Sudan expect West Africa. During this time ship were used to carry component of fighter-bombers and other types of aircraft to Lagos and assembled at Ikeja Airport, which was built and operated by the Royal Air Force (RAF). From Ikeja the plane, and the cargo will flown to another airport hastily by Royal Air force, Air trip in Kano and Maiduguri which could be very short up to Khartoum in Sudan.

 

By the year 1945, the world war was over and RAF threw open its air fleet to commercial, BOAC change from using sea plane to Airplane like AGROUNT and STRATOCRUISER that could on their way from London land to kano and Ikeja Airport respectively 14-15 hours including refueling stopped in Tripoli or Tunis. Other European  Airline soon after  the Second World War, the BOAC is promoting and developing  the Europe to Nigeria traffic. This include the airlines with the abbreviation SABENA(SOCIETY ANNYMEO BELIGAN D’ EXPLORATION DU NAVIGATION AIRLINE) from Beliguim. AT( UNION AEROMETING TRANSPORT) but later changed to UTA(UNION TRANSPORT AIRLINE) from France.

 

 

THE ORIGIN OF NIGERIA AIRWAYS

The Nigeria airways history could be traced to 1945 when the airline was first incorporated as West Africa Corporation (WAAC) to undertake operation, which the Royal Air Force left behind at the end of the Second World War. It was then jointly owned by the formal British Colonies name Nigeria, Ghana, Gambia and Sierra-Lonne.

 

The west African Airways co-operation as at that time was managed by the West African Air Transport Authority (WAATA)

When Ghana attained independence in 1957, it pooled out to set up its own airline. The Ghana airways, leaving Nigeria, British Overseas airways Corporation BOAC and Elder Dempster lines as the owners of what we meant of (WAAC) and the ownership pattern was as follows, Nigeria Government 51% British Overseas Airways corporation 33% while Elder Dempster lines owned the remaining 16%. The federal Government took total control of the business on August 23rd 1958 by buying out the shares of these partners, thus become 100% owned controlled by Nigerian Airways. Its objectives are to operate scheduled and chartered air transportation services for reliable and efficient manner on both domestic and international routes.

 

INTERLINE HOTEL ACCOMMODATION (HOTAC)

Interline Hotel Accommodation in Airlines industry is the type of free services or accommodation given to an airline passenger by the particular airline concerned, certain conditions are to be satisfied before any airline passengers enjoys interline hotel accommodation. These are the condition.

(1)       That the passengers journey must be international

(2)       If the airline aircraft over fly the pax’s destination such that could warrant the

passengers spend over-night outside their route, an interline hotel accommodation would be offered.

(3)       Cancellations of booked international flight by an airline, which result into the

airline inability to provide services, always attract airline hotel accommodation.

(4)       Late arrival of the aircraft resulting into the pax missing his onward connection.

(5)       Diversion of the flight could be as well resulting in to pax misses his/her onward

connection.

(6)       Journey entirely within USA or any domestic journey does not attract interline

hotel accommodation

(7)       Hotac is for 24 hours or none day.

(8)       Where a flight fails to operate after the airline has checked in pax’s hotel

accommodation must be provided for such affected pax if the need arises.

(9)       Pax’s for interline HOTAC must not dictate i.e. in. choosing hotel for themselves

or else they pay.

THE CHICAGO CONVENTION 1944

Basis convention, which was prompted by the British government requesting that a conference on civil aviation be called by USA. The USA agreed to hold such conference in Chicago on 1-7 NOVEMBER 1994 and this conferences is what is representatives Countries and their purpose was to reach agreement on certain in principles and agreement in order, that Civil Aviation may be developed in a safe and orderly manner and that international transport services may be established at the basis of equality and operate peacefully and economically, almost all the countries of the world are parties to Chicago Convention.

 

The Chicago Convention was concluded on the 7th November 1944 and the outcome had been very successful which lead to almost important peace or air law that has been made for its purpose.

 

During the conference in Chicago, UK and USA at that time dominate the discussion, the UK were represented strongly and indicated the regulation of air route, which they feel they need for this purpose.

The convention governs relations between states on both technical and commercial subjects concerning international Air Transport, such as

1)        Flying over territory of contracting states (air spread of disease, charges

discriminating etc.).

2)        Nationality of aircraft, facilitation (customers, accident investigation).

3)        Documents (recognition of certificates and licenses etc).

4)        International standard and practices, including those for carriage of dangerous

goods.

5)        Statistics, finance, technical assistance etc.

In addition, the Chicago convention founded an international authority permanently in 1947 called ICAO (INTERNATIONAL CIVIL AVIATION ORGANIZATION).The Chicago convention does not itself grant rights to operate international airline services, but it makes provision for the manner in which such rights may be granted. It draws a distinction between schedule and non-schedule services.

1.          Schedule air international air services may operate by agreement between the

two countries concerned. Numerous agreement of this kind, known as Bilateral

Agreements or Bilateral, have been entered into between two states.

2. With regards to non-schedule service, the convention states that each country

may consider desirable.

ICAO-INTERNATIONAL CIVIL AVIATION ORGANIZATION

International Civil Aviation Organization was formed in 1944 during the Chicago Convention held between 1-7 November 1944. In order to discuss the re-arrangement of Air Traffic after the second world war, the allied power which include United Kingdom, Usa, France, Italy e.t.c. arranged in Chicago in 1944. This body would only exercise control on purely technical matters but not posses any control over fixture of Fares, route, frequency of flight or capacity limitations, The convention consists of two parts, the first contains 54 governing information while the second contains 42 articles of rules for aviation which was called ICAO. Today ICAO members are worldwide,.

 

PURPOSE OF ICAO

Their purposes are to:

• To ensure the growth, orderly and safety of international civil Aviation

throughout the world.

• Encourage the development of airline, airport and air navigation facilities for

international civil Aviation.

• To ensure the arts of an aircraft design and operation for peaceful purpose.
• Meets the need of the people of the world for safe, regular effective andEconomical air transport.

• Prevent economic waste cause by unreasonable competition.
• Ensure that the rights of the contracting states are fully respected and that the

contracting states have fair opportunity to operate international air traffic.

• Avoid discrimination between contracting states.
• Promote generally development of all aspect of international civil aviation.
• Promote safety of life in international air navigation.

ICAO and IATA have their headquarters in Montreal Canada and ICAO meets at least once in a year but most of the work is done or performed by permanent committee.

BILATERAL AIR SERVICES AGREEMENT (BASA)

Bilateral air Services Agreement in Aviation industry /air transport is an agreement between two national airlines sponsored by their national government to operate in to each other air space.

This agreement was signed at the Chicago Convention of 1944 by 54 governing bodies after Second World War during the deliberations of the re-arrangement of air traffic.

The freedom of air are the type of freedom enjoyed by various airline under bilateral agreements, a sample of this is between Nigeria and United Kingdom both represented Airways and British Airways.

The bases of this Agreement are expressed in an article 1 to 6 of Chicago Convention as referred to in international conference. The freedoms are as follows:-

1. The rights to over fly the space of another state without landing.
2. The right to land or stop in another state territory for non-traffic purpose i.e.

Technical or Refueling.

3. The right to set down passengers, mail, cargo between two countries.
4. The right to pick passengers from foreign country to home country of the airline.
5. The right to pick passengers from foreign country to a point of destination.
6. The right to pick passengers from foreign country via a home country of the airline to destination in foreign country.

WARSAW AND MONTREAL CONVENTION

Many European countries converge in Warsaw in Poland for a meeting in 1929. Purpose of the meeting was to discuss means and ways compensation could paid to the dependants of the people of travel public who dies or physical disable during air crash.

This top limit agreed in Warsaw in 1929, was USD 8300. This was based on the cost of living of such affected people. Since the cost of living is not uninformed in all over the world, An agreement came up about the top limit award to review the Warsaw agreement. Americans found the top limit award of USD 8300 too small, as a result, another meeting was held in Montreal Canada that same year to review the too limit award.

The result of which is as follows:-

1. a) USD 75000/person to be awarded in respect of air crash in America or in countries where the court determine the lawyer’s fee.
2. b) The beneficiaries of Warsaw convention are the dependents of the deceased of the air crash and also people who are physical disable.
3. c) USD 58000/person to be awarded in America or in countries where the court does not determine the lawyer’s fee.
4. d) Americans include the contents of Montreal agreement in the documents of the traffic agreement with airline from other nation in other to let them obey the Montreal agreements.

THE IMPORTANCE OF WARSAW OR MONTREAL CONVENTION

1)        It limits the airline liability to the air travel public

2)        It assures the airline paid penalty to the dependant of air crash victim.

3)        They encourage all the airline to obey the resolutions of the

Warsaw/Montreal agreement.

4)        It is an advantages to the airline because the amount has been fixed.

BOARD OF AIRLINE REPRESENTATIVES (BAR)

Board of Airline Representatives association are made up of top executives of various airlines

operating to/fro West Africa, they meet from time to time to discuss social relationships affecting

members airline. Their rules are binding to all members.

PURPOSE OF BAR

1)           To provide means of cooperation among members airline in negotiation with the

government  and other association dealing in air transportation.

2)           To promote understanding among various member airlines to travel agents

irrespective of their background.

3)           To provide means of assessing and evaluating market trends and to make adequate

recommendation.

 

AGENCY INVESTIGATION PANEL

Agency investigation panel is an arm of IATA in Nigeria that coordinates the activities of

Travel Agencies in Nigeria. The primary function is to investigates the newly travel

Agency that are new in the industry, usually most of the AIP members are sales

representatives of various airline. Although most work done is being handled by

committee of Accountancy.

The Committee of Accountancy always find out whether any agency in financially strong or not. As soon as an agent sent out a letter to AIP, a questionnaire form is sent to the Travel Agent. The form will be completed and return to investigate the new company after which they make their recommendation.

 

The department to IATA continually checks whether all rules and resolution are abided by the new company (Travel Agency). This is the compliance IATA office, the compliance office imposes fines for proved violations of IATA regulations. IATA regularizes the commercial side of civil aviation, there is another organization, which deals with the technical aspects. It is called the ICAO.

 

ICAO is  subsidiary organization of the United Nations, membership in ICAO is open to any state which fulfil tow requirements which are

1     It must be eligible for Untied Nations as membership.

2     It must be engaged in civil air transport

TRAFFIC RIGHTS IN INTERNATIONAL CIVIL AIR TRANSPORT

Every country has the right to prohibit foreign persons from setting foot on its territory. In

the same way according to how it operates its sovereign right a country can permit airline

to use the airspace above it or prohibit them from doing so.

Traffic rights for airlines are negotiated on a reciprocal basis by the competent ministries of

the countries concerned. The settlement of questions regarding traffic rights is based on a

recommended by the ICAO defines 5 freedom of the Air.These freedoms may be sub-

divided into non-commercial and commercial traffic rights.

POOL AGREEMENT AND POOL PARTNERS

Pool greements is an agreement between two airlines for joint commercial utilization of

international air routes i.e. carriage of passengers, mail and cargo.

The intention of a pool agreement is to have a coordinated schedule offering suitable,

departure times to the passengers and maximum load factors to both participating airlines.

 

CUSTOMS AND EXCISE DEPARTMENT

Customs excise department formed by the Federal Republic of Nigeria under the expenses of ministry of internal affairs. The aims and objectives of establishing this body are to combat and arrest the smugglers. The officials of the customs and excise department could be found mostly and especially in the boarders, seaport, and airports of a country.

The customs health department works hand in hand with this body to ensure the standardization of any imports or exports. The Chief aim and objectives of goods coming in and going out of the country, prominently include perishable, consumables, and life arrivals. They assist most airlines with regards to carriage of certain commodities. They also issue certificate of health on commodities to the shippers, before exportation to destination

DUTIES OF CUSTOMS &EXCISE

1. To check goods or consignment coming in and going out of the country.
2. To prevent importation and exportation of prohibited goods.
3. To check currency inflow and outflow by the passengers.
4. To collect duties on imports and export goods.
5. To see that government regulations with regards to carriage of goods in general

are implemented.

6. To collect excise duties local manufacturing industries in the country.
7. To assist Central Bank of Nigeria in exchange control regulations
8. They assist the Ministry of Health and Agriculture in ensuring that foods and

Other related imports are of prescribed standard.

9. They provide government with statistics on imports and exports through the

Federal office of statistics

10. They assist the Ministry of Trade and Commerce in trade control regulations.

IMMIGRATION DEPARTMENT

This is established by the Federal Government of Nigeria like that of customs &excise under

the auspices of internal Affairs Ministry. Its role, aims and objectives are to check and

regularize the exodus of people entering or leaving the country. They could be also be found

mainly at the airports, seaports and land frontiers.

DUTIES OF IMMIGRATION DEPARTMENT

• To see that travelers have the required documents.
• To issue residence permits to immigrants.
• To give statistics of the immigrants &emigrants of the country.
• To arrest travelers without necessary traveling documents
• To issue permits to other categories of travelers or paxs
• To arrest wanted people or deportees
• To stamp visa at the airport of departures.

FEDERAL AIRPORT AUTHORITY OF NIGERIA (F. A. A. N)

The Federal Airport Authority of Nigeria was established by the Federal Government of

Nigeria under the auspices of Ministry Of Aviation. This body was formed in 1995 with

amalgamation of Federal Civil Aviation Authority And Nigeria Airport Authority to become

what is known as FAAN today.

The main and objectives of FAAN is to see to the controlling, maintenance and to the

establishment of the various airports in the country. This is why FAAN is referring to as

landlords of airports in the country.   

FUNCTIONS OF FAAN

• To generated to the Federal Government of Nigeria
• To see to the maintenance of our airport in the country
• To control the airline operating to &from/in &out of the country
• To carry out government policies with regards to carriage of paxs and goods at

the airport.

• FAAN work hand in hand with ICAO to see to the establishment of new airport.
• To provide the airport with equipment used by the control tower.
• The FAAN also see that the airline keep to the rules and regulations of Federal

Government.

NATIONAL ASSOCIATION OF NIGERIA TRAVEL AGENTS (NANTA)

National association of Nigeria travel agents is the umbrella association of travel agencies in

Nigeria. Their matters are discussed at committee level and in annual general meeting,

Besides, ordinary meetings are held from time and the supreme authority of the

association is the executive council.

 

 

AIMS AND PURPOSES

• To promotes cordial relationship among travel agents in Nigeria
• To promotes travel trade education
• To provided a forum for meeting other bodies like government ministries and

other international bodies.

• To serve as mouth organ for travel agents in Nigeria by discussing with various

airline on behalf of the agent.

• To promotes business ethics among members.