Flightlines 6: Airline Designators
Decoding airline designators issued by the IATA and ICAO and their role in commercial aviation.
Hello, and welcome back to Flightlines. This week, we're continuing our exploration of what it takes to be an airline, building on our second issue where we attempted to define the key attributes of an airline and estimate the total number in the world. In this issue’s feature, we’ll take a look at how airlines are identified and what regulatory hurdles must be overcome to get one off the ground. To complement the feature, this week's news section will be more concise, focusing only on the essential articles needed to understand the week's most important events. Without further delay…
Weekly feature
As part of our commitment to providing original content and insights to our readers, Flightlines has begun compiling a comprehensive database of airlines and their activities. This effort aims to improve our understanding of the industry and offer you more data-driven insights. By analyzing various aspects of airline operations, financials, and market trends, we hope to uncover patterns and insights that will inform our coverage and keep our readers informed about the companies that comprise the airline industry.
In Flightlines 2, we reported that there were an estimated 5,000 airlines worldwide. While compiling our database, we identified 1,240 entities with an active International Civil Aviation Organization (ICAO) or International Air Transport Association (IATA) code. When defunct or historical airlines are considered, we identified another 4,800 entities that once had a designation code, making this count more consistent with our original report. Although there may be other entities that could fall under the classification of "airline," the presence of an ICAO or IATA code is a strong indicator of formal airline status.
ICAO and IATA codes serve similar purposes but are issued by two distinct authorities with different roles in the industry. The ICAO is an agency within the United Nations responsible for setting global aviation standards and regulations. While a participant in the formation of standards and practices, the IATA is a trade association that represents the world’s airlines and is more focused on industry policy than regulation.
One of ICAO’s key roles is assigning a unique three-letter code to each airline, known as the ICAO airline designator. These codes are used in flight plans and air traffic control systems, ensuring standardized communication and safety in the international airspace. Similarly, the IATA assigns two-letter codes to airlines, known as IATA airline designators, and they are used in ticketing and reservation systems. The main difference between ICAO and IATA codes lies in their usage: ICAO codes are used for technical and operational purposes, while IATA codes are primarily used for commercial and public-facing activities.
As the ICAO system is more regulated, the process to receive a designator is quite formal. The first step is for the airline to be recognized by their home country’s civil aviation authority. This can mean a variety of processes and regulations and looks different throughout the world. Following recognition, the airline must obtain an air operator’s certificate proving compliance with the civil aviation authorities rules and regulations. This will typically include a combination of documentation, demonstrations, inspections, and evaluations before the airline is allowed to commence commercial operations. Most civil aviation authorities use the ICAO’s standards as a baseline for certification.
In contrast, the IATA code assignment process is typically more focused on the commercial aspects of the airline's operations. To receive an IATA code, an airline must demonstrate its ability to participate in international ticketing and scheduling systems. This often involves showing proof of business operations, financial health, and compliance with industry standards. Although less stringent than the ICAO process, obtaining an IATA code still requires airlines to meet specific criteria to ensure they can engage with others in the marketplace.
While designator codes are an operational necessity, they can also reveal a bit about an airline’s history or personality. Some codes make perfect sense— “AA” is an obvious choice for American Airlines as is “BA” for British Airways. “WN” for Southwest is much less obvious, but is rumored that it traces back to their Texas roots and is a nod to their “wanna get away” low fares slogan. There is also an urban legend that “WN” actually stands for Willie Nelson, a favorite artist of former Southwest president Colleen Barrett. More likely though is that “WN” is purely accidental and was the result of availability. Uniqueness and random assignment are often the reasons airlines end up with their codes, as is the case with JetBlue and their “B6” designator.
Looking ahead, we are excited to continue building this airline database and for the trends we may uncover. Our journey through the data has only just begun, and next week, we hope to share some of these insights with you.
In the news
The latest and most impactful stories shaping the world of commercial aviation this week.
August 4th, 2024
Tampa International Airport Issues Ground Stop As Tropical Storm Debby Approaches Hurricane Strength
Charlotte Douglas International Airport Will Debut 3rd Concourse A Facility Next Month
August 2nd, 2024
August 1st, 2024
July 31st, 2024
Boeing names former Rockwell Collins CEO Kelly Ortberg as new leader
Emirates Doubles Airbus A380 Flights To Bali Amid Demand Surge
Lufthansa Group Reports $743 Million EBIT For H1 Despite Lufthansa Airlines Losses
July 30th, 2024
JetBlue defers 44 A321neo aircraft deliveries to 2030 and beyond
Delta Air Lines Enlists High-Profile Lawyer Against CrowdStrike
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Thank you for reading. Flightlines looks forward to bringing you more insights and updates in the world of commercial aviation next week.
Until then, safe travels and happy flying.