The International Air Transport Association (IATA) and Visa International are
to work together to encourage the development of a global interoperable smart
card standard for the airline industry.
The announcement demonstrates renewed commitment to cross industry standards
for smart card applications. It means the airline industry will ensure compatibility
with standards already put in place by the payments industry, such as the EMV
standard for credit and debit applications.
IATA and Visa will work together to establish a work plan and priorities for
a new smart card working group consisting of member airlines and partners. The
group will develop a global smart card specification that will take into account
new requirements in commercial aviation for the sharing of data between airline
applications, such as electronic ticketing and biometrics. Visa, in partnership
with smart card vendors, Oberthur Card Systems and Philips Semiconductors, has
already started running educational courses in chip technology for IATA staff
and representatives from airline organizations.
"While global smart card standards are largely in place for payments it
is important that similar standards exist for airline applications," said
IATA director of passenger services, Michael Feldman. "Applications such
as e-ticketing, biometrics and loyalty provide enormous opportunities for airlines.
We need to maximize these opportunities by making sure a common infrastructure
exists. The payments industry has led the way in developing common standards
and, by working with Visa, we can benefit from the lessons learned and achievements
made."
IATA will work with Visa and other parties to ensure that airline applications
can co-exist comfortably with payment and other related applications.
Gaylon Howe, executive vice president, Consumer Product Platforms at Visa International,
said: "This work with IATA will take us a step closer to seeing multi-application
smart cards that can be customized to meet the needs of the individual. Such
cross industry cooperation is essential if we are to have cost-effective, common,
interoperable systems."
Key drivers for smart card growth within the airline industry include the need
to support new security and identification requirements as well as the need
to create common e-ticketing standards. Opportunities also exist for airlines
to take greater advantage of e-commerce applications, such as online ticket
purchases.
"There is a much greater impetus now than ever before for airlines to
take advantage of smart card technology," added Mr. Feldman. "As the
payments industry has moved to chip, first in Europe and now in North America,
there are huge business opportunities. With consumers receiving multi-application
smart cards it is imperative for the airline industry to have the infrastructure
in place to offer suitable applications and services."
