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."