What is IATA? IATA is International Air Traffic Association.Some of the company Airlines can follow or not the regulation that IATA make. IATA have standardized the price for cost of aviation for example Malaysia Airline and Fire Fly there is follow the regulation of IATA make. There charged same services for their customer. But for Air Asia they did not follow IATA because they focus more on the lower cost for their services. For them, the cost is most important for their customer. Customer no need for comfortable services but the cost is the main important. If Air Asia provide lower cost of services they will get a lot of competition. Air Asia have competitive advantage because they provide lower cost service and customer will attrack with their charges service and Air Asia will get more profit than another company.
ICAO is International Civil Aviation Organization. All of company Airlines must follow the regulation of ICAO make it is because their developed the regulation of Airlines. For example like regulation in country, if the any people not follow the regulation that will be make act from government or police. It is same with the regulation in industries Airline, if their not follow the regulation that will be act, this cause as to make sure the all of Airlines care safety of passenger. For company that not follow the ICAO regulation they must own protect if has any eccident.
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