IATA OFFICIAL RESIGNS FOLLOWING US COURT CASE

IATA OFFICIAL RESIGNS FOLLOWING US COURT CASE

The managing director of the International Air Transport Association resigned after allegations surfaced in a Washington court of kickback payments.

The spokesman said Edward Spry, the organization's No. 2 man, submitted his resignation in the second week of January after only three months on the job. IATA has 204 members representing almost all of the world's airlines.Papers filed in U.S. District Court in Washington allege that Mr. Spry received $4,000 a month in kickbacks for several months.

"We have learned of the involvement of this official of IATA in a court case in Washington, D.C., and we are investigating," said John Brindley, the spokesman. "Dr. Spry has resigned from his position."

Mr. Spry, a Briton who had worked for IATA for nearly 20 years, could not be reached immediately for comment last week.

An economist, Mr. Spry formally took the post as managing director in November after his appointment by the IATA executive committee last May.

As managing director, he was responsible for the Geneva-based organization's day-to-day internal administration, reporting to Gunter Eser, its director-general.

The court case involved Airline Economics, an aviation consulting firm that filed a civil lawsuit in November 1991 against Harold Pareti, its former president. The firm alleges Mr. Pareti misappropriated funds.

Mr. Pareti, in a letter filed with the court, denied the allegations and mentioned the kickbacks that Mr. Spry allegedly received.