after reading about it, I think I'm more confused than ever. well........"initially"
National policies
Since the U.S. Navy reserved "N" codes and the Federal Communications Commission has reserved rights for "W" and "K", certain U.S. cities which begin with these letters had to adopt "irregular" airport codes: EWR for Newark, ORF for Norfolk, Virginia, EYW for Key West, Florida, and APC for Napa, California.[3] This "rule" does not apply outside the United States: Karachi is KHI, Warsaw is WAW, Nagoya is NGO. In addition, since "Q" was used for international communications, cities with "Q" beginning their name also had to find alternate codes, as in the case of Qiqihar (NDG), Quetta (UET) and Quito (UIO).
IATA codes should not be confused with the FAA identifiers of US airports. Most FAA identifiers agree with the corresponding IATA codes, but some do not, such as Saipan whose FAA identifier is GSN and its IATA code is SPN, and some coincide with IATA codes of non-US airports.