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New Distribution Capability Updates

The New Distribution Capability (NDC) approach is to develop an industry messaging standard for airline distribution that supports product differentiation and to facilitate its implementation in the industry.

Facilitating air retailing

The NDC standard will allow an airline to make sales offers to agents without them being prepared by intermediaries based upon previously filed products and aligned to current inventories. This will also permit airlines both to define and price their products in any way they wish.

In January 2014 IATA and Open Allies (an association that includes the 3 GDSs Amadeus, Sabre and Travelport) filed a joint motion with the US DOT concerning IATA’s Resolution 787. As a result, Open Allies has withdrawn its opposition to Resolution 787.

We still await approval from the US Department of Transportation.

During 2013, IATA facilitated 5 pilots testing some of the aspects of the new standard. In 2014, one additional pilot has been launched and others are in the pipeline.

IATA is delivering “airline alignment” sessions to ensure that members fully understand the end to end process implications and opportunities of NDC for airlines.

A first set of the NDC supporting standards has been reviewed and will be ready for release in the coming weeks. In the meantime the NDC working group continues to work on completing the set of standards and supporting an “integration” group, which will devise the standards for backward compatibility if and where required.

 

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