by Mia Taylor
Last updated: 1:30 PM ET, Mon August 14, 2023
The American Society of Travel Advisors is alleging that American Airlines has caused significant harm to consumers, travel agencies, and travel management companies with its implementation of New Distribution Capability (NDC) technology.
In a draft complaint filed on July 31 with the U.S. Department of Transportation (DOT), ASTA alleges
that beginning last April, American Airlines removed 40 percent of its
fare inventory from traditional or non-NDC booking channels.
“That action has resulted in substantially higher air ticket prices
for consumers and frustrated TMCs and their clients in fulfilling the
duty of care owed to business travelers,” ASTA said in a statement
released to the media.
Commonly referred to as NDC, the New Distribution Capability technology is an XML communication standard that was created by the International Air Transportation Association (IATA). It allows airlines to bring their content and ancillaries directly to online travel agencies (OTAs), travel management companies (TMCs), and other flight resellers.
Using NDC, airlines are able to adjust their offers to align with current market demand and customer preferences. IATA describes NDC as a “data exchange format based on offer and order management processes for airlines to create and distribute relevant offers to the customer regardless of the distribution channel."
In its complaint, ASTA explained the challenges presented by American Airlines’ alleged actions. The complaint says the travel industry as a whole was, and remains, largely unprepared to fully adopt NDC.
"While NDC may hold much promise for the future of air ticketing, the impact of its adoption on the entire air ticket distribution ecosystem – and in the manner imposed on the industry by AA – can scarcely be overstated,” says the complaint.
“American’s decision has already caused widespread disruption to the air ticket distribution ecosystem and serious consumer harm in the form of higher airfares and further reduced competition, in terms of both airline travel itself as well as air ticket distribution.”
ASTA is calling upon DOT to take immediate action and is urging the government agency to “exercise its statutory authority to enjoin AA from continuing this practice, to restore access to all fares in all channels and to undertake a comprehensive review of the current state of competition in the domestic airline industry.”
The complaint follows several private discussions between ASTA and representatives of both American Airlines and, later, DOT.
Joining ASTA in the filing were the Travel Management Coalition, the Business Travel Association (U.K.) and FOLATUR.
A full copy of the complaint can be accessed here.
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