Society requests AA postpone full NDC
implementation to the end of 2023
Alexandria,
VA, March 8, 2023 — ASTA President & CEO Zane Kerby releases
the following statement on behalf of the American Society of Travel Advisors
(ASTA), its members and the more than 160,000 Americans who work at travel
agencies across the country calling on American Airlines (AA) to delay
implementation of its New Distribution Capability (NDC) until the end of 2023:
“On
February 15, 2023, and March 3, 2023, a select group of the largest ASTA
members, travel management companies (TMCs) and corporate travel buyers met
with AA to candidly share their concerns about the impending NDC implementation
deadline in April. The meetings served to confirm attendees’ fears that AA’s
statements regarding implementation ‘readiness’ are exaggerated, with crucial
questions unanswered.
“Since
late 2022 AA has publicly stated that, beginning in April 2023, over 40 percent
of its fares would be accessible only through NDC-ready channels. It
appears that AA has made a strategic decision to forsake short-term profits to
achieve a stronger, anticompetitive business position long-term, one secured by
denying access to fare inventory. It inevitably follows that withholding
such a substantial portion of its fares from critical independent distribution
channels will have a serious negative impact on the traveling public,
corporate travelers in particular.
“Most
of the key players, including TMCs, global distribution systems (GDSs) and
third-party booking technology partners such as Concur have stated that they
will not be fully prepared to facilitate NDC implementation by April. Without
significant and key front-, mid-, and back-office travel fulfillment systems
ready and able to fully process NDC transactions, significant disruptions to
shopping and booking, including ticketing, refunds and re-ticketing are
inevitable. Regardless of third-party readiness, the fragile public trust
already impacted by recent events within the airline sector is at stake.
“Beyond
the unproven technology piece of the puzzle, processes that do not currently
exist for servicing NDC bookings will need to be developed, tested, and
implemented. The airlines have been working on NDC for over a decade, but this
sudden bullying of valuable distribution partners into breakneck-speed
implementation won’t serve our shared customers. During the pandemic, the
airlines pled for solidarity, and received $54 billion in public grants to
maintain operations - far more than travel agencies received. Airlines are
also sitting on millions in undistributed refunds that the Department of
Transportation (DOT) mandated they return to customers. Given its broad
consumer protection mandate, DOT may want to investigate the consequences
of AA’s actions, should it continue down its intended path.
“ASTA
is cognizant that AA has been working with stakeholders to prepare for the
coming changes. However, given the scope of this undertaking, it is clear that
much more work needs to be done if NDC implementation is to be achieved in a
manner that promotes healthy competition and avoids massive disruption to
the air ticket distribution ecosystem of which we are all a part.
“For
the foregoing reasons, ASTA respectfully reiterates its call on American
Airlines to postpone NDC implementation through the end of 2023. ASTA is
hopeful that significant strides can be made in all areas for which greater
readiness is essential to a successful transition allowing the traveling public
to be best served by the readiness sorely needed to avoid further disruption in
this sector of travel.”