IATA's new distribution capability and its impact on traditional forms of cooperation in the airline industry
by Klaus Jäckel; Lydia Maier
International Journal of Aviation Management (IJAM), Vol. 3, No. 4, 2016

Abstract: Intensified competition, stagnating ticket sales and increasing operational costs cause airlines to seek for new sources of revenue. Ancillary services and complementing offers are therefore becoming crucial in the airline industry. Particularly in indirect distribution channels, the presentation of products and services, generating extra revenue, depends on the capabilities of the GDS. 'new distribution capability' (NDC) is a technology which will fundamentally change traditional GDS-based distribution processes used for decades. The quintessence of the NDC concept is to position the airline in the centre of an interactive offer-generation process. This impacts commercial cooperations with partner airlines. Nevertheless established forms of cooperations (Interlining/Code Sharing) will basically be maintained. Dynamic interaction between the partners enables more flexible collaboration which will significantly influence forms of cooperation. This affects cooperations within the framework of 'Global Airline Alliances'. Specific consequences and actual implications of NDC cannot yet be defined in detail.

Online publication date: Mon, 20-Nov-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Aviation Management (IJAM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com