Title: IATA's new distribution capability and its impact on traditional forms of cooperation in the airline industry
Authors: Klaus Jäckel; Lydia Maier
Addresses: Carl-Orff Weg 8, D-65812 Bad Soden, University of Applied Sciences, Erenburger Straße 19, 67549 Worms, Germany ' M.A. International Tourism Management, Erenburger Straße 19, 67549 Worms, D-61352 Bad Homburg, Germany
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.
Keywords: airline distribution; ancillary services; new distribution capability; NDC; IATA; cooperation; interlining; code sharing; alliances; joint venture.
International Journal of Aviation Management, 2016 Vol.3 No.4, pp.266 - 294
Received: 28 Feb 2017
Accepted: 02 Jul 2017
Published online: 14 Nov 2017 *