American Airlines has fired the latest salvo in its back-and-forth dispute with ASTA over American’s distribution practices.
ASTA filed a complaint with the DOT last September, arguing that American’s removal of a large portion of its content from traditional GDS (Edifact-enabled) booking channels, has harmed consumers. As required by the DOT, American responded to the complaint in November. Then ASTA responded to American’s response in December.
On Monday, it was American’s turn. In a 20-page filing, American characterized ASTA as engaging in an effort to stifle innovation and competition in airline distribution, not for the benefit of consumers but for the benefit of some travel agencies.
“ASTA’s quibble is not with the technology; it is with the fact that some corporate travel agencies would prefer not to use it,” American said. “No one is forcing them to. But that leaves those agencies with another issue: they must compete against NDC-enabled companies that are now able to deliver previously unachievable efficiencies, innovation, and servicing benefits.”
American is making its full range of fares available to travel agencies only via connections enabled by New Distribution Capability (NDC). As of Dec. 31, American’s lowest fare was in the NDC channel 55% of the time, according to data from Amtrav, a corporate travel agency that is 36th on Travel Weekly’s Power List.
ASTA asked in its September complaint that the DOT issue an order requiring American to restore all fares within the traditional GDS.
Since that September request, American and ASTA have taken turns submitting arguments into the federal docket.
American, along with other airlines that are adopting NDC, prefer the technology to the legacy Edifact technology because NDC allows for the merchandising of far more products, including ancillary products and fare bundles. Via NDC, airlines can also price tickets continuously instead of having to rely on the traditional fare-filing system, which has a limit of 26 fare codes.
ASTA, in its push for sanctions against American, has cited service shortcomings with NDC bookings, such as no virtual payment capability; an inability to book air, car and hotel at the same time during the booking flow; and the inability to support rules or custom fields, which is important for agencies that manage corporate accounts.
Further, ASTA has argued that making an NDC connection is an expensive proposition. While some companies, like the OTAs, have adopted NDC technology, the Society argues they have the budgets to do so, whereas most small and medium-size agencies do not.
In its filing Monday, American said that blocking technological competition in airline distribution would leave consumers “mired in stagnating and static pre-internet, pre-API computer protocol.”
The airline also highlighted several travel sellers “are hustling to bring the NDC-improved experience to every consumer,” including Priceline, Expedia, Kayak, Hopper, Navan, Spotnana and AmTrav.
American said that any service limitations that exist under NDC are functions that travel agencies should be delivering, regardless of technology.
“There is no statutory basis to calcify the industry for the sake of a narrow slice of corporate travel agencies that have historically exploited the limitations of now-stale technology to protect their profits,” the filing reads.
