Garner on the continuing evolution of airline distribution

For more than a decade, IATA’s New Distribution Capability (NDC) standard has been a topic of discussion and debate among airlines and travel sellers, with the former exploring ways to implement the standard to unlock new revenue opportunities while not completely abandoning loyal sellers that use traditional distribution systems.

American Airlines was one of the first to make a bold push for NDC when in 2023 it moved 40% of its lowest fares to be available only through its own channels and through NDC channels. Previous efforts from carriers, such as that of Lufthansa in mid-2015, leaned more towards surcharges for GDS bookings.

But in May the architect of that strategy, American’s chief commercial officer Vasu Raja, announced he was leaving the company and shortly after the airline said it would reverse course on the strategy – delighting some travel advisors and fueling skepticism about the future of NDC. 

While it’s now clear American’s…