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Travel managers fear NDC impact on compliance


Ian Taylor ian.taylor@travelweekly.co.uk


Nine out of 10 corporate travel managers are concerned about the cost and policy-compliance implications of Iata’s New Distribution Capability (NDC).


That is according to a survey


by the Association of Corporate Travel Executives (ACTE Global) and leading travel management company American Express Global Business Travel. American Express GBT is in the


forefront of developing NDC after signing deals with major airline groups driving adoption of the Iata technology standard. An ACTE-American Express GBT


study, entitled ‘The Evolution of Air Distribution’ and published last week, suggests almost two- thirds (64%) of travel managers believe NDC could improve the booking experience and half (54%) that it could help in negotiations with carriers.


However, 89% fear


fragmentation due to NDC will threaten cost control and 87% compliance with travel policy, 90% expressed concern about the reduced functionality of online booking tools, 89% fear unbundling will lead to higher costs, 88% fear a lack of data and 88% are concerned about reduced fare transparency. Half of those surveyed (49%) said corporate travellers already book airline ancillaries out of policy “as a consequence of airlines unbundling fares”. The ACTE and American


Express GBT said “uncertainty” about NDC “remains pervasive”. One-in-four travel managers


(23%) said they were “not at all” confident in their understanding


“We have concerns on how airlines will use NDC as opposed to its potential”


QUALANTONE: ‘NDC alone is not a silver bullet’


of NDC and an additional 58% were only “somewhat” confident. Almost two-thirds (63%) said


they “are not exploring any new platforms at this time”. ACTE Global executive director


Greeley Koch said: “NDC could make for better traveller experiences through personalisation. But it has come at a cost to travel managers, who are scrambling to figure out how to keep control of their pro- grammes if NDC becomes the norm.” Mike Qualantone, American


Express GBT executive vice- president of global supplier relations, said: “We fully embrace NDC. However, we have questions and concerns on how airlines will use NDC as opposed to its potential and promise. “NDC alone is not a silver bullet.”


Airlines warn of ‘chaos’ if daylight saving time axed


Airlines have expressed alarm at EU plans to scrap daylight saving time (DST), which sees clocks change by one hour each October and March. Airline association Iata,


Airlines for Europe (A4E), which represents the biggest European carriers in Brussels, and the European regional carriers’ group ERA have warned the proposals risk “significant disruption” to passengers. They have urged EU bodies to


reconsider and, at least, delay the abolition, warning “the aviation industry will be left in chaos” with “complete synchronisation”. The UK tourism industry has campaigned for the abolition of daylight-saving time, arguing it would boost tourism. The UK government decided


more research on the impact was required when it last considered the issue.


SPRING FORWARD: Airline groups fear ‘disruption’ if EU scraps DST


BA’s transatlantic joint venture faces probe ahead of Brexit


British Airways’ transatlantic joint venture with sister carrier Iberia, American Airlines and Finnair is under investigation by the UK’s Competition and Markets Authority (CMA). The CMA announced it was


investigating the Atlantic Joint Business Agreement between IAG-owned BA and Iberia and the other carriers last Friday. It noted: “No assumption should be made that the agreement


infringes competition law.” The joint business deal was


investigated by the European Commission in 2009-10 and found to comply with EU competition law, with the EC accepting commitments from the carriers to address competition concerns on six transatlantic routes. Five of these were from London – to Dallas, Boston, Miami, Chicago and New York – and one between Madrid and Miami.


As part of the agreement, BA


was required to make landing and take-off slots available to competitors at Heathrow and Gatwick. Three pairs of slots at Heathrow passed to Virgin Atlantic-Delta Air Lines and one pair at Gatwick to Norwegian Air. The agreement was binding


for 10 years, and the CMA review could conclude the routes should revert to BA. The CMA said it launched


the probe in advance of the UK leaving the EU “to review afresh the competitive impact of the agreement in anticipation of the expiry of these commitments”. The review could be significant if the UK is required to make a post-Brexit aviation deal with the US.


In a statement, IAG noted that


since 2010 “the joint business has launched 45 routes, including 14 between the UK and US”.


18 October 2018 travelweekly.co.uk 79


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