Finnair, known for being a primary advocate of NDC technology in the airline industry, recently made a surprising decision to backpedal on their initial plan to cease distribution via legacy Edifact GDS technology by the end of 2025. This unexpected move has sparked discussions about the airline’s NDC strategy and its implications for the future.
In a recent interview with Finnair’s vice president of global sales and channel management, Jenni Suomela, it became clear that collaboration is at the heart of their NDC strategy. Despite the decision to maintain Edifact distribution for a longer period, Suomela emphasized the airline’s commitment to modern distribution and highlighted the successful removal of domestic itineraries from Edifact as a recent milestone.
When it comes to NDC bookings, Finnair has been gradually introducing dynamic pricing across their network, offering additional price points without necessarily adding new products. Looking ahead, the airline plans to further expand their NDC strategy by removing intra-European itineraries in select markets in November and fully eliminating Classic (similar to economy) on intra-European routes by May of next year.
Despite Finnair’s proactive approach to NDC, there are still challenges in getting all stakeholders on board with the new technology. Suomela acknowledged the complexity of NDC, noting that it requires significant process changes and investments from all partners involved. The frustration with the slow pace of industry-wide adoption was palpable, highlighting the ongoing struggle to reallocate limited resources effectively.
While Finnair has made progress in closing the main gaps in their NDC strategy, there are still areas that require attention. Suomela pointed out that servicing features like name changes remain a challenge, emphasizing that it’s the accumulation of these smaller issues that can ultimately impact the overall NDC experience. Despite the hurdles, Finnair remains committed to addressing these shortcomings and enhancing their NDC capabilities.
Finnair’s recent shift in NDC strategy offers a revealing glimpse into the complexities of modern distribution in the airline industry. By prioritizing collaboration, adapting dynamic pricing, and addressing key challenges in NDC adoption, Finnair is positioning itself as a leader in the ongoing push for industry-wide innovation. As the airline continues to navigate the ever-changing landscape of distribution technology, one thing remains clear – the journey towards a fully modernized distribution system is far from over.
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