Implementing New Distribution Capability (NDC) technology has been a challenge for many airlines in the industry, including Finnair. Despite being a strong advocate for NDC, Finnair recently faced difficulties in transitioning away from legacy Edifact GDS technology. In a conversation with Finnair’s officials, they shed light on the struggles and successes of their NDC strategy.
Jenni Suomela, Finnair’s vice president of global sales and channel management, highlighted the airline’s continued efforts towards modern distribution despite the slower pace of industry change. Although Finnair initially planned to stop distributing via Edifact by 2025, they had to adjust their strategy. One significant move was removing domestic itineraries from Edifact, which Suomela mentioned as a successful step towards NDC adoption.
Suomela emphasized the importance of collaboration with agencies and other partners in scaling NDC. Despite concerns about hurting relationships with domestic travel agencies, Finnair managed to overcome bottlenecks through effective collaboration. This approach was crucial for Finnair in driving the change forward and ensuring a smooth transition to NDC.
Pasi Kuusisto, Finnair’s general manager for North America, touched upon the airline’s dynamic pricing strategy and plans for the future. Finnair has been gradually expanding dynamic pricing across its network, aiming to offer more price points without additional products. Looking ahead, Finnair plans to remove intra-European itineraries and Classic fare options from Edifact, demonstrating their commitment to NDC adoption.
Despite Finnair’s efforts in implementing NDC, Suomela expressed frustration with the industry’s slow pace of change. The failure of American Airlines’ aggressive NDC strategy, as Finnair’s joint-venture partner, also posed challenges. Suomela acknowledged the complexity of NDC implementation, noting that it requires significant changes in processes and investments from all partners involved.
Suomela mentioned that Finnair has made progress in closing gaps in servicing, particularly in the business channel segment. However, challenges remain, such as resolving issues like name changes. While these may not seem like major obstacles individually, they can become significant pain points when they accumulate. Finnair continues to work on addressing these shortfalls to enhance their NDC capabilities further.
The journey towards implementing NDC technology in the airline industry is filled with challenges and frustrations. Finnair’s experience serves as a valuable learning opportunity for other airlines looking to transition to modern distribution. Despite setbacks, Finnair’s commitment to collaboration and innovation in NDC adoption remains unwavering.
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