IATA: New Distribution Capability
13-Dec-2012 The New Distribution Capability (NDC) provides a new and innovative approach to the way airlines' products and services are being distributed. NDC will enable airlines to fill the capability gap between their direct and indirect channels, providing identical retail capabilities across all channels. It supports product differentiation and customer personalization.
IATA is facilitating the definition and the establishment of industry standards to support and shape this new model for the benefits of the industry and all its stakeholders. The IATA Board of Governors made this initiative one of its 2012 Industry Priorities.
The case for NDC is clear - It is about providing passengers with more choice of products and services, more personalization, more transparency and increased competition among providers.
IATA's 2013 Board Target
IATA's Industry Priorities and Targets
These priorities and targets were set by the IATA Board during their December 2012 session.
Safety: improve global safety, especially in Africa
- Roll out a transition plan to Enhanced IOSA (e-IOSA) with at least 10 e-IOSA audits
- Gain ratification of the Africa Strategic Improvement Action Plan and bring 10 additional African-based airlines to IOSA by 2015
Security: improve security checkpoints
- Secure two airports and government support to deploy a first generation Checkpoint of the Future in 2014
Airline revenues: manage airline revenues securely and efficiently
- Automate 96% of settlements with a global tool
- Aim to reduce costs 27% by 2017
- Ensure 99.95% of IATA Settlement Systems (BSP and CASS) funds are settled on time
Value chains: re-balance the value chains, improve airline revenues, and reduce costs
- Develop a refined standard for New Distribution Capability and implement live pilots involving airlines, agencies, aggregators
- Reduce airport and ANSP charges, fuel fees and taxes by $750 million as well as proposed cost increases by 25% in 2013-2014
Environment: protect the industry's ability to grow in a sustainable manner
- Facilitate a global agreement on market-based measures under ICAO that reflects IATA's four-pillar strategy and the industry's commitment to carbon-neutral growth from 2020
Regulatory: protect members from burdensome regulation
- Ensure governments follow the Worldwide Slot Guidelines (WSG) when determining slot allocation procedures
- Press for the adoption of harmonized and reasonable approaches to consumer protection/passenger rights legislation and regulation
Industry costs and customer service: create value, reduce industry costs, and improve customer service
- Achieve 20% e-Air Waybill (e-AWB) penetration where legally feasible
- Complete implementation of Electronic Miscellaneous Documents (EMDs) in the IATA Billing and Settlement Plan (BSP)
- Drive Fast Travel penetration to include 20% of eligible passengers
Refer to full documentation in attachments box, located at the top left, below the headline.
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