Critical Analysis of Finnair’s NDC Strategy

Finnair, a member of the Oneworld alliance and a joint-venture partner of American Airlines, has been a strong advocate for NDC technology in the airline industry. However, the airline recently announced that it would not be discontinuing legacy GDS sales by the end of 2025 as originally planned. Aviation editor Robert Silk sat down with Jenni Suomela, Finnair’s vice president of global sales and channel management, and Pasi Kuusisto, its general manager for North America, to discuss the airline’s NDC strategy and the implications of this change.

Jenni Suomela acknowledges that the pace of change in the industry has been slower than anticipated. Despite this, Finnair remains committed to modern distribution and has taken steps to remove domestic itineraries from Edifact. This move was made in collaboration with agencies and other partners in the value chain, demonstrating Finnair’s approach to integrating NDC technology in a collaborative manner.

While some may have been concerned about the removal of domestic itineraries from Edifact, Suomela reassures that Finnair has worked closely with agencies to address any bottlenecks and ensure a smooth transition. This highlights the importance of collaboration in implementing NDC technology and the need for all partners to adapt to the changes it brings.

Pasi Kuusisto provides insights into Finnair’s NDC policies for U.S. tickets, emphasizing that only the equivalent of basic economy has been removed from distribution. The airline has also introduced dynamic pricing for NDC bookings, offering additional price points on most routes from North America. These changes reflect Finnair’s commitment to enhancing the customer experience through modern distribution methods.

Looking ahead, Suomela outlines Finnair’s future plans for NDC implementation, including the removal of intra-European itineraries in certain markets and the complete elimination of Classic (similar to economy) on intra-European routes by next year. These steps demonstrate Finnair’s proactive approach to pushing the industry towards modern distribution practices.

Suomela acknowledges the challenges associated with NDC implementation, noting that it requires changes to existing processes and investments in new capabilities. The frustrations with getting agencies on board with NDC stem from the misconception that it is a simple plug-and-play solution, when in reality, it requires significant changes and investments from all partners involved.

While Finnair has made significant progress in closing the main gaps in NDC servicing, there are still areas that require attention, such as name change capabilities. Suomela emphasizes that these shortcomings are not individual game changers, but when combined, they can create obstacles in the adoption of NDC technology. Overall, Finnair remains focused on addressing these challenges and strengthening its NDC capabilities.

Finnair’s decision to adjust its NDC strategy highlights the complexities and challenges associated with implementing modern distribution technologies in the airline industry. By taking a collaborative approach and continuously refining its NDC policies, Finnair is paving the way for a more efficient and customer-centric distribution system.

Airlines

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