by Mia Taylor
Last updated: 3:45 PM ET, Thu December 21, 2023
The war of words between the American Society of Travel Advisors (ASTA) and American Airlines over the implementation and adoption of NDC booking technology took another turn this week.
The two entities are at odds over?how NDC is being rolled out, which is the subject of a complaint ASTA filed with the U.S. Department of Transportation (DOT). The complaint alleges that American Airlines is withholding a portion of its tickets from travel agencies that have not yet begun using NDC.
In late November, American Airlines filed a scathing response to the ASTA complaint calling it “a frivolous compilation of rhetoric and unsupported allegations.” American Airlines also asked the DOT to dismiss the complaint altogether and said "consumers should not be held hostage to old technology by those agencies that are choosing not to make that investment."
Fast forward to this week and ASTA has just submitted another filing with the DOT that serves as its response to the November American Airlines response.
“AA’s answer to ASTA’s complaint consists largely of a recitation of unsubstantiated assertions, strawman arguments and cherry-picked facts intended to create the impression that the domestic airline industry is “intensely competitive” and that its forced implementation of NDC on an unready industry earlier this year was a market-driven response to consumer demand,” says yesterday’s ASTA filing.
"However, the weight of the evidence, and American’s own actions, compel a contrary conclusion,” adds the new filing.
History of NDC Complaint
NDC is a technology that was created to enable a richer airline shopping experience for buyers. NDC allows ticket sales to be customized and personalized, allowing travel sellers to book seats, as well as premium seating, airport lounge passes, vegetarian meals, and more on a central platform.
Adoption of NDC represents a significant change in the way travel sellers have been doing business for many years.
American Airlines had set a deadline for distribution channels to be able to connect to NDC. Several major industry organizations and other parties protested the deadline, but American persisted with the change.
For travel advisors to be NDC-ready they must have the ability to service bookings through the platform, which requires a relationship with one or more aggregators to access and service NDC transactions.
In response to American Airlines’ decision to push forward with NDC, ASTA filed a complaint with the DOT?earlier this summer. The complaint alleges that American Airlines has caused significant harm to consumers, travel agencies, and travel management companies with its implementation of NDC.
In the draft complaint filed July 31 with the DOT, ASTA alleges that beginning last April,? American Airlines removed 40 percent of its own fare inventory from traditional or non-NDC booking channels.
“That action has resulted in substantially higher air ticket prices for consumers and frustrated TMCs and their clients in fulfilling the duty of care owed to business travelers,” ASTA said in a statement released at the time.
ASTA further explained in its complaint with the DOT that the travel industry as a whole was, and remains, largely unprepared to fully adopt NDC.
In its late November response to the complaint, American Airlines accused ASTA of protecting travel agencies that have not invested in NDC technology, rather than protecting consumers.
The airline asserted that NDC "makes it possible for American to offer more options to consumers at lower prices and with better service," and that American's success is "driving other U.S. airlines to also adopt NDC-based technologies."
ASTA’s latest filing
In its filing with DOT this week, ASTA takes issue with American Airlines' defense and asks the government agency to proceed with enforcement against the carrier.
"The arguments presented in the [American Airlines] answer are little more than a diversion, a thinly veiled attempt to draw the Department’s attention away from the inescapable conclusion that AA’s actions do indeed constitute an unfair practice under 49 U.S.C. § 41712 that warrants investigation and the subsequent commencement of an enforcement action,” continues ASTA’s latest filing.
ASTA’s filing argues that the response provided by American Airlines lacks any "meaningful effort to substantively refute the substantial evidence presented that powerfully supports ASTA’s position with respect to the central facts of this dispute, namely, that AA: i) holds the dominant market position in an oligopolistic industry; and ii) abused the power associated with that position to the grave detriment of both consumers as well as their air ticket distribution competitors.”
ASTA also points out in yesterday’s filing that the airline did not challenge the complaint assertions regarding American’s overall market share and dominance of numerous key hub cities and routes. The trade group adds that in its response, American “admits outright that it removed substantial fare inventory from the traditional EDIFACT channel.”
ASTA is calling on the DOT to proceed with immediate enforcement against American Airlines in the matter.
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