Finnair, a member of the Oneworld alliance and a joint-venture partner of American Airlines, has been at the forefront of promoting NDC technology in the airline industry. However, the airline recently made a decision to backtrack on its plan to stop distributing via legacy Edifact GDS technology by the end of 2025. According to Jenni Suomela, Finnair’s vice president of global sales and channel management, the pace of change within the industry has been slower than anticipated. Despite this setback, the airline remains committed to modernizing its distribution channels.
When asked about the impact of removing domestic itineraries from Edifact, Suomela emphasized the importance of collaboration with agencies and partners across the value chain. By working together to address bottlenecks and solve challenges, Finnair was able to successfully transition away from legacy distribution methods without alienating domestic travel agencies.
Pasi Kuusisto, Finnair’s general manager for North America, highlighted the airline’s use of dynamic pricing for NDC bookings and its plans for future developments. Finnair has been gradually expanding dynamic pricing across its network and aims to continue pushing for change within the industry. The airline plans to remove intra-European itineraries in select markets in November and fully transition Classic tickets on intra-European routes away from Edifact by May of next year.
Despite Finnair’s efforts to advance its NDC strategy, the airline acknowledges the challenges of getting agencies on board with the new distribution model. Suomela expressed frustration with the misconception that implementing NDC is a simple plug-and-play solution. In reality, NDC requires significant changes to processes and investments in technology. Both airlines and agencies are struggling to allocate limited resources to adapt to the new distribution landscape.
In terms of servicing capabilities, Suomela noted that Finnair has made progress in closing gaps within the business channel segment. While the airline has been able to address key issues such as name changes, there are still areas where improvements are needed. Suomela emphasized the cumulative effect of small deficiencies in servicing capabilities, which can ultimately hinder the overall customer experience.
Finnair’s experience highlights the complexities and challenges of implementing NDC technology in the airline industry. While the airline remains committed to modernizing its distribution channels, it recognizes the need for continued collaboration and investment to overcome obstacles and drive change within the industry. By addressing service shortfalls and working closely with partners, Finnair aims to improve its NDC strategy and deliver a seamless booking experience for customers.