Finnair, known for being one of the primary supporters of NDC technology in the airline industry, recently made a significant change in their strategy. Despite planning to cease distributing through legacy Edifact GDS technology by the end of 2025, the airline has now decided to alter this course of action. In a conversation with Jenni Suomela, Finnair’s vice president of global sales and channel management, and Pasi Kuusisto, the general manager for North America, key insights were shared regarding the airline’s NDC plans.
Jenni Suomela highlights that NDC remains a crucial component of Finnair’s commercial strategy. Despite the slower pace of industry-wide change than initially anticipated, the airline is steadfast in its commitment to modern distribution methods. One notable recent advancement is the removal of domestic itineraries from Edifact, which has shown promising results. When questioned about any potential negative impact on domestic travel agencies, Suomela emphasizes the importance of collaboration in scaling NDC across various partners within the value chain.
Pasi Kuusisto sheds light on Finnair’s NDC policies for U.S. tickets, clarifying that only the equivalent of basic economy content has been removed, resulting in a $15 distribution cost per direction. The implementation of dynamic pricing for NDC bookings has been ongoing, with an emphasis on expanding this feature across the airline’s network. While additional price points may be introduced on various routes from North America, the focus remains on enhancing pricing structures rather than adding new products.
Looking ahead, Suomela shares Finnair’s next steps in the NDC journey. The airline aims to lead by example globally and plans to remove intra-European itineraries in select markets by November, followed by the complete removal of Classic (similar to economy) on intra-European routes from Edifact by May of the following year. Despite challenges within the industry and the setback caused by American Airlines’ NDC strategy, Finnair remains committed to driving NDC adoption forward.
Acknowledging the complexity of NDC implementation, Suomela underscores the need for all partners to adapt their processes to align with NDC standards. While there have been significant strides in closing key service gaps, issues like name change functionalities still require attention. The collective effort to address these challenges, both internally and with external partners, remains a critical focus for Finnair as they navigate the evolving landscape of airline distribution.
Finnair’s shift in NDC strategy reflects a dynamic approach to adapting to industry developments and customer demands. While the road to full NDC integration may present hurdles, the airline’s unwavering dedication to modernizing distribution channels and enhancing the traveler experience positions them as a frontrunner in the evolving aviation landscape. By prioritizing collaboration, innovation, and responsiveness to market dynamics, Finnair continues to set a benchmark for NDC adoption within the global airline industry.