American Airlines in a new filing with the U.S. Department of Transportation called the American Society of Travel Advisors complaint against the carrier over its distribution strategy “a frivolous compilation of rhetoric and unsupported allegations that have little, if anything, to do with the alleged basis for the complaint.” American also asked the agency to dismiss the complaint, according to its filing, dated Tuesday.
ASTA had requested that DOT require American to restore all its content to EDIFACT distribution channels after the carrier in April began to remove up to 40 percent of that content and make it available only through direct or New Distribution Capability-enabled channels.
In its complaint, ASTA said that removal of that content caused significant price disparities between EDIFACT and the newer NDC-based channels, “with the established channel almost invariably being the higher-priced option.”
The carrier in its response argued that “ASTA’s complaint is not an effort to protect consumers: it is an effort to protect certain agencies” and it would “slow the pace of innovation for those agencies that have not invested in new technologies or adjusted old ways of doing business.”
It also noted that “NDC is not new anymore” and that “NDC makes it possible for American to offer more options to consumers at lower prices and with better service—an increase in competition that is driving other U.S. airlines to also adopt NDC-based technologies.”
Several international airlines this year have expanded their NDC offerings, as did United Airlines—which also pulled Basic Economy fares from EDIFACT in September. Delta Air Lines has said that it is aiming to introduce a NDC solution at some point in 2024.
“There simply is no colorable, consumer-centric basis for ASTA’s complaints,” American said. “Absent was any credible evidence that consumers are being harmed—that they are somehow facing increased fares or reduced capacity as a result of NDC. Rather, ASTA admits, as it must, that all fares remain available to all consumers and that every fare is viewable and comparable in every channel. And contrary to ASTA’s allegations, no agency is being forced to use NDC. Agencies are free to choose between investing in new technology that allows them to consume the richer, more complex NDC dataset or to remain fixed within the EDIFACT environment.”
ASTA declined immediate comment on American’s filing.
