Report - IATA's New Distribution Capacity Takes Hit

airlineThe International Air Transport Association's (IATA) controversial New Distribution Capacity (NDC) proposal came under fire from an editorial in The New York Times, entitled "Frequent Fliers, Prepare to Pay More" on March 3.

The editorial raised question about IATA's NDC and airline agreed standards, including costs to travelers and the privacy rights of passengers.

The editorial urges U.S. and European regulators to study whether the use of this new approach by most of the world’s airlines could result in "illegal collusion to raise prices for travelers based on their characteristics."

The editorial asks if the NDC "could significantly compromise the privacy of customers and allow carriers to charge travelers different prices for the same trip." They note that NDC would differentiate among fliers based on personal characteristics.

IATA's NDC has been questioned by industry groups including the Business Travel Coalition (BTC) who urged a Justice Department probe of the NDC policy after Congressional hearing last month.

IATA's NDC program will be phased in starting this year.

Read The New York Times editorial here.