AMERICAN ACCUSES ASTA OF SELF-SERVING INTERESTS IN TECHNOLOGICAL DISPUTE
March 21, 2024
On February 5, 2024, American Airlines (“American”) filed its Surreply and Motion for Leave to File with DOT in an ongoing dispute with The American Society of Travel Advisors (“ASTA”). As American and other major airlines transition to the New Distribution Capability (“NDC”) model from the traditional EDIFACT model, several travel management companies (“TMCs”) urged ASTA to request that DOT block American’s implementation of its NDC program. If ASTA prevails, American claims that DOT will undercut technological competition to insulate outdated corporate travel agencies from the modern demands of an e-commerce economy.
More specifically, American notes that EDIFACT’s limited text-only capabilities do not allow for airlines to provide individualized products and passenger-specific information. Citing evidence that most online travel agencies are or soon will be NDC-enabled, American argues that ASTA’s advocacy for a subset of agencies is for the sole purpose of hindering technological competition in the marketplace. By blocking technological innovation for airline ticketing, American contends that ASTA will relegate consumers to a stagnant and outdated EDIFACT-based booking flow. American alleges that this will precludes consumers from NDC-enabled benefits such as market-driven pricing, real-time inventory, and a wider variety of price points. If DOT wants to foster competition in the airline industry while simultaneously improving the travel experience for consumers, American urges DOT to dismiss ASTA’s Complaint.
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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