IATA plans restructure as it consults trade over NDC
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International Air Transport Association (IATA) has announced a restructure to come in force on 1 July as it looks to be more valuable to its airline customers.
Taking on a concept of ‘Global Development, Regional Delivery’, the changes will see its regional operations condense from seven offices to five with Europe’s to remain in Madrid.
Its head office will be split into five new division including a new ‘Airports, Passenger and Cargo Services’ division alongside its already standing divisions that cover member relations; safety, finance & distribution and marketing & commercial.
“Strengthening our regional structures where we are closest to our members will help us to understand and meet their needs better. We have also regrouped activities that have grown organically over time with the goal of being more intuitive to those we deal with,” said Tony Tyler, director general and CEO of IATA.
The restructure comes as the association faces scrutiny from travel agent associations over its New Distribution Capability (NDC).
Associations have argued that the booking system could limit fare competition and impose a huge cost on travel agencies if introduced.
NDC is designed to offer travel agents and travel management companies the same airline products and services as those found on carrier websites. The project is currently being piloted with airlines, travel agents, GDS and IT companies invited to trial the system.