White Papers

White Paper #1

How will NDC and ONE Order impact Airline Finance?

More and more airlines are transitioning to a ‘Digital Retailer’ philosophy; and consequently NDC volumes are expected to account for up to 20% of transactions at the end of 2020.

Some airlines which have implemented NDC have not (yet) realized that NDC and ONE Order is the “most transformative wave of industry change” (travel in motion, 2017)4 we have seen in our industry. NDC and ONE Order is not only about distribution, it impacts the entire airline, all business units and all systems and processes.

Finance need to be part of a larger initiative, a team ready at the same time as the other airline business units – simultaneously embracing the required changes in process, technology and culture. As digital transformation takes place on the distribution side, so it should in finance. It might seem easy to just pour new wine in old bottles. But is it the right path?

Besides reducing complexity, preparing for new requirements (e.g. big data”) as well as tackling some other issues such as “digital deal bodies” – all this needs finance’s attention. CFOs and CIOs must play an important role in the transformation process and delay is not an option.

The transition is complex and will take time – potentially lasting several years. However, it is in our hands to create a transition plan which takes all factors into account, is as smooth as possible to minimise the impact on the business.