13564189.1

BEFORE THE

UNITED STATES DEPARTMENT OF TRANSPORTATION

WASHINGTON, DC.

Agreement Adopted by the Passenger

Services Conference of the International

Air Transport Association

Docket OST-2013-

APPLICATION FOR

APPROVAL OF AN AGREEMENT (RESOLUTION 787) BY THE

INTERNATIONAL AIR TRANSPORT ASSOCIATION

Notice: Any interested party may within 21 days of the application

date file comments in support or opposition to the application.

11 March 2013

Communications with respect to this document should be sent to:

Douglas Lavin

Regional Vice President – North America

International Air Transport Association

1201 F Street, NW, Suite 650

Washington, D.C. 20004

(202) 628-9292
13564189.1

Of Counsel

Bert W. Rein

Bruce L. McDonald

Wiley Rein LLP

1776 K Street, NW

Washington, DC 20006

202/719-7000
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Summary DOCKET: OST-2013-[ ] DOT ORDER: pending

Date: 11 March 2013

Filing fee/IATA Acct: $61 US/UST involved?: yes

Intended effective date: 1 June 2013

Meeting date/time: 34th PSC held in Abu Dhabi on 18-19 October 2012

Memorandum PSC/RESO/154 dated 4 January 2013

Agreement/Minutes: Resolution 787 - PSC Minutes 29 through 43

APPLICATION FOR APPROVAL OF RESOLUTION 787

This application requests DOT to approve new IATA Resolution 787 (Enhanced 

Airline Distribution) that was adopted by the Passenger Services Conference during its 

18-19 October 2012 meeting. Antitrust immunity is neither requested nor necessary for 

the Resolution, which establishes high-level objectives for and a process for developing

a new electronic data interchange standard for airline distribution communications using 

Extensible Markup Language (XML), the modern programming language of the Internet. 

The Resolution is intended to become effective on 1 June 2013. Copies of the 

Resolution, the supporting conference documentation and conference minutes are 

attached.

Resolution 787 also refers to a New Distribution Capability, or NDC. NDC is an

aspirational description of various improvements in distribution which, if adopted in the 

market, the new XML standard would be capable of supporting. These descriptions

provide context to the business needs and benefits that the new standard will 

accommodate. IATA members will continue to consider the goals of NDC, but at this 
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time IATA seeks DOT’s approval of Conference Resolution 787 only insofar as it 

describes a means to modernize distribution communications technology with a new 

XML standard. IATA is not seeking an endorsement of the stated business 

requirements or marketplace aspirations of NDC and recognizes that any additional 

conference agreements on standardization of distribution practices would need to be 

filed with DOT before becoming effective. IATA also acknowledges that the processes 

contained in previously approved Passenger Services Conference Resolution 783

would continue to govern the new Passenger Distribution Management Group’s efforts 

under Resolution 787.

I. BACKGROUND

IATA was created in 1945 to support the development of standards to promote a 

safe and efficient international airline system. IATA has worked with its member airlines 

and other stakeholders to set a large spectrum of standards that significantly improve 

the efficiency of international aviation, improve passenger and cargo services, facilitate 

compliance with regulations and support interline capabilities. IATA developed and 

maintained the standards for neutral paper tickets, which were eventually replaced by 

standardized electronic ticketing. Two-letter airline identifiers, three-letter airport codes 

and the bar codes used on baggage tags and tickets are all examples of IATA-led 

standardization. 

A. The current distribution data communications standard was 

developed decades before the Internet. 

IATA and the Air Transport Association (now A4A) developed and maintained the 

data interchange standard currently used for shopping and purchasing tickets through 
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travel agents. This standard specifies the data format for seeking a fare quote and 

other functions. For instance, the standard defines certain data elements such as the 

dates of travel, origination and destination, type of traveler – adult, child or senior-class 

of service requested and so on. The format of these data elements must be 

recognizable by the computer receiving the request and is part of the standard. The 

response has certain specifications as well, as will each step in the process of 

shopping, booking, payment and post-ticketing changes or other servicing.

Standardization of the data specification avoids the inefficiency of hundreds of 

individualized airline data formats that GDSs and others would have to match.

Airline distribution communications currently use message data specifications

that were developed before the Internet provided ubiquitous global connectivity between 

airlines and airline customers. Starting in the 1960s, the airline industry built distribution 

applications in a computer language called TELETYPE and the data specifications were

developed by IATA and A4A. Eventually, IATA led the industry to upgrade some of its 

data exchanges to EDIFACT messaging protocols, another set of data format rules 

originally developed under United Nations auspices. The format of messages, most 

notably the use of capital letters and the use of cryptic codes to indicate certain 

functions for the computers, has remained largely unchanged for more than four 

decades. 

B. The Internet introduced XML, a simpler, more flexible data format.

With the advent of the Internet came a standard method to describe data 

structures called Extensible Markup Language (XML). XML provides a set of rules for

exchanging data over the Internet in a simpler and more flexible format than EDIFACT. 
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XML has become the standard way to describe data structures and transmit data over 

the Internet and has become the default for the majority of applications that run on the 

Internet today. 

Today, most airlines use XML to deliver their products and services directly to 

customers on their own websites while the indirect travel agency channel remains 

largely dependent on EDIFACT. XML makes it easier, faster and cheaper to provide

the customer more information about fare alternatives, ancillary services, on-board 

amenities, and graphics such as pictures or seat maps, than programming in EDIFACT. 

The flexibility, ease and broad use of XML allow airlines to purchase applications

supporting XML and/or quickly develop their own applications to meet the evolving 

needs of their passengers. To be clear, GDSs today do utilize some XML-based 

applications, and many airlines also still rely on legacy TELETYPE and EDIFACT 

platforms for customer communications. But recent shifts in individual airline 

distribution strategies have underscored the need to facilitate the expanded use of XML. 

C. Changes in the market drive the need for modernization

For decades, airline shopping has been based on only two factors; schedule and 

price, using “low fare search engines” to find only a single, often restricted, fare. Sole 

reliance on only those two factors has eroded as airlines added amenities, such as 

better seats, in-flight entertainment, power ports for computers, or WiFi, unbundled 

other services such as lounge access, advance seat selection, checked baggage, 

priority boarding or fast lane security access, and sought to offer consumers more 

transparency among fare choices with fewer restrictions on refunds or exchangeability, 

varying frequent flyer mile awards and other bundled benefits. Price transparency alone 
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is no longer enough to make an informed choice - true transparency means disclosing 

price along with the corresponding product information. The shift from EDIFACT to 

XML has made it possible to provide true price and product transparency on airline 

websites. Resolution 787 is intended to help pave the way for that same shift in the 

travel agency distribution channel.

The marketplace pressure for true price and product transparency is irrefutable. 

Each of the major GDSs has taken steps in this direction. Sabre Red, Travelport’s 

Agencia and Amadeus Airline Retailing Platform - all in early stages - boast at least 

partial solutions. Other technology service providers such as Datalex, FareLogix and 

others are also responding to the demand for new solutions. In the absence of an 

industry standard, progress has been painfully slow, reportedly expensive and very 

uncertain. Bringing the industry together now to standardize an XML data format for 

these and other service providers will provide some assurance that no one is investing 

in Betamax in a VHS world, or DVD in a Blu-Ray market. It will propel the development 

of further solutions and escape the inefficiency of customized, one-off programming 

efforts. 

II. RESOLUTION 787 ALSO CONTAINS A VISION FOR THE FUTURE

While DOT should not ignore the aspirations of IATA’s NDC described in 

Resolution 787, its review of Resolution 787 should be on its own terms. The industry is 

hopeful that new XML data formats will aid in expanding to the travel agency sales

channel essentially three broad benefits already found on some airline websites: (1) 

allowing a customer to shop, select and purchase ancillary services or fares packaged 

with ancillaries, (2) the ability to see and weigh differences in competing products, such 
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as more leg room, lie-flat premium seats, in-flight entertainment or WiFi along with price, 

and (3) customized service and amenity packages and pricing based on attributes such 

as loyalty program status that the customer is willing to share in the shopping process. 

But full development and testing of the XML standard is expected to take at least a full 

year to complete, after which it will be up to the marketplace to make the investments 

necessary to adopt and implement its use. 

III. CONTENT OF RESOLUTION 787

Much has been said about Resolution 787 since it was approved by the 

Conference in October, 2012, making it worthwhile to examine its wording and intent 

more closely. At its core, Resolution 787 is designed to support the development of an 

open XML-based data exchange standard to complement the existing TELETYPE and 

EDIFACT data exchange standards, which are already managed by IATA for the airline 

industry. Much in the same way paper tickets and electronic ticket standards co-existed 

for many years, today’s EDIFACT-based data standards will continue to exist and be 

supported pursuant to Resolution 783 until there is such widespread adoption of the 

new XML standard that support for the EDIFACT standard can be ended without 

disruption to the industry. In the most optimistic scenarios, that is expected to take 

many years. 

There are two essential goals in drafting the XML data standard: 1) ensure that 

the data specification accommodates all of the business functions any stakeholder 

might want to use, as far into the future as we can reasonably predict, and 2) attempt to 

standardize the format for any data any stakeholder might request and choose to use. 

This effort to establish standards has led to some misconceptions about Resolution 787. 
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A careful reading of the Resolution shows that it specifies only a few broad principles 

which apply only if an airline chooses to use them, and if passengers are willing to 

respond. Resolution 787 sets forth some of the standard business processes that are 

anticipated in an NDC environment and sets the broad parameters of what 

communications capabilities the industry requires should participants in the distribution

system pursue new approaches.

A. Detailed Description of Resolution 787

The following sets forth a section by section description of the Resolution:

“Resolved” 

The first paragraph captures the essence of Resolution 787. It makes it clear 

that airlines are free to decide whether or not to distribute enhanced content (such as 

ancillaries) through multiple channels of distribution. If an airline chooses to distribute 

enhanced content through both direct and indirect channels, it is expected to work 

within the data formats to be developed pursuant to the Resolution in order to achieve 

the intended standardization and efficiencies. However, Resolution 787 does not 

obligate any IATA member to implement the provisions in whole or in part. Nothing in 

the Resolution compels conversion to the use of XML. Further, the functionality of the 

standards may go beyond the needs of some or all airlines. The standards will be 

followed and used only to the extent they are perceived as useful and effective by 

airlines and intermediaries acting on behalf of their customers. 

1. Objectives

Section 1 of the Objectives sets forth the scope of the Resolution as well as the 

key principles that constrain the development of the standard. Sections 1 and 1.1 
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provide a general introduction and describe one anticipated business model in which 

the pricing and product offer is assembled dynamically by the airline upon request, 

rather than using central static databases for prices and schedules that are not flexible 

enough to meet the new demands of combined product and price transparency. 

Section 1.1 also includes a diagram of the Distribution Capability Landscape. 

The diagram depicts one example of a system architecture that could be used to 

apply the XML standard. It shows the relationship between one airline in dialogue with 

various shoppers or shopping intermediaries using the proposed messaging standards. 

It should be noted that this representation is only an example of a hypothetical single

airline’s potential architecture, and something equivalent would be replicated by any 

airline choosing to implement enhanced content distribution to multiple channels. The 

diagram is shown as follows:-
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On the left hand side, the box represents an airline’s internal product and pricing 

process. This example of a system architecture includes a rules engine and internally 

managed databases used to formulate a response to a query received in the specified 

data format. In this example, the airline manages its own data and constructs a 

response to each request, which could be simply price and schedule, or much more 

robust, providing product offers based on information the traveler has chosen to share. 

There are likely other system architectures that could take advantage of an XML-based 

standard. 

On the right hand side are a number of boxes representing the divergent sources 

from which a request for a product offer could originate – a distribution channel 
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intermediary, a travel agent, a customer or another airline. What is important to note is 

that each airline will respond with only its own offer. There will remain an essential role 

for intermediaries competing to provide an application (a Dynamic Airline Shopping 

application) using the new data standard to make requests, receive all airline 

responses, organize them for comparison and shopping by the traveler or travel agent, 

and provide the booking, payment and post-sale functions. The connection to these 

intermediaries is indicated in the diagram as the layer labeled “Dynamic Airline 

Shopping Application Interface (DAS API)”. The efficiency of these processes is 

dependent on the standardization of the various messages used to pass requests and 

replies back and forth among hundreds of airlines and directly or indirectly to thousands

of travel agents. 

Section 1.2 sets forth certain Key Principles for the development of the XML 

standard.

• Sections 1.2.2 – 1.2.3 state the intention to develop data standards in 

XML that will enable third parties to access airline content directly from the 

carrier, and to rely on the PADIS Board message standards established 

under Resolution 783 for transmission of data. 

• Section 1.2.4 states that IATA will not constrain the new standard by 

attempting to make it backward compatible to the existing EDIFACTbased networks. New XML standards should attempt to accommodate as 

many business objectives and applications as possible without limitations 

arising from the old system. Nothing prevents third parties from developing 

backward compatibility, and the Resolution provides the freedom for 
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airlines to distribute their content through the legacy networks, use the 

new XML standard, or both. We anticipate that this hybrid approach will

continue for some time by many airlines. IATA intends to maintain the 

EDIFACT standard as long as it remains relevant to the industry.

• Section 1.2.5 outlines some key new functionality and consumer benefits 

the XML data standard is intended to enable, including: 

o Section 1.2.5.1 – allow custom pricing and product offers based on 

information provided by the consumer

o Section 1.2.5.2 – facilitate a shopping basket approach allowing

customers to choose the products and amenities they want with 

corresponding price information

o Section 1.2.5.3 – ensuring support for new products and 

amendments to existing ones

o Section 1.2.5.4 – a transparent display allowing price and product 

comparisons

o Section 1.2.5.61 – defines authentication of the party asking for a 

customized offer

o Section 1.2.6 – encourages distribution across all channels (subject 

to airline requirements for access to this content)

o Section 1.2.7 – states that the model shown assumes the airline 

distributes only its own products and prices with full control of its 

price and product content

 1 A numbering error omitted a section 1.2.5.5
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o Section 1.2.8 – recommends standardized structures for product 

attributes to facilitate comparison shopping among airline offers

o Section 1.2.9 – makes express that non-participant airlines will not 

have to contribute to meeting the costs of developing the standard

2. Definitions

This is a standard section providing clarity to the terms used in the Resolution.

3. Business Process Description

Section 3.1 of Resolution 787 contains a description of the authentication and 

shopping process. It specifies three requirements that the shopper’s request must 

include: 

• 3.1.1.1.1 – data to identify who is making the request when an 

intermediary is present, 

• 3.1.1.1.2 – data to identify on whose behalf the request is being made, 

and 

• 3.1.1.1.3 – elements of the requested trip. 

Each of these sections of the Resolution contains non-mandatory examples of data 

elements the new standard should accommodate. There is nothing new or novel about 

them, and all are part of the current shopping process. Travel agents or other 

intermediaries must be authenticated users of the systems to make requests to a GDS. 

Second, the current systems requests for fare and schedule information identify at least 

whether it is for an adult, child, senior, in some cases a member of the military on active 

duty or other traveler with a promotion or discount code. Some systems may default to 

“adult,” but information in this category is always included to attempt to provide the best 
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applicable fare for the specified traveler. The new standard is intended to 

accommodate either this ‘anonymous’ shopping request or customized offers if more 

information is provided by the consumer. Third, some details of the intended trip such 

as origin, destination and dates of travel are of course necessary to create a proper 

response. 

Some critics have argued that the specific examples listed under each of these 

requirements are also intended to be mandatory. Those criticisms are not supported by 

the language of the Resolution. The three obligatory general categories are introduced 

as follows:

“The request shall include but not be limited to:” (3.1.1.1.) (Emphasis added.)

In contrast, the lists are examples of potential data elements, and are always 

introduced as follows:

“Data may include but not be limited to:” (3.1.1.1.1. Repeated in 3.1.1.1.2, 

3.1.1.1.3) (Emphasis added). 

Thus, what is new is that the proposed XML standard will allow much more data 

to pass between the customer and the airlines, via an intermediary, if both choose to 

use it. The list of attributes about a passenger contained in 3.1.1.1.2, Name/Age/Marital 

Status, Contact Details, Frequent Flyer Number or Profile number, Customer Type, 

Travel History, Nationality, Shopping History, Previously Purchased Services are all 

only fields in the data specification that will be considered for inclusion in the standard 

(“may” include). All of those attributes, and perhaps others, are elements of data an 

airline might want, and a shopper might be willing to give, to contribute to a more 

customized shopping experience, but nothing will require all of the defined data fields be 
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used. The standard should accommodate those data fields, but none are prescribed as 

mandatory by Resolution 787.2 In short, the new data specification will continue to 

support “anonymous” fare quotes. 

In fairness to some critics, Resolution 787 is focused on the desired new 

capability the XML standard would support and simply assumes the co-existence of

current business processes. To be clear, Resolution 787 is intended to add new 

capabilities to the existing marketplace. Again, anonymous shopping requests will be 

supported in the new data standard, and the current EDIFACT system will be 

maintained in parallel. Further, neither Resolution 787 nor IATA is attempting to dictate 

how the distribution market will evolve in the future or who the industry stakeholders will 

be and what and how they will charge for their services. Those developments will be 

controlled by the market. Resolution 787 simply outlines a path to update an outdated 

data exchange standard to support the business processes envisioned by NDC. 

Whether distribution incumbents or new entrants are able to leverage these new 

capabilities to enhance or sustain their business model is left to the marketplace.

• Sections 3.1.2 and 3.1.3 contain descriptions of technical processes for 

order and change processing, in some cases using the same syntax of 

non-mandatory lists of examples to help clarify the principle.

4. Attachment A

This section describes the governance process by which IATA will work with all 

industry stakeholders to ensure a consistent approach to the development of the 

 2 As a practical matter, certain data fields, such as origination and destination, must be used to generate a fare quote. 

Other fields, such as passenger attributes, could be set to a default as is often the case today.
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standards. The top of the governance structure is the Joint (A4A/IATA) Passenger 

Services Conference. The Resolution creates the Passenger Distribution Management 

Group (Management Group) to provide a strategic direction, and the deliverable is a 

Passenger Distribution Implementation Manual that will contain process flows, 

recommended practices, technical specifications, implementation guides and service 

level templates. The Passenger Distribution Implementation Manual is expected to be 

the XML counterpart to the existing A4A/IATA Reservations Interline Message 

Procedures – Passenger manual for EDIFACT data standards that IATA has updated 

and published for over 30 years. 

IV. PROCESS AND PARTICIPANTS

The IATA Board of Governors endorsed an initiative to facilitate NDC in 

2011. The IATA Passenger Services Conference assumed responsibility for developing 

standards to facilitate the NDC process consistent with its historic role in standardizing 

communications codes and protocols for interline, passenger-related communications. 

Under governance of the Conference is the Passenger Distribution Group (PDG)

consisting of high level airline marketing executives from 11 airlines.3 The PDG was 

charged with “defining the [NDC] vision” in order “to increase competition, stimulate 

innovation, reduce distribution costs and improve consumer choice.”4

 PDG initially 

 3 Those airlines are Air Canada, Alitalia, United Airlines, Inc., Delta Air Lines Inc., Air France/KLM, British 

Airways p.l.c., Deutsche Lufthansa AG, Swiss International Airlines Ltd, Korean Air Lines Co. Ltd, Cathay Pacific 

Airways Ltd, and Singapore Airlines Ltd. The first PDG Chair was Andrew May, British Airways; the current Chair 

is Graham Wareham, Air Canada. The Secretary is Eric Leopold, IATA Director Passenger.

4 See “Report – Passenger Distribution Group (PDG)” that is among the attached conference documents. The Terms 

of Reference of the PDG are attached to that report.
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concluded that a “foundational standard” incorporated in a Passenger Services 

Conference Resolution was an essential first step in advancing NDC.5 That step now 

has been put in place by Resolution 787 adopted by the Conference on October 19. 

The Passenger Distribution Group created the Distribution Data Exchange Working 

Group (DDXWG)6 where the detailed technical work is taking place. Because the 

standard must support the business processes at each step in the distribution chain, in 

addition to airline representatives the DDXWG includes the major GDSs, travel agents 

and their associations as well as existing and new entrant technology providers.7

 It is 

essential that their input shape the standard. If the standard fails to support an 

essential business process for any one of these stakeholders – for instance travel 

agency CRM needs or the ability to service the booking after it has been made –the 

standard may not be widely adopted and the initiative will fail to deliver on its essential 

goals. 

Accordingly, the DDX WG cast a wide net. The first meeting of the DDX WG was 

attended by 48 representatives, not including IATA employees, and included airlines, all 

three major GDSs, online travel agents, and a variety of technology service providers to 

the industry. The second meeting had 62 participants, many of the same, but adding 

 5 Report – Passenger Distribution Group (PDG). 

6 The DDXWG, formed by the PDG, convened its first meeting on 13 July 2012. Its second meeting was held 27-30 

November 2012.

7 Non-airline stakeholder participants have included Advantage Travel Centres Ltd, Amadeus, ARC, ARTA, 

ATPCO, BCD Travel, Billetkontoret, Dertour GmbH & Co. KG, Farelogix, Google/ITA, Hewlett Packard, 

HitchHiker, Indra, ISO, Key Travel, Navitaire, NIIT Technologies, OAG, Reisebuero Buehler, Sabre, SATA, SITA, 

Travelport, and Unisys, among others. 
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traditional travel agencies as well. IATA anticipates continuing this broad participation 

throughout the process to ensure the most robust, workable standard is achieved. 

V. Request for DOT Approval

IATA is submitting Resolution 787 for approval under Part 303 of the 

Department’s regulations. IATA believes that Resolution 787 could have been filed for 

information only under DOT Order 2012-4-18 (Tier 1). In fact, Resolution 787 is 

principally an articulation of goals and a template for future work and has no immediate 

effect on airline distribution practices, competition or passengers. Nevertheless, IATA 

recognizes that movement toward any significant coordinated change in the technical 

standards for selling airline services is likely to warrant fuller scrutiny by the Department 

and may create uncertainty and concern among those business entities vested in, and 

benefitting from, current practices. By submitting Resolution 787 for approval, IATA 

seeks to make clear that it is both pro-competitive and pro-consumer and to allow DOT 

to approve it after hearing from all interested parties. Having DOT’s imprimatur by 

approval will give added impetus to and confidence in the ongoing efforts of the 

Passenger Services Conference and restrain those who might otherwise seek to 

obstruct those efforts by threatening adverse legal or regulatory actions. 

Section 41309(b) of the Transportation Code requires the Secretary to “approve 

an agreement ... when the Secretary finds it is not adverse to the public interest and is 

not in violation of the Act.” Because there is no discernible basis on which Resolution 

787 could be found in violation of the Act, the determinative public interest issue is 

whether harmonizing standards and procedures under Resolution 787 promotes or 

unreasonably restrains competition in air transportation. That issue does not turn on 
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whether the modernization of technological capabilities could disturb those vested in 

existing distribution practices but whether this industry initiative advances the interest of 

the traveling public. The answer to that inquiry is a resounding “Yes!”

• Resolution 787 supports enhanced consumer choice and offer comparison: By 

modernizing the messaging standard, it will ultimately enable consumers to have 

seamless access to airline offers that they can compare and purchase from a 

single source. Passengers can receive special offers based on information they 

provide, their purchasing history and/or stated preferences.

• Resolution 787 supports competition among airlines: It will enable increased 

competition among airlines seeking to entice customers with enhanced service 

offerings in addition to price. Competition generally results in lower prices and 

better service for end users.

• It Resolution 787 will help open the existing distribution market to strong 

competition from new entrants using the more robust and familiar XML data 

format standards. We anticipate new entrants will include established (e.g. 

today’s GDSs and IT suppliers) and start-up technology companies that are 

prepared to deliver XML based applications to support travel agent and 

consumer needs for organized and transactable comprehensive airline offers.

• Resolution 787 will help enable travel agents and others in the distribution chain

to evolve to better meet customer needs: The resolution does not seek to 

eliminate key airline distribution incumbents. Rather, consumers will still use the 

services of agents to sort through their significantly increased options, prices and 

bundled packages. Business will still be able to use the services of business 
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travel centers to administer their contract rights, make bookings and provide 

accounting control. Agents and business travel centers will be able to use the 

services of aggregators, including GDSs, to enhance their ability to compare 

airline offers.

In short, approval of Resolution 787 would be an important milestone on the road to a 

more robust, passenger-centric airline distribution system. Resolution 787 should be 

approved promptly so that all industry participants can be confident that the new 

technical standards will be available to support innovative developments in airline 

distribution.

Respectfully submitted,

_______________________

Douglas Lavin

Regional Vice President

North America

International Air Transport Association

Attorney-in-fact
13564189.1

CERTIFICATE OF SERVICE

A copy of this application has been served this day by first class or priority mail on the 

following persons:

Chief, Transportation, Energy & 

 Agriculture Section

Antitrust Division

Department of Justice

Washington, DC 20530

David Radcliffe

Chief Executive Officer

Hogg Robinson Group

16 E. 34th Street, 3rd Floor

New York, NY 10016

Paul Ruden

Senior Vice President of Legal and 

 Industry Affairs 

American Society of Travel Agents 

1101 King Street, Suite 200 

Alexandria, VA 22314

Pat Funk

Executive Director 

Association of Retail Travel 

Agents 

4320 North Miller Road 

Scottsdale, AZ 85251-3606

Eric Bock

Executive Vice President, Chief Legal Officer

 and Chief Administrative Officer 

Travelport 

300 Galleria Parkway 

Atlanta, GA 30339

Grey Webb

President 

Sabre Travel Network 

3150 Sabre Drive 

Southlake, TX 76092 

Scott Gutz

President and Chief Executive Officer

Amadeus North America, Inc. 

3470 NW 82nd Avenue, Suite 1000 

Miami, FL 33122

Barney Harford

Chief Executive Officer

Orbitz Worldwide Inc.

500 W. Madison St., Suite 1000

Chicago, IL 60661

Dara Khosrowshahi

President/CEO

Expedia, Inc.

333 108th Avenye, NE

Bellevue, WA 98004

Robert L. Darbelnet

CEO/President

AAA Travel (AAA Inc.)

1000 AAA Drive

Heathrow, FL 32746

Douglas Anderson

President/CEO

Carlson Wagonlit Travel

701 Carlson Parkway

Minneapolis, MN 55305

Sam Jain

CEO/Chairman

Travelong Inc.

212 W. 35th St., Suite 1302

New York, NY 10001
13564189.1

Jeffery H. Boyd

President/CEO

Priceline.com

800 Connecticut Avenye.

Norwalk, CT 06854

Michael Batt

Chairman/Founder

Travel Leaders Group

3033 Campus Drive, Suite W320

Plymouth, MN 55441

Joop Drechsel

Chief Executive Officer

BCD Travel

6 Concourse Parkway, Suite 2400

Atlanta, GA 30328

Norman Knowles

Group VP

Loyalty Travel Agency

6442 City West Parkway

Eden Prairie, MN 55344

Dean Smith

President

FC USA

69 Spring St.

Ramsey, NJ 07446

Bryan Leibman

President/CEO

FROSCH

1 Greenway Plaza, Suite 800

Houston, TX 77046

William H. Tech

CEO/President

Travel and Transport Inc.

2120 S. 72nd Street

Omaha, NE 68124

Priscilla Alexander

President

Protravel International Inc.

515 Madison Avenue

New York, NY 10022

Alexandre Chemla

President

Altour International Inc.

1270 Avenue of the Americas, 15th Floor

New York, NY 10020

Brad Tolkin/Jeff Tolkin

Co-Chairman/CEO

World Travel Holdings

100 Fordham Road

Wilmington, MA 01887

Peter Liney

Chief Executive Officer

STA Travel

750 State Highway 121, Suite 250

Louisville, TX 75067

James E. Wells

Chief Executive Officer

World Travel Inc.

1724 West Schuylkill Road

Douglassville, PA 19518

Gloria Rohan

CEO/President

Omega World Travel

3100 Omega Office Park

Fairfax, VA 22031

Tammy Krings

CEO/Leadership Coach

TS24

7775 Walton Parkway

New Albany, OH 43054

Paul Metselaar 

Chairman/CEO

Ovation Travel Group

71 Fifth Avenue

New York, NY 10003

Yoshimori Himeno

President

JTB

19700 Mariner Avenue

Torrance, CA 90503
13564189.1

Jeff Smith

President 

Travizon Inc.

275 Mishawum Road, Suite 300

Woburn, MA 01801

Lisa Durocher

SVP/General Manager

American Express

World Financial Center

200 Vesey Street

New York, NY 10285

Patrick Fragale

President/COO

Directravel

860 Wyckoff Avenue

Mahwah, NJ 07430

Jonathan Perkel

Senior VP, General Counsel

Travelocity

3150 Sabre Drive

Southlake, TX 76092

A copy of this application has been sent this day by email to Susan Kurland

(Susan.Kurland@dot.gov), Bob Letteney (Bob.Letteney@dot.gov), Bob Rivkin 

(Bob.Rivkin@dot.gov), Sam Podberesky (Sam.Podberesky@dot.gov), Don Horn 

(Don.Horn@dot.gov), Todd Homan (Todd.Homan@dot.gov), Bob Goldner 

(Bob.Goldner@dot.gov), John Kiser (JohnKiser@dot.gov) and Della Davis (Della.Davis@dot.gov) 

of the Department of Transportation, as well as to Robert Young (robert.young@usdoj.gov) of the 

Department of Justice.

/s/ Douglas Lavin

Douglas Lavin

Date Served: 11 March 2013
M E M O R A N D U M

PSC/RESO/156

To: All Members, Passenger Services Conference - Accredited 

Representatives

Copy: IATA Strategic Partners

From: Head, Interline & Intermodal Policy

Date: 28 January 2013

Subject: BOOK OF FINALLY ADOPTED RESOLUTIONS & RPs – Part 2

RESOLUTION 787

34th IATA Passenger Services Conference (PSC)

Abu Dhabi, 18-19 October 2012

Attached is Resolution 787 which was adopted at the above-mentioned Conference.

“Part 1” of the book of finally adopted resolutions and RPs was circulated on 28 January 2013 and 

comprises all other Resolutions and Recommended Practices adopted at the above-mentioned 

Conference.

The filing period is established as 29 January – 18 March 2013. To ensure timely approval, 

Members are requested to file these agreements, where required, with their Governments upon 

receipt of this document and to advise this office (email: mullerm@iata.org) of their Government’s 

action by the end of the filing period (18 March 2013).

Filing formalities with the Canadian Transportation Agency on behalf of Canadian Members will be 

accomplished by this office.

Filing formalities with the United States Department of Transportation (DoT) on behalf of IATA 

Members will be accomplished by IATA’s Regional Vice President, North America. 

The Minutes of the Conference are issued separately under Memorandum PSC/MINS/042 dated 

28 January 2013.

The intended effective date is 1 June 2013.

Mike Muller

International Air Transport Association

Route de l'Aeroport 33

PO Box 416

CH - 1215 Geneva 15 Airport

Switzerland

Tel: +41 22 770 2731

Fax: +41 22 770 2896

OUTLINE OF CONTENTS

RESOLUTIONS & RECOMMENDED PRACTICES

ADOPTED AT:

34th PASSENGER SERVICES CONFERENCE (PSC)

INTENDED EFFECTIVE DATE: 1 June 2013

Resolution/RP Title

PSC(34)787 ENHANCED AIRLINE DISTRIBUTION

(new)

RESOLUTION 787

ENHANCED AIRLINE DISTRIBUTION 

(new)

PSC(34)787 Expiry: Indefinite

Type: B 

P7 & P7.1

RESOLVED that,

Members and/or systems providers may, for online or interline carriage, provide 

capability to offer a wide selection of their products and services to their customers 

through a wide variety of distribution channels. Members and/or systems providers 

shall apply the following procedures when distributing enhanced content through 

multiple channels of distribution with their many partners.

OBJECTIVES

1. General

IATA standards and procedures allow airlines to better manage the distribution of 

their range of products and services that they wish to provide in an effective way, 

irrespective of the distribution channel. Enhanced standards are necessary to enable 

airlines to move to a dynamic content distribution model. This model recognizes that 

airlines and their customers need more real time dynamic interaction between all 

parties: airlines, distributors and travel agents so they can offer an intelligent 

response for all products based on who is asking. Acknowledging that a 

management group is required to oversee the development of new passenger 

distribution processes and standards, a Passenger Distribution Management Group 

is established in accordance with the provisions as published in Attachment “A”.

1.1 Scope

This resolution recognizes that a standard process is required for airlines to create 

their own product offer within their own systems (i.e. assemble fares, schedules and 

availability - all in one transaction) which will be provided directly by and owned by 

the airline. This will enable more agile pricing and more personalized offerings. In 

this way, all product offers (including ancillaries) will be available for distribution 

through all channels that an airline wishes to sell them through. In this regard, this 

IATA standard will enable the creation of a Dynamic Airline Shopping engine 

Application Programme Interface (DAS API) based on IATA XML messages. The 

focus of this resolution will describe the main business processes that are required to 

support it.
Distribution Capability Landscape

The diagram above represents the Distribution Capability landscape that will provide 

an interactive exchange based on knowing who is making the request irrespective of 

the distribution channel being used. This may involve, but not be limited to requests 

from passengers, agents, interline partners, and other distribution channel providers 

who may provide solutions to their own subscribers. Requests shall be sent using 

industry standard messages from the distribution channel provider to the airline’s 

dynamic shopping engine. Airlines will determine what product offer to return in the 

response based on attributes that have been sent in the request. Solution providers 

shall be capable of providing interactive messaging to an airline’s DAS API in 

accordance with industry standard messaging. 

1.2 Key Principles 

1.2.1 Business and technical standards shall enable airlines to distribute products 

across all channels and allow airlines to independently offer dynamic 

shopping/pricing through any channel.
1.2.2 Underlying messaging standards will use modern messaging technology (e.g. 

XML) as the most suitable and readily available messaging standard to support 

technologies. PADIS message standards shall be used for the transmission of data. 

Development of messaging standards shall be in accordance with the provisions of 

Resolution 783.

1.2.3. Such standards shall enable any third party (approved) channel to access 

airline content directly from the carrier.

1.2.4 With due consideration for established business processes, procedures and 

current system functionality, there should be no constraints driven by any 

requirement for backwards compatibility. Airlines may wish to establish a roadmap 

for migration showing justification for backwards compatibility only if there is a 

defined business need.

1.2.5 Enhanced Airline Distribution shall:

1.2.5.1 allow individual carriers to determine its own prices and the nature of those 

products offered, depending on who the requestor is and what they are requesting. 

This will require authentication and the provision of historical data based on previous 

transactions,

1.2.5.2 facilitate the implementation of a ‘shopping basket’ capability concept 

allowing for the consumer to add or remove items from their basket as they choose. 

Each of these choices can trigger a “re-pricing” of the offer(s) provided by the airline,

1.2.5.3 support distribution of new products as well as changes and amendments of 

existing orders,

1.2.5.4 facilitate a transparent display of products being offered and enable 

comparison

among different products, benefiting the consumer,

1.2.5.6 ensure authentication requests for product or services include all applicable 

IDs, such as IATA number, passengers Frequent Flyer number, valid email address 

or any other acceptable form of identification that is flexible to the individual carrier.

1.2.6 All data will be distributed across all channels, subject to the terms and 

conditions determined by the airline distributing the content.

1.2.7 This distribution model assumes that each airline distributing its individual 

products and services is the owner of its own content.

1.2.8 Product attributes structure should be standardized to facilitate consistent 

display of the product offer on third party web sites.

1.2.9 Any cost attributable to this new business model, from IT research 

development to implementation/operation, will not be incumbent on Members who do 

not wish to adopt it.
2. DEFINITIONS

For the purpose of this resolution the following definitions will apply:

2.1 ANCILLARY SERVICES means anything outside of product attributes (optional 

or discounted).

2.2 AUTHENTICATION means the process by which a system identifies an 

individual or a business entity to make sure that the user or the business entity is 

who they claim to be, based on attributes that are sent in a message.

2.3 DYNAMIC AIRLINE SHOPPING APPLICATION PROGRAMME INTERFACE 

(DAS API) means a set of routines, protocols and tools for building software 

applications capable of processing interactive messages from a requester to an 

airline rules engine.

2.4 EXTENSIBLE MARK-UP LANGUAGE (XML) means a simple, flexible mark-up 

language which enables the exchange of a wide variety of data on the internet and

supports the implementation of a wide range of web services.

2.5 INTERMEDIARIES means any entity that has the capability to interface with an 

airline’s DAS API (e.g. metasearch engines, distribution channel IT solution 

providers, travel agents including online agencies, travel management and corporate 

travel companies, high street agencies, specialist agencies, tour and cruise line 

providers) and interline partners making a booking request. 

2.6 PRODUCT ATTRIBUTES means what is bundled and included in the fare, e.g. 

flat bed seat, in-flight entertainment, pre-reserved seating, meals etc.

2.7 PRODUCT OFFER means the response including product attributes and 

ancillary services capable of being displayed in the requesting system.

2.8 RULES ENGINE means the repository of an airline’s business rules capable of 

receiving and responding to requests to provide a product offer.
3. BUSINESS PROCESS DESCRIPTION

3.1. The Business Process Description comprises the following:

3.1.1 Authenticate and Shop Process Description

3.1.1.1 The authentication and shopping process is a dialogue that is generated from 

a direct or indirect distribution channel to an airline rules engine via a DAS API to 

request a product offer from a carrier and will allow such carrier to respond with the 

offer based on the information received in the request. The request shall include but 

not be limited to:

3.1.1.1.1 data to identify who is making the request where an intermediary is 

present. Data may include, but not be limited to:

specific IATA number (generic numbers shall not be sent),

agent’s pseudo city code, 

electronic reservations service provider number, 

corporate or group identification, 

type of trip (e.g. leisure or business). 

3.1.1.1.2 data to identify on whose behalf the request is being made. Data 

may include, but not be limited to:

Name/Age/Marital Status,

Contact Details,

Frequent Flyer Number or Profile number,

Customer Type (e.g. adult/child),

Travel History,

Nationality,

Shopping History,

Previously Purchased Services.

3.1.1.1.3 attributes data for what is requested. Data may include, but not be 

limited to:

` Point of Sale, 

Travel Dates,

Origin and Destination,

` Number of Passengers and passenger type,

Trip type (e.g. open, round trip, one way).
3.1.1.2 Personal information that may be passed will be as bilaterally or multilaterally 

agreed with due consideration for compliance with all government privacy laws. 

3.1.1.3 Upon receipt of a request, the carrier shall respond with a product offer. The 

offer should include but not be limited to:

unique request identifier,

a description of the product attributes, 

a list of optional ancillaries for example,

bundle information,

name of optional ancillaries,

charges,

link if applicable,

discounts and special offers (optional),

product availability warnings (optional),

promotional codes and discounts (optional),

terms and conditions associated with the offer, 

expiration of offer.

3.1.1.4 Multiple repetitions of this dialogue process shall be provided.

3.1.2 Order Process Description

The Order Process is a dialogue that is generated from a direct or indirect 

distribution channel to an airline rules engine via a DAS API that will confirm the 

commitment to purchase. This may also include payment information. The order 

process will provide the carrier the opportunity to fulfill the transaction, create the 

booking record, issue the document(s) and respond with confirmations. 

3.1.2.1 The commitment to purchase data to enable the booking to be made may 

include but not be limited to:

passenger details,

name,

address,
date of birth,

gender,

passenger profile information,

frequent traveler number,

` special requests,

payment information if applicable. 

3.1.2.2 upon receipt of an order, if payment information is not received, carriers shall 

respond with either a request for payment or an option to hold the product offer 

either with or without a fee.

3.1.2.3 upon receipt of payment data, carriers will create the reservations records 

and issue the traffic documents (electronic tickets and/or electronic miscellaneous 

documents as applicable) and respond with a confirmation. This confirmation should 

include but not be limited to:

Ticketing Information and receipts in accordance with the provisions of 

Resolutions 722f, 722g, 725f or 725g as applicable,

Terms and Conditions of the offer,

Legal Notices. 

3.1.2.4 Carriers, that have confirmed or requested interline space shall ensure that 

reservations and ticketing data is communicated to their interline partners in 

accordance with the provisions of standard industry messages published in AIRIMPPassenger and the UN EDIFACT and XML standards as published by IATA under 

the provisions of Resolution 783.

3.1.3 Change Process Description

3.1.3.1 The Change Process is a dialogue that is generated from a direct or indirect 

distribution channel to an airline rules engine via a DAS API that will request a 

modification, addition, cancellation or refund to an existing confirmed order. The 

request shall include data that enables a carrier to identify the original order. The 

request shall also include authentication and attributes data as shown in 3.1.1.1.1 

through 3.1.1.1.3. 

3.1.3.2 Upon receipt of a change request, carriers may revise the product offer and 

respond back to the requestor. Carriers shall respond based on the provisions of 

3.1.1.3 or deny the change request.

3.1.3.3 Changes to interline bookings should be effected in accordance with the 

provisions of paragraph 3.1.2.4.

3.1.3.4 Fulfillment of a revised order shall be in accordance with the provisions of 

3.1.2.
Attachment A

PASSENGER DISTRIBUTION MANAGEMENT GROUP

1. ESTABLISHMENT OF THE MANAGEMENT GROUP

A Passenger Distribution Management Group hereinafter referred to as the 

Management Group is established for managing the development of passenger 

distribution processes and standards as published in IATA Resolutions and 

Recommended Practices, and the development of modern technology messaging 

standards (e.g. XML) under the provisions of Resolution 783.

The Management Group shall report to the Joint A4A/IATA Passenger Services 

Conference (JPSC) and shall consist of up to fifteen (15) members appointed by the 

JPSC. The Management Group shall include representatives from airlines and shall 

be able to invite other interested parties (e.g. IATA Strategic Partners and all other 

third party industry stakeholders) as required from time to time to reflect the multistakeholder nature of the passenger distribution process.

The JPSC will ensure that the membership is so constituted that adequate expertise 

is maintained.

2. FUNCTIONS OF THE MANAGEMENT GROUP

The main functions of the Management Group are:

2.1 to review and approve proposed additions, changes and deletions to the key 

principles of passenger distribution;

2.2 to manage the development of processes and standards;

2.3 to submit an annual report of its activities to the JPSC meeting;

2.4 to liaise closely with other A4A and IATA Committees impacting on passenger 

distribution standards.

3. MEETINGS OF THE MANAGEMENT GROUP

3.1 The Management Group shall meet as required but not less than once per 

year. A quorum shall consist of not less than one-third of the Management Group 

members. 

3.2 The Management Group shall elect its own Chair-Person and ViceChairperson from IATA and A4A member airlines.
3.3 Any IATA or A4A Member who is not a member of the Management Group 

may attend Management Group meetings and may vote on any issue except the 

nomination of officers.

3.4 Decisions of the Management Group shall be by an 80% positive vote of the 

IATA and A4A Members present at the meeting and entitled to vote. Abstentions do 

not count in the voting.

3.5 The Management Group shall determine its own working procedures and may 

establish sub-groups as it determines necessary.

4. AMENDMENT PROCEDURES

4.1 Proposals to amend the passenger distribution standards may be submitted by 

the passenger distribution sub-groups, any A4A or IATA Member, or members of the 

IATA Strategic Partners Program.

4.2 The Management Group shall consider all such proposals and shall act upon 

them as follows:

4.2.1 Adopt the proposal if accepted by 80% of the IATA and A4A Members entitled 

to vote on such proposals;

4.2.2 Reject the proposal;

4.2.3 Refer the proposal to the next Management Group meeting for further review;

4.2.4 If the proposal is in conflict with existing industry standards, refer the proposal 

to the next meeting of the JPSC for further review and resolution.

4.3 All amendments agreed by the Management Group shall be circulated to all IATA 

and A4A Members within thirty (30) days of the Management Group meeting.

4.4 In determination of its working procedures, the Management Group may utilize a 

mail vote procedure to progress proposals to amend passenger distribution 

standards between Management Group meetings. Utilization of the mail vote 

procedure is limited to amendments of an urgent nature and which are requested by 

or supported by five (5) or more Management Group members. Adoption of 

proposals using the mail vote procedure will follow the above amendment 

procedures.

4.5 Amendments endorsed by the Management Group shall be forwarded to the 

JPSC for final adoption.
5. PASSENGER DISTRIBUTION IMPLEMENTATION MANUAL

Whilst developing and enhancing the resolutions and messaging standards for the 

implementation of enhanced airline distribution it is acknowledged that there are a 

number of items that, whilst not appropriate for inclusion in the resolution text, are 

fundamental to obtaining a clear understanding of how enhanced passenger 

distribution is implemented.

Further, given the variety of stakeholders, there is significant benefit in documenting 

various aspects of the overall processes to promote a common understanding and 

standardized approach to enhanced distribution implementation. Consequently the 

Management Group shall oversee the development of a Passenger Distribution 

Manual which provides clarifications and explanations of the functions related to 

Enhanced Airline Distribution as well as guidelines and best practices in accordance 

with the requirements as documented in this resolution.

5.1 The Passenger Distribution Implementation Manual shall contain:

• An end-to-end Passenger Process,

• A Passenger Process Toolbox covering the end-to-end process,

• Recommended Practices,

• Technical Specifications,

• Implementation Guides,

• Templates for Service Level Agreements.

5.2 A new edition of the Passenger Distribution Implementation Manual shall be 

issued as and when determined by the Management Group and in consultation with 

the Secretariat.

Filing Period: Effective Date:

29 January - 1 June 2013

18 March 2013


SUMMARY OF CHANGES

RESOLUTIONS/RECOMMENDED PRACTICES ADOPTED AT:

34th PASSENGER SERVICES CONFERENCE (PSC)

INTENDED EFFECTIVE DATE: 1 June 2013

Below is an extract from the relevant Minutes from the 34th meeting of the PSC

regarding agenda items P6.6, P7 and P7.1.

P6.6 Report – New Distribution Capability (NDC)

29.Mr Eric Leopold, IATA Director Passenger, advised that IATA had formed a 

new section to drive the establishment of industry standards to support and 

shape a new airline distribution capability. The new standards will aim to offer 

more choice, transparency and personalization to consumers by stimulating 

innovation and competition in the distribution space. He noted that airlines 

could do this quite well today via their own websites but found great difficulty 

in providing the same experience when selling via third parties. Therefore 

many airlines wanted to raise themselves to the next level of retailing and 

merchandising, looking at models such as Amazon.com. 

30.He reported that the IATA Board of Governors launched this initiative as one 

of the 2012 Industry Priorities with a goal to first deliver a foundational 

standard in the form of an industry resolution to provide a high-level 

framework for airlines to move to a dynamic content distribution model. This 

would allow airlines to take advantage of new technologies and start selling 

their products in a similar way through all distribution channels, whether they 

be direct sales (e.g. airline’s own website) or indirect sales (e.g. via a travel 

agent). 

31.Mr Leopold described the high level scope of the new airline distribution 

model as follows.

• Change how an airline distributes its products and services

• Airline responds with price, constructs the offer and intermediary 

aggregates

• Collaboration across the industry – open and transparent process 

• The relationship airline-customer is more interactive

• The airline knows who is requesting the offer

• Offer the ability to sell what airline wants, to who they want, through 

more channels

32.He described the industry benefits as follows. 

For Passengers:

• Greater transparency of what they are buying 

• Ability to compare airline offerings - different kinds of seats, for 

example 

• Recognition by airlines and potentially preferred and personalized 

products, prices or availabilities
For Airlines:

• Ability to differentiate their product offerings, gaining value from 

investment in product quality 

• Greater ability to recognize and reward customers 

• Increased competition in the area of distribution (system providers 

which will stimulate further innovation, improving the value offered by 

the indirect channel)

For Travel agents:

• Greater access to airline ancillary products, some of which currently 

are only available on individual airline websites 

• Will have the ability to show, and therefore sell, the value of the 

proposition, not just standard seats 

• Increased competition in the area of distribution will mean more 

innovation and more choice for travel agents 

• Simplified and quicker shopping and booking process for the end-toend journey

33.Accordingly IATA’s initial role would be to bring together airlines, the travel 

trade, GDSs and other third parties to develop industry standards, starting 

with the “shopping” experience. He advised that an industry business case 

and associated 5 year roadmap would be presented to the IATA Board of 

Governors in December 2012. Conference noted this report with interest. 

P7 Report – Passenger Distribution Group (PDG)

34.The Secretary reported that the PDG had been established by the PSC in 

2011. Since that time, member representatives had been defining the vision

of a new distribution capability where requests come to airlines who will 

respond with an offer for their product. This is considerably different to the 

existing model where content is “pushed” to systems (e.g. schedules, fares 

and availability) and the offer is created without direct involvement of the 

carriers. 

35.The rationale behind the new distribution capability is to increase competition, 

stimulate innovation, reduce distribution costs and improve consumer choice. 

The PDG had defined a set of key business principles which would allow 

carriers to more dynamically interact with the customer behind intermediaries 

in order to provide access to a much wider range of products and services 

across a much wider number of distribution channel providers where currently 

they may only be provided through “direct” channels (e.g. airlines’ own 

websites). 

36.The requirement that had been identified was for a foundational standard that 

gives a clear industry direction on how to approach a more “shopping and 

comparison” based travel purchase experience that goes beyond the current 

publication of schedules and fares, and the location of key records such as an 

airline booking in a traditional reservations and ticketing environment. 

37.At the request of the PDG, the first meeting of the Data Exchange Working 

Group (DDXWG) had been held during 9-13 July in Geneva where business 

scenarios were explored and some business requirements for data exchange 

standards formulated. The DDXWG included representatives from airlines, IT 
system providers, Global Distribution Systems (GDS), Online Travel Agency 

(OTA) and a Travel Management Company (TMC). Conference was advised 

that subsequently various webinars had been provided to the industry to 

provide more detailed information as shown in Attachment E.

38.The PDG therefore drafted a proposal for a new Enhanced Airline Distribution 

resolution to initially cover only the concept of the business requirement, 

being a foundational resolution to provide an industry framework for 

“authenticated shopping”. It was noted that Resolution 787 would be a 

platform to enable further resolutions and messaging standards to be 

developed as more business requirements are evaluated. 

39.AC, AF, AZ, AY, DL, LH and LX voiced strong support for the establishment of 

Resolution 787. FI urged IATA to ensure that small and medium sized 

carriers would be encouraged to join in the activities surrounding the 

development of industry standards regarding Enhanced Airline Distribution. 

JL advised that they had invested heavily in the current distribution system 

and therefore it would be important to ensure that transition to any new 

distribution system would be on a voluntary basis.

40.Regarding voting for the establishment of Resolution 787, the Chairman saw 

no opposition from the PSC and noted abstentions from JL and TK. 

Accordingly Resolution 787 was adopted as shown in the book of finally 

adopted resolutions & RPs (Part 1). The A4A Secretary advised that they will 

review this at their next meeting of the Passenger Council.

ACTION: A4A Passenger Council

41.Conference agreed to extend the mandate of the PDG for a further 12 months 

with terms of reference as shown in Attachment F. 

P7.1 Resolution 787 – Proposed Amendment

42.JL proposed to add an extra “key principle” to Resolution 787 to ensure that 

“any cost attributable to this new business model, from IT research 

development to implementation/operation, will not be incumbent on Members 

who do not wish to adopt it”. JL felt that it was important to have this 

clarification enshrined in Resolution 787 in order that airlines not interested in 

this initiative would not be obliged to convert any of their systems unless they 

determined there would be an appropriate benefit.

43.Mr Tim Powell (Sabre) noted that whereas it is too early to be able to estimate 

costs by any individual supplier or airline, implementation is not mandatory as 

per the opening language of Resolution 787. Accordingly, noting the 

abstention of HR, the PSC adopted new paragraph 1.2.9 in Resolution 787 as 

shown in the book of finally adopted resolutions & RPs (Part 1). The A4A 

Secretary advised that they will review this at their next meeting of the 

Passenger Council.

ACTION: A4A Passenger Council

Simplifying the Business 1  COPYRIGHT IATA 2012

New Distribution Capability 

(NDC)

Webinar: Introducing Resolution 787 

‘Enhanced Airline Distribution’ 
Simplifying the Business 2  COPYRIGHT IATA 2012

Webinar Presented by the NDC 

Team

Facilitator: Shaunelle Harris Drake

Manager, NDC Implementation 

Presenter: David McEwen 

Manager, Airline Distribution Standards
Simplifying the Business 3  COPYRIGHT IATA 2012

Guidelines for Participation 

This meeting is being conducted in compliance with the Provisions for

the Conduct of the IATA Traffic Conferences. Pursuant thereto, this

meeting will not discuss or take action to develop fares or charges, nor

will it discuss or take action on remuneration levels of any

intermediaries engaged in the sale of passenger air transportation. The

meeting also has no authority to discuss or reach agreement on the

allocation of markets, the division or sharing of traffic or revenues, or

the number of flights or capacity to be offered in any market. Delegates

are cautioned that any discussion regarding such matters, or

concerning any other competitively sensitive topics outside the scope of

the agenda, either on the floor or off, is strictly prohibited.
Simplifying the Business 4  COPYRIGHT IATA 2012

 Objective

 Introduction and background to NDC

 Some Clarifications

 Benefits the WIN! WIN! WIN! WIN!

 Introducing Resolution 787 

 Resolution 787 Highlights

 Introducing Your NDC Team

 Final Thought

 Questions 

Running Order
Simplifying the Business 5  COPYRIGHT IATA 2012

 Provide Detailed Background

 Understand the Issues that are Raised

 Look at NDC, what it is and what we are doing

 Look in detail at the proposed Resolution text

 Opportunity for you to review the proposal

 Ask questions and give feedback

Objective
Simplifying the Business 6  COPYRIGHT IATA 2012

What is Distribution

 How the airline product gets to 

their customer

 All the processes are connected

 NDC will first focus on building 

standards that impact the 

shopping process

Airline Distribution Life Cycle

NDC focuses 

on this aspect 

of the process
Simplifying the Business 7  COPYRIGHT IATA 2012

Introduction to New Distribution Capability 

 What IATA member airlines are saying:

 Need ability to differentiate through innovation and personalization

 Need ability to sell what they want to whom they want through more 

channels

 What is IATA going to do about it:

 Setting Industry Standards to support airline distribution capability

 The new standards aim to stimulate competition, innovation and offer 

more choice to consumer
Simplifying the Business 8  COPYRIGHT IATA 2012

Stakeholder Engagement

 NDC – A balanced view & value chain collaboration 

 Stakeholder engagement - Collaborative mindset, fully open and 

transparent 

 Engage all players 

 Airlines (IATA members and non-members) 

 System providers – GDSs and others 

 Third parties – ATPCO, ARC, etc. 

 Travel agents – including TMC and online TAs

 Engage at all levels

 Board 

 PDG

 Distribution Data Exchange Group 
Simplifying the Business 9  COPYRIGHT IATA 2012

 Passenger Distribution Group (PDG)

 Includes Directors Distribution at AC, AZ, UA, DL, AF/KL, BA, LH, LX, KE, CX, SQ

 Initial meeting: 7th September 2011

 Membership in the group is restricted to airlines

 PDG unanimously endorsed the NDC model

 Endorsement for model: 18th April 2012

 There are 8 Key principles

 Stakeholders and landscape for new model

 Message flows

 PDG created a Distributed Data Exchange workgroup (DDX WG)

 First meeting: July 09-13, 2012

 Next meeting: Nov 27-30, 2012

NDC Background - Summary
Simplifying the Business 10  COPYRIGHT IATA 2012

So... What is NDC About?

Enabling the capabilities that exist on the airlines’ website 

through Indirect channels

 There are 2 basic requirements

 A standard way of connecting (common API)

 Personalisation through Authenticated Shopping

 The initial scope is the shopping process

 In tomorrow’s new distribution, airlines will have greater ability to 

interact with who is requesting and provide tailor-made product 

offers

 Product innovation / Differentiation / Personalization
Simplifying the Business 11  COPYRIGHT IATA 2012

The Problem Today 

 Airline pushes the data – GDS constructs the offer

 Airlines push information through 3rd parties suppliers Distributors 

who constructs the final offer

 The “push” has limited interactivity with the airlines

 This became obvious constraints with ancillary trend, sophisticated 

dynamic pricing revenue management and increasing data mining 

usage 

 New technology: more agile, faster and more cost effective

 Lots of noise with several “standard organizations” aiming at reengineering distribution landscape (bottom – up approach) 
Simplifying the Business 12  COPYRIGHT IATA 2012

 It is critical airlines construct/own their product. Need to connect to 

customers through indirect channels with interactive relationship

 Should use modern messaging. XML based protocols and web 

services as an example

 Must not to be constrained by backward compatibility with existing 

legacy messages

 Standards must facilitate authentication of customer identity, enable 

personalized offers through the whole distribution supply chain

 The new model will be able to cope with changes and support a 

shopping basket approach (to add and remove product)

 The ways to display product attributes will be standardized to facilitate 

comparison on sites such as fare comparison sites

Key Principles New Distribution Model
Simplifying the Business 13  COPYRIGHT IATA 2012

Airline builds & owns a personalized offer for each consumer

Airline

Product 

Price and 

Availability 

Engine

Dynamic

Airline

Shoppin

g

Interfa

ce

Retailer

Consumer

Distributor

Retailer

Benefits: 

•Bring consistency in price/product offers across the different channels with one industry standard

•Greater access to airline ancillary products which currently are only available on individual airline websites 

and gain in competitiveness. 

•Increased competition in the area of distribution will mean more innovation and more choice for agents 

•Simplified and quicker shopping and booking process for the end-to-end journey
Simplifying the Business 14  COPYRIGHT IATA 2012

Areas to clarify

 This is not about by-passing the GDSs

 This is not about going direct to the Customer

 This not about simply rolling out the Direct Connect concept 

as it exists in the US today

 This is a top down approach where we will engage all key 

stakeholders

 Both distribution models will live side by side for some 

considerable time
Simplifying the Business 15  COPYRIGHT IATA 2012

 Airlines

 Passengers

 Distributors

 Travel Agents

What are the benefits of NDC?
Simplifying the Business 16  COPYRIGHT IATA 2012

Benefits of NDC 1/2

Airlines: 

 To bring consistency in price/product offers across the different channels with one 

industry standard

 Greater ability to recognize and reward customers 

 Increased competition in the area of distribution (system providers which will 

stimulate further innovation, improving the value offered by the indirect channel)

 Simplification of the airline distribution model

Passengers: 

 Greater transparency of what they are buying 

 Increased competition by getting access to each carrier’s full offerings, e.g., seat 

selection, lounge access, wifi, etc.

 Greater personalization and offerings based on authentication
Simplifying the Business 17  COPYRIGHT IATA 2012

Distributors

 A wider display of products and services

 Stimulate innovation and offer more choice to consumers

 Flexibility to bring new products to markets

 Ability to facilitate the content to Travel agents 

 With one industry standard it enables connectivity to Low Cost Carrier

Travel Agents:

 To bring consistency in price/product offers across the different channels with one 

industry standard

 Greater access to airline ancillary products which currently are only available on 

individual airline websites and gain in competitiveness. 

 Increased competition in the area of distribution will mean more innovation and more 

choice for travel agents 

 Simplified and quicker shopping and booking process for the end-to-end journey

Benefits of NDC 2/2
Simplifying the Business 18  COPYRIGHT IATA 2012

IATA DG & CEO Tony Tyler - IATA AGM, Beijing 11. June 2012 

“I have also focused on how IATA can contribute to greater innovation in distribution than is 

currently possible through the GDSs. I understand that airlines cannot afford to miss any more 

business opportunities while waiting for the GDSs to meet their needs. GDSs and others are of 

course welcome partners in the process. Our target is to complete the foundation standard for 

a new distribution capability for approval during the World Passenger Symposium this 

October. The new distribution capability will unleash innovation and new entrants that will 

revolutionize airline relationships with their customers. In parallel with developing the standard, we 

are evaluating what other innovations IATA can offer to ensure that we are delivering the greatest 

value to you in this area.”

NDC – Supported by the Board
Simplifying the Business 19  COPYRIGHT IATA 2012

Introducing Resolution 787

‘Enhanced Airline Distribution’
Simplifying the Business 20  COPYRIGHT IATA 2012

 Based on the key principles agreed at PDG 18 April 

2012

 Idea of a DAS API and the infrastructure framework 

diagram based on a small focus group discussion in 

February

 The basic business requirements for data exchange 

standards based on selected output from DDXWG in 

July

 Definitions to support the text 

 Reviewed and endorsed by PDG 11 September 2012 

The Resolution – How it was crafted 
Simplifying the Business 21  COPYRIGHT IATA 2012

 Is a foundational resolution to provide an industry 

framework for ‘authenticated shopping’

 Becomes a platform that will enable further resolutions 

and messaging standards to be developed as further 

business requirements are evaluated

 Covers the business requirements for data exchange 

standards

The Resolution
Simplifying the Business 22  COPYRIGHT IATA 2012

 All product offers (including ancillaries) will be available 

for distribution through all channels that an airline wishes 

to sell them through

 The standard will enable the creation of a Dynamic 

Airline Shopping engine Application Programme

Interface (DAS API) based on IATA XML messages

 The focus of this resolution will describe the main 

business processes that are required to support it

 Not be constrained by any need to have full backwards 

compatibility

Resolution Adoption
Simplifying the Business 23  COPYRIGHT IATA 2012

 Does not obligate any Member to implement this 

capability if they choose not to

 Members who choose to adopt the capability uses these 

standards

 Resolution does not mean industry mandate to do it but 

more if you decide to follow this business model this is 

how you should implement it. Systems should also follow 

it

 Recommended Practice offers a best practice to 

implementation

Resolution Adoption – what does it mean?
Simplifying the Business 24  COPYRIGHT IATA 2012

The New Distribution Landscape
Simplifying the Business 25  COPYRIGHT IATA 2012

Members and/or systems providers may, for online or interline carriage,

provide capability to offer a wide selection of their products and services to

their customers through a wide variety of distribution channels. Members

and/or systems providers shall apply the following procedures when

distributing enhanced content through multiple channels of distribution with

their many partners.

This resolution recognizes that a standard process is required for airlines

to create their own product offer within their own systems (i.e. assemble

fares, schedules and availability - all in one transaction) which will be

provided directly by and owned by the airline. This will enable more agile

pricing and more personalized offerings. In this way, all product offers

(including ancillaries) will be available for distribution through all channels

that an airline wishes to sell them through.

Resolution 787 Highlighted Text
Simplifying the Business 26  COPYRIGHT IATA 2012

Resolution 787 Highlighted Text

 2.1 ANCILLARY SERVICES means anything outside of product 

attributes (optional or discounted).

 2.2 AUTHENTICATION means the process by which a system 

identifies an individual or a business entity to make sure that the 

user or the business entity is who they claim to be, based on 

attributes that are sent in a message.

 2.3 DYNAMIC AIRLINE SHOPPING APPLICATION PROGRAMME 

INTERFACE (DAS API) means a set of routines, protocols and tools 

for building software applications capable of processing interactive 

messages from a requester to an airline rules engine.
Simplifying the Business 27  COPYRIGHT IATA 2012

 2.4 EXTENSIBLE MARK-UP LANGUAGE (XML) means a simple, 

flexible mark-up language which enables the exchange of a wide 

variety of data on the internet and supports the implementation of a 

wide range of web services.

 2.5 INTERMEDIARIES means any entity that has the capability to 

interface with an airline’s DAS API (e.g. metasearch engines, 

distribution channel IT solution providers, travel agents including 

online agencies, travel management and corporate travel 

companies, high street agencies, specialist agencies, tour and 

cruise line providers) and interline partners making a booking 

request. 

Resolution 787 Highlighted Text
Simplifying the Business 28  COPYRIGHT IATA 2012

 2.6 PRODUCT ATTRIBUTES means what is bundled and included 

in the fare, e.g. flat bed seat, in-flight entertainment, pre-reserved 

seating, meals etc.

 2.7 PRODUCT OFFER means the response including product 

attributes and ancillary services capable of being displayed in the 

requesting system.

 2.8 RULES ENGINE means the repository of an airline’s business 

rules capable of receiving and responding to requests to provide a 

product offer.

Resolution 787 Highlighted Text
Simplifying the Business 29  COPYRIGHT IATA 2012

Resolution 787 Highlighted Text

 3 Business Process Description

 Authenticate and Shop

 a dialogue ..... to request a product offer from a carrier and will allow 

such carrier to respond with the offer based on the information 

received in the request.

 Order Process

 A dialogue .... that will confirm the commitment to purchase. This 

may also include payment information. The order process will 

provide the carrier the opportunity to fulfill the transaction, create the 

booking record, issue the document(s) and respond with 

confirmations. 
Simplifying the Business 30  COPYRIGHT IATA 2012

 Change Process

 a dialogue .... that will request a modification, addition, cancellation 

or refund to an existing confirmed order. The request shall include 

data that enables a carrier to identify the original order.

 Data Elements

 A number of key data elements identified in the business 

requirements at DDXWG have been included in each process 

description text that should be included. This is not exhaustive and 

will be expanded in future workstreams. 

Resolution 787 Highlighted Text
Simplifying the Business 31  COPYRIGHT IATA 2012

 A Passenger Distribution Management Group hereinafter referred to 

as the Management Group is established for managing the 

development of passenger distribution processes and standards as 

published in IATA Resolutions and Recommended Practices, and 

the development of modern technology messaging standards (e.g. 

XML) under the provisions of Resolution 783. 

 Proposals to amend the passenger distribution standards may be 

submitted by the passenger distribution sub-groups, any A4A or 

IATA Member, or members of the IATA Strategic Partners Program.

Resolution 787 Highlighted Text
Simplifying the Business 32  COPYRIGHT IATA 2012

 The Passenger Distribution Implementation Manual shall 

contain:

 An end-to-end Passenger Process,

 A Passenger Process Toolbox covering the end-to-end process,

 Recommended Practices,

 Technical Specifications,

 Implementation Guides,

 Templates for Service Level Agreements

Resolution 787 Highlighted Text
Simplifying the Business 33  COPYRIGHT IATA 2012

Next Steps and Future Activities
Simplifying the Business 34  COPYRIGHT IATA 2012

ä IATA World Passenger Symposium, 16-18 October 2012

 New IATA Resolution 787 for airline distribution to be adopted at PSC 

October 2012

 Technical messaging standards to be developed (PADIS Board (XML))

 Industry Business Case & Roadmap to be presented to the Board

 Value chain collaboration

 Enable airline product differentiation

1st industry pilot in 2013

The Future of Airline Distribution – Next 

Steps and Activities
Simplifying the Business 35  COPYRIGHT IATA 2012

Introducing Your NDC Team
Simplifying the Business 36  COPYRIGHT IATA 2012

Introducing Your NDC Team

 Claude Muller; Head NDC

 Shaunelle Harris Drake; Manager NDC Implementation

 Cécile Rousseau; Manager Channel Distribution

 Guennadi Klioutchnikov; Manager Distribution Technical Standards

 Andrei Grintchenko; Manager NDC Standards
Simplifying the Business 37  COPYRIGHT IATA 2012

Final Thought
Simplifying the Business 38  COPYRIGHT IATA 2012

Questions, Summary, Conclusions ?

Its all Connected Through Automation
Simplifying the Business 39  COPYRIGHT IATA 2012

Questions
Simplifying the Business 40  COPYRIGHT IATA 2012

World Passenger 

Symposium and PSC

15-19 October 2012

Abu Dhabi

Further information and assistance

http://www.iata.org/workgroups/psc

http://www.iata.org/events/passeng

er-symposium/Pages/index.aspx
JPSC/32 PSC/34 Oct 12

Agenda Item: P7

Page: 1 of 2

Subject: Report – Passenger Distribution Group (PDG)

Submitted by: Chairman, Andrew May (BA)

Background:

The PDG was established by the PSC in 2011 with terms of reference as shown in 

Attachment A_P7. Member representatives have been defining the vision of a new 

distribution capability where requests come to airlines who will respond with an offer 

for their product. This is considerably different to the existing model where content is 

‘pushed’ to systems (e.g. schedules, fares and availability) and the offer is created 

without direct involvement of the carriers.

The rationale behind the new distribution capability is to increase competition, 

stimulate innovation, reduce distribution costs and improve consumer choice. The 

PDG has defined a set of key business principles which will allow carriers to more 

dynamically interact with the customer behind intermediaries in order to provide 

access to a much wider range of products and services across a much wider number 

of distribution channel providers where currently they may only be provided through 

‘direct’ channels (e.g. airlines’ own websites). 

The requirement that has been identified is for a foundational standard that gives a 

clear industry direction on how to approach a more ‘shopping and comparison’ 

based travel purchase experience that goes beyond the current publication of 

schedules and fares, and the location of key records such as an airline booking in a 

traditional reservations and ticketing environment.

At the request of the PDG, the first meeting of the Data Exchange Working Group 

(DDXWG) was held during 9-13 July in Geneva where business scenarios were 

explored and some business requirements for data exchange standards formulated. 

The DDXWG included representatives from airlines, IT system providers, Global 

Distribution Systems (GDS), Online Travel Agency (OTA) and a Travel Management 

Company (TMC).

In making this proposal for a new ‘Enhanced Airline Distribution’ resolution, it will 

cover only the concept of the business requirement, being a foundational resolution 

to provide an industry framework for ‘authenticated shopping’. This new Resolution 

787 as shown in Attachment B_P7 becomes a platform that will enable further 

resolutions and messaging standards to be developed as further business 

requirements are evaluated. 
JPSC/32 PSC/34 Oct 12

Agenda Item: P7

Page: 2

This resolution proposal (if adopted) does not obligate any Member to implement this 

capability should they choose not to. By documenting a process in resolution it will 

allow industry to keep costs of implementation down by avoiding individual 

proprietary solutions whilst allowing innovation, ease of implementation, 

differentiation and competition. One final and important point to note is that the new 

standard(s) should not be constrained by any need to have full backwards 

compatibility.

This resolution meets the requirements from the IATA Board of Governors who set a 

priority on the development of “new distribution capability”. This was announced at 

the IATA Annual General Meeting in June 2012 where it was highlighted during a 

panel discussion that examined evolving trends in airline distribution in order to try to 

predict the future and to determine how IATA can help shape the future of airline 

distribution by providing a common infrastructure and standards for consumer 

benefits.

Proposed Action:

1. Conference to note the report and extend the mandate of the PDG for a further 

12 months with terms of reference as shown in Attachment A_P7;

2. Conference to establish Resolution 787 as shown in Attachment B_P7.
JPSC/32 PSC/34 Oct 12

Agenda Item: P7

Attachment: A_P7

Page: 1 of 1

Passenger Distribution Group (PDG)

Terms of Reference

The Passenger Distribution Group is established by the Passenger Services Conference 

(PSC) to with the following terms of reference.

Objectives

• Set a vision for multi-channel airline distribution

• Validate the strategy and industry business case and requirements

• Act as an industry voice on airline distribution

• Define key industry messages for distribution-related matters

• Review progress of IATA projects in distribution

• Act as a watch group on industry developments

• Be the central provider of industry informational and statistical data

Appointments

• This is a group comprised of IATA member airlines; non-member airlines may 

receive a special appointment by IATA SVP IDFS

• Delegates are airline director-level or above in charge of airline distribution or 

distribution system strategy; there are no alternates

• Industry stakeholders may be invited to attend meetings upon invitation by IATA SVP 

IDFS

Schedule

• annual in-person meetings at IATA’s Head (Montreal), Executive (Geneva), or 

Regional offices

• Regular calls (monthly or quarterly)

• Meeting agendas shall be circulated in advance of each meeting for review and 

comments by delegates, the Chairmen of the PSC Steering Group and the StB 

Steering Group. Minutes shall be taken at each meeting and circulated among the 

delegates for review, comment, and approval.

Technical sub-groups

1. The PDG may create technical sub-groups to address specific issues and business 

requirements, for example requirements to develop new schemas or rules and tools. 

Such sub-groups will be coordinated with the secretariat of the PSC and/or the 

Passenger Agency Conference (PAConf).

Administrative

• The PDG will have a one year mandate (renewable as required) and will report to the 

PSC with any proposed technical improvements, recommendations and an industry 

standards implementation plan.

• During the year the PDG will provide regular progress reports to the PSC Steering 

Group and the StB Steering Group

• The group will coordinate its activities with other industry groups involved in airline 

distribution

• The Secretary is the IATA Director Passenger (leopolde@iata.org)