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NDC: New Distribution Capability

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New Distribution Capability (NDC) New Distribution Capability (NDC) is a Data Exchange Format based on Offer and Order Management Processes for Airlines to Create and Distribute relevant offers to the customer regardless of the distribution channel. ​​​​ During the 1970s, Airlines created computerized ticket reservation systems, known as Central Reservation Systems (CRS), to help their agents search, book, and confirm flight bookings. Having proven to be an extremely efficient tool, the airline industry looked to reduce their booking workloads by allowing travel agents to make bookings directly on the CRS. However, each airline had its own unique CRS. To gain access to the flights of every airline, travel agents in the US demanded for and received a single CRS platform. This remained the status quo for over 20 years. Customers called the travel agents, who then booked their flights on the CRS. However, in the 1990, the major CRSs namely Sabre, Amadeus, and Worldspan & Galil...

Fare Basis and Booking Class

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There may not be an Industry more Driven by Traditional Supply and Demand Laws. That’s why one of the fundamental practices of airline revenue management is pricing segmentation. Only offering one price point would critically hinder revenue optimisation.   Therefore, Airlines select multiple price points to stimulate traffic and to obtain the optimal mix of passengers. This is done through a mechanism known as Booking Classes or Fare Basis. Fare Basis Code A Fare Basis Code (often just referred to as a fare basis) is an alphabetic or alpha-numeric code used by airlines to identify a fare type and allow airline staff and travel agents to find the rules applicable to that fare. Although airlines now set their own fare basis codes, there are some patterns that have evolved over the years and may still be in use. Airlines can create any number of booking or fare classes, to which different prices and booking conditions may apply. Fare classes are complicated and vary from airline to ...

International Sales Indicator Codes SITI, SITO, SOTI, SOTO

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The International Sales Indicator Codes indicates the relationship between the Point of Sale, Point of Ticketing and the Country of Commencement of travel for the itinerary. These indicators determine if certain fare construction principles are required… SITI.  Sold Inside, Ticketed Inside. A ticket sold and issued in the same country. That means a ticket issued at the location where the journey would originate. SITO.  Sold Inside, Ticketed Outside. A ticket sold in one country and issued in a country not included in the itinerary. That means a ticket issued at the location where the journey wouldn’t originate. This refers to an airline ticket that has been bought from the country that features in the travel itinerary, but has been issued from a country that doesn't feature in the journey. SOTI. Sold Outside, Ticketed Inside. A ticket sold in one country but issued in another country on the itinerary. That means a tic...

Freedoms of the Air

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Freedoms of the Air The freedoms of the Air are a set of Commercial Aviation Rights Granting a Country's Airlines the Privilege to enter and land in another Country's Airspace. They were formulated as a result of disagreements over the extent of Aviation Liberalisation in the Convention on International Civil Aviation of 1944, known as the Chicago Convention. The United States had called for a standardised set of separate air rights to be negotiated between states, but most other countries were concerned that the size of the U.S. airlines would dominate Air Travel if there were not strict rules. The FREEDOMS of the Air are the fundamental building blocks of the International Commercial Aviation route network. The use of the terms "FREEDOM" and "RUGHT" confers entitlement to operate International Air Services only within the scope of the Multilateral and Bilateral Treaties (Air Services Agreements) that allow them. The first two freedoms concern the passage o...

Codes for Airline and City in Aviation

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Codes for Airline and City in Aviation Airport codes arose out of the convenience that the practice brought pilots for location identification in the 1930s. Initially, pilots in the United States used the two-letter code from the National Weather Service (NWS) for identifying cities. The International Air Transport Association has assigned each airline a 2-letter code and each airport a 3-letter code. The reason why these codes are assigned is so that these codes can be used for identification in documents and communication systems. The three-letter code is determined by first ensuring that it's unique and not in use by any other entity. The code might be assigned based on the name of the airport, the name of the city, or some other meaningful and relevant identifier if those letters are already taken. An IATA airport code, also known as an IATA location identifier, IATA station code or simply a location identifier   is a three-letter geocode designating many airports and metropoli...

ICAO, IATA, BSP in a Brief

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ICAO - International Civil Aviation Organization The Convention on International Civil Aviation, drafted in 1944 by 54 Nations, was established to Promote Cooperation and “Create and Preserve Friendship and Understanding among the Nations and Peoples of the world.” Known more commonly today as the ‘ Chicago Convention ’, this landmark agreement established the core principles permitting International Transport by Air and led to the creation of the Specialised Agency which has overseen it ever since – the International Civil Aviation Organization (ICAO). ICAO is funded and directed by 193 National Governments to support their Diplomacy and Cooperation in Air Transport as Signatory States to the Chicago Convention (1944). Its core function is to maintain an administrative and expert bureaucracy (the ICAO Secretariat) supporting these Diplomatic Interactions, and to research new Air Transport Policy and Standardisation Innovations as Directed and Endorsed by Governments through the ICAO A...