Air France KLM to introduce GDS Surcharge in April 2018  7th Nov 2017

Air France KLM has announced that it will from 1st April 2018 charge 11 Euros per one way for bookings made on the Global Distribution System (GDS).

This move comes as no surprise as Air France KLM joins other European carriers Lufthansa, IAG’s British Airways and Iberia in introducing a GDS use surcharge.

 

A statement signed by Mr. Dries Klein, the General Manager for Eastern Africa says that “ this surcharge will cover the cost difference between the GDS model and the corresponding costs of Air France and KLM direct sales.” Air France and KLM further states that it is developing its NDC offer and invests in options for partners to access, book and sell it by connecting to Air France KLM NDC APIs (Application Programming Interface) that will be available from January 1st 2018.

 

NDC (New Distribution Capability) is a distribution standard developed by IATA. It allows the distribution of rich content, personalized offers and eases the sales of ancillary products.

Contrary to the punitive approach adopted by the European carriers, US airlines have opted to incentivize agents booking through their NDC supported connection. American Airlines announced in June that they will be offering an incentive of $2 per segment to agencies booking through their NDC. It is expected that more American carriers will follow suit.

 

The Chief Executive Officer of KATA Nicanor Sabula, says that the Association is studying the move before pronouncing itself on the matter. “Obviously it is a matter of concern to the travel agents community, but we will have to study its effect on our members before we can give our position”.

 

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