The Future of Partnerships in Modern Airline Retailing

This article was originally published on LinkedIn https://tinyurl.com/2uzuy2us

When the topic of modern airline retailing and Offer-Order-Settle-Deliver (OOSD) transformation comes up in a panel session on stage or during a customer meeting, I am often asked for my thoughts. Particularly, people are curious about the perspective of the mid-tier carriers that we serve at CitizenPlane. My answer is that transformation will be a long journey, but one that is relevant for carriers of all sizes worldwide.

I believe smaller airlines won’t need to immediately embrace OOSD transformation. At some point, yes, they will step in—but they will not be among the front-runners. They will wait for others, with deeper pockets and more resources, to discover and define the “new world” first. What truly matters to mid-tier airlines is protecting their share of revenue from partnerships and interlining today. This part of their business is critical, and they want to ensure they do not lose it as the industry evolves.

At the recent T2RL Engage conference, we learned that only around 6% of the total industry has started, or even planned, to adopt Offer and Order. Meanwhile, interline and codeshare agreements account for less than 10% of a typical airline's revenue. That tells us something important: the transformation of partnerships and interlining will likely be one of the last pieces of the transformation puzzle.

The end state is a world where customers can book seamlessly across partner airlines to get where they need to go and enjoy an experience they value. This doesn’t mean only tier-one carriers seamlessly interlining with each other, but also low-cost airlines and even smaller regional carriers participating in this ecosystem.

One of the most powerful consequences of retailing change is that airlines can decouple their destiny from their partners. Increasing modularity and interoperability is creating a world where each airline can modernize at its own pace. Every carrier—whether a global network airline, LCC, or regional carrier—can pursue the strategy that best fits its business without being held back.

Legacy systems, of course, are still here, and I believe they will remain with us for years to come. It might not sound like the most glamorous statement, but it’s the reality. The real question is not whether this is good or bad, but rather: how do we cope with both worlds operating alongside each other, ensuring that airlines can continue to operate today while preparing for tomorrow.

We have already seen this coexistence in practice. At Riyadh Air, for example, in partnership with FLYR, we provide the EDIFACT ticketing component of the “legacy translator,” which is essential for bridging Offers and Orders between airlines at different stages of the retailing journey. In my view, this is a very pragmatic approach. It enables us to provide solutions for today's world while also preparing for tomorrow's world—a world that will be fully Offer and Order enabled.

That is why it is crucial for mid-tier and fast-growing airlines to choose the right technology partners. They need partners who can provide practical, realistic solutions that prevent them from losing opportunities in the present, while also enabling them to embrace the new opportunities of the future. This balance between today’s needs and tomorrow’s possibilities is, I believe, the key to making modern airline retailing work for everyone. Empowering airlines of all shapes and sizes to collaborate effectively will define the next chapter of airline partnerships and extraordinary travel experiences for customers. And we are thrilled to be part of this transformation.

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