Systems and methods provide for a nitrogen generation and oxygen distribution system. According to one aspect, the system includes an NGS and an oxygen distribution processor coupled to the NGS. The NGS creates nitrogen enriched air as the primary product for fuel tank use, and oxygen enriched air as a secondary product. The oxygen distribution processor is operative to determine a number of flight parameters, and from those parameters, provide an oxygen distribution command to an oxygen distribution valve in order to prevent the oxygen enriched air from being distributed, to route the oxygen enriched air to the ambient environment, or to route the oxygen enriched air to an aircraft engine to increase combustion efficiency.