Sabre (American Airlines)

Topics: American Airlines, Delta Air Lines, Airline Pages: 9 (3365 words) Published: March 19, 2008
American Airlines is the world's largest airline. It serves 250 cities in over 40 countries with more than 4,000 daily flights. The combined network fleet numbers more than 1,000 aircraft. American's award-winning Web site,, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the "oneworld" Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve more than 600 destinations in over 135 countries and territories. In 1934, American Airways Company was acquired by E.L. Cord, who renamed the company "American Air Lines". Cord hired Texas businessman Cyrus Rowlett Smith to run the company. C.R Smith was committed to change the airline into a passenger transportation business. To do so and beat competition he decided to: improve his service and excel in marketing. Realizing the importance of flight attendance he started a training program for his stewardess and other employees. For more than 40 years, Sabre Holdings has transformed the airline industry through technological advancement. The first passenger reservations system offered by Sabre, installed in 1960, marked a dramatic technological leap forward for the airline industry, automating one of its key business areas. In the following years, Sabre Airline Solutions pioneered technological advances for the industry in areas such as revenue management, pricing, flight scheduling, cargo, flight operations and crew scheduling. And not only did we help invent electronic commerce for the travel industry, the company holds claim to progressive solutions that defined — and continue to revolutionize — the travel and transportation marketplace. The system was developed in order to help American Airlines, who were facing a serious problem by the 1950s. Their system for booking flights was entirely manual, having developed from the techniques originally developed at their Little Rock, Arkansas reservations center in the 1920s. Their system used a rotating file with cards for every flight, which a team of eight operators would sort through. If a seat was booked they would place a mark on the side of the card, and knew visually whether it was full. This part of the process was not all that slow, at least when there weren't that many planes, but the entire end-to-end task of looking for a flight, reserving a seat and then writing up the ticket could take up to three hours in some cases, and 90 minutes on average. The system also had limited room for growth. It was limited to about eight operators because that was the maximum that could fit around the file, so in order to handle more queries the only solution was to add more layers of hierarchy to filter down requests into batches. In the US Sabre had to face many other systems from AA competitors such as Apollo of United Airlines, Pars of the TWA or Soda of eastern airlines. The first step before trying to enter the European market was conquering the US market by using there CRS service. In 1985 AA has 13% of the market share in the US followed by United Airlines 12% and Eastern 10%. The AA company has 5 main competitors in the US. One of the main points to acquire the market was the CRS service. I believe that AA had skills that other companies didn't have such as the quality of there service and a size that made them go through the financial problems that all airline companies had after the deregulation act. AA was one of the only company to offer the big cargo planes and small planes. This competition takes place in a special context because of the deregulation act: Since 1938, the federal Civil Aeronautics Board (CAB) had regulated all domestic air transport as a public utility, setting fares, routes, and schedules. The CAB promoted air travel, for instance by...
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