Introduction The case is about American Airlines? forecasting system IFS, which was built by and then upgraded by Sabre Group. American Airlines is a major airline company in the United States and its parent company is AMR Corp. Sabre was formed by the IT group working in American Airlines as a separate company from American Airlines but as a subsidiary of AMR Corp.
American Airlines was founded in 1930 under the name American Airways, Inc. In 1934, American Airways name changed in to its current name American Airlines. At the end of 1930?s it became the largest air carrier company in the USA.
In 1945, American Overseas Airlines (AOA) was formed by the Trans-Atlantic division, which served a number of European countries as American's first European service. AOA was the result of the merger between the international division of American and a company called American Export Airlines. In 1950 AOA merged with Pan American World Airways At the end of 1959 and into the early 1960s, American, teaming up with IBM, introduced and implemented a Semi-Automated Business Research Environment (SABRE), the largest electronic data processing system for business use.
This system was installed on two IBM 7090 computers located in New York. It had a capability to process 84,000 telephone calls per day. This first Sabre system?s cost was $40 million with 400 man-years effort.
By 1964, the SABRE network extended from coast to coast and from Canada to Mexico. It became the largest real-time data processing system, second only to the U.S. government's SAGE system. SABRE remained as a in-house system for America until 1975 when the marketing SABRE to travel agencies in the U.S. began. By year the end of 1976 the system is installed in 130 locations. Of the top 100 agency accounts located in...