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Acitivy B

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Christopher Enenmoh
Professor Shad Ewart
BPA 236
Sunday, April 7, 2019,
Activity B: The Airlines’ Reservation Systems
The airline reservation system (ARS) was a dedicated system which airlines and travel
agents used during the early stage of the electronic tickets reservation. The airline industry was
the first sector to take advantage of the computer system due to complex operation and
passengers did not have the mean and authorization to purchase their tickets which was difficult
since the airlines took significant advantages of these systems to maximize their profit.
According to Garrett, the first two major ARS was the 1946 American Airlines Reservisor. The
Reservisor was not a fully automatic system and required an additional collaboration between the
airlines and the agents to process each customers reservation.
American Airlines (AAL) and IBM later joined their forces to update and improve the
system with the introduction of new autonomous technology to manage the flight reservations.
The collaboration gave birth to the Magetronic Reservisor during the 1950s, and such system
used an electronic brain which was also the first artificial intelligence system (AI) (Garrett ). The
introduction of the SABRE system in the 1960s was the major change in the AR industry since
companies did not need human do supervise the operations.
The new Global Distribution System (GDS) has several advantages due to its ability to
connect the company to the customer using different internet-based booking websites. Some of
the GDS examples include Sabre by AAL, PARS by USAir, TravelSky by Air China and
Worldspan by Delta (Kelly 1). The GDS is one of the critical change in the reservation systems;
however, today there are small websites which can offer the same service at lower prices with
faster networks. Also, there are several conflicts between the customers and airlines and
according to a recent study, airlines continue to impose additional fees on tickets purchased on
third parties websites (Garrett ).
The advance in the mobile technologies and the implementation of increased mobile
internet connection such as 5G expand the domination of third parties website over the use of
GDS and airlines companies web site for reservation purpose. One of the new airline business
models is the advance of the cargo transportation business which companies such as UPS and
FedEx continue to dominate in term of market share. Both America Airline and Southwest have
a cargo business operation for personal and business use.
The cargo related operation is second business revenue to an airline, and such business
consists of loading customers and companies freight in the planes for delivery to other countries.
The cargo business is a recent model in diversifying the airline's profit and maintain a long term
competitive advantage due to the reduction of the airline's profitability during the last decade.
Some of the requirements to start shipping include the use of Air Waybill, Shipper Export
Declaration (SED), Commercial Shippers and Freight Forwarders and others based on the
destination country (American Airlines Cargo ).
Southwest has three products capabilities which are the Next Flight Guaranteed,
Southwest Standard and Fesh Fast while America Airlines appears to provide four products
which are the Priority Parcel Service, Expedite FS, Expedite TC and Confirmed FS. According
to the recent research, America Airlines is the only carrier which can ship to Europe while
Southwest is limited to America, Mexico, and Canada.
Finally, America Airlines is the ultimate choice to ship devices to Europe at the price of $
1841 pounds based on the rate estimations: 100kg to pounds = 220 pounds which is $ 9.55* 100
= $ 955 + 12.7*80 pounds = 1016+ 955= $ 1971 to ship $ 300 lbs in France.
Works Cited
American Airlines Cargo . America Airlines. n.d. 7 April 2019.
<https://www.aacargo.com/index.html>.
Garrett , Mark Evan . Encyclopedia of Transportation: Social Science and Policy. California:
Sage Publications, 2014. < EBSCOhost,
search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=845930&site=ehostlive&scope=site.>.
Kelly , David . How global distribution system povide access to travel. 26 November 2018. 6
April 2019. <https://www.tripsavvy.com/what-is-gds-468274>.
Southwest Cargo . Southwest Cargo. n.d. 7 Aprl 2019.
<https://www.southwest.com/html/air/business-groups/cargo.html?clk=GFOOTERBOTTOM-CARGO>.
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