US Airways to dump Sabre tomorrow?

[chipmunn]

Cosmo:

Who predicted this action and first broke this news on this message board a few months ago?

Chip

 

[chipmunn]

Electronic Data May Lose Airline Contract Tomorrow
PLANO (Bloomberg) - Electronic Data Systems Corp., the world's second-largest seller of computer services, may lose its $5 billion US Airways Group Inc. contract tomorrow.
A bankruptcy court judge told US Airways to decide then if it will continue its agreement with Electronic Data, US Airways spokesman Dave Castelveter said. The airline has accused Electronic Data of violating the pact by providing better terms to larger rivals.
International Business Machines Corp., Electronic Data's larger rival, is ``waiting in the `wings''' to take over the contract, UBS Warburg analyst Adam Frisch wrote to clients today.
Electronic Data's sales and profit declined last year as it lost contracts and had others scaled back as customers went bankrupt or cut budgets. France's Alstom SA said yesterday it ended talks with Electronic Data over a multibillion-dollar services contract. Affiliated Computer Services Inc. Monday said it had signed a $383 million contract to process Medicaid claims for Texas. Electronic Data had done that work since 1977.
Shares of Electronic Data fell 8 cents to $15.67 at 4:02 p.m. in New York Stock Exchange composite trading. US Airways fell less than 1 cent to 17 cents. IBM fell $1.67 to $77.40.
Electronic Data's Chief Executive Richard Brown told an analyst conference yesterday that the company could lose the contract because of US Airways bankruptcy proceedings.
Frisch also wrote that Electronic Data's contract with bankrupt phone company WorldCom Inc. is ``in doubt.''
Electronic Data spokesman Sean Healy declined to discuss the note. IBM didn't immediately return calls.
$200 million a year
Plano, Texas-based Electronic Data gets about $200 million a year for data processing and telecommunications services under the contract. It said last year that it's owed $70 million for work performed. Frisch said the company gets about 2 cents a share in revenue annually under the contract.
Electronic Data in December won a $1.3 billion contract to run computer networks at ABN Amro Holding NV, and a $4.5 billion order to manage Bank of America Corp.'s systems. In November it lost a bid for a multibillion-dollar contract to manage Procter & Gamble Co.'s back-office computer operations.

 

[drifterreno]

Have fun res!!! It's a nightmare learning a new system, but maybe you'll go back to CARE. Do the older agents still remember it?? Now they'll have 1000 calls on hold!!! GOOD LUCK

 

[dash8ter]

[blockquote]
----------------
On 2/27/2003 3:30:36 AM drifterreno wrote:

Have fun res!!! It's a nightmare learning a new system, but maybe you'll go back to CARE. Do the older agents still remember it?? Now they'll have 1000 calls on hold!!! GOOD LUCK
----------------
[/blockquote]

Someone please correct me if I'm wrong, but doesn't EDS provide HARDWARE and network support for US Airways? If Airways dumps EDS for IBM or another, would it actually affect us using SABRE (software) for res, ato, etc...?

 

[Cosmo]

[blockquote]
----------------
On 2/27/2003 12:02:51 AM chipmunn wrote:

Cosmo:

Who predicted this action and first broke this news on this message board a few months ago?

Chip
----------------
[/blockquote]
I don't know, who? It wasn't me!

Sorry, I couldn't help myself. Seriously, if you predicted this a few months ago (and assuming that it does actually happen), then congratulations to you and your secret sources.

See, I can be magnanimous. Happy now?

 

[retiredman]

[blockquote]
----------------
On 2/27/2003 6:37:05 AM dash8ter wrote:

[blockquote]

----------------

On 2/27/2003 3:30:36 AM drifterreno wrote:


Have fun res!!! It's a nightmare learning a new system, but maybe you'll go back to CARE. Do the older agents still remember it?? Now they'll have 1000 calls on hold!!! GOOD LUCK


EDS provides hardware & support, will not or should not affect programs we use. by the way this has been rumored to happen for the last two months. No big surprise if this occurs.
----------------

[/blockquote]


Someone please correct me if I'm wrong, but doesn't EDS provide HARDWARE and network support for US Airways? If Airways dumps EDS for IBM or another, would it actually affect us using SABRE (software) for res, ato, etc...?
----------------
[/blockquote]

 

[TomBascom]

[blockquote]
Someone please correct me if I'm wrong, but doesn't EDS provide HARDWARE and network support for US Airways? If Airways dumps EDS for IBM or another, would it actually affect us using SABRE (software) for res, ato, etc...?
----------------
[blockquote]

EDS owns SABRE lock stock & barrel. They bought it from AA a couple of years ago.

 

[enilria]

EDS doesn't own Sabre, but more importantly Sabre sub contracted its support to EDS at US Airways.

Will they be willing to deal with IBM?

Maybe, maybe not.

 

[delldude]

well they can take the stuff we have in maintenence,its dinosaur city for most units.i can't speak to res or fleet.but in maint.our stuff is old.

 

[Stick-n-Rudder]

I thought Sabre was IPO'd a few years ago and is an independant Co?

 

[dash8ter]

US Airways dumping EDS would be an intresting transaction, as they currently own just about all (computer) hardware on our property. I believe that EDS owns all PCs, PATT terminals, printers, servers, etc... at every US Airways station. If another company would replace EDS, they would have to replace every piece of equipment, unless EDS sold it to the new IT vendor. If US Airways were to get new hardware equipment, it could open up possibilites to new software packages for the ATOs, Res centers, and other support centers. I know that many stations never received new PCs and are still using the 'beautiful' PATT terminals (old PACER terminals). I'm sure it would be a relief if a new IT provider came in and replaced these items.

Also, on a side note, doesn't IBM provide US Airways with the Kiosks?

 

[LavMan]

For more than 40 years, Sabre has been developing innovations and transforming the business of travel. From the original Sabre® computer reservations system in the 1960s, to advanced airline yield management systems in the 1980s, to leading travel Web sites today, Sabre technology has traveled through time, around the world and touched all points of the travel industry.

1960s
The first Sabre system is installed in 1960 on two IBM 7090 computers located in a specially-designed computer center in Briarcliff Manor, New York. The mainframe system is state-of-the-art technology in its time and processes 84,000 telephone calls per day. The initial research, development and installation investment in this system took 400 man-years of effort at a development cost of almost $40 million.

The final Sabre system cutover is complete in 1964. The telecommunications network of the system extends from coast to coast in the United States. It is the largest, private real-time data processing system-second only to the U.S. government. Once the final city is cutover, the system saves American Airlines 30 percent on its investments in staff alone, and delivers an error rate of less than one percent, creating a competitive edge that will last for the next five to seven years.

1970s
In 1972, the Sabre system is upgraded to IBM 360s and moved to a new consolidated computer center in Tulsa, Oklahoma, designed to house all of American Airlines' data processing facilities. The upgrade and move to Tulsa are completed with a total of 15 minutes' interruption of services to the airline's agents.

The Sabre system is installed in a travel agency for the first time in 1976. By year's end, the system is installed in 130 locations. Of the top 100 agency accounts located in highly competitive markets who select automation systems, 86 percent elect to use the Sabre system.

The Sabre system stores 1 million fares in 1978.

1980s
In 1983, Sabre expands its computer reservations system to Canadian travel agents.

Bargain Findersm pricing is introduced in 1984 via the Sabre system. This low-fare search capability automatically advises which class of service is the least expensive for the flights booked - a service unmatched in the industry.

1985 -The introduction of easySabre® allows consumers using personal computers to tap into the Sabre system via computer online services to access airline, hotel and car rental reservations.

1986 -After four years of development Sabre installs the airline industry's first automated yield management system, which prices airline seats to yield the maximum revenue for each flight.

The Sabre system is extended to the United Kingdom, paving the way for widespread international expansion of the system in the decade to follow.

1988 - Sabre begins providing software, consulting and systems management services to other airlines in areas such as revenue accounting, yield management and crew scheduling.

1988 - The Sabre system stores 36 million fares which can be combined to create over 1 billion fare options.

1990s
Sabre introduces Sabre® AirFlite™ flight scheduling system in 1992.

In 1994 Sabre and SNCF (French National Railroad) install the RESARAILâ„¢ rail reservations and distribution system for the TGV network. The system is subsequently extended to the English Channel Tunnel.

Sabre Y2K work begins in 1995 which involves checking more than 200 million lines of software code, confirming proper interfaces with more than 600 suppliers, providing new software to more than 40,000 travel agents, and testing more than 1,200 hardware and software systems.

Sabre becomes a separate legal entity of AMR in July of 1996 followed by a successful initial public offering in October in which AMR releases approximately 18 percent of its shares to be publicly traded.

Also in 1996, Travelocity.com is launched - the first site to offer travel reservations and comprehensive destination and event information on the Internet.

In 1998 Sabre forms a joint venture with ABACUS International to establish the Sabre system as the CRS market leader in Asia. More than 7,300 ABACUS travel agencies in 16 countries convert to a customized new version of the system.

Sabre completes the largest system migration ever in the airline industry, when 200 US Airways systems are shut down and shifted to Sabre systems.

Sabre launches Best Fare Finder pricing in April, 1999 - an industry-first software product that searches for flights based on specific fares.

Sabre® Virtually There™, a Web-based system that provides travelers with up-to-the minute itinerary and destination information via the Internet is introduced in November, 1999.

Sabre® Sales Manager is also launched in 1999. A software solution that enables airlines to deliver customized marketing messages to travelers.

2000s
In 2000, Sabre® eVoyasm is introduced as the next generation of travel agency technology tools, making it simple for Sabre Connected travel agencies to become Internet-ready.

In November, Sabre introduced Sabre® Aerodynamic Traveler™, a new suite of passenger processing applications designed to expedite the airline check-in process and reduce long lines at airports. From check-in to passenger boarding, the Sabre Aerodynamic Traveler product family maximizes customer service by providing real-time access to airline boarding data. These introduced new innovations including:

Sabre® RovingAgent™ wireless passenger check-in system. This product lets airline gate agents use a hand-held device to make seat assignments, print boarding passes and bag tags, issue vouchers and handle other routine tasks. The system makes it simple for airlines to re-accommodate passengers who have missed connecting flights.

Sabre® PassTouch™ self-serve kiosk passenger system. With the touch-screen kiosk, passengers can use a frequent-flyer card, smart card or major credit card to identify themselves and check in. This product gives airlines an extra way to provide critical passenger services without additional investment in real estate or human resources.

Sabre® Wireless Check-In System. This product uses voiceprint technology to let travelers check in for flights using their wireless phones. A bar-coded boarding pass is then transmitted directly to the traveler's wireless phone screen.

 

[kate]

The EDS contract remains in place as of Thursday afternoon, Feb. 27, 2003.

 

[drifterreno]

So if they took their hardware that would mean computers and keyboards--what would res make reservations on--pieces of paper??

 

[Cosmo]

[blockquote]
----------------
On 2/27/2003 7:30:02 AM Cosmo wrote:

[blockquote]
----------------
On 2/27/2003 12:02:51 AM chipmunn wrote:

Cosmo:

Who predicted this action and first broke this news on this message board a few months ago?

Chip
----------------
[/blockquote]
I don't know, who? It wasn't me!

Sorry, I couldn't help myself. Seriously, if you predicted this a few months ago (and assuming that it does actually happen), then congratulations to you and your secret sources.

See, I can be magnanimous. Happy now?
----------------
[/blockquote]
Well, since the EDS contract renewal was just announced, I guess I spoke too soon! Sorry, Chip (and your secret sources, too).