American Airlines 1998 Annual Report Download - page 24

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million members by the end of 1998. It was rated the Best Travel Site by the
People’s Voice Award and recorded its first $8-million sales week in December, one
of many sales records that were set during the year only to be broken shortly after-
ward. With the capabilities of the Sabre system behind it, Travelocity provides
reservation capabilities for more travel providers than any other Internet site.
Another important and successful Internet-based product is Sabre Business Travel Solutions. This
suite of applications enables corporate travel managers to give their individual travelers the convenience of
desktop access to the Sabre system, to monitor travel policies more comprehensively, and to use automated
methods of collecting, analyzing and controlling travel expenses.
Information Technology Solutions
On the other side of Sabre’s business — Information Technology Solutions — the company
maintains a leading portfolio of airline software solutions that attracted important new outsourcing clients
in 1998. In February, Gulf Air signed a 10-year, $165-million agreement with The Sabre Group. In
November, Aerolineas Argentinas signed a 10-year, $120-million agreement and Pakistan International
Airlines signed a 15-year outsourcing agreement in December.
To date, The Sabre Group’s largest outsourcing contract outside of American Airlines is the 25-year,
multi-billion dollar arrangement it formed with US Airways in 1997, whereby The Sabre Group will
manage the airline’s information technology infrastructure, including facilities, hardware, applications and
desktop. The successful cutover to Sabre systems took place in December 1998. It was the largest systems
migration ever in the aviation industry, involving more than three
million man-hours.
While new outsourcing agreements will remain an
important source of revenue growth in the years to
come, The Sabre Group’s largest information technol-
ogy client is likely to remain American Airlines.
A long-term service agreement outsources American’s
data processing, network, desktop and applications
development to The Sabre Group, fulfilling, at
market prices, virtually all of the airline’s information
technology requirements.
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