How American Airlines Reconfigured the Airline Industry Ecosystem
In 1952, American Airlines installed the state of the art Magnetronic Reservisor to ease the burden of
the growing number of flight reservations on the airline. This new, larger reservisor could handle more
information than its predecessor, which had been the first airline reservation system to incorporate
electronics into the time-consuming, and labor intensive process of booking seats on an airplane flight.
However, even as the upgraded system was being rolled out, American Airlines knew that as both the
number of flights and reservations continued to grow, the reservisor would be plagued by mismatched
seat inventories and customer reservations, errors due to the manual transfer of passenger information,
and poor customer service. As a result, in 1954 American Airlines and IBM entered into an agreement to
create the first real time reservation system, known as SABRE.
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