Airline Competition: Impact of Computerized Reservation Systems

摘要

The author found that neither the profitability studies nor the Justice market study resolves the key issues concerning the market power of airline-owned computerized reservations systems (CRSS), They found that the CRSS are more profitable than estimated by United and American, primarily because their analyses did not include revenues from additional ticket sales due to their ownership of CRSS (called incremental revenues). However, a study sponsored by non-CRS-owning airlines probably overstates profits, and the authors believe the available data are insufficient for us to develop their own profitability estimates.