Case | HBS Case Collection | 2009 (Revised from original 2009 version)

Distribution at American Airlines (A)

by Benjamin G. Edelman
 

Abstract

American Airlines sought to reduce the fees it pays to global distribution services (GDSs)—such as SABRE—to reach travel agents. But GDSs held significant tactical advantages. For example, GDSs had signed long-term exclusive contracts with the corporate customers who were American's best customers. Furthermore, travel agents tended to favor whichever GDS offered the highest commissions—impeding price competition among GDSs. Against this backdrop, American considered how best to cut its GDS costs.

Keywords: Price; Globalized Firms and Management; Governing Rules, Regulations, and Reforms; Distribution; Service Operations; Competition; Air Transportation Industry; Travel Industry;

Format: Print 10 pages Purchase

Citation:

Edelman, Benjamin G. "Distribution at American Airlines (A)." Harvard Business School Case 909-035, June 2009. (Revised from original January 2009 version.) (request a courtesy copy.)

Related Work

  1. Supplement | HBS Case Collection | 2013

    Distribution at American Airlines (C)

    Benjamin Edelman

    Presents 2011-2012 updates to American's distribution strategy including new challenges and disputes

    Citation:

    Edelman, Benjamin. "Distribution at American Airlines (C)." Harvard Business School Supplement 913-034, March 2013. (request a courtesy copy.)
    CiteView Details Related

  2. Supplement | HBS Case Collection | 2013

    Distribution at American Airlines (D)

    Benjamin Edelman

    Supplements the (C) case

    Citation:

    Edelman, Benjamin. "Distribution at American Airlines (D)." Harvard Business School Supplement 913-035, March 2013.
    CiteView Details Related

About the Author

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Benjamin G. Edelman
Associate Professor of Business Administration, Marvin Bower Fellow
Negotiation, Organizations & Markets

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