In the 1960s, the U.S. airline industry created computerized systems for making airline reservations. This technology was developed to meet the needs of airline employees instead of customers. According to the "New York Times," financial difficulties have prevented the airlines from upgrading to the newest, most modern technologies available.
One of the airline industry's most significant IT innovations was the introduction of electronic tickets, replacing the paper tickets with magnetic strips. This saved airlines about $3 billion per year, according to the International Air Transport Association.
When Delta acquired Northwest Airlines in 2008, it took about two years to merge the two airlines' reservation and technology systems, which involved some 1,200 computer applications.
According to SITA, an airline industry analyst firm, the airlines spent just 1.7 percent of their total revenue on information technology, compared to typical expenditures of between 2.5 percent to 3.5 percent by other industries.
