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February 6, 1989


By CBR Staff Writer

The American Airlines arm of AMR Corp, and Delta Airlines Inc have now reached definitive agreement on their previously announced plan to merge their airline reservation systems (CI No 1,106): each will initially own 50% of the new entity, which will be headquartered in the Dallas-Fort Worth area of Texas, but the intention is to invite other airlines to take stakes in the business, although the founder shareholders will not allow their holdings to go below 25% apiece; Delta will pay American $650m because the Sabre system is so much bigger than Delta’s comparatively youthful Deltas II reservation arm.

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