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RCED-92-225R 1 (1992-06-09)

handle is hein.gao/gaobackbr0001 and id is 1 raw text is: 


             United States
             General Accounting Office
GAO          Washington, D.C. 20548

             Resources, Community, and
             Economic Development Division


             B-247612



             June 9, 1992
                                                               146861
            The Honorable Joseph I. Lieberman
            The Honorable John McCain
            United States Senate

            In your letter dated June 4, 1992, you asked us to clarify
            the recommendations concerning computer reservation systems
            (CRS) contained in our March 1992 report, Computer
            Reservation Systems: Action Needed to Better Monitor the
            CRS Industry and Eliminate CRS Biases (GAO/RCED-92-130, Mar.
            20, 1992). Your letter noted that some parties have
            interpreted our report to mean that the GAO is recommending
            further data collection and study before any CRS reforms are
            implemented. This interpretation is incorrect.

            Our March 1992 report contained two recommendations. First,
            we recommended that the Congress direct the Secretary of
            Transportation to revise the Department's existing CRS rules
            to require that each CRS vendor eliminate those functional
            differences between host and participating airlines that can
            be eliminated without dehosting. Second, we recommended
            that the Secretary of Transportation gather data on the CRS
            industry, the reliability of communication links, and the
            costs and benefits of dehosting CRSs.

            On the basis of our discussions with CRS owners and
            participating airlines, as well as our observations of CRS
            operations, we believe that some remaining functional
            differences can be eliminated at a reasonable cost,
            independent of dehosting. Such differences include those
            resulting from programming or procedures that make it more
            efficient to book flights or obtain information on host
            airlines. CRS vendors agree that these differences, to the
            extent they exist, should be eliminated. The vendors have
            stated that they are acting to eliminate some of these
            differences to remove any possible adverse competitive
            effects as well as the perception that participating
            airlines operate under a competitive disadvantage. We
            recommended that the Congress act to ensure that the vendors
            follow through on their plans to eliminate such differences.

                          GAO/RCED-92-225R, Computer Reservation Systems

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