Author Question: Why does SABRE have the biggest market share in the United States while Amadeus dominates Europe? ... (Read 198 times)

ashley · **on:** Sep 11, 2019

Question 1

Explain nondistribution of earnings for not-for-profit organizations.

What will be an ideal response?

Question 2

Why does SABRE have the biggest market share in the United States while Amadeus dominates Europe?

What will be an ideal response?

Jsherida · **Reply #1 on:** Sep 11, 2019

Answer 1

Not-for-profits, while they can operate profitably, are prohibited from distributing earnings to board members and other influential individuals. Profits may be used to increase the organization's unrestricted net assets balance in order to improve solvency. It is also acceptable to offer staff increased compensation packages and attractive performance bonuses.

Answer 2

SABRE was out in the market first and concentrated on markets where their parent, American Airlines, was strongest, namely the domestic markets. Amadeus was created by several European carriersAir France, Iberia, Lufthansa, and SASwho concentrated on international markets.