August 10, 2016
Delta Meltdown Reflects Problems With Aging Technology
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“An electric problem at its Atlanta headquarters occurred at 2:30 a.m. ET and the airline was forced to hold hundreds of departing planes on the ground starting at 5 a.m., according to Ed Bastian, the chief executive, who apologized to customers on a video.
The technical problems likely will cost Delta millions of dollars in lost revenue and damage its hard-won reputation as the most reliable of the major U.S.-based international carriers, having canceled just a handful of flights in the most recent quarter.
The meltdown highlights the vulnerability in Delta’s computer system, and raises questions about whether a recent wave of four U.S. airline mergers that created four large carriers controlling 85% of domestic capacity has built companies too large and too reliant on IT systems that date from the 1990s. Delta merged with Northwest Airlines eight years ago.” Wall Street Journal
