Delta’s systems failure marks wake-up call for airline industry

The failure of Delta’s worldwide computer network this week spotlights the vulnerability of the information systems sustaining the biggest US carriers, each of which has contended with major disruptions during the last year. Complex networks cobbled together over the decades need major overhauls requiring significant new investments, said Bob Edwards, a former CIO for United Continental. Recent flaws in computer systems quickly escalated into corporate black eyes that exacted costs in both money and reputation. “I don’t believe the flight ops, maintenance, passenger service systems, crew and dispatch applications are engineered with the level of redundancy needed,” said Edwards, who retired in 2014 under pressure after several service disruptions at United. More disruptions are a near certainty: “Mistakes will happen, devices will malfunction.” The Delta debacle marks a wake-up call for an airline industry in which outdated information systems can strand thousands of passengers. The Atlanta-based airline, which had been leading major carriers in reliability, is far from alone in stumbling. Southwest Airlines said a computer failure July 20 would cost it “tens of millions” of dollars after more than 2,300 flights were cancelled. The cost of lost revenue, accommodating passenger on other flights and other issues may cut the airline’s Q3 earnings by as much as 10%, Dan McKenzie, an analyst at Buckingham Research Group, said in a note Tuesday. Unlike a factory hit by a disruption or strike, airlines already running near capacity have limited ways to make up lost revenue.<br/>