BA debacle puts spotlight on airlines' old IT systems, cuts

The catastrophic IT failure at British Airways that ruined travel plans for 75,000 people has raised questions about some older airlines' focus on costs to the detriment of investment in new computer systems. As BA resumed full service Tuesday, shares in its parent company, International Airlines Group, dropped 3% as investors appeared to worry that the company's quality of service may have been undermined by recent efforts to save money. Disaster struck on Saturday, when the company's computer systems went down and there was no functioning back-up. The airline cancelled all flights and only managed to resume full service on Tuesday. "Although cost cutting has been good for the share price in the last year, it will come back to bite IAG if it stops them from doing what they are supposed to do: Fly passengers to their destinations," said Kathleen Brooks, the research director at City Index. The problem with IT systems is recurring across the industry, particularly among established airlines. In August, Delta cancelled hundreds of flights when a power outage likewise knocked out its computer systems worldwide. Airlines face challenges with their IT systems also due to linkages across their systems. There's further demand on the system when companies consolidate — as has been the case among airlines — since "IT issues get heightened and any vulnerabilities are exposed." Such troubles give an advantage to newer airlines such as Ryanair.<br/>