Comair's Christmas Disaster: Bound To Fail

The 2004 crash of a critical legacy system at Comair is a classic risk management mistake that cost the airline $20 million and badly damaged its reputation.

PAGE 3

In 1998, Dublikar and his IT steering committee brought in consultants from Sabre, the Southlake, Texas-based airline software and consulting company, to create a long-term IT strategy to address the issue of legacy systems and architecture. The consultants spent five months meeting with IT’s various constituents in the business to find out what their needs were. They examined the airline’s existing IT infrastructure and suggested a five-year strategic plan outlining (among other things) which systems needed to be retired, replaced or added, and a time line for doing so.

The crew scheduling system was marked for retirement. SBS was no longer "the only game in town," recalls Dublikar, and the case for replacing the system was pretty easy to make. "The application was getting old. There was risk there, and there was new technology out there," he adds. "There were even financial benefits to replacing the system in terms of crew productivity and expenses that could be controlled better in a new system."

But this was 1998, and for the next two years, Y2K absorbed most of IT’s attention. By 1999, a significant amount of the work that had been laid out in the five-year plan (including Y2K remediation) had been completed or was under way—including implementing an e-ticketing system, upgrading the corporate network, replacing the maintenance and engineering system (another high-risk legacy system written in Cobol), and implementing a revenue management application.

The replacement of the crew scheduling system was among those next on the list. But after nearly 15 years in use, the business had grown accustomed to the SBS system, and much of Comair’s crew management business processes had grown directly out of it. Just look at a pilot’s contract at Comair; the definition of a workday is lifted straight out of the old SBS crew management application and expressed in Julian minutes the way the system did. (There are 44,640 Julian minutes in a 31-day month.) "That’s the reason why it’s almost impossible to replace these systems," says John Parker, former airline CIO and 17-year Delta veteran, now CIO of A.G. Edwards & Sons.

But systems requirements had been defined, and the IT department was in the software selection process. Final vendor selection was slated for 2000, according to Dublikar.

But then, in the middle of 1999, Dublikar left Comair, and shortly afterward, Delta announced its plans to acquire Comair.

Hands off at Delta

To Delta, buying Comair—one of its most profitable regional partners—was a no-brainer. It made money. It was an industry leader in on-time, cancellation and missed baggage statistics. And it was a stock market darling. "Before Delta came in, Comair was one of the best managed and most successful regionals in the country," says Holly Hegeman, an airline industry analyst and founder of PlaneBusiness.com. "They had the reputation of being the top dog."


Loading...
Applications MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Using ERP To Gain Competitive Advantage in a Tough Economy
For midsize enterprises, now is the perfect time to invest in a significant IT expansion - despite the economic climate. Learn more »
Why BI is Ripe For Businesses of Any Size
Oracle's range of offerings to mid-size and emerging companies reflects its vision that BI and EPM solutions can be embraced by companies of all sizes. Learn more »
Oracle Accelerate
Ovum has been following Oracle's Accelerate program over the last couple of years because they thought it is a smart strategy for penetrating the upper mid-market. Learn more »
The New Age of ERP
Not only can small and mid-sized companies reap the renowned ERP benefits of greater agility, increased business visibility and measurable ROI. Learn more »
 
SPONSORED LINKS
 

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

ROI of Application Delivery Controllers

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

What's Next for Enterprise Resource Planning?

Gartner Magic Quadrant, Application Delivery Controllers 2009

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

 
 
RESOURCE CENTER