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 5

Then came 9/11, crippling airlines big and small, and pushing some of the largest carriers into bankruptcy. Though Delta has thus far avoided that fate, the airline lost nearly $8.5 billion over the following four years, increasing the pressure to keep costs down. While there’s no evidence that Delta refused to fund an upgrade for the crew scheduling system, "approval for capital expenditures seldom went through the first time [at Delta]," Bardes says. "They’d want more analysis. They had a definite influence on how fast money got spent."

Delta declined to comment for this story and referred questions to Comair. Comair spokesman Nick Miller would say only, "We’ve been very straightforward in acknowledging the challenging time we’ve been facing in the airline industry and that we’ve had to be very prudent in how we’ve invested in technology."

Late in 2002, the Comair IT group did turn its attention back to the crew management system and brought in several vendors, including Sabre and SBS, to perform demos. Comair went down the road a bit with one vendor, which it refuses to name, but ultimately backed out during contract negotiations due to pricing concerns. All in all, there seemed to be no hurry on either Comair or Delta’s part to get the project rolling, even though the crew scheduling system was (and still is) the oldest application of its kind still running at a regional carrier, according to a recent survey by Regional Aviation News.

Finally, Comair got approval from Delta to replace the legacy SBS system and inked a deal with Sabre in June 2004 to implement its AirCrews Operations Manager. Implementation was set to begin in 2005. But by then, it would be too late.

On Dec. 16, Comair reported an operating profit of $25.7 million in the third quarter of 2004. A week later, a severe winter storm hit the Ohio Valley. The snow came with sleet and freezing rain. Deicing the jets took much longer than expected and some jets’ tires froze to the ground. From Dec. 22 through the 24th, Comair had to cancel or delay 91 percent of its flights.

And another problem was looming. As it turned out, the crew management application, unbeknownst to anyone at Comair, could process only a set number of changes—32,000 per month—before shutting down. And that’s exactly what happened. On Christmas Eve, all the rescheduling necessitated by the bad weather forced the system to crash. As a result, Comair had to cancel all 1,100 of its flights on Christmas Day, stranding tens of thousands of passengers heading home for the holidays. It had to cancel nearly 90 percent of its flights on Dec. 26, stranding more.


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