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.
There was no backup system. It took a full day for the vendor to fix the software. But Comair was not able to operate a full schedule until Dec. 29.
The big lesson: Manage your risk
The Comair disaster is a classic case study in operational risk, according to industry experts, who say both Comair and Delta carry some blame. Comair IT executives should have done the kind of risk management analysis that would have alerted Delta to the dangers of not replacing the legacy system sooner. And IT should have repeatedly brought that analysis to the attention of Delta officials until a replacement system was funded. Similarly, Delta executives should have insisted on scrutinizing Comair’s operations and done their own analysis of the carrier’s risks.
"Anything that can damage a parent company’s brand or reputation has to be managed in some way," the former Delta IT executive says. "Risk assessment of worst-case scenarios at Comair should have happened at Delta."
What happened at Comair is hardly an isolated problem. Old green-screen legacy systems exist at the core of many businesses, and they can’t take the velocity and number of transactions coming at them today from outside. "The more applications a legacy system is hardwired to over the years, the more fragile it becomes," says EDS’s Charlie Feld, also a former Delta CIO.
The larger problem is that operational risks are not introduced into day-to-day decision making at many companies, such as Comair, the way things such as the mechanics of planes and daily operations are. Robert Charette, director of the Cutter Consortium’s enterprise risk management and governance practice, says Comair executives still don’t seem to have learned this basic risk management lesson. As late as March, Comair’s Miller was blaming the debacle on bad weather. "If the weather had not hit as hard as it did, the problem would have never come up," he says.
Industry observers acknowledge that convincing first Comair corporate and then Delta executives of the necessity of replacing the system would have been a tough sell for IT. But if Comair’s IT had done a cost-benefit analysis of the risk of not replacing the system, they could have made a convincing business case for an upgrade, says a former Delta IT executive.
The technology is there, Feld says. "The question is how people in IT lay out that multiyear plan and get the right partners in there to help transform these legacy systems," he adds. "Because if you don’t, there will be more meltdowns."



