The Economist (June 3)
“It is the fourth time in a year that BA’s computer systems have suffered a major crash. And debilitating IT breakdowns are becoming increasingly common” across an industry with particularly high IT demands. “The sheer quantity and complexity of the data they handle make airlines particularly vulnerable to IT disasters.” And yet, “in 2015 airlines spent 2.7% of their revenues on IT, half the norm across all industries and a lower share even than hotels.” The pressure to pressure to cut costs is strong, given the industry’s harsh competition. The cost of an IT melt down, however, is much greater. Airlines must “refrain from pruning investment in IT too far.”
Tags: Airlines, BA, Complexity, Computer, Crash, Data, Investment, IT, Quantity, Systems
