Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, August 22, 2016
Delta Air Lines finds itself in the crisis spotlight following a power failure that led to a crash of its computer network that prompted the cancellation of more than 1,000 flights on the first day alone, with around 1,000 more flights canceled on the second and third days of the event.
The company’s chief executive, Ed Bastian, apologized in a video statement and took full responsibility for the system meltdown, saying in a second video statement the snafu was a one-time event started by a power outage and a small fire. The company provided updates, offered travelers $200 vouchers, waived flight-change fees and put hundreds of fliers up in hotels.
Using the statements made by the airline and the comments of Mr. Bastian, the experts evaluate how well Delta handled this crisis.
“Delta did not improve its reputation for trustworthiness with its early statements about its recent computer system crash causing thousands of cancelled flights,” says Davia Temin. “Delta appeared to be more worried about minimizing its damage first, only [later] acknowledging the full severity of the situation–during which time social media was ablaze with customer rage and protest.” […read more]