In the last days of 2022, a faulty router took Southwest Airlines’ reservation system offline and stranded thousands of passengers during the holiday rush. More than 16,000 flights were cancelled and the airline lost north of $1 billion.
The reason for this is the collapse of the company’s outdated system for commanding aircrew that could not withstand the load. Due to the collapse, the company had to carry out the orders without the system and was unable to cope with the demand for rest hours for the aircrew members. Since the crews did not meet the strict requirements, the company had to cancel the flights.
This affected more than 2 million passengers who were left without a response!
This cost a significant financial loss and being brought for a Senate hearing. The financial impact was substantial, emphasizing the real cost of neglecting technological upgrades. The company wrote off $850 million from the fourth quarter reports, moved to a loss of $200 million.
The collapse of the system did not come as a surprise.
Despite warnings from the pilots’ union about system problems over the years, the company chose not to invest in a new system.
Following the system failure, the company announced a substantial investment of $1.3 billion in upgrading its technological systems. This reactive approach underscores the importance of recognizing and addressing technical debt before it leads to major incidents.
This story emphasizes the need to manage risks in existing systems and address technical debts proactively, rather than reacting to crisis.
The meme below refers to much more common reason for a technical debt.
Is there other example for a technical debt that you can share?
#technicaldebt