Alaska Airlines recognizes that improvements to contracting audit procedures would be prudent and therefore decided to assign this contract to Accenture, a large and established global firm, for a thorough audit of its technology systems.
This decision is further underscored by the recent IT outage that nearly ground Alaska Airlines’ operations to a halt, resulting in mass flight cancellations all around the country, and forcing the airline to cancel its quarterly earnings call.
The incident has drawn international condemnation and left millions of stranded flyers. It has shown up key vulnerabilities in the airlines’ core operational technology.
According to CEO Ben Minicucci, this partnership is viewed, above all, as a “path toward resiliency” for restoring customer confidence while further strengthening the infrastructure against breakdowns for the future.
Operational Integrity Review
The engagement with Accenture is confined only to the top-to-bottom assessment of the technology environment across Alaska Air Group. Lastly, the specific focus on critical systems health and applicable internal IT standards and operational processes all ranging from flight planning to customer-facing applications.
The move came as a proactive measure after a series of high-profile system failures, with the latest being associated with its primary data center that resulted in some halting of all flights.
The sheer scale of the disruption-ten-thousands passengers affected by the event and a significant financial briefing being cancelled–made it all too clear that external, expert review would be required to address any concerns about operational integrity.
Financial Impact and Transparency
The need for an audit and the subsequent cancellation of the third-quarter earnings call have brought attention to the financial ramifications of these technology failures.
Alaska Air Group doesn’t intend to reschedule the canceled call, instead opting to issue updated financial guidance for the fourth quarter in a later period of the year.
This delay accepts that the total dollar amount-from lost revenue and compensation to passengers for their inconvenience to emergency recovery and this new consulting contract-should be carefully calculated before any communication with investors.
By utilizing Accenture’s expertise, the airline hopes to locate and remedy the weaknesses to show both the public and financial market its firm commitment to long-term system reliability and operational excellence.
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A recent media graduate, Bhumi Vashisht is currently making a significant contribution as a committed content writer. She brings new ideas to the media sector and is an expert at creating strategic content and captivating tales, having working in the field from past four months.
