Why a Software Glitch Sent Delta into a Tailspin: The Perils of Getting Technology and People Misaligned

BY Bill Saporito | August 22, 2024

Customer-facing airline employees are some of the most remarkable people in business. How can they not be? The workers on the ground face the annoyed, the demanding, the delayed, the furious, the not-going-anywhere-today, and the inebriated. Then they get a lunch break. Those on the jets face the entitled in the front and the cramped-and-cranky in coach.

My admiration for these folks has only increased over the last decade as their ranks have been thinned by technology (with a push from the pandemic) while their tasks have been made increasingly fraught by the air-travel system in which they now toil. And in which we frequently roil.

We got to see this combination of imperfect technology meeting overwhelmed staffing earlier this summer during the great CrowdStrike meltdown. Until its cybersecurity upgrade blew up, CrowdStrike was a company  known mostly to sys-op jockeys and hackers. Then the company introduced a wonky software update that within hours crippled millions of servers that used Microsoft Windows and all hell broke loose.

Around the world, operating systems gagged, including those of major U.S. airlines, bringing traffic to a near standstill. In the U.S., only Southwest, which seemingly still uses floppy discs to run its data systems, escaped the meltdown. With the CrowdStrike collapse, the scene soon became all too familiar: lines of people desperately trying to get somewhere, their options narrowing, their frustration widening as the hours passed. Some would be stuck for days.

And among those carriers, Delta stood out for coming apart like a cheap suitcase tossed down a baggage ramp. The carrier canceled more than 5,500 flights, and at one point refused to board unaccompanied minors, creating major angst for lots of parents. Meanwhile, word got out that CEO Ed Bastian had jetted off—Ted Cruz-style—to Paris for the Olympics while his airline was frozen in place. 

Delta blamed CrowdStrike and Microsoft, and has threatened to sue to recover some $500 million in losses. Microsoft, in turn, blamed Delta’s outmoded technology. During the depths of the outage, Microsoft CEO Satya Nadella emailed Bastian to offer assistance—talk about the ultimate Help Desk—but Microsoft says Bastian apparently didn’t respond. The carrier seemingly turned on its passengers, some of whom reported difficulty in getting hotels from Delta where they were stranded, as well as being low-balled by the refund offers being made to compensate them for lost flights and spoiled vacations. 

Delta’s service swoon seemed all that more severe given that the airline had reached cruising altitude in the post pandemic years, while rivals such as United and Southwest grappled more often with system freeze-ups.

Using Technology to Supplant Labor

Yet Delta, as well as the other carriers, have been rolling the dice for years when it comes to matching people and technology. During the pandemic the carriers had to cut schedules (40% in Delta’s case) and jobs. As the nation and air travel recovered, they either didn’t—or couldn’t—rehire enough people who had left or were let go to match surging demand. (Remember “revenge travel”?) Increasingly, they relied heavily on technology to supplant labor. And they made us, the passengers, part of the labor force: encouraging carry on baggage by charging for checked bags, then introducing self-ticketing, self-check-in and self-bag-checks. Frontier even tried to eliminate its customer phone support.

This latest air travel meltdown magnified an everyday incongruity that exists in the industry in that airlines are carefully configured to cope with the unpredictable—often to no avail. They try to plan for everything, from the catastrophic—a fatal crash—to the complex, such as a hurricane that threatens to spin the entire network into disarray. Then there are wars, revolutions, volcanoes, pandemics, strikes and assorted other calamities that are a regular threat to any global business, but to airlines in particular.

At their vast flight operations centers, the carriers have teams ready for everything from a medical emergency on board to a rivet (or a door) coming loose on a 737 Max or a warning light on an Airbus 321 that won’t turn off. There are doctors, pilots, mechanics, meteorologists, Airbus specialists, Boeing specialists, avionics specialists, crew wranglers, airport and operations managers working 24/7 at the ops centers, and yes, people figuring out just who among us is going to get screwed when flights get delayed or canceled.

Yet all of that preparation is no match for the way airlines are actually scheduled. They remain vulnerable to the phenomenon known as tight coupling, in which one unit in a system is highly dependent on the next. Cascading failure is almost a guarantee once the first fault is unleashed. Why can’t airlines prevent this from happening? The answer is that, despite the contingency planning, airlines are scheduled for optimum conditions, as though it’s always going to be sunny in Philadelphia, or Panama City or Paris. Which is not the case, of course. Worse, with load factors north of 85%, there’s little excess capacity, and little hope of a quick recovery once the system begins to implode.

The contingency planning that airlines do can be undone by what they regularly come up against. Weather is by definition chaotic; technology is capable of catastrophic failure. Try building a service culture around that.

Where’s the Service in the Service Economy?

Although airlines are the most conspicuous examples of failing to balance people and tech, it seems to be creeping into all parts of the economy, as algorithms try to bring ever more precision to businesses. Especially in retail. The goal is to never have excess labor being employed for a single minute anywhere. In this frictionless world, there is always precisely enough help available to help you make your purchase or to get served.

You know how that goes. We seem to live in a nation where there is always one fewer checkout lane open than needed (and don’t get us started on self checkout, which normally requires more than one self to operate). If you’re waiting in one of these lines, this understaffing can seem deliberate.

Not too long ago, I was discussing airline operations with David Neeleman, founder of the highly successful new airline Breeze Airways (not to mention JetBlue, Azul, and WestJet) when he mentioned that he routinely passed by long lines of customers—or potential customers—at airport Starbucks. This frustrating level of service drove him to distraction—and this is a man who does not drink coffee. His point was that in an airport terminal, with scheduled flights, you can pretty much know how many people are going to be around your location at any given time. How can they not figure this out?, he asked, incredulously.

Perhaps because they don’t want to: the obvious conclusion is that it’s better to be slightly understaffed than overstaffed, especially in businesses that ebb and flow during a day. In my nabe, the usual culprit is our CVS pharmacy, where the line gets 10 deep about the same time every day. Or at Chipotle, where 7 p.m. to 7:30 p.m. becomes a crap shoot as to whether your online order will be ready as the app promises. The problem? There are two hospitals nearby, and shifts are changing about then, something Chipotle’s scheduling software hasn’t seemed to have mastered. One more person-hour would do wonders, the difficulty being that you can’t schedule one person for one hour. So we wait.

At Sephora, meanwhile, I seethed in a line on a Saturday afternoon with my wife as checkout terminals remained unpersoned even as the queue expanded. Spotting a manager, I asked, “Can’t you pull people off the sales floor? Isn’t everyone cross-trained?” She, of Gen Z, gave me that “okay, boomer” look before moving on. I’m still not sure whether she lacked the authority to shift salespeople to the front end, or the interest.

Dissatisfied shoppers in brick-and-mortar stores are free to leave and not return, or to buy online. Dissatisfied fliers don’t have that option. How many times have I heard an angry passenger screaming, “I’m never going to fly this airline again,” at an agent and thought: Oh yes you are. And that includes Delta. The carrier may have burned some goodwill this summer, but there’s a still deep reservoir it can still draw on—at least for now.

That includes its talent pool. As we have again experienced, when the technology chokes,  the front-line workers bear the burden for the company, because software doesn’t hear you when you scream at it. The airlines, and many other companies, either need to invest in more dependable technology—or they need to stretch their people a little bit less.

Bill Saporito is an editor at large at Inc. magazine, whose work has also appeared in the New York Times and Washington Post. Previously, he worked as an assistant managing editor at Time magazine and as a senior editor at Fortune. He has written for From Day One on the power gap among labor unions and the myth of the “woke” corporation. 

(Photo by Panama7/iStock by Getty Images)

 

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Bill Saporito | October 23, 2024

The Power Gap Among Labor Unions: Why Some Have New Strength–and Others Don’t

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Bill Saporito | September 19, 2023

The Myth of the ‘Woke’ Corporation

“Whatever you do, lead with your values,” Apple CEO Tim Cook recently told the graduating class at Gallaudet University. Well, that leaves it wide open, doesn’t it? In Apple’s case, what values allow it to manufacture in China, a country that has crushed democracy in Hong Kong and violated the rights of millions of Uighurs on the mainland? Yet iPhones today are allowing citizens and soldiers of Ukraine to use technology to fend off the invading Russian hordes. Or consider McDonald’s, which closed some 850 stores in Russia, laying off 62,000 people. This is the same McDonald’s that is being accused by investor Carl Icahn of being complicit in ruthless treatment of pigs by vendors who supply meat for McRib sandwiches. 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Which is why companies as diverse as Citigroup and Chobani quickly revised their benefits programs to include travel for out-of-state abortion services. If young people today want to work for a company that has a purpose, then defining that purpose in all its forms–political, social, environmental, racial and even local–has never been more complex for corporate America. Likewise for investors and investment companies. BlackRock has drawn fire from both conservatives for its stance on environmental, social and governance (ESG) issues, and from liberals for its investments in China. In Florida, the Walt Disney Co. first tried to escape the debate over that state’s so called “Don’t Say Gay” bill. But Mouse House employees, particularly its creatives, were having none of it. The company then broadcasted its dissent against the gay-bashing legislation. Disney’s support of its own LGBTQ community, in turn, made it a target for Florida’s reactionary governor Ron DeSantis, who orchestrated legislation that stripped Disney of its special tax and government status in the two Florida counties where Disney World operates. (Also potentially leaving the state on the hook for hundreds of millions of dollars of bond payments.) Then DeSantis vetoed funding for a training facility for the Tampa Bay Rays in part because the team spoke up against gun violence. Apparently, the governor favors it. But Disney’s customers voted Mickey over Ron—that is, they continue to flock to the Orlando resort and watch Disney movies. Those include the thousands of LGBTQ customers who show up, and are welcomed, for unofficial Gay Days at the resorts. 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He told me: “After Parkland, I said, ‘We’re done. We’re not selling these guns, we’re not selling high-capacity magazines, we’re not going to sell any guns to anyone who’s under 21.’ That was it. We’re never going to change our mind on any of that.” Sales would eventually rebound because most Americans want to ban assault rifles, too. Walmart, no paragon of wokeness, made a similar call on behalf of its customers. This is a company that is now making a big investment in health care, because it can see the great need, and opportunity, among its customers and employees. To that end, Walmart recently banned cigarette sales in many of its stores even though the company, via a subsidiary, was once the largest tobacco wholesaler in the country. Selling death while at the same time trying to prevent death is a mixed marketing message at best, so Walmart made a choice: your health matters. 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Any company that wants to be aligned with the future can’t avoid addressing human rights, animal rights, government actors, health care, sustainability and the environment. Not that the path is straightforward or even logical. Consider that Texas (once again) bars state retirement and pension funds from investing in companies that want to reduce fossil fuel consumption. Also consider that Texas is the nation’s leading producer of wind energy. If you build wind turbines, doesn’t that make you anti-fossil fuel by definition? Texas pols can deny climate change, but those denials will provide little protection when a monster hurricane–one of the consequences–wipes out Galveston. (Again. In 1900, more than 6,000 people died in such a storm.) And even if Galveston is spared, homeowners in coastal areas that haven’t prepared for extreme weather tied to a warming climate are already seeing sharp increases in flood insurance, if they can buy it at all. Which is to say that even if the free market doesn’t have a conscience, it tends to be rational. The defeat of two ExxonMobil board nominees last year by an activist hedge fund that criticized its strategy around climate change didn’t suddenly transform a hydrocarbon giant into an alternative-energy outfit. But that outcome did demonstrate that ExxonMobil wasn’t as focused on the future of clean energy as it might be—and that’s a market risk shareholders don’t care to face. ExxonMobil’s investors were indeed following their own values–while at the same time addressing shareholder value. That shouldn’t be such a rare event in corporate America. And if the graduates at Gallaudet follow the advice of Apple CEO Cook, it won’t be. Bill Saporito is an editor at large at Inc. magazine.

Bill Saporito | June 12, 2022