Delta Focuses On Brand, Not Passengers, During Outage

It goes without saying that Delta has had a rather rough week, after their systems went down on Monday morning. Operations are finally mostly back to normal today, so I wanted to briefly reflect on Delta’s crisis performance, because there are some areas where they did exceptionally well, while other areas where they failed their customers.

Outages happen…

There has been shock and outrage from people about how a malfunction like this could possibly happen. Perhaps I’m more forgiving than others, but I don’t fault Delta for the problem as such.

Yes, this was a huge failure. A switchgear malfunctioned, and then the real issue that caused the catastrophe was that the backup systems didn’t kick in as they were supposed to.

“How can the world’s second largest airline be reliant on a single piece of technology?”

Well, there are malfunctions every single day at global airlines, and fortunately 99%+ of the time the proper backup systems kick in, so as customers these problems never impact us.

Once in a while every company has a catastrophic failure, and that includes Delta, the self proclaimed “on time machine.”

So I hope they learn from the situation, though I realize no company is immune from failures like this.

Delta’s words…

Delta is brilliant at marketing themselves, and their recovery efforts have been no exception. They’ve had frequent high level communication, and they should be commended for that. It would be tough to beat the frequency and level of remorse with which Delta communicated.

The same day the outage happened, Delta’s CEO, Ed Bastian, made a video personally apologizing for the issues:

On the other end of the spectrum they put out some ridiculous fluff press releases, like that they transported 40 passengers in private jets to get them to their destinations:

Perfect, I’m sure the hundreds of thousands of people who were stranded will be thrilled to hear about Delta’s commitment in that regard.

Delta has even taken out billboards and electronic signs all over the place thanking people for their patience and indicating that their operations are back to normal.

They’ve also proactively offered delayed passengers compensation, something they came up with pretty quickly.

So in terms of image management, they’ve been doing exceptionally well… as Delta usually does.

Delta’s actions…

Here’s where Delta really failed their customers. Presumably when this outage happened, Delta knew that it would be several days before operations were back to normal.

About half of Delta’s flights on Monday didn’t operate, so it goes without saying that a huge number of flights on Tuesday wouldn’t operate either, and that the schedule issues would continue over the next several days.

However, Delta only issued a travel waiver for Monday. It wasn’t until Monday night that they issued one for Tuesday, and until late on Tuesday that they issued one for Wednesday.

To me it’s ridiculous that they’d wait that long. Per their policy, during the day on Monday a passenger booked on a Tuesday Delta flight would have to pay a change fee to reschedule their flight.

Furthermore, the travel waiver indicated that tickets had to be rebooked for travel by this Friday. This is impractical for so many reasons:

  • Presumably Delta knew that operations would be impacted for several days, so why would they want to force passengers to rebook for travel within a few days, rather than letting them rebook for later dates? This made the situation even worse.
  • A lot of people might be weekly commuters, so suggesting that someone simply reschedule Monday morning travel for Thursday or Friday isn’t exactly useful, in many instances.

Let’s also keep in mind that a bit under a year ago Delta discontinued their inline agreement with American. This would basically allow passengers to be rebooked on other airline at pre-arranged rates in the event of irregular operations. Delta was so confident in their operational performance that they weren’t willing to accept industry standard reimbursement rates.

In this situation that meant that Delta couldn’t easily rebook passengers on American, since the agreement wasn’t in place. So while they may be better operationally most of the time, that’s a policy that severely inconvenienced passengers this week. They thought they were better than other US carriers, and that cost their customers a lot of rebooking options this week.

Bottom line

Delta has done an incredible job managing their image throughout all of this, as usual. They had high level communication, and are even spending (what I assume is) a lot money on ads apologizing to customers.

While front line employees have been going above and beyond to accommodate passengers, the high level decisions Delta has made during this outage have been disappointing. Only issuing a travel waiver for one day at a time, and requiring people to travel by the end of the week, is ridiculous when we’re talking about something of this scale. Furthermore, Delta’s self perceived operational superiority cost their customers this week, as they weren’t able to be rebooked on airlines like American.

So good job on the image management, Delta, but in terms of actual policies in place, I think they left a lot of customers hanging.

What do you make of Delta’s performance during their outage?

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RaflW Guest

@Alpha Their cookies are delicious. And: 1. They've stopped serving them on some flights. My recent DL <700 mile trips have not featured them! 2. One can buy them w/o the Delta branding in fairly large quantities at the giant-box membership stores. So I now recommend that we all book whatever airline has the best combination of fare & schedule, and cater our own cookies in flight!

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Tachyon_OGG-SBA-IAD Guest

@ Todd Lest anyone think I'm making up the "Delta flies only one passenger stories", here are multiple examples: From 2016: http://www.independent.co.uk/news/world/americas/man-is-the-only-passenger-on-a-160-seater-delta-flight-a7107571.html From 2015: http://www.cnn.com/2015/01/13/travel/man-alone-delta-flight-feat/ From 2014: The "big data" lie that gave rise to all this DL game-playing http://www.pbs.org/newshour/making-sense/how-delta-masters-the-game-of-overbooking-flights/

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Tachyon_OGG-SBA-IAD Guest

@Todd-- I have to believe part of it tracks back to 'culture'.... DL's PR team basically manufactured the "We never cancel flights" thing. And the whole company apparently bought into their own Bull Excrement. They insisted they "never cancel flights" (Although I giggled the last time I was in HNL and the board listed a DL flight as "still at the gate" after a 22 hour 'delay'. I think to the passengers, whole likely all bailed for other flights, that after 12 hours of sitting there, well it's as good as a cancellation...) even though they'd canceled thousands in 2016, even before last week*** That's why they terminated the Interline Agreement with AA-- DL was convinced they were being used. Wonder if they think that this week? DL continued to insist their 'ontime percentage' was 10 points higher than the others... I believe this is also manufactured. The last time DL stranded me at BWI, I had extra time to check the "ontime" rating for all the alternatives onward legs to MSP and DTW. DL's site insisted they were all 90-100% ontime. FlightStats and FlightAware both showed them between 60-70%. So, yeah, I would NOT stake my life on ANYTHING Delta says. They, though, appeared to think they were invincible and burned a lot of lifelines that could have prevented or ameliorated some of the pain last week. Including a full back-up contingency program. Tachyon *** This reminds me, anyone else ever marvel at the series of "A Delta Passenger shows up for his flight and finds he is the only passenger?" stories on cable news? I think, in the context of the DL PR line "We never cancel flights", this makes total sense-- most sane passengers bail on these really late DL "non-canceled cancellations", so DL gets more than their share of "Gee only one passenger on a big jet" stories. It's more than an oddity-- it's the way DL manipulates their stats to 'look better' even when it's worse for the Pax.

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Tachyon_OGG-SBA-IAD Guest

@DSA I'm really sorry. That is appalling. Whether you were "F" or "E" class ticketed, that sort of behavior is simply intolerable. And, it does raise the question for me: If the denied boarding compensation statute kicks in when, through over-optimism, DL sells 185 seats for a 175 seat plane and you aren't able to get where you paid to go in the timeframe you intended to get there.... why doesn't the same thing apply when, through over-optimism by DL's IT/systems guy, a single-point-failure grounds the fleet and you aren't able to get where you paid to go in the timeframe you intended to get there? Personally, with the sheer number of times DL has delayed me over 5 hours (and in many cases overnight) in last 24 months, I'd have several thousand dollars worth of EU-style compensation (plus hotel and meals, of course). I just don't understand how a few people will get $200 "vouchers" on this one incident-- and somehow that makes a half-million passengers whole??? It doesn't compute for me. "Delta screws up? Delta Pays Up..." should be the guiding principle. Hopefully a few Senators/Representatives got tied up in the mess this time and the Congress will finally take up legislation to put us on equal footing with the EU regulations.

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Todd Guest

Tangential but a little off topic: As an IT executive of a very large international company, I've been following this issue with Delta quite closely. If nothing else, it highlights what many companies fear going through. You asked the question: “How can the world’s second largest airline be reliant on a single piece of technology?” Though I don't know Delta's situation specifically, I can tell you I've been at many large companies who could have been in this same situation because they choose not to make investments in backup technology. There's a risk-reward for making sizable investments that are mostly insurance policies against large outages. Many companies don't want to spend the millions of dollars on this equipment or staff, and even if you do make the investment, you actually need to run a "disaster recovery" test at least once a year to see if your technology, process and people are ready to handle things. Almost every company out there relies heavily on technology today - this blog being a great example. You hope that nothing catastrophic happens, but it will. It's only a matter of time. I tell people all the time there are three guarantees in life: death, taxes and your technology will fail. It just depends on how bad the failure will be, how quickly you can restore services and business to normal, and how much it will cost you in lost revenue and brand. Again, I don't know Delta's specific situation, but surely they would have paid far less in more investment in technology, people and process versus the fallout of what they're going through now. Until the next major outage...

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