What You Can Learn From British Airways's IT Meltdown That Left Passengers StrandedInvest in systems you need and keep your customers informed.

ByNina Zipkin

Bloomberg | Getty Images

British Airways had a rough weekend.

Due to a power surge early Saturday morning and a backup that failed to work, the airline'scomputer systemsbroke down. The crash prompted British Airways to cancel all departing flights from Heathrow and Gatwick airports, effectively stranding 75,000 people. And once the passengers arrived at their destinations, there was no guarantee that their luggage would be waiting for them.

It was a chaotic and ultimately expensive mishap for British Airways. The marketvalueof IAG, the airline's parent company, dropped by about $643,550,000. Not only that, butThe Guardianreports that customers inconvenienced by the IT issues had to pay up to $2,059 in additional travel costs, leaving the company with a hefty compensation $192 million compensation bill.

Related:These 10 Countries Will See the Most Business Travelers in the Next Decade

If you're sleeping on the floor of an airport terminal, of course you aren't going to have a ton of understanding for the organization that put you in that position. But it wasn't just disgruntled passengers -- the response from rival airline, Ireland's Ryanair was particularly merciless.

A peek into the company's Tweets & Replies tab onTwittershows a raft of customer service messages with a heavy use of the words "sorry" and "apologise." CEO Alex Cruz also made a video apology.

Related:5 Ways to De-Stress Your Business Travel

"We absolutely, profusely apologize for these events," Cruz said. "We are absolutely committed to making sure that we fulfill our obligations, particularly from a passenger compensation point of view. … We are now focusing on making sure that everyone's needs are addressed. We will make an in-depth investigation to make sure we get to the bottom of exactly why this happened and we will react. This will not happen again at British Airways."

Cruz is saying all the right things, and it would seem that his team is working tirelessly to make sure that each customer is taken care of. But what the experience of British Airways teaches us is that we need to think carefully about where resources can best be utilized. Think about the systems and structures that you can't do without and always make sure that they are up to date. If you can have the most current technology, an investment now could save you a major headache later.

Better that the glitch never happened at all -- but if your company is faced with a snafu of this magnitude, the best move is to be honest, admit what went wrong and keep your customers informed.

Wavy Line
Nina Zipkin

Entrepreneur Staff

Staff Writer. Covers leadership, media, technology and culture.

Nina Zipkin is a staff writer at Entrepreneur.com. She frequently covers leadership, media, tech, startups, culture and workplace trends.

Editor's Pick

Related Topics

Business News

Kristen Bell and Dax Shepard's Family 'Stranded' at Boston Airport During 9-Hour Delay: 'We Made Quite a Home Here'

The actors spent $600 on pillows and blankets while waiting for their flight.

Starting a Business

10 Ways to Create a Startup Dream Team

Get tips on how to form an effective founding startup team, focusing on hiring the right culture fits, creating a flexible structure and fostering a feedback-rich environment.

Travel

10 Best Entrepreneurial Events To Attend Before 2023 Is Over

As we head into the latter half of 2023, there's still a great chance for you to get involved in some exciting startup events.

Living

Finding Balance — How to Pursue Your Entrepreneurial Ideas While Prioritizing Your Well-Being

A question for entrepreneurs: Are we planting seeds or burying ourselves in work?

Business News

California Family Accused of Recycling Fraud Scheme Worth Millions, Facing Possible Prison Time

The charges filed against family members include grand theft, recycling fraud and conspiracy.