Shares in British Airways' parent company tumble
- Author: Adam Floyd May 31, 2017,
May 31, 2017, 5:28
From London to Paris, Singapore, New York, Lisbon and many other destinations, BA passengers were stranded as more than 1,000 flights were disrupted by the incident sparked at a London data centre near Heathrow on May 27, around 9:30am.
The system failure has affected the airline's baggage handling solution, booking system, mobile phone apps and check-in counters.
"We know there are still significant numbers of customers who are yet to receive their luggage".
A BA spokesman said: "We are very sorry for the frustration customers are experiencing and understand the difficulties they are facing".
The airline said its IT systems are "back up and running" and it was operating a full schedule on Tuesday but apologised to those who had not been reunited with their bags. United in 2015 suffered a series of computer woes that caused major service disruptions; last summer, Southwest canceled thousands of flights due to a technology breakdown.
However, BA CEO Alex Cruz denied this. "We estimate c. €100 million total lost contribution, comprised of €40 million lost revenue for one day and €60 million customer compensation costs based on European Union legislation", analysts at Citigroup said in a note on Monday.More news: Does US believe Western Wall is in Israel?
The airline was forced to cancel all its flights from Heathrow and Gatwick airports on Saturday, ultimately stranding 75,000 passengers in 170 airports across 70 countries, the BBC reports. In 2016 BA made hundreds of dedicated and loyal IT staff redundant and outsourced the work to India.
In February IAG reported its annual operating profit rose 8.6 percent to 2.5 billion euros and said its British Airways transatlantic business, based at Heathrow, had held up well compared with Europe's highly competitive budget market.
"As soon as the bags are given back to British Airways, courier services who work on our behalf will deliver the bag", it added.
According to The Guardian, the trade union blamed BA' decision to outsource hundreds of IT jobs to India for its recent failure on Saturday. The firm said a supply issue at a data center near Heathrow sparked the surge. Several passengers complained about a lack of information from BA representatives at the airport.
The airline has also said it will meet its obligations under passenger-rights regulations. Affected passengers have told GBC they have been rebooked on flights over the next two days, as the backlog caused by BA is still noticeable.