Delta Air Lines COO Departs Amidst aftermath of Tech Outage

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ICARO Media Group
Politics
23/08/2024 19h58

In a surprising move, Delta Air Lines has announced the departure of its Chief Operating Officer (COO), Michael Spanos, as he takes on a new job opportunity after just over a year with the airline. The timing of this news comes in the wake of Delta's recent struggles in recovering from a global technology outage, which led to thousands of flight cancellations.

Spanos, who previously held prominent positions at PepsiCo, the Pepsi Bottling Group, and Six Flags Entertainment, joined Delta in June 2023 as one of the airline's Executive Vice Presidents. Although the regulatory filing did not provide a specific reason for Spanos' departure, Delta noted that he would receive severance benefits as outlined in their officers and directors' plan. Spanos had a compensation package valued at $8.6 million last year, primarily in stock awards.

CEO Ed Bastian addressed the situation in a note to employees, revealing that Spanos had expressed his intention to leave Delta "earlier this summer," before the technology outage occurred. However, Bastian commended Spanos for his contributions to improving Delta's performance during his tenure. Interestingly, Delta has no plans to appoint a new COO, with President Glen Hauenstein's role being seen as fulfilling that function within the company.

Delta's handling of last month's technology outage placed them in a uniquely tough position compared to other U.S. carriers. The incident was triggered by a faulty software upgrade from cybersecurity firm CrowdStrike, affecting computers operating on Microsoft Windows. While competitors managed to recover within a few days, Delta was forced to cancel around 7,000 flights over a five-day period as they struggled to realign crews and aircraft.

The U.S. Transportation Department has initiated an investigation into the incident, with Delta pursuing $500 million in damages from both CrowdStrike and Microsoft. The tech companies, on the other hand, claim that Delta declined their assistance and made false claims about the situation.

As Delta Air Lines bids farewell to its COO and deals with the repercussions of the technology outage, the airline industry will be watching closely for the steps that will be taken to ensure smooth operations and prevent similar incidents in the future.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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