Alaska Air Group Plans Technology Upgrade Following Major Outages
Alaska Air Group Inc. plans to upgrade its technology systems following significant operational disruptions that affected earnings, including the cancellation of over 400 flights in October due to a data center failure. The Seattle-based airline will invest tens of millions of dollars annually to transition to cloud-based platforms, evaluating providers like Amazon Web Services and Microsoft Azure. This initiative comes after consultations with Accenture to enhance operational efficiency and reliability.
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Alaska Air Group Inc. will upgrade its technology systems after significant outages disrupted operations and affected earnings. The Seattle-based airline aims to transition operational systems, back-office functions, and data center operations to cloud-based platforms.
Chief Financial Officer Shane Tackett indicated that the airline will increase technology investments by tens of millions of dollars annually. The revamp will involve evaluating cloud providers such as Amazon Web Services and Microsoft Azure and follows consultations with Accenture.
In October, Alaska Air canceled over 400 flights due to a failure at its primary data center, which impacted a critical tool for measuring aircraft take-off weight and balance. The airline also faced disruptions from a global outage at Microsoft Azure.
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