Subscribe Now

travelers today

Home » News

British Airways Faces Outrage From Passengers Over Cost Cuts

Travelers Today       By    Staff Writer

Updated: Jun 05, 2017 06:31 AM EDT

Text Size: A A A

Public outrage on the British Airways heats more as the UK carrier had an epic meltdown over a busy holiday weekend due to its focused cost cuts on customer service. This leaves British Airways scrambling on explaining how a local computer outage could possibly lead to thousand of stranded passengers.

In an article published by the Strait Times, a brief power surge knocked out the communications systems of British Airways, grounding the carrier's entire operations in London. This led to days of chaos and putting the newly appointed chief executive officer in criticism.

It's estimated that nearly 600 flights were canceled and items of luggage were unable to be dispersed. The total damage of British Airways for rebooking and compensating customers is currently estimated at 100 million euros or $112 million. This is about three percent of the annual operating profit of parent company IAG SA.

In an article published in Bloomberg, CEO of British Airways Alec Cruz is currently doing damage control with all the heat that the company has been receiving. He also told Sky Television that a cyber attack is already ruled out as the fault of the problem.

"We're absolutely committed to finding out the root causes of this particular event," Cruz said.

Analyst Damian Brewer of RBC Capital Markets said that it's tempting but increasingly questionable to view this British Airways incident as a one-off.

"Coming after a spate of other issues, the bad PR and potential reputational aftermath will likely hit future revenues beyond the likely material impact," he said.

Even if 95 percent of flights of British Airways are currently running, thousand of customers of British Airways are still being re-routed. There are more than two-thirds of the 75,000 affected passengers scheduled to reach their final destination.

Analysts have already estimated that the number of people British Airways needs to compensate is around 170,000. This crisis puts Cruz, who took charge a year ago after running IAG's Spanish budget unit Vueling for more than nine years, in the spotlight.

See Now: The U.S. had the highest number of Most Wanted properties, dominating the Hotels.com Loved By Guests Awards 2018

Tags
british airways, customers, airplanes, British Airways scandal, British Airways stranded
© 2023 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Most Popular

6 Tips For Traveling With Young Children

6 Tips For Traveling With Young Children

Planning for a trip takes some time, even if it's just you g

How Traveling Can Make You Happy

How Traveling Can Make You Happy

If you have never traveled before but are thinking of doing so then

Scottish Islands: The Best Places to Reside!

Scottish Islands: The Best Places to Reside!

So there are a few islands that can be found off the Sco

How to Plan a Multi-Destination Honeymoon During COVID

How to Plan a Multi-Destination Honeymoon During COVID

You need to know how to plan appropriately and

7 Tips for Amazing Campus Visits

7 Tips for Amazing Campus Visits

A campus visit's significance could not be overstated. After all, fo

4 Tips For Curating The Perfect Gallery Wall

4 Tips For Curating The Perfect Gallery Wall

Having a gallery wall brings plenty of benefits to your

Water Travel Options That Don’t Involve a Cruise

Water Travel Options That Don’t Involve a Cruise

There is something equally relaxing and invigorati

Photo by Erik Odiin on Unsplash

Things That Will Help Cost-Conscious Vacationers Save Money

There are several ways you can significan

Photo by Mikhail Nilov from Pexels

How to Make Vet Visits Affordable in 2022

If the situation is minor, you might be lucky and get away

Photo by Tim Samuel from Pexels

Know Your Florida Driving Rules

There is so much to do in the region, but we want to focus on some of

Photo by Ging Ang from Pexels

Holidaying in your own Country: Try these Fun Trips!

Many countries are opening their borders, but if

Photo by Jessica Lewis Creative from Pexels

The Best Tech Tools for Expats

Here’s a quick look at most versatile tech tools for expats on the m

Photo by Tobi from Pexels

How to Turn a Road Trip Into A Luxury Adventure

But a road trip doesn’t have to mean living on the

Australian Citizenship Test: Everything You Need to Know

Australian Citizenship Test: Everything You Need to Know

Do you want to become a citizen of Australia

Hair transplant Istanbul: Why is it so popular?

Hair Transplant Istanbul: Why is it so Popular?

Getting a hair transplant in Istanbul is affordable i

What’s Going on with Rental Cars Right Now?

What’s Going on with Rental Cars Right Now?

They are incredibly expensive, and they’re also in sh

Role of Professional companies in International Trade

Role of Professional companies in International Trade

International trade holds great importance in a

The 5 Best Wines from Germany

The 5 Best Wines from Germany

Riesling is Germany’s best-known wine, but the country makes other fi

Here's Why You Should Go Camping On Weekends

Here's Why You Should Go Camping On Weekends

There is nothing like the great outdoors –– natureâ€

The Best Tote Bags To Travel With in 2022

The Best Tote Bags To Travel With in 2022

Who knew you could pack your entire life away into one litt

7 Captivating Attractions for Kids in San Diego

7 Captivating Attractions for Kids in San Diego

San Diego is a magnificent place, and it would not be

travelers today

© 2023 TRAVELERS TODAY All rights reserved.

Subscribe to our newsletter
Real Time Analytics