The Anatomy of Airline Tech Decisions: Build vs. Buy Isn’t the Real Question

Matthew Walker • May 29, 2025

Few debates in airline technology are as enduring—or as divisive—as the question of whether to build solutions in-house or buy them off the shelf.


At Grounded 2024, Scott Allard, former CIO of Spirit and Allegiant Airlines, brought a fresh perspective to this age-old dilemma, drawing on hard-won experience from two radically different airline cultures.


His takeaway? Build vs. buy is not the question. Governance is.


Disruption as the Default


Allard’s journey began at Priceline during the dot-com boom. With its “name-your-own-price” model, customer confusion was rampant.


“Almost every transaction was a disruption. Seventy percent of online customers called the call center after booking.”


This relentless friction between technology and expectation shaped Allard’s approach to system design: fix the root cause, not just the symptom. It’s a lesson that carried through to his years in airline leadership, where the stakes—and complexities—were much higher.


Spirit Airlines | When Buying Doesn’t Mean Solving


At Spirit, Allard inherited an underperforming, in-house reservation system infamously named SARS (renamed TASAR for obvious reasons). The team faced a critical decision: continue building, or switch to a vendor platform?


“Leadership made the call—we were moving to Navitaire’s ‘New Skies,’ whether it was ready or not.”


The implementation proved brutal. The vendor product was still maturing, and integration failures became the norm.


“They had 225 man-years into development—probably half of what they needed. Every build we dropped in was rejected by the business.”


The result: delayed launches, broken trust between teams, and ultimately, a forced exit for Allard himself. The platform may have been purchased, but alignment wasn’t.


Allegiant Air | When Building Becomes a Belief System


At Allegiant, Allard stepped into the opposite culture: a DIY ethos taken to the extreme.


“We built a general ledger system from scratch. Why? Because the CEO believed ownership equaled control—even though accounting hasn’t changed since the abacus.”


Every component, from crew scheduling to inventory, was built in-house—even when the ROI didn’t justify the effort. And because it was a monolithic platform, changing one component (like a website calendar) could break another (like maintenance logs).


Eventually, even the build-first believers blinked.


“We were millions into a maintenance system before ops and IT both said, ‘We don’t want to do this. Let’s buy.’”


The lesson: control can become a liability when it ignores scale, speed, and practicality.


What Actually Goes Wrong?


Across both case studies, the biggest failure wasn’t the platform. It was the decision-making process.

At Spirit, business teams were absent from critical meetings.

At Allegiant, IT promised seamless execution—without involving operations.

“Then we wondered why it didn’t work.”


Allard observed that siloed decision-making, unclear ownership, and politics—not code—were the root causes of tech project failures.


The Real Takeaway: Own the Process, Not Just the Platform


According to Allard, the question isn’t whether to build or buy. It’s how you govern tech decisions.


“What matters is owning your backlog. Having a seat at the table. Don’t wait for IT—solve your problem collaboratively.”


Success comes from cross-functional governance, empowered teams, and iterative, inclusive decision-making. Whether the product is vendor-supplied or custom-built, the process must be strategic, transparent, and participatory.

Tech Decisions Reflect Culture


Allard ended with a candid reminder:


“The process is messy, political, and often a blood sport. But the airlines that get this right? They’re the ones that innovate.”


Technology decisions aren’t just operational—they’re cultural. They expose the health of your leadership, your silos, and your ability to adapt. In an industry with tight margins and high expectations, how you decide is more important than what you decide

Grounded 2025 | Where These Conversations Continue


📍 Reykjavik, Sept. 9–10
💡 150+ airline leaders. Real-world case studies. No vendor fluff.


Register Now

MEDIA

June 5, 2025
Reykjavik, Iceland – This September, more than 150 senior leaders from over 50 global airlines will convene in Reykjavik for Grounded 2025, the only airline summit dedicated entirely to solving passenger disruption. Hosted by disruption management specialists Plan3 , the second annual Grounded summit will take place September 9–10 at the iconic Harpa Convention Centre. Designed exclusively for airline decision-makers—including Heads of IOCC, Operations, Customer Experience, and IT & Innovation—Grounded offers a unique space to explore forward-thinking strategies, technologies, and cross-functional collaboration to improve disruption response across the passenger journey. To ensure a focused environment for those shaping the future of airline operations and customer experience, attendance is free but strictly for airline leaders tasked with solving passenger disruptions. Diederik-Jan Bos , Director of Operations at SAS expressed: “I firmly believe in the value of collaboration and learning from others which is why I highly recommend that other airlines participate in Grounded 2025. Bringing together those who manage teams dealing with daily disruptions and the impact on the passenger journey fosters meaningful, in-depth discussions focused on real-world challenges.” Jenia Rasekhi , Director of Customer Strategy & Innovation at United said: “Grounded brought together top airline leaders for invaluable peer-to-peer learning and it was fantastic to see the different approaches – a must for airlines looking to do passenger disruption management better." Ryan Daniels , Head of OCC & Customer Care at TUI Airways stated: “An energising conference, an informative, and interactive session, hosted in beautiful Iceland; building relations and partnerships across the industry to enhance the customer experience. Honestly, one of the best conferences I have ever been to.” Sveinn Akerlie , CEO at Plan3 [and former CIO at WOW air] added: “Those responsible for managing passenger disruptions are among the hardest-working people in travel. Since airlines don’t compete on safety or service recovery, Grounded creates a rare space for honest, practical collaboration. It brings together the right stakeholders for real-world insights, frank discussion, and actionable takeaways. Attendees will not only leave with fresh ideas to improve disruption strategies—but also a taste of Icelandic hospitality and a sense of renewal.” Want to Be Part of the Future of Disruption Management? Join us at Grounded 2025 📍 Reykjavik | Sept. 9–10 💡 150+ airline leaders. Real-world case studies. Zero vendor fluff. 👉 [ Reserve your seat now → ]
May 28, 2025
What if disruption wasn't a liability—but your biggest loyalty driver? That was the provocative question posed by Dr. Valdimar Sigurðsson , Professor of Marketing at Reykjavik University, during his keynote at Grounded 2024 , the only airline summit dedicated to solving passenger disruption. In a session titled “Airline Consumer Behaviour: From Legacy Practices to Passenger-Centric Recovery,” Dr. Sigurðsson challenged the airline industry to rethink the way it approaches service disruptions—urging a shift from outdated systems to data-driven, personalized recovery experiences that meet the evolving expectations of passengers. The Paradox Airlines Can’t Ignore While post-pandemic travel demand is surging, customer dissatisfaction is rising just as fast—especially when things go wrong. Despite the frequency of delays and cancellations, most airlines are still stuck in reactive mode. “Only 50% of travel leaders have developed robust disruption management technology strategies,” Sigurðsson noted. This gap is especially stark when compared to industries like hospitality or tech. Brands like Disney , Apple , and Ritz-Carlton are famous for turning service failures into loyalty moments. Airlines, meanwhile, often become cautionary tales in service recovery literature. What Passengers Really Want: Autonomy and Transparency One of the most consistent findings across Dr. Sigurðsson’s research is that passengers value being in control —especially during stressful moments. “It’s not just what happens—it’s how you handle it,” he said. “Apology, explanation, and choice can dramatically shift customer preference.” Simple gestures—like proactively communicating the reason for a delay, or offering recovery options via mobile—can change the emotional tone of the experience. His research consistently shows that when passengers feel informed and empowered, satisfaction goes up—even when the disruption itself is significant. Personalised Disruption: Not a Buzzword—A Business Imperative Using techniques like conjoint analysis and predictive modeling , Sigurðsson and his team have identified the specific actions passengers want during disruptions. The headline? One size does not fit all. In one study: 85% of passengers preferred mobile-based recovery solutions—such as canceling, refunding, or rebooking via link—over queuing at a service desk. Many showed high comfort levels with automated, staff-free solutions—provided they were fast and transparent. “We need to win one customer at a time,” he emphasized. “This is what Netflix and Amazon are doing. Why not airlines?” Don’t Treat Disruption as a Side Note — Design for It Too often, disruption management is bolted onto operations as an afterthought. But Dr. Sigurðsson argues that service recovery deserves its own design language . “Recovery isn’t just a fix—it’s a branding moment. When things go wrong, that’s when your brand has the most to prove.” He cited examples like Ritz-Carlton, where frontline staff are empowered to resolve issues on the spot with a $2,000 discretionary budget. Airlines, he said, need similar frameworks—clear protocols, tech enablement, and the authority to act fast in the passenger’s best interest. From Reactive to Experimental: The Role of Testing What makes Sigurðsson’s approach unique is his embrace of experimentation . He encourages airlines to treat every disruption not just as a recovery task—but as a test case. “Every customer interaction is data. Every failure is an opportunity to learn what works and what doesn’t.” His team runs simulated disruptions to test variables like communication tone, compensation types, and staff behaviors—tracking which combinations generate the most goodwill and long-term loyalty. The Road Ahead: Mobile, Proactive, Personal The future of disruption management isn’t just faster—it’s smarter and more human . The best systems will be: Mobile-first : putting recovery tools where passengers already are. Data-informed : offering relevant options based on context and preference. Proactively triggered : not waiting for passengers to complain. “Flight disruptions are inevitable. But dissatisfaction doesn’t have to be,” Sigurðsson concluded. “The right tools, the right data, and the right mindset can turn recovery into your strongest brand asset.” Want to Be Part of the Future of Disruption Management? Grounded 2025 | Join 150+ airline leaders focused on transforming the passenger disruption experience. This is your event. These are your people. 📍 Reykjavik | Sept. 9–10
By Matthew Walker August 15, 2024
Join 90+ Airline Leaders from 35+ Airlines in Reykjavik to share insights, discuss new technologies, and enjoy some of the finest wellness and relaxation Iceland has to offer.