Virgin Blue settles out of court with Navitaire

The airline has reached a "mutually exclusive" agreement with the It company following the system outage last September

Virgin Blue (ASX:VBA) has settled out of court with the IT company deemed responsible for a failure in the airline's system last year.

In a brief statement to the ASX, the airline said it had reached a "mutually exclusive" agreement with Accenture subsidiary Navitaire regarding the reservation system outage but declined to reveal details of the settlement would remain confidential.

It is believed all current contracts with the vendor will continue unabated.

The system crash last September left thousands of Virgin Blue customers stranded and queuing for lengthy periods of time as staff were forced to switch to a manual system.

A computer glitch followed just days after the outage, crippling systems and forcing the airline to cancel at least 16 flights as customers could not make a booking, change or cancel existing reservations.

The outage cost the company around $20 million following the disruption to flights and passengers for 11 days.

The US-based vendor faced a lawsuit over the problem, though the out-of-court settlement appears to have solved all issues surrounding the case.

In February this year, Virgin Blue denied yet another IT glitch had resulted in lengthy queues in its airport terminals with a spokesperson noting the network had a glitch but that it had not caused an “majot worries”.

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