Delta Airlines Accuses CrowdStrike of Negligence After $500 Million Outage

Delta Airlines has launched a stinging critique against cybersecurity firm CrowdStrike, accusing it of negligence following a massive global network outage that led to a significant financial loss for the airline. In a letter filed with the US Securities and Exchange Commission, Delta expressed its frustration and detailed how the outage, which began on July 19, severely impacted its operations, leading to over $500 million in losses and the cancellation of approximately 7,000 flights over a five-day period.

The incident originated from a corrupted software update issued by CrowdStrike, a cybersecurity firm responsible for protecting numerous high-profile clients. This faulty update triggered a widespread failure, disabling an estimated 8.5 million Windows devices globally, according to Microsoft. Delta was particularly hard-hit, as its services remained disrupted long after other airlines had managed to recover. The prolonged outage not only stranded passengers but also disrupted flight schedules and operational processes.

Delta Airlines’ CEO, Ed Bastian, criticized both CrowdStrike and Microsoft in a recent filing, describing the situation as “unacceptable” and highlighting the severe impact on 1.3 million of Delta’s customers. Bastian’s statement underscored the airline’s frustration and the broader implications of the outage on its business operations and customer service.

CrowdStrike has rejected claims of sole responsibility for the disruptions. The company contends that while it acknowledges the incident originated from its software, Delta’s operational issues persisted even after other airlines had resumed normal services. A CrowdStrike spokesperson accused Delta of pushing a “misleading narrative” and emphasized that the company would defend itself “aggressively” if legal action is pursued.

Microsoft, too, has disputed allegations of fault. The tech giant has pointed out that Delta’s IT infrastructure appeared outdated compared to its competitors, which may have exacerbated the issues faced during the outage. Microsoft’s preliminary review suggests that while the CrowdStrike update caused initial problems, Delta’s reliance on outdated technology contributed to the prolonged disruptions.

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In addition to its ongoing legal battle with CrowdStrike and Microsoft, Delta is facing a class-action lawsuit filed by affected passengers. This lawsuit alleges that Delta’s response to the outage was inadequate, claiming that no other US airline experienced a similar volume of flight cancellations. The lawsuit also accuses Delta of failing to compensate passengers properly and of pressuring them to sign waivers releasing the airline from legal claims.

David Boies, representing Delta, refuted suggestions that the airline was at fault for the software malfunction. In a letter to CrowdStrike, Boies stated that Delta had invested billions in its technology and that the company’s operational difficulties were directly linked to the issues caused by the faulty software update.

The fallout from the outage has had far-reaching effects. Many airlines, including Delta, rely on Microsoft’s Office365 for critical scheduling and operational functions. The CrowdStrike outage not only crashed these systems but also forced airlines to revert to manual scheduling processes, adding to the chaos and complications.

As the legal battles unfold, both CrowdStrike and Microsoft are preparing to contest the allegations. CrowdStrike faces scrutiny from its own shareholders, who have sued the company for allegedly making “false and misleading” statements about its software testing. The company has denied these accusations, further complicating the situation.

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In summary, Delta Airlines’ confrontation with CrowdStrike over the recent network outage highlights the complexities of cybersecurity and the significant impact such disruptions can have on global operations. With ongoing legal disputes and investigations, the resolution of this conflict will be critical in addressing the financial and operational repercussions faced by Delta and other affected parties.