CrowdStrike and Delta Airlines fights legally over Microsoft global outage that grounded flights

In July 2024, a global outage of Microsoft Windows PCs was traced back to a faulty update issued by the cybersecurity firm Crowdstrike. This incident caused widespread disruptions across various sectors, including banks, hospitals, news outlets, restaurants, and numerous other businesses worldwide. The most severe impact, however, was felt by airlines and airports, which experienced significant operational disruptions, leading to delays and cancellations of flights.

Also read: Microsoft Global Outage: Microsoft says 'underlying cause' fixed amid global outage

microsoft global outage

Delta Airlines’ Response

  • Financial Impact and Operational Disruption

Delta Airlines was particularly hard-hit by the outage. According to Ed Bastian, the CEO of Delta, the airline faced substantial financial losses as a result of the incident. On July 18, 2024, the outage caused more than 5,000 flight cancellations for Delta alone. The financial toll on the airline was approximately $500 million, attributed to the need to manually reset 40,000 servers.

  • Investigation by the US Transportation Department

In addition to the financial losses, Delta Airlines is under scrutiny by the US Transportation Department. The investigation is focused on understanding why Delta took longer than other airlines to resume normal operations after the outage.

  • Criticism and Employee Recognition

Ed Bastian criticized both Microsoft and Crowdstrike for the incident, questioning the reliability of their services. He notably pointed out the rarity of significant outages from Apple, although Apple has experienced service disruptions in the past, such as with iCloud. Bastian praised Delta’s staff for their efforts during the crisis, describing their work as “nothing short of heroic” and offering each employee two free flight tickets as recognition.

microsoft global outage

Crowdstrike’s Response

  • Denial of Misconduct and Offer of Assistance

In response to Delta Airlines’ criticism, Crowdstrike issued an apology and strongly rejected any claims of gross negligence or misconduct. The company expressed disappointment over Delta’s suggestion of inappropriate conduct and highlighted that any liability was contractually limited to a small amount in the single-digit millions. Crowdstrike emphasized that they had offered assistance to Delta within hours of the incident.

microsoft global outage

  • Efforts to Resolve the Situation

Crowdstrike’s CEO personally reached out to Delta’s CEO to offer onsite assistance, but reportedly received no response. The company’s spokesperson criticized the public discourse regarding a potential lawsuit and urged Delta to collaborate constructively to find a resolution.

The fallout from the faulty Crowdstrike update continues to affect various industries, with Delta Airlines considering legal action to recover its losses. As investigations and discussions proceed, both Delta and Crowdstrike are navigating the aftermath of a significant technological disruption that had a profound impact on global operations.

With inputs from agencies

Image Source: Multiple agencies

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