Delta’s $500 Million Nightmare: CEO Accuses CrowdStrike Of Neglect And Inaction

The CEO of Delta Air Lines has sharply criticized cybersecurity firm CrowdStrike and software provider Microsoft for the significant computer issues that led to a five-day service disruption, which he claims cost the airline $500 million.

“They haven’t offered us anything. Free consulting advice to help us,” Ed Bastian said in an interview with CNBC on Wednesday, commenting on the lack of compensation from CrowdStrike and Microsoft. He condemned CrowdStrike for the defective software update that affected Delta and numerous other companies globally, resulting in widespread outages on July 19.

“If you’re going to have priority access to the Delta ecosystem in terms of technology, you’ve got to test this stuff,” Bastian stated. “You can’t come into a mission-critical 24/7 operation and tell us we have a bug. It doesn’t work.”

The computer issues at Delta disrupted its essential crew tracking system for nearly a week, crippling the airline’s ability to locate pilots and flight attendants needed for operations. While other airlines swiftly resumed normal services following the CrowdStrike outage, Delta had to cancel about 30% of its flights over the five-day period, leaving roughly half a million passengers stranded. It took several additional days to rebook passengers and retrieve their checked luggage.

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Delta Air Lines has not yet filed a lawsuit against CrowdStrike or Microsoft. However, a source confirmed to CNN on Tuesday that the airline has engaged the law firm of renowned attorney David Boies to seek compensation from the two companies. Neither CrowdStrike nor Microsoft had commented on the hiring of Boies’s firm by Tuesday, and both companies did not immediately respond to CNN’s requests for comment early Wednesday.

“We have no choice,” Bastian told CNBC. “We have to protect our shareholders, we have to protect our customers (and) our employees for the damage, not just the cost but the reputational damage.”

Bastian noted that the airline faced substantial losses beyond the revenue from approximately 6,300 flight cancellations over the five days. Delta incurred tens of millions of dollars daily in customer compensation for hotels and other out-of-pocket expenses.

When asked if seeking $500 million in compensation could potentially bankrupt a company like CrowdStrike, Bastian responded, “We’re not looking to wipe them out, but we’re looking to see we get compensated.”

Bastian conducted the CNBC interview from Paris, where he had traveled a week prior to attend the Olympics. Delta, as the official airline sponsor of the US Olympic team, was returning to a more regular flight schedule. CNBC’s parent company, NBC, holds the US broadcast rights to the games.

(Includes inputs from online sources)

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