Delta responded to
CrowdStrike’s letter shifting blame to the airline for allegedly mishandling its response to disruptions caused by a faulty update sent to Microsoft Windows operating systems in mid-July.
In a
response letter to CrowdStrike attorney Michael Carlinsky, Delta attorney David Boies states that the software company has no basis to suggest the airline was responsible for the faulty software that crashed systems around the world.
“When the disaster occurred, dedicated Delta employees across the company worked tirelessly to recover from the damage CrowdStrike had caused,” Boies states in the letter. “Their efforts were hindered by CrowdStrike’s failure to promptly provide an automatic solution or the information needed to facilitate those efforts.”
Among several points addressed by Boies in his letter, he notably states that CrowdStrike showed no sense of urgency for the damage it caused, and the company’s offers to assist Delta were too late. Boies states that CrowdStrike’s offers of assistance during the first 65 hours of the outage simply referred Delta to CrowdStrike’s publicly available remediation website, which instructed Delta to manually reboot every affected machine.
“While CrowdStrike eventually offered a supposed automated solution on Sunday, July 21 at 5:27 pm ET, it introduced a second bug that prevented many machines from recovering without additional intervention,” Boies states.
As for CrowdStrike CEO George Kurtz’s offer to support Delta CEO Ed Bastian, Boies states that Kurtz offered this assistance on the evening of July 22, and it was unhelpful and untimely.
“When made – almost four days after the CrowdStrike disaster began – Delta had already restored its critical systems and most other machines,” Boies states. “Many of the remaining machines were located in secure airport areas requiring government-mandated access clearance. By that time Delta’s confidence in CrowdStrike was naturally shaken.”
Additionally, Boies addressed claims that Delta’s IT technology was not up to par for handling the disaster.
“Delta rejects CrowdStrike’s misplaced attempt to shift responsibility for its failures to Delta’s ‘IT decisions and response to the outage,’” Boies states. “First, those ‘decisions and response’ had nothing to do with the cause of the outage. Moreover, for the last several years, including prior to and following its recovery from the Faulty Update, Delta’s operational reliability and customer service has led the airline industry. Delta has achieved its industry-leading reliability and service due, in part, to investing billions of dollars in information technology.”
Boies ends the letter demanding CrowdStrike “accept real responsibility for its actions” and compensate the airline for damaging its business, reputation, and goodwill.
Delta Details Financial Impact
The letter comes after Delta detailed its previously reported
$500M loss in revenue due to IT outages in an 8-K form published on Thursday.
The
report states that the incident caused around 7,000 flight cancellations over the course of five days, leading to $380 million in customer refunds, $170 million in expense reimbursements and crew-related costs, and $50 million in estimated fuel expenses. This has impacted the airline’s projected year-over-year September quarter 2024 capacity growth by approximately 1.5 points.
“An operational disruption of this length and magnitude is unacceptable, and our customers and employees deserve better. Since the incident, our people have returned the operation to an industry-leading position that is consistent with the level of performance our customers expect from Delta,” said Delta CEO Ed Bastian, in a statement included in the 8-K form.
Bastian doubled down on previous litigation threats, stating in the form that Delta is pursuing legal claims against CrowdStrike and Microsoft to recover at least $500 million in damages caused by the outage.
Both CrowdStrike and
Microsoft have denied Delta’s allegations of negligence for the software update that caused airline disruptions nationwide on July 19. Both companies also claimed that Delta had refused free assistance from their IT teams to help with the airline’s ongoing issues throughout the week of the outage.
Class Action Lawsuit
The U.S. Department of Transportation warned airlines were legally obligated to provide passengers cash refunds shortly after July’s IT outages. Law firms Sauder Schelkopf and Webb, Klase & Lemond, filed a class action lawsuit this week on behalf of Delta passengers whose flights were canceled due to the outages.
The complaint alleges that nearly every airline had managed to recover and resume normal operations by the end of the week, except for Delta, which continued to cancel flights.
“On Monday, July 22, it was reported that Delta canceled more than 1,250 flights. These cancellations accounted for nearly 70% of all flights within, to, or from the United States that had been canceled on Monday,” Sauder Schelkopf’s website states. “No other US airline had canceled one-tenth as many flights.”
Additionally, the class action lawsuit alleges that Delta failed to give some affected passengers automatic refunds for canceled flights and oftentimes conditioned its offer of partial reimbursements to passengers on a waiver releasing Delta of all legal claims passengers have against Delta.
