Delta CEO Ed Bastian Addresses IT Outage and Plans to Seek Damages from CrowdStrike
Delta Air Lines CEO Ed Bastian revealed that the recent IT outage cost the airline $500 million in lost revenue and passenger compensation. The disruption, linked to a flawed update from Texas-based cybersecurity firm CrowdStrike, led to over 5,000 flight cancellations.
In an interview with CNBC, Bastian stated that the airline has “no choice” but to seek damages from CrowdStrike. “We’re not looking to wipe them out, but we’re looking to make certain we get compensated — however they decide to — for what they cost us,” he said.
Impact of the IT Outage
- Financial Loss: The $500 million figure includes lost revenue and tens of millions of dollars per day in compensation and hotels for affected passengers.
- Operational Challenges: Delta canceled several thousand flights and struggled to restore operations, resorting to manually rebooting up to 40,000 systems impacted by the outage.
- Reputational Damage: Bastian emphasized the need to protect Delta’s shareholders, customers, and employees from the brand and reputational damage caused by the incident.
CrowdStrike’s Response
CrowdStrike has offered free consulting advice but no other assistance. Bastian expressed frustration, stating, “If you’re going to be having priority access to the Delta ecosystem in terms of technology, you’ve got to test the stuff.”
Legal Action
Delta has hired high-profile law firm Boies Schiller Flexner to pursue damages from CrowdStrike and Microsoft. The firm’s chair, David Boies, is renowned for his role in notable cases, such as representing Al Gore in the 2000 presidential election dispute and the US government’s antitrust case against Microsoft.
As of now, it is unclear if Delta has filed a lawsuit. CrowdStrike stated it had no knowledge of any suit, and Delta did not respond to requests for comment.
Regulatory Investigation
The Department of Transportation has launched an investigation into Delta’s handling of the disruption to determine if the airline followed legal requirements and supported its customers during the incident.
Related news: https://airguide.info/?s=delta+air+lines
Sources: AirGuide Business airguide.info, bing.com, yahoo.com, delta.com