Microsoft Responds to Delta’s Claims Over $500 Million IT Outage Loss

Microsoft has countered Delta Air Lines’ accusations following a massive global IT outage last month that resulted in thousands of flight cancellations, costing Delta approximately $500 million. Delta CEO Ed Bastian stated on CNBC that the airline would seek damages from both Microsoft and cybersecurity firm CrowdStrike, attributing the disruption to a flawed software update that impacted systems running on Microsoft Windows.

Mark Cheffo, a partner at Dechert representing Microsoft, questioned why Delta struggled more than its competitors to recover from the July 19 incident. In a letter to Delta’s attorney, Cheffo suggested that Delta’s slower recovery might be due to its outdated IT infrastructure compared to other airlines like American and United.

Delta defended its technological investments, claiming to have spent billions on IT capital and operating expenses since 2016. The airline maintains a strong record of reliable service, according to a statement released in response to Microsoft’s comments.

Cheffo’s correspondence criticized Delta’s public statements as misleading and harmful to Microsoft’s reputation. He highlighted Microsoft’s efforts to assist Delta during the outage, noting that offers for free help were repeatedly turned down. Delta’s CEO acknowledged receiving free consulting advice from CrowdStrike but mentioned no financial compensation.

Further complicating the issue, Cheffo revealed that Delta’s critical crew-scheduling system, a focal point of the outage issues, does not rely on Microsoft’s Windows or Azure services but is managed by other technology providers like IBM and Amazon Web Services.

The legal discourse intensified with Delta’s lawyer David Boies alleging that Microsoft had breached contractual obligations and acted negligently. Microsoft responded by urging Delta to preserve records that might show the extent to which technologies from other companies like IBM and Amazon contributed to the disruptions.

As the dispute unfolds, Microsoft is pushing back against claims of responsibility for the outage, pointing to broader technological and operational challenges within Delta’s systems. The situation highlights the complex interdependencies of modern airline operations and the significant impacts of IT infrastructure decisions.

Sources: AirGuide Business airguide.info, bing.com, cnbc.com