What's happened
Delta Airlines is embroiled in a legal dispute with CrowdStrike and Microsoft following a major IT outage on July 19 that resulted in the cancellation of approximately 6,300 flights. Delta claims damages of up to $500 million, while both tech companies dispute liability, asserting Delta's outdated IT infrastructure contributed to its slow recovery.
Why it matters
What the papers say
According to Axios, Delta's CEO Ed Bastian stated that the airline has 'no choice' but to seek damages, emphasizing the financial impact of the outage. Meanwhile, CrowdStrike's representatives have pushed back against Delta's claims, arguing that the airline's slow recovery was due to its own IT infrastructure issues. Microsoft has also criticized Delta for overstating its role in the disruptions, stating that Delta turned down offers for assistance during the crisis. The New York Times highlighted that Delta's recovery lagged behind competitors like American and United Airlines, raising questions about its operational resilience. The ongoing legal battle could set a precedent for how tech companies are held accountable for outages affecting their clients.
How we got here
The global IT outage on July 19 was triggered by a faulty software update from CrowdStrike, affecting millions of Windows devices and leading to significant operational disruptions for Delta Airlines. Delta's recovery was notably slower than its competitors, prompting investigations and legal threats against CrowdStrike and Microsoft.
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More on these topics
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Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. It is headquartered in Atlanta, Georgia.
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Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
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Edward H. Bastian is an American business executive. He is the ninth and current chief executive officer of Delta Air Lines, serving in this role since May 2, 2016.
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David Boies is an American lawyer and chairman of the law firm Boies, Schiller & Flexner. Boies rose to national prominence for three major cases: leading the U.S. federal government's successful prosecution of Microsoft in United States v.