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Crowdstrike And Delta Air Lines Dispute Over Technology Outage

A Delta Air Lines jet leaves the gate, July 19, 2024, at Logan International Airport in Boston. Delta CEO Ed Bastian says the airline is facing $500 million in costs for the global technology b

A dispute has arisen between cybersecurity software company CrowdStrike and Delta Air Lines regarding the aftermath of a global technology outage that occurred on July 19. Delta's CEO has threatened to sue CrowdStrike for alleged damages amounting to $500 million, while a lawyer for CrowdStrike argues that the company's liability should be significantly less, around $10 million.

The disagreement stems from a faulty software update from CrowdStrike that affected over 8 million computers using Microsoft Windows, leading to disruptions in various industries, including airlines, banks, and retailers. Delta Air Lines experienced thousands of canceled flights as a result of the outage, incurring substantial losses in revenue and additional costs.

CrowdStrike's lawyer has refuted Delta's claims, stating that the airline's threatened lawsuit has created a misleading narrative placing blame on CrowdStrike for Delta's IT decisions and response to the incident. The lawyer also questioned why other airlines were able to recover more swiftly from the outage, emphasizing that CrowdStrike took responsibility for its actions while Delta did not.

Delta's CEO highlighted the airline's heavy reliance on Microsoft Windows compared to other carriers, attributing the prolonged recovery period to this dependency. Despite CrowdStrike's offer of free consulting advice, Delta claims that the software company did not provide substantial assistance beyond that. The U.S. Department of Transportation is currently investigating why Delta's recovery process lagged behind that of other airlines and is also looking into customer service complaints, including long wait times for assistance and reports of unaccompanied minors being stranded at airports.

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