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Here are the damages requested by Delta airline from CrowdStrike and Microsoft

Here are the damages requested by Delta airline from CrowdStrike and Microsoft

US airline Delta will seek half a billion dollars in damages for the July 19 global IT outage caused by a malfunctioning CrowdStrike software update that crashed Microsoft's Windows systems

Delta Air Lines set to hit back at CrowdStrike and Microsoft for last month's global cyber tilt that caused services and businesses to shut down around the world.

The US airline said in a stock exchange announcement that it intends to pursue legal action against cybersecurity firm Crowdstrike and Microsoft, seeking damages of at least half a billion dollars.

On Friday, July 19, a CrowdStrike software update on Microsoft's Windows operating system caused numerous computer systems around the world, from airports to hospitals, to malfunction. According to Microsoft, around 8.5 million devices were affected by the outage, with users experiencing "blue screens of death" that made it impossible to restart.

The three-way blame game involving Delta, CrowdStrike and Microsoft continues to intensify as each company tries to clarify its role in one of the biggest technical problems in recent history, Axios comments.

The company had already announced that it would file a lawsuit against Microsoft and Cloud Strike, the company that had developed and uploaded the security update to the operating system.

All the details.

FLIGHTS CANCELED

The July 19 cyber outage led to more than 2,200 flight cancellations on July 19, and Delta has canceled about 7,000 flights since then, leaving hundreds of thousands of travelers stranded. The following week the US Department of Transportation announced it would open an investigation into Delta following the flight cancellations, as Reuters reported.

THE DELTA CEO'S ACCUSATIONS AGAINST CROWDSTRIKE AND MICROSOFT

“An operational disruption of this duration and scope is unacceptable and our customers and employees deserve better,” Delta CEO Ed Bastian said in a regulatory filing with the SEC, the American Consob, on August 8.

As mentioned, the days-long outages sparked a blame game. Bastian blamed both CrowdStrike and Microsoft for failing to provide an "exceptional service." (Here is Startmag 's in-depth analysis on How the tug-of-war between Delta Air and CrowdStrike continues) .

THE IMPACT ON THE AIRLINE ACCOUNTS

According to Delta estimates, the global block of operating systems that occurred on July 19th cost the company 380 million dollars in terms of revenue for refunds to customers for canceled flights and compensation in cash and frequent flyer miles, and another $170 million in other expenses, including operating expenses.

On the other hand, the cancellation of hundreds of flights resulted in a saving of 50 million dollars in terms of reduced fuel use.

Delta told US lawmakers that the faulty CrowdStrike update “impacted more than half of Delta computers, including many of Delta workstations at every airport in the Delta network.”

Therefore: “We are pursuing legal action against CrowdStrike and Microsoft to recover damages caused by the outage, which amount to at least $500 million,” Bastian concluded in the SEC communication.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ecco-i-danni-richiesti-dalla-compagnia-aerea-delta-a-crowdstrike-e-microsoft/ on Fri, 09 Aug 2024 13:57:17 +0000.