#DeltaAirLines #CrowdStrike #ITOutage
Delta Air Lines Sues CrowdStrike Over Devastating IT Outage
In a significant legal move, Delta Air Lines has filed a lawsuit against CrowdStrike, a leading security software vendor, following a catastrophic IT outage in July 2024. This outage resulted in the cancellation of approximately 7,000 flights, causing widespread disruption to Delta's operations and impacting thousands of passengers.
The Outage and Its Impact
The IT outage, which occurred in mid-July, was not isolated to Delta but was part of a broader global technical issue caused by a CrowdStrike software update. This update affected numerous major institutions, including banks, telecommunications companies, and other airlines, across several countries such as the United States, Australia, India, and New Zealand.
Delta's lawsuit alleges that CrowdStrike's actions constituted a breach of contract and negligence. The airline argues that the outage was a direct result of CrowdStrike's faulty software update, which brought down millions of computers and crippled Delta's ability to operate efficiently.
Legal and Regulatory Consequences
The lawsuit is just one aspect of the fallout from this incident. The U.S. Department of Transportation (DOT) is also investigating Delta for sending misleading texts to customers regarding their entitlement to credits and refunds for cancelled flights. This investigation highlights the broader regulatory scrutiny that airlines face when such significant disruptions occur.
Financial and Operational Ramifications
The financial impact of the outage was substantial. CrowdStrike's shares plummeted by 10% following the incident, reflecting the severe consequences of the technical failure. For Delta, the operational costs and reputational damage are likely to be significant, with many passengers experiencing lengthy delays and cancellations.
International Compensation Laws
Passengers affected by these cancellations may be entitled to substantial compensation under international laws such as the EU's Regulation 261/2004 (EU261) and the Montreal Convention. For example, passengers on flights between Europe and the U.S. could be eligible for up to €600 in compensation per disruption, and additional damages for lost wages, hotels, and meals under the Montreal Convention.
Conclusion
The lawsuit by Delta against CrowdStrike underscores the critical importance of reliable IT infrastructure in the aviation industry. As airlines and technology providers navigate the complexities of modern travel, ensuring the integrity and resilience of their systems is paramount to avoid such devastating outages.
Original Article: https://www.cnbc.com/2024/10/25/delta-suit-against-crowdstrike-after-it-outage-caused-cancellations.html
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