Microsoft has hit back at Delta Air Lines for not modernizing its technology before it canceled thousands of flights after the massive IT outage last month.
Delta’s Financial Claims
Delta CEO Ed Bastian said the company may seek damages from Microsoft and CrowdStrike. A problematic software update from CrowdStrike caused the global disruption on Friday, July 19. The carrier suffered approximately $500 million in losses. The outage led to over 5,000 flight cancellations, severely affecting Delta compared to its competitors.
Microsoft’s Defense
Mark Cheffo, a partner at Dechert representing Microsoft, wrote to Delta’s attorney, David Boies, arguing that Delta had failed to modernize its IT systems, unlike other airlines such as American and United. Cheffo suggested that this lack of modernization might explain why Delta’s recovery was slower.
Cheffo wrote:
“Our preliminary review suggests that Delta, unlike its competitors, apparently has not modernized its IT infrastructure, either for the benefit of its customers or for its pilots and flight attendants.”
Delta’s Investment In IT
Delta said it has “a long track record of investing in safe, reliable and elevated service for our customers and employees.”
The airline said:
“Since 2016, Delta has invested billions of dollars in IT capital expenditures, in addition to the billions spent annually in IT operating costs.”
Dispute Over Help Offers
Cheffo’s letter also revealed that Microsoft had offered assistance to Delta on a daily basis from July 19 to July 23, but these offers were declined. According to Cheffo, Delta’s refusal to accept help might be linked to the fact that its crew-tracking and scheduling system, which faced significant issues, was managed by other technology providers like IBM and Amazon Web Services.
Delta’s CEO, Bastian said the assistance offered by Microsoft was limited to “free consulting advice” rather than financial compensation. Additionally, Microsoft CEO Satya Nadella’s attempt to contact Bastian reportedly went unanswered, and CrowdStrike’s CEO George Kurtz also experienced a lack of response.
Ongoing Issues
Cheffo has called for Delta to disclose records showing the role of IBM, Amazon, and other technology providers in the outage’s impact. He argued that Delta's crew-scheduling platform, primarily handled by non-Microsoft systems, might have played a significant role in the airline’s operational difficulties.
