Microsoft and CrowdStrike: Increased Tensions after Delta Outage

Microsoft has announced that Delta Air Lines repeatedly declined offers for assistance following last month's catastrophic system outage, intensifying the conflict between the airline and its technology partners. These allegations follow similar statements from CrowdStrike. Microsoft employees offered Delta daily technical support from July 19 to July 23. However, according to a letter from Microsoft's lawyers, Delta refused any help. Even Microsoft CEO Satya Nadella personally contacted Delta CEO Ed Bastian but received no response. Nevertheless, Microsoft stepped in immediately and offered free support, although their software was not the cause of the incident involving CrowdStrike, according to a letter from Mark Cheffo, a lawyer at Dechert LLP. Tensions escalated after Delta's lawyers, led by David Boies, hinted at seeking compensation for the estimated $500 million loss for this quarter. The airline recovered more slowly than its competitors from a faulty CrowdStrike software update that affected Microsoft systems and led to the cancellation of thousands of flights. Bastian criticized both CrowdStrike and Microsoft, calling the latter "likely the most fragile platform" among major technology providers. Delta's extended recovery was based on the disruption of an internal system for processing flight and crew changes, complicating the alignment of their aircraft and staff. The US Department of Transportation has initiated an investigation into Delta's handling of the outage, and the airline may face a fine depending on the findings. In 2023, Southwest Airlines Co. was fined $140 million by the Department of Transportation after an operational collapse in late December 2022 stranded over two million passengers. Microsoft's response follows a similar letter from CrowdStrike on Sunday, condemning Delta for refusing assistance. CrowdStrike CEO George Kurtz also received no response from Bastian.