Delta CEO says Crowdstrike cost them $500 million "and they offered us nothing"

The CEO of Delta Air Lines lashed out at cyber security firm CrowdStrike and software provider Microsoft for the computer problems that resulted in a five-day service meltdown he said cost the airline $500 million.

“They haven’t offered us anything. Free consulting advice to help us,” said Ed Bastian in an interview Wednesday on CNBC, when asked about how much compensation CrowdStrike and Microsoft have offered the company. And he blasted CrowdStrike for the flawed software update at Delta and hundreds of other companies around the globe that caused widespread computer outages on July 19.

“If you’re going to have priority access to the Delta ecosystem in terms of technology, you’ve got to test this stuff,” Bastian said. “You can’t come into a mission critical 24/7 operation and tell us we have a bug. It doesn’t work.”

The computer problems at Delta knocked its crucial crew tracking system off line for the better part of a week, making it impossible for the company to find pilots and flight attendants it needed to fly its aircraft. While other airlines were quick to resume normal operations after the CrowdStrike outage, Delta was forced to cancel about 30% of its schedule over five days, leaving an estimated half-million passengers stranded. It took many days after that to re-book affected passengers on other flights and return their checked bags.

Delta has yet to file a lawsuit against either CrowdStrike or Microsoft, but a person familiar with its actions confirmed to CNN on Tuesday that it had hired the law firm of high-profile attorney David Boies to pursue compensation from the two companies. Microsoft did not respond to a request for comment on Wednesday. A CrowdStrike spokesperson would only say, “We are aware of the reporting, but have no knowledge of a lawsuit and have no further comment.”

“We have no choice,” Bastian told CNBC. “We have to protect our shareholders, we have to protect our customers (and) our employees for the damage, not just the cost but the reputational damage.”

He said beyond the lost revenue from having to cancel about 6,300 flights in the five days, the company paid tens of millions a day in compensation to customers for hotels and other out-of-pocket expenses.

When it was suggested that $500 million in compensation could put a company like CrowdStrike out of business, Bastian replied, “We’re not looking to wipe them out, but we’re looking to see we get compensated.”

Tech gets off scott free.That's the price of innovation!

“We have to protect our shareholders”, yep first and foremost.

[quote] We have no choice,” Bastian told CNBC. “We have to protect our shareholders, we have to protect our customers (and) our employees for the damage

This tells you EXACTLY where Delta places its priorities.

And it AIN'T with the customers.

Bastian's priorities are clearly with the shareholders, and making money for them.

Customers come second. Employees come third.

A shittier statement has never been issued by a CEO.

In fact, it should be Delta's new advertisement:

[bold]"Fly Delta. Where customers come second!"[/bold]

I read that Crowdstrike was offering $12 Uber Eats giftcards. I'm sure the Delta management team could take some of those instead of their normal compensation.

Hey, Delta, remember when your legal team pointed out that there was a strict limitation of liability in your contract and lost profits were excluded as consequential damages, and you said "they can't afford to insure our business?"

Remember that? Remember how you said "it's not a hill to die on" when legal pointed out that endpoint protection meant this shit was going on devices EVERYWHERE and you could only get back your subscription fees?

Well you're fucked. So there.