Passengers Sue Delta Air Lines Over Refunds and Compensation Denials Following Tech Outage
ICARO Media Group
In the aftermath of the widespread computer outages that crippled Delta Air Lines and numerous other companies in July, some affected passengers have filed a class action lawsuit against the airline. The lawsuit alleges that Delta refused or imposed conditions on refunds to passengers, leaving them stranded and incurring unexpected expenses. This legal action comes as Delta, CrowdStrike, and Microsoft engage in a public dispute over who bears responsibility and financial liability for the tech outage.
According to the lawsuit seeking class action status, Delta's failure to recover from the CrowdStrike outage had a disastrous impact on passengers. Many found themselves stranded at airports across the country and even thousands of miles away from home. Passengers claim that Delta refused automatic refunds for canceled flights and, in some cases, only offered partial reimbursements if they signed a waiver releasing the airline from any legal claims. Furthermore, Delta allegedly denied affected passengers meal, hotel, and ground transportation vouchers, forcing them to shoulder thousands of dollars in unexpected expenses.
Delta struggled to restore its operations in the days following the outage, while its competitors managed to recover more swiftly. The lawsuit reveals that on Monday, July 22, Delta canceled over 1,250 flights, representing almost 70% of all domestic cancellations during that time. Between July 19 and July 21, Delta had already canceled more than 4,500 flights.
The primary objective of this lawsuit is to secure refunds for all passengers who were similarly affected by Delta's alleged mishandling of the situation. One plaintiff mentioned in the lawsuit, who was flying from Denver to Amsterdam, experienced cancellations on both legs of their journey and had to book alternative flights with another airline at their own expense. Initially, Delta assured the passenger that refunds would be automatic, but later informed them that they needed to submit a refund request. Delta's response was reportedly a mere $100 voucher for future flights, despite the plaintiff incurring nearly $2,000 in out-of-pocket expenses.
As the legal action unfolds, more stories of affected passengers are coming to light. Some passengers were forced to take a Greyhound bus due to a shortage of available hotels and car rentals in Atlanta, Delta's hub. Additionally, one passenger missed a $10,000 anniversary cruise due to the flight cancellations.
The US Transportation Secretary, Pete Buttigieg, expressed concerns regarding the situation. While Delta's operations appeared to have returned to normal, he vowed to continue investigating the breakdown that caused such widespread chaos.
Delta Air Lines declined to comment on the lawsuit, although its CEO, Ed Bastian, squarely placed the blame on CrowdStrike and estimated that the computer problems cost the airline $500 million. In a recent interview, Bastian lamented the lack of support offered by CrowdStrike, emphasizing the need for thorough testing before implementing technology into a critical operation like Delta's.
Furthermore, it has been confirmed that Delta has retained the services of prominent attorney David Boies to pursue compensation from Microsoft and CrowdStrike. However, both companies fired back through letters from their legal counsels. They asserted that Delta had ignored their repeated offers of assistance when passengers were stranded, suggesting that Delta's IT systems were not up to date, thereby exacerbating the severity of the meltdown.
Microsoft's preliminary review indicated that Delta had not modernized its IT infrastructure, unlike its competitors. This raises questions about Delta's decision to not accept Microsoft's help, particularly regarding the crew-tracking and scheduling system, which is serviced by other providers such as IBM.
Delta, on its part, highlighted its commitment to safe and reliable service, pointing out its significant investments in IT infrastructure. The airline mentioned that it has spent billions of dollars on IT capital expenditures since 2016, as well as substantial annual spending on IT operating costs.
As the lawsuit progresses, the question of responsibility and financial compensation remains at the center of this dispute between Delta Air Lines, CrowdStrike, and Microsoft. The outcome of this legal battle will have ramifications not only for Delta but also for the airline industry as a whole, as they navigate the challenges posed by increasingly vital technology systems.