Delta Air Lines Sues Microsoft for Damages Related to Cloud Outage

world / Kim SangJin Reporter / 2024-07-31 05:57:24

(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Delta Air Lines, which faced significant disruptions and flight cancellations due to a recent Microsoft (MS) cloud service outage, is preparing to sue Microsoft and cybersecurity firm CrowdStrike for damages.

On the 29th (local time), CNBC reported that Delta Air Lines has hired renowned attorney David Boies to pursue compensation from Microsoft. Boies is known for his role in winning antitrust cases against Microsoft and in challenging California's ban on same-sex marriage.

The recent Microsoft cloud outage is estimated to have caused Delta Air Lines losses between $350 million and $500 million (approximately 692.3 billion KRW). The disruption led to the cancellation of around 7,000 flights and the processing of over 176,000 refund or compensation requests.

The incident, which occurred on the 19th, was triggered by an error during a software update by CrowdStrike, causing Microsoft's cloud system to crash and paralyze various industries. Airlines, in particular, were severely affected. Last week, the U.S. Department of Transportation also announced it was investigating Delta Air Lines regarding the situation.

Insurance startup Parametrix has estimated that, excluding Microsoft, the top 500 companies collectively suffered losses amounting to $5.4 billion (approximately 7.48 trillion KRW) due to the outage.

 

 

알파경제 Kim SangJin Reporter(letyou@alphabiz.co.kr)

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