Bastian told CNBC's "Squawk Box" on Wednesday that the carrier would seek damages from the disruptions, adding, "We have no choice."
  • Delta Air Lines CEO Ed Bastian said the massive IT outage earlier this month that stranded thousands of customers will cost it $500 million.
  • The airline canceled more than 4,000 flights in the wake of the outage, which was caused by a botched CrowdStrike software update and took thousands of Microsoft systems around the world offline.
  • Bastian, speaking from Paris, told CNBC’s “Squawk Box” on Wednesday that the carrier would seek damages from the disruptions, adding, “We have no choice.”
  • partial_accumen@lemmy.world
    0·
    8 months ago

    As far as the companies go, their lack of resources is an entirely self-inflicted problem, because they’re won’t invest in increasing those resources, like more IT infrastructure and staff.

    Play that out to its logical conclusion.

    • Our example airline suddenly doubles or triples its IT budget.
    • The increased costs don’t actually increase profit it merely increases resiliency
    • Other airlines don’t do this.
    • Our example airline has to increase ticket prices or fees to cover the increased IT spending.
    • Other airlines don’t do this.
    • Customers start predominantly flying the other airlines with their cheaper fares.
    • Our example airline goes out of business, or gets acquired by one of the other airlines

    The end result is all operating airlines are back to the prior stance.

    • bomibantai@lemmy.world
      01·
      8 months ago

      customers start predominantly flying the other airlines with cheaper fares

      I was with you till this part, except with the way flying is set up in this country, there’s very little competition between airlines. They’ve essentially set themselves up with airports/hubs so if an airline is down for a day, that’s kinda it unless you want to switch to a different airport.