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Most airlines have rescheduled the majority of flights and resumed largely normal operations after a botched CrowdStrike software update caused global chaos on Friday.
Except Delta.
All Delta customers can expect is a refund.
Cancellation and delay compensation policies are outlined in the fine print of the contract between airlines and the customers who purchase tickets, and are also regulated by the Federal Aviation Administration within the U.S. Department of Transportation.
Transportation Secretary Pete Buttigieg classified the CrowdStrike outage, which was caused by a bug in an update for Microsoft Windows Computer’s Falcon security software, as a “controllable” outage, meaning airlines will be liable for compensating passengers whose flights were canceled.
The “controllable” designation means airlines have more liability than if delays or cancellations were caused by weather or other “acts of God,” said Mary Schiavo, a former Transportation Department inspector general.
“The airline will be responsible for refunds, rebookings, delays, etc.,” Schiavo, now an aviation law attorney at Motley Rice, told Business Insider, “and that means any payments that are due under federal aviation regulations for the delay will be made.”
Schiavo said refunds must also include extras like baggage and seat assignments.
Airlines are also responsible for paying compensation for delays, but the amount varies depending on the airline and the severity of the delay, Business Insider previously reported. If a customer rejects the airline’s offer to rebook, they are entitled to an “immediate refund,” Schiavo said.
Schiavo said Buttigieg’s “controllable” designation makes sense: CrowdStrike’s outages are similar to equipment failures on an aircraft, and airlines are responsible for proper maintenance, she said.
“When an aircraft is grounded, the airline is obligated to return all rights and property to passengers due to equipment failure,” she said. “This is no different to an aircraft breakdown.”
Customers could also sue airlines in small claims court in the city where the airlines are based, but Schiavo said it would probably be pointless to pursue a lawsuit. Federal aviation regulations protect airlines from being sued for “consequential damages,” such as missing a business meeting or medical appointment, he said.
“Airline passengers have very few rights,” she said.
The best course of action for disgruntled customers is to contact customer service rather than go to court, said Justin T. Green, an aviation lawyer with the Kreindler Law Firm, who said he was personally bothered by Delta delays during a trip last weekend.
U.S. regulations differ from European regulations, which require airlines to compensate customers for delays. Greene encourages U.S. airline customers to keep receipts for their tickets, taxi fares to connecting flights and other expenses that Delta may reimburse for rebooking flights. But customers cannot get compensation for their time.
“This is to make sure you’re okay financially,” said Green, who is also a licensed airplane and helicopter pilot. “They’re not giving you your time back.”
Mark Dombroff, an aviation lawyer at Fox Rothschild, said the Transportation Department’s “controllable” designation was “inappropriate and unfair” to airlines that were victims of CrowdStrike. He said airline customers should check their travel insurance policies.
“This has to do with computer systems,” he said. “This is not an airline-initiated delay or cancellation. The Department of Transportation probably has nothing to do with this.”
As for CrowdStrike, its standard terms of service limit its liability to companies that use it to “fees paid,” essentially refunds for services. Larger companies like Delta may negotiate individual terms with CrowdStrike or rely on cyber insurance to cover situations like a software update disaster.
Buttigieg announced Tuesday that the Department of Transportation’s Bureau of Aviation Consumer Protection is investigating Delta’s flight delays.
“We are committed to restoring operations after a flawed Windows update from cybersecurity vendor CrowdStrike rendered IT systems around the world inoperable,” Delta said in a statement provided to Business Insider after the investigation was released. “Delta teams are committed to caring for and serving customers affected by delays and cancellations, and are working to restore the reliable, on-time service they have come to expect from Delta.”
But even if authorities impose fines, customers won’t get a penny.
“The fines are paid to the government. They are not paid to the passengers,” Schiavo said.
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