U.S. Department of Transportation opens probe into the airline's handling of flight cancellations

A software glitch earlier this month plunged the world into technological chaos, impacting flights, financial firms, news outlets, hospitals, businesses, and government agencies. In the aftermath, Delta Air Lines (DL) finds itself under scrutiny as the U.S. Department of Transportation (DOT) launches an investigation into the airline's handling of widespread flight cancellations following the outage.

Transportation Secretary Pete Buttigieg announced the investigation on Tuesday, emphasizing the need for Delta to provide refunds and rebooking options to affected passengers. The DOT's move follows a barrage of complaints regarding Delta's customer service and its failure to uphold commitments to travelers.

The tech outage, caused by a faulty software update from cybersecurity firm CrowdStrike, affected over 8 million Microsoft computers globally. Delta, with half its technology systems reliant on Windows, was hit particularly hard. The airline has canceled over 6,600 flights since the incident, significantly more than any other carrier.

Delta's response to the outage has drawn sharp criticism from passengers and officials alike. Travelers have reported numerous issues, including stranded unaccompanied minors and inadequate communication from the airline. Senator Maria Cantwell, chair of the Senate committee overseeing airlines, expressed concern about Delta's compliance with passenger rights legislation recently passed by Congress.

Investigation Focus

The DOT's investigation will likely focus on Delta's adherence to federal regulations regarding prompt refunds for canceled or significantly delayed flights. While Delta claims it is cooperating with the investigation and working tirelessly to restore normal operations, the airline continues to blame the CrowdStrike outage for its struggles.

Delta's rivals, including American and United Airlines, have recovered more quickly from the tech disruption. This has raised questions about Delta's operational resilience and ability to manage crises effectively. Consumer advocates like William McGee, a former aircraft dispatcher, argue that an airline's true test lies in its recovery from disruptions, not the cause of the problem itself. “It’s not about the thing that caused the problem, it’s about how you recover from the problem. That’s the test of an airline,” said McGee, a former aircraft dispatcher who is a consumer advocate at the American Economic Liberties Project, a group critical of large corporations.

In response to the widespread impact of the faulty update, George Kurtz, CEO of CrowdStrike, has also been summoned to testify before Congress. Lawmakers seek a deeper understanding of the incident's scope and aim to establish preventive measures for the future.

The DOT's investigation into Delta could have significant ramifications. If the airline is found non-compliant with newly established policies regarding refunds, it could face substantial fines.

Transportation Secretary Buttigieg announced the Delta investigation on the X social media platform, “to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.”

“All airline passengers have the right to be treated fairly, and I will make sure that right is upheld,” Buttigieg said.

Required Reading: The recent global software glitch highlights concerns about our reliance on technology, especially in the travel sector

Potential Fallout

The situation highlights the increasing vulnerability of critical infrastructure to cyberattacks and software malfunctions. As airlines rely more heavily on technology, ensuring the robustness and resilience of their systems becomes paramount. The fallout from this incident could prompt a broader review of industry practices and regulatory frameworks to better protect passengers and ensure the smooth operation of air travel in an increasingly interconnected world.

The coming weeks will be crucial as the DOT's investigation unfolds. The outcome could significantly impact Delta's reputation and financial standing, as well as set a precedent for how airlines handle similar technological disruptions in the future.

Senator Cantwell said in a letter to Delta CEO Ed Bastian that she is “concerned” that Delta is not complying with passenger rights contained in a law that Congress passed in May. “While the technology outage was clearly not caused by Delta or any airline, I am nevertheless concerned that Delta is failing to meet the moment and adequately protect the needs of passengers,” Cantwell wrote.

Delta's Response

The airline continues to blame the CrowdStrike outage while rivals such as American recovered quickly. Even United Airlines, the second-worst at cancellations, was back on track sooner than Delta.

The collapse at Delta is stunning for an outfit that was widely viewed as the best big U.S. airline – the most profitable before and after the pandemic, and the best-run operation. Delta has almost always ranked near the top among all U.S. carriers for on-time performance.

Delta has issued a statement saying it is cooperating with the investigation and that "Delta teams are working tirelessly to make it right for customers impacted by delays and cancellations as we work to restore the reliable, on-time service they have come to expect from Delta.”

According to Delta, half its technology systems run on Microsoft Windows, including a tool that manages the schedules of pilots and flight attendants. The systems were overwhelmed by the high number of changes triggered by the outage. Following the CrowdStrike outage and resulting operational disruption, Delta is continuing to offer several customer-focused options to ease the travel experience and make things right.

Flight Cancellation/Extended Delay Refunds & Trip Cancellation Option

Customers whose travel was disrupted due to a canceled or significantly delayed flight may choose to cancel their travel via Delta.com or the Fly Delta app and receive an automatic refund for the unflown portion of the trip. Since July 19, of the refunds processed, 70% were completed via Delta.com or the app.

No Questions Asked Trip Cancellation

Delta is also permitting customers with travel booked from July 19-28 who chose not to travel to cancel and request a refund of the unflown portion of their trip – regardless of whether their flight was canceled or significantly delayed. Enhanced refund flexibility applies to tickets with Delta-operated flights, purchased on or before July 23.

Out-of-Pocket Expense Reimbursement

Delta has expanded the list of eligible expenses that may be covered for this disruption, including flight tickets purchased on other airlines in the same cabin of service or lower, train and bus tickets, rental cars and ride shares.

Delta’s reimbursement platform on Delta.com provides customers with a seamless way to submit expenses for fast processing.

Any thoughts, opinions, or news? Please share them with me at vince@meetingsevents.com.

Photo Courtesy of Delta.