The Main Squawk: CrowdStrike and Microsoft call Delta’s bluff
Last week, we reviewed Delta’s operational meltdown after a CrowdStrike outage led to tens of thousands of flight cancellations across the globe. It took the Company five days to recover—three times longer than any other carrier—forcing CEO Ed Bastian to do what he does best and blame someone else. In this case, the parties to blame are none other than CrowdStrike and Microsoft.
Earlier today, CrowdStrike fought back claiming that its CEO personally offered him “onsite assistance” during the outage, which Ed refused. In a letter targeting Ed’s comments, CrowdStrike accuses Delta of underpreparing for large-scale outages and suggests they look to their competitors for better examples. (All other Major U.S. carriers had resumed normal operations by Monday, July 29.)
Microsoft is expected to release a similar rebuttal later this week.
Delta lost $500 million in the week following the CrowdStrike outage.
The Company is now getting its own taste of what it’s like to get a flight credit rather than a full refund. Rumors circulating Delta’s IT campus suggest CrowdStrike may offer the Company vouchers for antivirus updates and extra storage space.
Spirit Airlines announced a loss of $192.9 million for Q2. It blames “significant industry capacity increases” and “ancillary pricing changes.” Translation: “We know exactly why we keep losing money, but just can’t seem to break the habit.”
This is marks the fourth consecutive quarter the Miramar-based ULCC announced losses totaling over $100 million. Naturally, this means cost cutting efforts have to follow.
During last week’s earnings call, the Company mentioned it would be furloughing a total 240 pilot furloughs. Additional cost cutting efforts will include downgrading 100 captains. The furloughs will affect roughly 7% of the pilot group. The 100 downgraded captains will likely be the angriest of the bunch. They forget that, unlike the 240 furloughed, they still have jobs.
Southwest is having an issue with exploding soda cans. In what I first thought was a late-April Fool’s Joke, there have been over 100 reports of these incidents in June alone, some of which have actually injured a few flight attendants.
President of the Southwest flight attendants union Bill Bernal told CNN that this has been happening “for years,” but that these explosions—like “little bombs”—have been occurring more often.
The incidents appear to be happening in some of the hottest parts of the country, including Dallas, Houston, Las Vegas, and Phoenix. Since carbonated beverages are subject to intense heat-driven pressure, it makes sense that these are the airports where these reports are most common.
Las Vegas in particular experienced a high temperature of 118 degrees Fahrenheit three times last month.
KLAS 072356Z 30006G17KT 10SM FEW110 48/M08 A2975 RMK AO2 SLP036 T04781083 10489 20417 57026
KLAS 092256Z 03003KT 10SM FEW130 FEW200 48/M06 A2976 RMK AO2 SLP040 T04781056
KLAS 102239Z 29012G17KT 10SM FEW130 FEW180 48/M06 A2982 RMK AO2 T04781061 $Southwest says they will be utilizing refrigerated trucks to cater aircraft at some of its hottest locations. Despite their capability of carrying perishable items, the section of the trucks labeled “Crew Meals” will remain empty.
Boom Supersonic shared an update regarding development of its Overture aircraft at the Farnborough Air Show last week. Despite being many years away from service, the Company said it anticipates certification by the end of the decade.
Major air show highlights included progress on the flight deck, rapid advances on its turbofan engine, and U.S.-based manufacturing pride.
The Company currently has 130 orders of the aircraft from American, JAL, and United. Pilots who bid the aircraft in 2035 will be known as “part-time” pilots since their flight hours will be cut in half.
Alaska allowed the DOJ a 10-day extension to fight its merger with Hawaiian.
Avelo continues its rampant expansion, adding service to Ontario, C.A. and Salt Lake City via Santa Rosa.
British Airways is switching to GEnx engines for six (6) of its incoming Boeing 787 aircraft.
Cathay Pacific announced a renovation of its lounge in Beijing.
Delta is offering Delta Difference™ passes to employees for dealing with the CrowdStrike meltdown, which the Company continues to say it had nothing to do with and is in no way responsible.
Frontier cut forty-three (43) routes from its network.
JetBlue is deferring delivery of forty-four (44) Airbus A321neo aircraft until the start of next decade.
United is adding service to Aspen on the Embraer 175.
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