The newly named next CEO of Delta Air Lines on Thursday said he sees plenty of upside left in the company’s recent run of financial and operational successes.
“I think our gas tanks are pretty full with ideas and opportunities,” Ed Bastian, who will become chief executive on May 2, said in a short interview.
Bastian, 58, is currently president of Delta and will replace Richard Anderson, who is retiring after nine years in the post, the company announced Wednesday. Glen Hauenstein, an executive vice president, will step into Bastian’s No. 2 spot as president. Anderson, 60, will be executive chairman of the airline’s board for an unspecified time.
Delta characterized the moves as long-planned.
“Nine years is a long time in this job, especially given that he was CEO of Northwest before that,” Bastian said of Anderson’s retirement. “It’s a tough job, there are a lot of demands on the job, and hats off to him to have the endurance to go through it for that extended period of time.”
Bastian said Anderson “made a personal decision that he was not going to spend his entire life as CEO, and he wanted to add more color to his world.”
With Delta gaining attention for its billions in profits and improved on-time performance, the changeover introduces no new faces at the top and promotes existing executives.
Bastian is an 18-year Delta veteran and has been considered the heir apparent for several years. His ascent ends a run of three CEOs — Anderson, Gerald Grinstein and Leo Mullin — who were hired from outside Delta’s executive ranks.
Cowen & Co. analyst Helane Becker wrote in a note to investors that the “next man up” strategy makes “for a smooth transition.”
“Mr. Bastian has been very much involved in high level management decisions for years and knows what makes the company tick,” Becker wrote.
How involved Anderson will be as executive chairman will depend on his priorities and how much time he wants to spend on the role, said Henry Harteveldt, travel industry analyst at Atmosphere Research Group.
Anderson may want to be involved in ongoing negotiations on a pilots contract.
“Richard is also a relatively young man, and I think Delta means a great, great deal to him. So I just couldn’t see him walking away from the airline entirely,” Harteveldt said.
Looking forward, Bastian said “we’re going to be a company that continues to, I’d say, take great care of its people. That’s the most important thing.”
Delta has more than 27,000 employees based in metro Atlanta. While Delta is giving 14.5 percent raises to workers and paying out hefty profit-sharing checks, the company also laid off employees last year amid a decline in unit revenue, or the amount derived from each seat-mile flown.
“This is an industry where things don’t always go the way you expect it … when you think about all the changes in the last ten years,” Bastian said. He said the priority will be to “take care of our people, and then standing behind them when times are tough.”
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