Delta Air Lines president Ed Bastian succeeded Richard
Anderson as CEO on Monday. A change in leadership style seems likely, but not a
major shift in direction.
Speaking at a media gathering in Atlanta last week, Bastian
called Anderson a "close friend and close partner" and said they had
worked together on "every significant decision" made by Delta over
Anderson's nearly nine years leading the carrier. While Bastian has his own
priorities, such as keeping Delta's brand and technology fresh and continuing
to steer marketing to Millennials, he added that Anderson, now chairman of
Delta's board of directors, also will continue to have a presence in those
decisions. "We have different personalities—I come from the financial and
analytical side—but think alike in the main areas, and he's still my
boss," Bastian said. "We talk two or three times a week."
Bastian takes the reins of a company with both strong
financial health and a strong
operational record. Delta's profit per seat is 10 percent higher than its
competition's average, Bastian said. And through the first four months of the
year, Delta has completed all mainline flights on 68 days. That's 30 more than
this time last year and more than twice as many as all its major competitors
combined this year, he said.
"A lot of times, you have a CEO succession and the CEOs
leave the tank dry and hand the keys over," Bastian said. "For
Richard to voluntarily [step down] with the amount of excitement and enthusiasm
we have, I'm thrilled about that. There's a lot of gas still in the tank."
Here are some of the initiatives on which Bastian is ready
to hit the gas:
Premium economy: Delta
will introduce a premium economy cabin on international flights next year in
Delta's Airbus A350. It will have its own cabin with distinct seats and service,
as opposed to Delta's Comfort Plus, which essentially is an economy cabin
product with extra legroom, Bastian said. Delta president Glen Hauenstein said the
premium economy seats will provide 38 inches of pitch with leg rests and
eventually will spread across Delta's international fleet. Boeing 777s, Airbus A330-200s
and Boeing 767-400s are next in the queue. "While we've made substantial
enhancements to the front of the airplane, we've created a greater divide
between business and the main cabin, which has left a little of a vacuum in the
middle for that premium economy customer," Bastian said.
The move will bring Delta in line with several international
carriers, including partner Air France, Hauenstein said. Both American Airlines
and Alaska Airlines had announced
plans to add premium economy cabins to their fleets.
New fleet: Delta
will be the U.S. launch customer for Bombardier's CS100 series, having placed a
firm order for 75 of the aircraft. Set to begin service with Delta in spring 2018,
it is 20 percent more fuel efficient than the Boeing 717 and provides a 30
percent maintenance-cost advantage, Bastian said. "With a range of more
than 2,000 miles, it's an airplane that has a lot of utility. If you look at the
market of LaGuardia, that will be perfect, and Seattle is another
opportunity."
Delta also agreed to add 37 Airbus A321s, bumping its A321
fleet to 82. Set to replace such older-generation jets as the MD-88, they will
be delivered through 2019. The first began service between Atlanta and Orlando
on May 2.
Security checkpoint
improvements: Delta has bought a 5 percent share in Clear and is partnering with the
platform to speed up security for SkyMiles members, Bastian said. Clear—a private
service, unlike the U.S. Transportation Security Administration's PreCheck
program—uses biometric screening to identify passengers, after which they can
jump the line and be escorted directly to physical TSA screening. SkyMiles
members will receive discounted pricing for Clear's service, and U.S. Diamond Medallion
members will receive it for free. The services will be in place at Delta's main
hubs this summer, he said.
Delta also is working with Hartsfield-Jackson
Atlanta International Airport over the next few months to pilot a lane
structure that should speed up TSA screening, Bastian said.