ATLANTA – Ed Bastian will move into the top job at Delta Air Lines amid favorable tailwinds. Fuel is cheap, operations are generally smooth and employees are sharing in record profits.
But the airline industry can be humbling in a heartbeat, and Bastian and his newly promoted lieutenants face a host of potential pitfalls ranging from pilot labor pains to Japan air treaty talks. Not to mention a wobbly global economy.
Delta, the dominant airline at Minneapolis-St. Paul International Airport, last week named Bastian to succeed CEO Richard Anderson when Anderson retires on May 2. It was not a surprise choice; Bastian was considered the heir apparent, having played a key role in Delta's resurgence since a trip through bankruptcy a decade ago.
Bastian also drove the execution of Delta's purchase of Northwest Airlines in 2008 and 2009, serving as the last chief executive of the Minnesota-based airline during the transition.
As good as recent times have been, Bastian, 58, said more opportunities lie ahead, with room to improve performance. "We've got more chapters in this story to write," he said.
The biggest challenge Delta faces right now is the choppiness on the international side of the business, Bastian said in a brief interview last week. The culprit, he said, is the strong U.S. dollar, which is weakening the purchasing power of foreign travelers to the United States.
When those markets rebound, he said, "we're going to be well-positioned."
But for now, Bastian said, "Our revenues internationally are down across the board — they've been down for the better part of the last year and they may stay down" for some time.