Ed Bastian: A Respected CEO in the Airline Industry
Ed Bastian, CEO of Delta Air Lines since 2016, has led the company through a decade of growth and successfully navigated the challenges posed by the pandemic without laying off employees. Under his leadership, Delta has become a top-tier brand and industry leader, celebrating its 100th anniversary.
A Century of Innovation and Resilience
Bastian emphasizes that true innovation lies not just in technology but also in the courage and vision required to build an industry. He recalls that a century ago, Delta operated with just one person on a single airplane, whereas today it transports over 200 million passengers annually. “That’s innovation,” Bastian says.
Embracing a Global Future Amid Uncertainty
When asked about navigating a world filled with uncertainty, Bastian asserts that the future of aviation is international. Although two-thirds of Delta’s operations are based in the US, only one in five people globally has ever flown on an airplane. This indicates that the industry still has significant room for growth.
“The opportunity exists worldwide: in the Middle East, Southeast Asia, India, Africa… everywhere,” Bastian explains. “There’s a huge opportunity.”
To capitalize on this, Delta must maintain confidence and adaptability, especially during challenging times. “During the pandemic, our team maintained a firm focus on our goals despite having no clear path forward,” Bastian recalls. “It was a tough period; we went from our best year in 2019 to no revenue within three months.”
Leveraging Artificial Intelligence, Not Replacing Employees
Bastian discusses the use of Artificial Intelligence (AI) for managing flight ticket prices. He clarifies that while there have been many discussions, AI essentially simplifies the process due to the long lead time for ticket sales and the diverse inventory, products, and services.
“We prefer to call it augmented intelligence rather than artificial intelligence,” Bastian explains. “If more people started referring to it as augmented intelligence, many fears would dissipate.”
Augmented intelligence, according to Bastian, assists employees in delivering better customer service by providing quicker and more personalized responses. “AI won’t cost us jobs; if we succeed with AI, it will create more jobs,” he asserts. “We can boost income and efficiency in numerous areas of our business.”
Building a Premium Brand from Within
Delta has established itself as a premium airline, with passengers willing to pay 20% more for its services. However, achieving this status required rebuilding infrastructure, reliability, and customer experience, with a focus on ensuring 100,000 employees shared this vision.
Bastian stresses that investing in people—not just through salary increases but also by providing tools, processes, and technology to ease daily tasks—has been crucial.
“Our flight attendants, pilots, and ground staff detest schedule disruptions because they’re on the front lines, explaining issues to passengers,” Bastian says. “When we tell them, ‘The best way to take care of you is ensuring they do their best work for their clients,’ it resonates. They know we care about them and see the investment in their future.”
Bastian recalls Delta’s bankruptcy declaration on September 14, 2005. As CFO at the time, he promised employees they would receive 15% of profits once the company regained profitability. Though not a formal agreement, this promise was kept.
In the past decade, Delta has distributed approximately $13 billion among frontline employees, including pilots.
The Importance of Listening Over Speaking: A CEO’s Challenge
Bastian explains that becoming a CEO doesn’t mean eliminating one’s bosses; he still has twelve, each with unique opinions and ideas.
“Listening to the board is one of the most crucial tasks,” Bastian says, adding that it’s even more important than defending personal stances. He acknowledges experiencing the imposter syndrome common among high-responsibility positions.
“Honestly, if I still had imposter syndrome after nearly a decade as CEO, I’d be an impostor,” Bastian admits. “But starting out is natural; there are many expectations.”
Bastian concludes that leadership is defined by how one handles difficult situations. “As a leader, you’re expected to provide answers,” he says. “They have questions, and you have answers. Saying ‘I don’t know’ isn’t always confidence-inspiring, but honesty is essential. Saying ‘I don’t know’ is one of the hardest things a leader can do.”
Key Questions and Answers
- Q: How has Ed Bastian led Delta through a century of change? A: By focusing on innovation, resilience, and investing in people, Bastian has maintained Delta’s position as a top-tier airline.
- Q: What is Bastian’s view on the future of aviation? A: He believes the future is international, with significant growth opportunities in various regions.
- Q: How does Bastian approach the use of Artificial Intelligence? A: He sees AI as augmented intelligence, aiding employees in delivering better customer service rather than replacing jobs.
- Q: How has Bastian built Delta into a premium brand? A: By prioritizing investments in employees, infrastructure, and customer experience.
- Q: What is the significance of listening in Bastian’s leadership approach? A: Bastian emphasizes the importance of listening to his board and employees, valuing honesty over always having the answer.
