Delta's Richard Anderson To Retire

airliner371 · Wed Feb 03, 2016 9:39 pm

Effective May 2nd Ed Bastian will take over as CEO and Glen Hauenstein will be appointed president of Delta.

Richard made a huge impact on the entire industry and will be truly missed.

http://newsalerts.delta.com/index.php?s=20295&item=124940#assets_117

[Edited 2016-02-03 13:46:32]

1337Delta764 · Wed Feb 03, 2016 9:44 pm

There have been rumors of this for months now, and now it looks like it is official.

Mainland · Wed Feb 03, 2016 9:50 pm

Anderson stays on as executive chairman of the board.

lesfalls · Wed Feb 03, 2016 9:51 pm

How come is he retiring?

enilria · Wed Feb 03, 2016 9:52 pm

Been saying this was about to happen although I am surprised that they were able to keep both of the other execs

commavia · Wed Feb 03, 2016 9:54 pm

Quoting airliner371 (Thread starter):
Richard made a huge impact on the entire industry and will be truly missed.

Huge impact, and important legacy - no question. His achievements at Delta have been impressive.

That being said, what I will be most interested to see is whether there is any change in tone at Delta as a result of the change from one individual at the top to another with a different personality and temperament. Much has been made - rightly, I think - of the aggressive, some would even say combative, style that Anderson has exhibited at times on a variety of topics, from the ME3, to labor negotiations, to aircraft procurement, to competitors, to airports, to regulators, politicians and bureaucrats. I think it's unarguable that this tone has served him, and the company, quite well in many cases, although there are at least a few where it might have been less helpful in the long run.

[Edited 2016-02-03 13:57:16]

jcwr56 · Wed Feb 03, 2016 9:58 pm

Quoting Lesfalls (Reply 3):

How come is he retiring?

He's going to work for an ME3 carrier as a consultant.

Genuinely a nice man, husband and father. Well deserved...

lesfalls · Wed Feb 03, 2016 10:01 pm

Quoting jcwr56 (Reply 6):

Well I hope that suits him

enilria · Wed Feb 03, 2016 10:08 pm

Quoting jcwr56 (Reply 6):
Quoting Lesfalls (Reply 3):

How come is he retiring?

He's going to work for an ME3 carrier as a consultant.

It'll be interesting to see if Fair Skies disappears. I also wonder if Delta's seemingly increased interest in retaining NRT as a hub is related to this. GH is a huge LAX supporter, so it will be full speed ahead there. I don't really expect any major changes in direction from a network point of view, except perhaps with regard to Fair Skies which could lead to a deal with EY if they reverse direction.

LAXintl · Wed Feb 03, 2016 10:14 pm

I hope we get a kinder more gentlemanly Delta back that can play with industry peers and not waste energy on dumb causes like Fair Skies distraction.

thekorean · Wed Feb 03, 2016 10:16 pm

Quoting enilria (Reply 8):

No, highly doubt DL business practices change with retirement of Anderson.

a380787 · Wed Feb 03, 2016 10:16 pm

Quoting LAXintl (Reply 9):

I hope we get a kinder more gentlemanly Delta back that can play with industry peers and not waste energy on dumb causes like Fair Skies distraction.

Starting by re-establishing the interline with AA. It's one thing with the ME3, it's another when they use customers as chess pieces during IRROPS.

lesfalls · Wed Feb 03, 2016 10:17 pm

Quoting LAXintl (Reply 9):

Let's hope so. Maybe things will finnaly happen like DY's irish license might get approved and the M3 starting more routes(such as the rumored JFK-MAN service). Maybe they'll be a little less of a "Monopoly" type airline for once.

MSPNWA · Wed Feb 03, 2016 10:28 pm

I guess the rumors were true. But he has a history of going out after a few years on a higher note, so it isn't a big surprise considering his age. I won't miss seeing him being the face of things, but unfortunately I don't see Bastian being much of a change, if any, in the culture.

If I were Anderson, I'd retire now too. He's made lots of money and doesn't have much more to accomplish. Now he doesn't have to make more enemies in the industry, deal with growing labor unrest, or face the chance that his house of cards collapses. When you've led a short-term company strategy, best to leave before you have to deal with the long-term.

enilria · Wed Feb 03, 2016 10:30 pm

Quoting thekorean (Reply 10):

Quoting enilria (Reply 8):

No, highly doubt DL business practices change with retirement of Anderson.

They will definitely change. Any time you have new leadership they want to put their stamp on things. The question is how much of a "steady hand" was Anderson to some of the ideas that these two always wanted to do? Also, as Anderson was ex-NW will the support for what remains of the old NW network be reduced now.

All questions that will play out over a long time.

[Edited 2016-02-03 14:48:04]

cokepopper · Wed Feb 03, 2016 10:44 pm

Quoting MSPNWA (Reply 13):

House of cards? really?
again, sorry you didn't get the job.

Congratulations to Richard Anderson
for his many accomplishments and for building a
strong foundation for our future at Delta.

enilria · Wed Feb 03, 2016 10:52 pm

Quoting MSPNWA (Reply 13):

I guess the rumors were true.

May 28,2015 I posted this
I had heard that rumor of a near term retirement announcement (with a 1 or 2 year lead on his exit) earlier this year.

DL's Bastian Makes Interesting Comments In France (by enilria May 28 2015 in Civil Aviation)

deltal1011man · Wed Feb 03, 2016 10:58 pm

Going to miss Richard but Ed and the rest of the CLT will keep business as usual.
Glad to see they went 100% in-house this time though. That will mean everything stays the same and DL keeps on trucking. (or climbing I guess I should say

)

Quoting commavia (Reply 5):

That being said, what I will be most interested to see is whether there is any change in tone at Delta as a result of the change from one individual at the top to another with a different personality and temperament. Much has been made - rightly, I think - of the aggressive, some would even say combative, style that Anderson has exhibited at times on a variety of topics, from the ME3, to labor negotiations, to aircraft procurement, to competitors, to airports, to regulators, politicians and bureaucrats. I think it's unarguable that this tone has served him, and the company, quite well in many cases, although there are at least a few where it might have been less helpful in the long run.

Ed is just as cut throat as Richard if not more.

Quoting enilria (Reply 8):

It'll be interesting to see if Fair Skies disappears.

boy you are sill on that eh? well hey, you have yet to be right so keep tossing stuff against the wall, it might stick one day.

You should get into the anet route predicting dept. I think you would be great at it.

Quoting enilria (Reply 8):
I don't really expect any major changes in direction from a network point of view, except perhaps with regard to Fair Skies which could lead to a deal with EY if they reverse direction.

You only expect it because you want it to happen. You honestly think Delta was doing everything just because of Richard?
laughable.

Quoting enilria (Reply 8):
GH is a huge LAX supporter, so it will be full speed ahead there

no more so than before. Doug Parker could take over Delta and guess what would change with LAX? nothing.
Delta doesn't and wont have the gates to expand much more in LA. Seattle is the future. Even with all of your "data" and "sources" saying other wise.

Quoting LAXintl (Reply 9):
I hope we get a kinder more gentlemanly Delta back that can play with industry peers and not waste energy on dumb causes like Fair Skies distraction.

Dumb causes like fair skies? Do you know anything about fair skies?

its probably the only thing the US3 and most airline unions can sit down and agree on. How is that not working with its industry peers?

Quoting a380787 (Reply 11):

Starting by re-establishing the interline with AA.

Any time AA wants to pay DL the money the other US airlines agreed to pay for DL's better operations DL will be happy to sign the interline agreement.

Quoting Lesfalls (Reply 12):
Maybe they'll be a little less of a "Monopoly" type airline for once.

are you serious?

Quoting MSPNWA (Reply 13):
deal with growing labor unrest,

This is DL, not your beloved NW. One TA getting voted down doesn't mean labor unrest.

Quoting enilria (Reply 14):
Also, as Anderson was ex-NW will the support for what remains of the old NW network be reduced now.

Exactly what parts are you talking about? More "sources and data" I can only hope.

stlgph · Wed Feb 03, 2016 10:59 pm

Quoting enilria (Reply 14):

Richard Anderson successfully cloned himself and named it Ed Bastian.

Anderson schooled that management team and they've pocketed a healthy chunk of change in bonuses. They'll keep the boat running as long as their 401's keep looking handsome.

DTWPurserBoy · Wed Feb 03, 2016 11:00 pm

I, for one, am sorry to see Richard retiring. His unique ability to listen to and interact with all levels of Delta employees will be missed. Ed Bastian, being a Brooklyn boy like I am, will do an outstanding job.

Wonder if Richard will have to fly S3B now, too?

Prost · Wed Feb 03, 2016 11:02 pm

I hope that management continues to pay down debt. I know credit is cheap right now, but I think low debt companies will have a stronger future than highly leveraged companies.

DTWPurserBoy · Wed Feb 03, 2016 11:03 pm

Quoting Prost (Reply 20):
I hope that management continues to pay down debt. I know credit is cheap right now, but I think low debt companies will have a stronger future than highly leveraged companies.

An excellent point. Stock buybacks would really help the bottom line and raise the value of the shares.

tortugamon · Wed Feb 03, 2016 11:12 pm

Quoting 1337Delta764 (Reply 1):
There have been rumors of this for months now, and now it looks like it is official.

So weird. I mentioned this a few months as being the obvious direction things were going when Anderson was doing some Boeing bashing and was almost universally considered to be completely wrong. Guess how these things go.

tortugamon

Beatyair · Wed Feb 03, 2016 11:15 pm

Wow! Did not see that coming. He has made a good Airline great and now what. I guess, what is the challenge?

Forgive me, I started the same topic.

deltal1011man · Wed Feb 03, 2016 11:19 pm

Quoting stlgph (Reply 18):

Anderson schooled that management team and they've pocketed a healthy chunk of change in bonuses. They'll keep the boat running as long as their 401's keep looking handsome.

The only thing i really expect different from Ed to Richard is we might see some of the cost saving goals (yearly) get larger

but even then, he isn't going to go rocking the boat. No need too. He has worked under two very smart and very good CEOs at Delta, Both a lot a like.

TVNWZ · Wed Feb 03, 2016 11:24 pm

What I want to know is will he take C.E. Woolman's desk so he can still sit behind it every day....

[Edited 2016-02-03 15:25:20]

global1 · Wed Feb 03, 2016 11:51 pm

An exceptional leader. Sorry to see him go, but he'll still serve as executive chairman of the board. With Bastian it will be a smooth transition, unlike UA and AA who practically had their former leaders walk the gangplank.

I don't think he'll be using S3B passes,
I hope he gets lifetime confirmed First class, just like Laura Glading!

enilria · Thu Feb 04, 2016 12:19 am

Quoting Deltal1011man (Reply 17):
boy you are sill on that eh?

Well, they are still on it. They just submitted another round of complaint a week ago.

Quoting Deltal1011man (Reply 17):
You only expect it because you want it to happen. You honestly think Delta was doing everything just because of Richard?
laughable.

You can't on the one hand say that Richard was enormously valuable to the company and on the other hand say that losing him in day to day operations has no effect. LOL

Quoting Deltal1011man (Reply 17):
Even with all of your "data" and "sources" saying other wise.

What otherwise exactly? Can you post a quote?

Quoting Deltal1011man (Reply 17):
Quoting enilria (Reply 14):
Also, as Anderson was ex-NW will the support for what remains of the old NW network be reduced now.

Exactly what parts are you talking about? More "sources and data" I can only hope.

It's a question, not a prediction.

cjg225 · Thu Feb 04, 2016 12:45 am

Wow. He is my idol as far as CEOs go. No joke. Will be sad to see him bow out.

questions · Thu Feb 04, 2016 12:57 am

How big is his package?

klkla · Thu Feb 04, 2016 1:14 am

Quoting questions (Reply 29):
How big is his package?

That's an odd question

reality · Thu Feb 04, 2016 1:16 am

Quoting klkla (Reply 30):
That's an odd question

...presumably his retirement package.

mayor · Thu Feb 04, 2016 1:23 am

Quoting LAXintl (Reply 9):

I hope we get a kinder more gentlemanly Delta back that can play with industry peers and not waste energy on dumb causes like Fair Skies distraction.

Last time we had a kinder, more gentlemanly Delta, they got run roughshod over by the other carriers and that extends clear back to the 70s.

Quoting questions (Reply 29):

How big is his package?

Kinda personal, isn't it?

Mainland · Thu Feb 04, 2016 1:58 am

Quoting reality (Reply 31):

Quoting klkla (Reply 30):
That's an odd question

...presumably his retirement package.

Appears to be over $28 million.

DocLightning · Thu Feb 04, 2016 2:12 am

Quoting Lesfalls (Reply 3):

How come is he retiring?

He's in his 60s. He's got loads of money, I'm sure. I would not blame him for wanting to ratchet down his workload and take some time to enjoy his sunset years.

He's done a great job turning DL into a world-class airline and at some point, he can go and enjoy some extra time. He'll still sit on the Board and may do some consulting work for other airlines, so he can still keep his mind busy.

flyabr · Thu Feb 04, 2016 2:31 am

With RA's retirement coming, maybe DL will now finally buy some new Boeing widebodies!!

UA444 · Thu Feb 04, 2016 2:34 am

Quoting flyabr (Reply 35):

All the 777-200LR were delivered under his term. He didn't order them but if he was gung-ho about hating Boeing's, he would've canceled them.

And didn't he place the NW 787 order?

[Edited 2016-02-03 18:34:57]

cschleic · Thu Feb 04, 2016 3:17 am

Quoting DTWPurserBoy (Reply 21):
Quoting Prost (Reply 20):
I hope that management continues to pay down debt. I know credit is cheap right now, but I think low debt companies will have a stronger future than highly leveraged companies.

An excellent point. Stock buybacks would really help the bottom line and raise the value of the shares.

Those two don't always go hand in hand. In fact, one can lead to too much of the other.

mayor · Thu Feb 04, 2016 3:19 am

Quoting DocLightning (Reply 34):
He's in his 60s.

He turns 60, this year......born in 1956.

DocLightning · Thu Feb 04, 2016 3:39 am

Quoting mayor (Reply 38):

He turns 60, this year......born in 1956.

Well bully for him! If I had a $28m package on top of all he's saved up (he must have around $100m) I'd go into semi-retirement next year.

Quoting UA444 (Reply 36):

All the 777-200LR were delivered under his term. He didn't order them but if he was gung-ho about hating Boeing's, he would've canceled them.

Not to mention the 737s he ordered.

mayor · Thu Feb 04, 2016 4:00 am

Quoting DocLightning (Reply 39):
If I had a $28m package on top of all he's saved up (he must have around $100m) I'd go into semi-retirement next year.

Me, too

catiii · Thu Feb 04, 2016 4:07 am

Quoting MSPNWA (Reply 13):
If I were Anderson, I'd retire now too. He's made lots of money and doesn't have much more to accomplish. Now he doesn't have to make more enemies in the industry, deal with growing labor unrest, or face the chance that his house of cards collapses. When you've led a short-term company strategy, best to leave before you have to deal with the long-term.

Well put.

Quoting DTWPurserBoy (Reply 19):

Wonder if Richard will have to fly S3B now, too?

His dirty little secret is all his Delta Private Jet flying...

Quoting enilria (Reply 27):

You can't on the one hand say that Richard was enormously valuable to the company and on the other hand say that losing him in day to day operations has no effect. LOL

Seconded.

Quoting mayor (Reply 32):

Last time we had a kinder, more gentlemanly Delta, they got run roughshod over by the other carriers and that extends clear back to the 70s.

Delta was as good as it ever was culturally under Jerry Grinstein, the kindest most gentlemanly man I've ever worked for. And no one was running roughshod over us, especially not Doug Parker and his hostile takeover.

Sydscott · Thu Feb 04, 2016 4:26 am

I have to laugh at this:

Dan Carp will step down as non-executive Chairman and remain on the Board of Directors of Delta. "Dan Carp has been an excellent mentor and colleague as the Chairman of Delta since 2007, overseeing the remarkable resurgence of Delta as the recognized leader of the global aviation business," said Richard Anderson.

I may have missed it, but outside of the US, what part of the "global aviation business" is Delta the recognized leader in?

gaystudpilot · Thu Feb 04, 2016 4:57 am

Quoting catiii (Reply 41):
His dirty little secret is all his Delta Private Jet flying...

Why is this a dirty little secret?

catiii · Thu Feb 04, 2016 4:59 am

Quoting gaystudpilot (Reply 43):

Why is this a dirty little secret?

Because he loves to talk about how he only flies in that exit row aisle seat.

Quoting Sydscott (Reply 42):
but outside of the US, what part of the "global aviation business" is Delta the recognized leader in?

All the metrics that matter in the global airline industry. You're joking, right?

[Edited 2016-02-03 21:01:31]

gaystudpilot · Thu Feb 04, 2016 5:00 am

Quoting Mainland (Reply 33):

Quoting reality (Reply 31):

Quoting klkla (Reply 30):
That's an odd question

...presumably his retirement package.

Appears to be over $28 million

While I love a big package, 60 is a bit old for me!

Seriously, wouldn't it be more than crazy if Marissa Mayer ends up making more money at Yahoo! than RA for all the results he's delivered at DL?!!

heavymetal · Thu Feb 04, 2016 5:50 am

Quoting MSPNWA (Reply 13):

Could you clarify exactly what has been short-term about the way he's led the company? As far as I can tell, they are one of the most profitable airlines in the world, one of the most operationally reliable airlines in the world, are working toward an investment grade rating, and have tremendous growth opportunities ahead with their fleet plan and JV/equity stakes. Which of the above is short term planning?

Quoting DTWPurserBoy (Reply 21):

What does this even mean? They've been paying down debt like madmen, which helps the bottom line, and they've been prudently buying back shares at the same time, which has no impact on the bottom line but helps boost share prices. They will likely continue paying down debt until they reach that investment grade rating, which will give them a huge advantage in he next credit crunch.

If you want an example of raising debt (hurting the bottom line and putting risk on the company) to buyback shares, look no further than American. The jury is still out on whether they are "over-levered" - probably not, but they certainly are capitalizing on cheap credit right now.

[Edited 2016-02-03 22:13:38]

IPFreely · Thu Feb 04, 2016 5:54 am

This is great news. Hopefully the new CEO will focus on rebuilding the Delta Connection operation from the ashes into something functional again.

mayor · Thu Feb 04, 2016 6:00 am

Quoting catiii (Reply 41):
Delta was as good as it ever was culturally under Jerry Grinstein, the kindest most gentlemanly man I've ever worked for. And no one was running roughshod over us, especially not Doug Parker and his hostile takeover.

You have to look further back than that.............DL's history didn't start in 2003, you know. How about how we fared at the DFW hub and how AA treated us, there? How about during the PA bankruptcy proceedings and Carl Icahn and Bob Crandall handled Ron Allen like he was a schoolboy and forced UP the asking price for what DL eventually received?

Sydscott · Thu Feb 04, 2016 6:35 am

Quoting catiii (Reply 44):
All the metrics that matter in the global airline industry. You're joking, right?

Such as?

Alaska had the highest US pre-tax margin last year.
Southwest had the highest US Return on Equity.
Delta isn't an investment grade carrier. The only ones that are Air New Zealand, Lufthansa, Qantas, Ryanair, Westjet, Alaska and Southwest. (Excluding the State backed one's like Etihad)
Delta, post AA/US, is no longer the largest airline in the world.
It wasn't rated the safest carrier in the world, that was Qantas, and it wasn't in the Top 20.
According to Skytrax they're not in the top 10 for any measure in First, Business or economy class and are ranked 45th overall in the worlds top 100, while being 10th best Trans-Atlantic airline.

So I'm just wondering exactly what category, compared to its peers in the global airline industry, that Delta is actually the leading airline in global aviation in? If someone can provide some facts or a measurement where Delta is actually the world leader I'll gladly concede the point. But I can't find one.

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