Who Will Be Delta's Next CEO?

The airline reshuffled its top executive ranks last week.

Dear readers,

Sometimes I wonder if Ed Bastian, who really seems to enjoy hobnobbing with Tom Brady, along with the other perks of being a Fortune 100 CEO, wants to keep his job for life. But with Bastian turning 69 in June, insiders were questioning why Delta hasn’t communicated a plan for what (or who) comes next.

Last week, just a few days after Glen Hauenstein retired, Delta came closer to outlining its future when it announced several job changes for top executives. Don’t worry, though: Delta, an old-fashioned company in many ways, remains controlled mostly by white men in their 50s and 60s.

Peter Carter, Delta's top lawyer, who has taken on more administrative responsibility in recent years, is becoming company president, while Dan Janki, the CFO and a former top GE executive, will become chief operating officer. Erik Snell, now the chief customer experience officer, is taking over as CFO. And Alain Bellemare, president of international (and former CEO of Bombardier) adds the title of chairman of TechOps.

Delta's press release and SEC filing don’t mention succession planning, much less who will be the next CEO. But it seems reasonable to ask if one of these men will sit in Bastian's chair.

Who might it be?

I like Janki’s chances. He joined Delta in 2021, and unlike others who had short stints at the airline, I think he fits in well. He speaks with authority on earnings calls, and I believe he has earned respect from Wall Street.

It’s likely an auspicious sign that he's transferring from a financial role to operations. Good CEOs typically have experience in many facets of the business, and this job switch will give Janki, who lacks an airline background (he spent roughly 30 years at GE), a crash-course in a very technical part of the industry. As long as he doesn't botch it, I think he might be the guy. It also helps that he's young by Delta standards, at a spry 57.

As for Carter, he's 62 and has been a lawyer and corporate administrator his entire career. That's not a typical pathway to becoming CEO,¹ though it's not a bad resume for an airline president, as United's Brett Hart has shown us. Bellemare has a similar age handicap, as Delta's annual report lists him as 64 as of Dec. 31.

Of the group, Snell is both the youngest (49 at year-end) and the one I know least about. He joined Delta in 2005, and has worked in various roles across finance, airport customer service, Delta Connection, and TechOps.

I suppose the next CEO could be an outsider. But you might recall my favorite quote from a former Delta employee, "this airline puts the cult in culture." Delta is an insular place that is very protective of its culture, history, and anti-union ethos. I'll be surprised if the board hires a CEO from elsewhere, unless that person previously worked at Delta and understands its quirks.

Many of you likely know more about what’s happening at Delta. Who do you think will be Delta's next CEO? Will it be one of these men? Or perhaps someone different? And when do you think the big announcement will come?

There is other VERY exciting news in this release

Also last week, Delta announced that Ranjan Goswami will become chief marketing and product officer, reporting to Bastian. He replaces Alicia Tillman, an outsider who joined in 2023 with a robust marketing resume (including stints at American Express and SAP) but no airline experience. She had replaced Tim Mapes, who remained with a slimmed-down portfolio.

Goswami will thrive in this job. While some readers express skepticism about brand investments because it's hard to measure how they affects profits, Delta’s leaders long have understood how they can win a revenue premium by offering a cohesive passenger experience and using advertising to promote it.

Delta takes is brand very seriously. Photo: Delta.

I think Goswami, with his eye for the smallest details, can take this vision further. A consummate aviation geek, Goswami can tell you about the network intricacies of random 1980s-era Asian carriers (he grew up in Hong Kong), while also speaking with authority about how improvements to an airline's brand and onboard experience spur earnings.

He’s the full package in an industry filled with aviation geeks who can share random facts about historic liveries and networks but lack the business acumen to climb the executive ranks. Only a small number of senior executives can talk my ear off about Cathay Pacific’s 1984 menu options and speak for hours about intricate financial metrics. Goswami is on the list, as is Air France-KLM CEO Ben Smith, and two of his former Air Canada lieutenants, Mark Galardo and Mark Nasr.

I first met Goswami in 2013 when he ran Delta's sales operation in Los Angeles. He had joined Northwest in 2004, a couple of years after graduating from Yale with bachelor's and master's degrees in political science.

After a decade in airlines, Goswami could have been jaded, or just annoyed that he had to take another local reporter on a dog-and-pony show through LAX. But as he showed me the special amenities planned for top-tier customers, like Porsche rides on the ramp and a new premium class check-in, he evinced a childlike wonder for the magic of flight and airports. Back then, Delta was a small player at LAX, without the premium halo of today. But Goswami promised me Delta could would win in Los Angeles, with network and product improvements.²

He was right. The other airlines might quibble with my assessment, but I say Delta is the premium leader in Los Angeles.

I was right too. After the release about Delta's leadership changes hit the internet, an insider texted me to say: "Probably somewhere buried in the cloud are almost 20-year old text messages where you accurately predicted the ascent of Ranjan."

What this source might have forgotten is that I also said Goswami would make an excellent CEO someday. He's not likely to get the job after Bastian, but perhaps someday. He will make a talented CEO, at Delta or elsewhere.

A couple other notes

First, thank you to the reader who pointed out a mistake in my story about how the FAA is taking action in Chicago to reduce possible flight delays.

I mentioned that a capacity arms race in Chicago would be expensive for American, and said the airline is more focused on cost than its global network peers. That’s true. But I added that American’s unit costs will rise if it adds considerable flying in Chicago. That’s inaccurate: Simple math tells us that when airlines fly more ASMs, unit costs fall.

Second, I am headed to Tokyo this week to learn about how ANA uses its premium brand to capture customers. ANA has given me a business class ticket, but I am on my own for other costs. I have made no promises about coverage, but if I learn interesting stuff, I’ll share it with you.

Here’s the most important question about Japan³ …

That’s all for this week. I’ll be back next week after returning from Tokyo.

1. Plenty of lawyers have become airline CEOs, including the revered Richard Anderson at Delta. But they typically take jobs outside the legal sphere on their way to the top, and Carter has not done that.

2. I don’t talk to Goswami much anymore, as he has disappeared behind the Delta curtain. (It’s the only U.S. airline at which executives won’t talk freely with reporters.) I last saw him in 2022, at the opening of a LAX SkyClub. He was a senior vice president, and yet, he was exactly the same as I remembered — giddy as a child as he bragged about all the nooks and crannies in the lounge.

3. Unlike many of my readers, I’m a weakling when it comes to long-haul travel. I’m leaning toward the third option. Have a perfect jet lag remedy? Email me: brian@theairlineobserver.com.