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Corner Office from Marketplace

Delta CEO Ed Bastian on why he’s spending big on airports

Corner Office from Marketplace

Marketplace

News, Business

4.8545 Ratings

🗓️ 15 May 2019

⏱️ 22 minutes

🧾️ Download transcript

Summary

When we last talked with Ed Bastian in 2016, he had only just been appointed CEO of Delta Air Lines. This time we caught up with him at Los Angeles International Airport as he stepped off a flight from Atlanta. He talked about the company’s plans to spend billions on remodeling and updating airports across the country, including $2 billion at LAX; why he thinks his airline has figured out how to break through the boom-and-bust cycle of the industry; and what he said to the CEO of Boeing.

 

 

Transcript

Click on a timestamp to play from that location

0:00.0

Good morning, playing 22305, service to Raleigh Dura.

0:04.5

And we do have the-aird. Hey, everybody, it's Kyle Rizdahl. And for this episode of the Corner Office podcast, we are out at LAX, the Los Angeles International Airport, waiting for my guest to log it off his plane. Ed Bastian is the CEO of Delta Airlines, one of the biggest airlines in the world. It's a job. Bastion has had since 2016, which was, incidentally, the last time I talked to him for this podcast as it happens. Today, his plane got in just a couple of minutes early. Good to see you. How are you? Sorry to it would cost you right off the flight. You want to put your bags down, give me to somebody. What do you want to do? That would be great. Thank you. Thanks for taking the time.

0:39.5

Well, thanks for making the time. Why, first of all, are you here? Well, we have our global sales conference. We have 1,300 salespeople from around the world, and we've got a two-day conference. I'm going to speak to that, but I've also got a bunch of meetings with some local folks and some growth. We're investing here. We're building a lot here.

0:56.5

Let's talk about that first of all, where we are. Tell me where we are. We are right here in terminals 2 and 3, the new LAX that we are building. We've got an opportunity to almost double the size of our footprint here in LA as once we get done over the next several years.

1:14.6

Why do you need more footprint?

1:16.6

I mean, that's going to sound like a basic question, but...

1:18.6

Well, first of all, our infrastructure, as we all know, our airports in the U.S. are...

1:23.6

We know.

1:24.6

We're going to need a multi-generational build, improve security flows, improved technology.

1:31.9

And on top of that, Delta's growing here.

1:35.2

We've got a great group of people here.

1:38.2

Our operations have doubled over the last five years,

1:40.7

and we need more room.

1:42.5

So you're spending $2 billion here at LAX, right, as you

1:46.1

wave to random people as they go by, um, 12 billion overall, right? 12 billion in all of our

1:52.4

airport infrastructure. Right, right. Tell me what the conversation was like where you said,

1:56.6

all right, folks, we need to spend $12 billion to make our facilities nicer and the infrastructure better.

2:02.0

Well, these are long-term bets.

2:03.8

We're out here for, you know, looking at 20, 30, 40 years of investment.

2:09.1

So the cumulative effect of that is a big number.

2:12.1

But when you think about that this is a franchise that continues to grow and needs to be invested in in the year we've

2:19.4

i think we've done a great job of modernizing the experience we need to do the same thing on the

...

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