'Breath of fresh air': Delta's CEO is optimistic about Trump
Delta Airlines (DAL) CEO Ed Bastian is cautiously optimistic about President-elect Donald Trump’s incoming administration, after what he called a “level of overreach” over the past four years of the Biden administration.
Bastian’s comments came during a call with reporters ahead of Delta’s investor day, according to CNBC. Bastian added that Trump’s approach to regulation could “be a fresh of breath air,” after the Biden administration enacted a series of rules aimed at protecting consumers that occasionally ruffled the industry’s feathers.
Under Secretary of Transportation Pete Buttigieg, the Department of Transportation (DOT) has required that airlines provide automatic cash refunds within a few days of canceled or “significantly delayed” flights, proposed a rule requiring airlines to seat families with young children together at no extra cost, and is taking a look at airlines’ loyalty programs. A group of major airlines in May sued over a DOT rule meant to provide more transparency around fees airlines charge customers.
Other airline CEOs have said they look forward to working with the new administration on industry priorities, such as improving air traffic control and other infrastructure needs. Jude Bricker, the CEO of Sun Country Airlines (SNCY), told CNBC that “we just need stability and resources at the DOT.”
“We have to invest in this industry,” American Airlines (AAL) CEO Robert Isom said last week, touting the federal government’s support during the early days of the COVID-19 pandemic, which slammed the industry. Allegiant (ALGT) Chief Commercial Officer Drew Wells said he likes “the Allegiant story” regardless of who is in office, noting that Trump’s first administration was “tax friendly.”
Trump has said he will nominate former Wisconsin Republican congressman and Fox Business (FOX) host Sean Duffy to lead the Department of Transportation. In a statement, Trump said Duffy would “prioritize Excellence, Competence, Competitiveness and Beauty” in rebuilding the country’s infrastructure and “make our skies safe again” by eliminating programs meant to diversify airlines’ pool of air traffic controllers and pilots.
After a door plug blew off a Boeing (BA) 737 Max 9 in January, quickly followed by another incident later that month, some conservatives — led by Tesla (TSLA) CEO Elon Musk and Donald Trump Jr. — rushed to blame diversity initiatives despite a lack of evidence. Just 3.6% of air pilots and flight engineers are Black, while 8.3% are female, Crain reported. In October, Boeing dissolved its diversity department.
