Delta Air Lines is turning to a former competitor to replace retiring CEO Gerald Grinstein
Richard Anderson, who served as CEO of Northwest Airlines before leaving three years ago for an executive position at health care giant UnitedHealth, will take over Sept. 1 from Grinstein, who led the Atlanta-based carrier through a bankruptcy reorganization completed earlier this year.
Grinstein, 75, had intended to retire upon Delta's exit from Chapter 11 in April, but he delayed the move while Delta's board searched for a replacement.
Anderson, 52, joined the Delta board in April. He will be the eighth CEO in Delta's 78 years, but the third in the last decade.
Passed over for the top job at the nation's No. 3 carrier were two Grinstein lieutenants: operations chief James Whitehurst and CFO Ed Bastian.
Grinstein had praised the work of both in Delta's reorganization and said he would like one or the other to succeed him as CEO. Bastian on Tuesday was named Delta's new president. Grinstein said Anderson had not yet discussed with Whitehurst what his role will be. Grinstein told employees in a memo that while he believed one of the internal candidates could have run the company well, he also believes Anderson will be an effective "champion of Delta, its special culture and commitment to excellence."
"It's an exciting time to be back in the business and an exciting time to be at Delta," Anderson said in an interview. He said he wants to "harden (Delta's) business model" by strengthening its balance sheet, beefing up the service network it and its global alliance partners offer, and investing judiciously in new assets.
"The goal is to be able to prosper when the economy is growing and when the economy is not growing so fast."
Anderson, a former local prosecutor in his native Texas, was Northwest's CEO from early 2001 through October 2004 before leaving to become an executive vice president at UnitedHealth.
Naming Anderson as Delta's CEO could renew speculation about an eventual Delta-Northwest merger. Both entered Chapter 11 bankruptcy on the same day in 2005, setting off speculation that the carriers may emerge from bankruptcy as one. It didn't happen. But, Anderson said, "We should stop the tongues from wagging right now: There's no plan to merge with Northwest."
During his run as Northwest's CEO, Anderson became best known for drastic cost-cutting efforts in response the airline industry downtown that began in early 2001 and then greatly accelerated in the wake of the 9/11 terrorism. Anderson also took the lead for the entire airline industry in successfully lobbying Congress for extraordinary financial relief in the wake the 9/11 attacks.
Anderson spent 14 years at Northwest, beginning as a deputy general counsel and moving on to a variety of positions.
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