
CEOs of Amex and Delta extend partnership to 2029 amid pandemic challenges
CEOs of Amex and Delta extend partnership to 2029 amid pandemic challenges
- In early COVID, Stephen Squeri met with Ed Bastian to discuss their partnership.
- Their collaboration led to a significant increase in co-brand revenues, with Delta achieving $9 billion.
- The strong personal bond between Squeri and Bastian enhances their business partnership.
Story
In the early months of the COVID-19 pandemic, significant discussions took place between American Express CEO Stephen Squeri and Delta CEO Ed Bastian in Atlanta. During this time, both leaders deliberated on ways to strengthen their partnership and drive joint profitability amidst economic uncertainties. They enjoyed a meal together, and Squeri recalls the memorable experience of having a tomahawk steak at a notable establishment called Kevin Rathbun steak house. Their collaborative effort focused on merging interests rather than competing against each other, resulting in a unified profit and loss (P&L) strategy that ultimately benefited both companies. By the end of 2019, both Squeri and Bastian had developed a strong professional relationship, contributing to the extension of their partnership through to 2029. Bastian spoke about the success they achieved, noting that Delta collected approximately $9 billion in co-branding revenue, a figure that was more than four times higher than the revenue reported in 2014. While American Express has not disclosed its specific revenue figures from the co-branding arrangement, Bastian's announcements indicate significant financial gains for both parties involved. The connection between the two executives runs deeper than just business; their similar backgrounds fostered camaraderie and mutual understanding. Both leaders share professional paths that began in humble circumstances, with Bastian coming from a large family from Poughkeepsie and attending St. Bonaventure University, while Squeri hails from Astoria and studied at Manhattan University. Their similar upbringing has cultivated a strong relationship built on mutual respect, communication, and a collaborative mindset, emphasizing a flattened hierarchical structure that encourages openness. In a humorous exchange, Squeri noted they have similar golf handicaps, further illustrating their personal bond. This camaraderie, coupled with their shared challenges and triumphs as executives during a historical period marked by unprecedented trials, has created a firm alliance. Their journey illustrates how effective collaboration can lead to remarkable achievements even during turbulent times, bringing clarity to their future ventures together.