Delta CEO Denies Rejecting Starlink Over Elon Musk, Says “I Drive A Tesla”

Delta CEO Ed Bastian says the decision to pass on Starlink was not about Elon Musk, pointing instead to disagreements over the business model and access to customers. His defense includes an interesting detail: “I drive a Tesla.” I appreciate the explanation, but there are still questions here…

Appearing on CNBC this morning, Delta Air Lines CEO Ed Bastian was asked directly whether he rejected Starlink because he did not want to work with Elon Musk.

Bastian denied that explanation and pushed back on the suggestion of a feud:

“There’s no tit-for-tat as far as I’m concerned.”

He described Delta’s involvement in early Starlink testing, including making aircraft available to SpaceX. His assessment of the technology was hardly dismissive:

“It was fabulous. They just weren’t ready to scale when we were ready to go. And we had disagreements on the business model in terms of access to the customer and various other things that I won’t get into any details.”

Then came his response to the suggestion that personal animosity drove the decision:

“I drive a Tesla…all this nonsense about being personal is not true at all.”

Asked about Musk’s prediction that he would lose his job, Bastian said:

“I don’t pay any attention to it.”

You can watch his remarks here:

A Better Explanation, But Not A Complete One

As I wrote last week, JonNYC shared an account of Bastian telling employees that Delta did not want to work with Musk. Jon cautioned that he could not verify the exact quotations, but he’s usually right and I suspect Bastian made those comments, even if they were taken out of context.

We now have Bastian publicly denying that avoiding Musk was the reason for rejecting Starlink, which is an on-the-record statement that whether damage control or always his position, seems to settle the matter.

But he did not explicitly say whether he made those remarks (I would have pressed him a little more).

There is also nothing contradictory about appreciating Starlink while disagreeing with its commercial terms or even Musk’s personality. Access to the customer is a substantial issue for Delta, which has built its free Wi-Fi around SkyMiles and its broader Delta Sync experience. I would like to know what the disagreement involved, though Bastian expressly declined to explain it.

Driving a Tesla does not settle the question either. I drive one too. That does not mean I approve of everything Musk says or would necessarily want to enter a business relationship with him.

Still, Bastian offered a commercial explanation here, and I think it is far more plausible than the simplistic argument that Delta rejected good internet merely because its CEO dislikes Musk.

Now Delta Needs To Deliver Those Improvements

Bastian also promised “meaningful improvements” for customers using Delta’s Hughes and Viasat systems by the end of this year and reiterated his enthusiasm for Amazon.

Delta’s Amazon Leo agreement calls for installations on an initial 500 aircraft beginning in 2028. That leaves the existing providers with an important job in the meantime.

On my recent domestic Delta flights, the internet has generally worked very well. The suggestion that Delta passengers cannot get online is nonsense. But I also love Starlink on United, and Delta cannot assume that its earlier investment guarantees it will remain competitive.

Bastian claimed Delta forced the industry to adopt fast, free Wi-Fi. Delta certainly helped put pressure on its largest competitors, though JetBlue deserves credit for offering free Wi-Fi across its fleet years earlier.

Past accomplishments are welcome, but the key is who will offer the best Wi-Fi in the future on the most flights. It seems that United will soon surpass Delta, at least for a time, especially as it ramps up Starlink conversions.

CONCLUSION

Bastian says Delta’s decision was commercial, not personal. He praised Starlink, identified disagreements over customer access, and promised improvements to Delta’s existing service.

I think that is a reasonable explanation, even if it leaves the reported employee remarks unresolved. Now Delta needs to deliver. A Tesla in Bastian’s garage is an amusing detail…a reliable connection on the aircraft is what passengers will actually notice.

image: Delta (Bastian pictured with Tom Brady)

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