DAGEN: READY FOR TAKEOFF
BOEING 737 MAX RETURNING TO
COMMERCIAL SERVICE AIRLINES
FLIGHT 718 AIRCRAFT’S FIRST
SINCE GROUNDED NEARLY TWO
YEARS AGO JOINING ME NOW THE
HE STERLING TEAM OPERATING
PARTNER FORMER SPIRIT AIR
LINES CEO THANK YOU FOR BEING
HERE THIS MORNING 737 MAX BACK
IN SERVICE, WILL PEOPLE WANT
TO FLY IN IT DOES IT EVEN
MATTER TO PEOPLE GETTING ON A
PLANE?
THEY JUST WANT TO GET WHERE
THEY ARE GOING?
>> WELL, HAPPY NEW YEAR DAGEN,
GREAT TO BE WITH YOU, YOU
KNOW, I THINK THERE IS GOING
TO BE A LOT OF ATTENTION, TO
THESE EARLY FLIGHTS, ON
REINTRODUCED 737 MAX BECAUSE
OF OBVIOUSLY, THE TERRIBLE
CRASHES IT HAPPENED OVER 20
MONTHS AGO, BUT EVENTUALLY, IN
JUST IN A FEW MONTHS I THINK
THERE WILL BE PLENTY OF THESE
PLANES FLYING IN THE AIR, I
THINK THE CHANGES MADE BOTH TO
THE ENGINEERING OF THE PLANE,
AND THE TRAINING FOR THE
PILOTS, BOTH DIRECTLY ADDRESS
THE ISSUE THAT WERE IDENTIFIED
IN THOSE ACCIDENTS, AND SO I
THINK THAT WITHIN A FEW MONTHS
WILL JUST BE ANOTHER PLANE IN
THE AIR PEOPLE WILL BOARD IT
NOT THINK TWICE ABOUT IT.
DAGEN: SKO TALK ABOUT STATE
OF THE AIRLINE INDUSTRY, THE
NEWEST COVID-19 RELIEF BILL
PROVIDED AIRLINES 15 BILLION
DOLLARS PAYROLL ASSISTANCE IS
THIS ENOUGH, AGAIN, PEOPLE
WERE -- ARE AIRLINES GOING TO
NEED MORE MOVING TO 2021?
CASE CERTAINLY OVER THE
HOLIDAYS, PEOPLE THE AIRPORTS,
PLANES WERE, QUITE FRANKLY,
PACKED.
>> WELL PACKED WITH A LOT LESS
CAPACITY THAN WAS FLYING A
YEAR AGO STILL A LOT OF PLANES
GROUNDED, YES PLANES ARE FULL
FOR THE HOLIDAYS AIRLINES
STILL AREN’T FLYING A LOT OF
PLANES I THINK THE IMPORTANT
THING THIS IS A CHANGED
ECONOMY FOR TRAVEL, UNCLEAR
HOW MUCH BUSINESS TRAVEL IS
RETURNING, AND UNCLEAR WHEN
FAMILIES AND FRIENDS ARE GOING
TO BE COMFORTABLE TRAVELING IN
GROUPS AGAIN, BECAUSE OF THAT,
THE MOST PROACTIVE AIRLINES
OUT THERE, ARE CHANGING FLIGHT
SCHEDULES THINKING ABOUT HOW
THEY ARE GOING TO DO BUSINESS
IN THIS NEW WORLD I THINK THE
PAYROLL PROTECTION PUT IN
PLACE WAS GOOD HELPED AIRLINE
MANAGE THEIR CASH THROUGH O
POTENTIALLY A TWOIFSHT SEASON
AFTER HOLIDAYS AT LEAST, BUT
FOR THE AIRLINES TO RETURN
EMPLOYEES FROM FURLOUGH --
MOSTLY AMERICAN AND UNITED AS
UNITED SAID MOST EMPLOYEES ARE
GOING TO LOSE JOBS THE END OF
FOUR MONTHS BECAUSE THE
AIRLINES WON’T MOVE THEM
AGAIN, THE IMPORTANT THING I
THINK NOT JUST TO ARTIFICIALLY
PAY EMPLOYEES TO COME WORKING
WHEN THERE ISN’T WORK TO DO
BUT FOR AIRLINES TO RECOGNIZE,
THE NEW ECONOMY, FEWER
BUSINESS TRAVELS MORE LEISURE
TRAVELING WHERE DO PEOPLE WANT
TO GO?
AND FOLLOW STATES STAYING OPEN
AVOID, OR FLYING LESS TO
STATES ARBITRARY OPEN MORE
FLIGHTS TO FLORIDA THAN NEW
YORK, OF COURSE, BECAUSE OF
DIFFERENT POLICIES IN THOSE
STATES.
SO I THINK THAT -- THE
GOVERNMENT IS DOING A GOOD
THING BY WITH PAYROLL
PROTECTION BUT NOT A LONG-TERM
SOLUTION FOR FIXING WHAT THE
AIRLINE REALLY NEED.
>> WHICH AIRLINES ARE COMING
OUT OF THIS THE STRONGEST
THEN.
>> DAGEN, I THINK THE AIRLINES
THAT ARE LOWER COST, FIRST OF
ALL, THEY DON’T NEED AS MUCH
REVENUE TO GET CASH POSITIVE
AGAIN, BECAUSE THEIR COSTS ARE
LOWER BUT ALSO THE AIRLINES
THAT HAVE NOT DEPENDED
HISTORICALLY AN CARRYING A LOT
OF BUSINESS TRAVEL BY BUSINESS
TRAVEL I MEAN THE TRAVEL WHERE
YOUR COMPANY PAYS FOR YOUR
TRAVEL WHEN YOU GO.
THAT IS THE TRAVEL THAT IS
MOST AT RISK OF NOT COMING
BACK FULLY SO AIRLINES THAT
HAVE DEPEND ON THAT TRAVEL BIG
FOUR IN U.S. AMERICAN UNITED
DELTA SOUTHWEST THOSE AIRLINES
HAVE TO FIGURE OUT HOW THEY
LIVE WITH MORE LEISURE TRAFFIC
AND LESS BUSINESS TRAFFIC ON
THEIR AIRPLANES, THE AIR LINES
THAT ARE COMFORTABLE WITH
LEISURE TRAFFIC BASICALLY ALL
AIRLINES, THEY ARE ALREADY
GOOD AT THAT SO I THINK THEY
ARE GOING TO EMERGE FROM THIS
STRONGER THAN THE BIG FOUR.
>> GREAT TO SEE YOU THIS