Margaret Valerie discussed on The Beat

WGN Radio
| WGN Radio


Now here's here's thirty three minutes after the hour the special edition on the coronavirus and travel what do we think about it the Asian I talked to them who knows all things about aviation Margaret Valerie who runs the show by way from the what really made voiding usually group out there Colorado how are you Sir good day Sir I'm doing just fine how about you stay healthy that's what we're trying to do here on the bumper of my question of course deals with the extraordinary circumstances we see ourselves room especially in the area of airlines not just domestically but worldwide and what I'm seeing here and you see it almost at the same time I do you're saying your lights parking car fleets but with some exceptions stopping cars service I found it remarkable the video to see the runway at the Atlanta airport one of the place closed down just to be able to park delta airlines airplanes up I started Victorville California in Tulsa Oklahoma one of the easiest if it's astounding what it is we have an airline industry but no business for the airline industry today either it's certificates is this nobody wants to fly therefore we have an industry that doesn't have any customers and it went literally zero in like sixty seconds it just disappeared it's not like the bumpers are down the numbers don't exist of the not yet the actual load factor today for delta airlines of accordion is eleven percent yeah and what that says is you have a business you don't have customers to be real honest government bailouts not withstanding the best thing these companies could do for their employees in the future is just shut down Patel but seven to ten days restructure for what the future is and move on one like this is just wasting money and it's not going to help anything I don't know and the bail out of the century a temporary fix but I think we need to go beyond that that's why I'm talking to you as to where do we go into one how do we heard from this what's gonna look like we're gonna see some different planes that's for sure because this particular crisis allowing or forcing depending on what side of the fence you're sitting on your life your retirement number older airplanes earlier so the seven fifty sevens are American seven sixty sevens are American made even some Airbus three thirties and then you're seeing their lives overseas using this as a moment to literally retired their there they're super jumbos BA three other the issue here today is that there aren't that many older airplanes left out the U. I think you just ran the whole litany of them we have hundreds of thousands of perfectly good net new generation airplanes hitting the ground they're orphans in many cases because the companies that had the before it won't be around so we're gonna have an issue of no fewer airlines out there particularly elsewhere in the world but here in the US I think what going to see number one is you're going to see a wide bodies more wide bodies park and you're gonna see a lot of fifty three jets not this guy because they depend on it the the operation of those airplanes by major airlines within their system depends entirely on the amount of traffic that's going through their system which at best we project will be fifteen percent lower than two thousand nineteen when we get back to normal that's it is very significant there's a lot of but I guess the one community in the south disgustingly yeah the layoff employees but the next thing they did after they laid off all these employees they went and hired a consultant to find more airlines that is so we're responsible but reality has to come to our air transportation system so what you're predicting is not surprisingly either failure of consolidation not just Europe especially overseas oversee the consolidation is happening every day I get a report more airlines have shut down here in the west let's remember mergers are messy I don't think mergers are gonna be in the cards the R. line industry is pretty dang healthy I think what we're going to find is just smaller airlines not fewer of them necessarily so this issue of mergers and all consolidation into there but it's going to be more like fewer airplanes going to fewer places and that economic reality regardless with little community who would like to say from the old days of the essential air services walk which has been imposed a lot of things on the books anymore may have to be re involved if at all well it should be re invoke right right right now we we are wasting money for politicians hubris like you before this happened pueblo Colorado within forty forty minute drive to Colorado springs but we're spending what five eight million dollars a year so we went into your plans to Denver that kind of nonsense has to stop in the end the politicians that we're pushing that they got to get some reality and stop wasting our money flying to remember if a small communities airport does not have their service that doesn't mean they're cut off from the rest of the world like to peek a Kansas has greater services called Kansas city and that's where people are going on they always will we got to recognize that stop squandering money on essential air service or politicians who say look what I have well you know we go back to the days when you're hundreds of communities every year approach Southwest Airlines to start service there and Southwest Airlines would turn down almost all of them because when they did their research that found out at least thirty percent of the market in that city was already driving to a nearby airport we're selfless you're one thirty four I have this all over me what we have Lakeland Florida claimed one Ayrshire with whatever service and nobody told them we give you good service through Orlando you have six hundred flights a day within an hour away at two airports you have politicians saying we got to have service at the local airport that nobody will use the V. R. two flights in Lakeland they're still driving to Oakland to Orlando so we've got to get that reality down in this this virus situation is only going to accelerate it well the bottom line is when we come back I want to talk to you about what it means for airfare and what it means for moving forward not to mention what it means for Boeing we haven't talked about that.

Coming up next