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Podcast: Frm. Spirit CEO Airline Trends

Old 01-31-2021, 06:41 AM
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Default Podcast: Frm. Spirit CEO Airline Trends

Podcast: Former Spirit CEO On ULCC Disruption & What's Next | Ben Baldanza (1:20:00)The Ultra-Low-Cost-Carrier model has exploded worldwide. After doing exceedingly well during two previous downturns, 9/11 and the 2008 recession, these carriers are once again gearing up for rapid expansion as we emerge from COVID-19.

Frontier is the first passenger carrier to announce hiring during the COVID crisis. Spirit is rumored to start up interviews again soon. Despite this impressive feat, the arrogant attitude towards the ULCC’s has continued amongst some pilots even after they’ve seen explosive growth and contractual gains.

We sat down with former Spirit CEO Ben Baldanza to make sense of it all. We talk about winners and losers. Is Delta delusional to think they can be cash neutral in Q2? We discuss timelines for bankruptcies and possible mergers. We learn what’s next from a true expert and industry insider who has served as a high-level leader within pretty much every major airline.

Listen to this fascinating interview with JetBlue Board Member and Former Spirit CEO Ben Baldanza and Raven’s own ULCC Pilot, Jason DuVernay.



Timestamps:

[02:18] How has Ben's fascination with strategy and board games affected the way he leads in business?

[07:35] Breeze Airlines: How will they disrupt?

[14:44] Industry Status: Optimism in quarterly reports, delusional?

[24:50] ULCC comparisons

[29:37] Q2 Cash neutral, a pipe dream?

[35:00] Why haven't we seen much success with ULCC's using wide-body aircraft?

[39:15] Passengers who fly ULCC's; cheap or smart? An economics lesson.

[42:52] Cares Act 2: Should pilots be excited about their recall?

[44:51] "Hope is not a strategy," United's candor.

[48:02] CASM: Are ULCC's able to outlast legacy price pressure?

[50:43] Is consolidation something we should be preparing for? Ben's Five bold predictions for the US airline industry in 2021

[1:00:22] Canceled: Spring Break 2021

[1:04:30] What keeps Ben up at night?

[1:09:18] What is Ben optimistic about?
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Old 01-31-2021, 12:40 PM
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Originally Posted by chase View Post
Podcast: Former Spirit CEO On ULCC Disruption & What's Next | Ben Baldanza (1:20:00)The Ultra-Low-Cost-Carrier model has exploded worldwide. After doing exceedingly well during two previous downturns, 9/11 and the 2008 recession, these carriers are once again gearing up for rapid expansion as we emerge from COVID-19.

Frontier is the first passenger carrier to announce hiring during the COVID crisis. Spirit is rumored to start up interviews again soon. Despite this impressive feat, the arrogant attitude towards the ULCC’s has continued amongst some pilots even after they’ve seen explosive growth and contractual gains.

We sat down with former Spirit CEO Ben Baldanza to make sense of it all. We talk about winners and losers. Is Delta delusional to think they can be cash neutral in Q2? We discuss timelines for bankruptcies and possible mergers. We learn what’s next from a true expert and industry insider who has served as a high-level leader within pretty much every major airline.

Listen to this fascinating interview with JetBlue Board Member and Former Spirit CEO Ben Baldanza and Raven’s own ULCC Pilot, Jason DuVernay.



Timestamps:

[02:18] How has Ben's fascination with strategy and board games affected the way he leads in business?

[07:35] Breeze Airlines: How will they disrupt?

[14:44] Industry Status: Optimism in quarterly reports, delusional?

[24:50] ULCC comparisons

[29:37] Q2 Cash neutral, a pipe dream?

[35:00] Why haven't we seen much success with ULCC's using wide-body aircraft?

[39:15] Passengers who fly ULCC's; cheap or smart? An economics lesson.

[42:52] Cares Act 2: Should pilots be excited about their recall?

[44:51] "Hope is not a strategy," United's candor.

[48:02] CASM: Are ULCC's able to outlast legacy price pressure?

[50:43] Is consolidation something we should be preparing for? Ben's Five bold predictions for the US airline industry in 2021

[1:00:22] Canceled: Spring Break 2021

[1:04:30] What keeps Ben up at night?

[1:09:18] What is Ben optimistic about?
if im not mistaken, Sun Country was the first to announce hiring during this pandemic. Started in October or November.
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Old 01-31-2021, 01:55 PM
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Originally Posted by 3rdGen View Post
if im not mistaken, Sun Country was the first to announce hiring during this pandemic. Started in October or November.

To support their new Amazon flying?


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Old 01-31-2021, 05:44 PM
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Originally Posted by ZapBrannigan View Post
To support their new Amazon flying?


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All flying.
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Old 01-31-2021, 07:19 PM
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Listened to some of that podcast. Let me give you the highlights. Ben basically thinks Southwest is screwed because of the amount of business travelers that fly Southwest won’t be returning after Covid is over. He also thinks that the Big 4 (including Southwest) are bleeding too much money even though they have lots of cash on hand. JetBlue, Spirit (big surprise there right) Frontier, and Allegiant are all going to be in great shape though. He never really explains why, but Ben never does a great job explaining why he thinks what he thinks. Just his opinion and everyone has one I guess.
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Old 02-01-2021, 04:13 AM
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Sounds like Ben is trying to pump the stock SAVE, I would be doing the same thing if I owned a lot of it . Only a fool would fall for his pumping .
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Old 02-01-2021, 05:39 AM
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Originally Posted by Salukidawg View Post
Listened to some of that podcast. Let me give you the highlights. Ben basically thinks Southwest is screwed because of the amount of business travelers that fly Southwest won’t be returning after Covid is over. He also thinks that the Big 4 (including Southwest) are bleeding too much money even though they have lots of cash on hand. JetBlue, Spirit (big surprise there right) Frontier, and Allegiant are all going to be in great shape though. He never really explains why, but Ben never does a great job explaining why he thinks what he thinks. Just his opinion and everyone has one I guess.
I listened to the whole podcast and I thought he went into great detail explaining why he thought UA/AA/DL were siphoning small business clients off of WN and why he thought, with no major changes, AA and then UA would be the first two bankruptcies.
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Old 02-01-2021, 07:19 AM
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My take:

Nobody knows the future but with international flying WAY down and business flying way down and both expected to stay that way for a couple of years, airlines with complicated fleet structures including a lot of wide body jets that - along with their wide body pilots - are pretty much idle for a couple of years are going to continue a substantial daily cash burn longer than single type fleets flying the routes they are actually optimized to fly.

Doesn’t seem like rocket science.

Barring nationalization of the airlines, if demand doesn’t return in time we are all in trouble, but some will be in trouble before the others.

WITH nationalization of the airlines we will all be equally screwed.
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Old 02-03-2021, 02:40 PM
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Originally Posted by Excargodog View Post
My take:

Nobody knows the future but with international flying WAY down and business flying way down and both expected to stay that way for a couple of years, airlines with complicated fleet structures including a lot of wide body jets that - along with their wide body pilots - are pretty much idle for a couple of years are going to continue a substantial daily cash burn longer than single type fleets flying the routes they are actually optimized to fly.

Doesn’t seem like rocket science.

Barring nationalization of the airlines, if demand doesn’t return in time we are all in trouble, but some will be in trouble before the others.

WITH nationalization of the airlines we will all be equally screwed.
I see nationalization in our future. Otherwise we are all toast. The wheel goes round-and-round
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Old 02-03-2021, 05:29 PM
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Originally Posted by Drum View Post
I see nationalization in our future. Otherwise we are all toast. The wheel goes round-and-round
No, if it gets worse it will be Government funded mandatory mergers.

They will get everyone in a room and pick teams. Government would pay up to make it work.

American/Alaska
Delta/Jet Blue
United/Hawaiian
SWA/Sun Country
Spirit/Frontier maybe throw allegiant in there.
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