Town Hall 2 Cliff Notes
 

Missed Town Hall 2, can someone give the cliff notes version. Thanks

Didn’t even see it, 10/10 the following happened:

“these are trying/difficult/challenging times”

“Spirit team have done an amazing job” rah rah

“our business model will help us survive”

Epstien didn’t kill himself

TOWNHALL 04/29/2020 notes:

• Figuring out what is “right sized” May possibly end up as a smaller airline
• $130 million additional debt (loans) have been acquired.
• $335 million CARES, half received last week
• Cares only covers 70% of NK payroll
• Gov loan app will be submitted within 24 hours, must be secured by assets of NK. Limited assets to pledge
• Q & A:
• Flew 5000 guests today
• VIL people, thanks for giving up your pay but tough luck. Sorry I didn’t have a crystal ball. (BENDO)
• No increase in bookings so far
• So far no mandate for masks on aircraft (just encouraging)but it’s evolving.
• (Social) Distance dots for boarding.
• October 1st. Watching and waiting. Fluid. Will be (passenger)demand driven. Evaluating a range of outcomes. If rebound is quick we will grow. If very slow, we will possibly be smaller, less airplanes and crews.
• Focused on day to day liquidity right now. Would like to be in the best possible position to take over gates/slots in the future
• There is a potential for merger/acquisition. If so we want to be the ones in control of that discussion.
• Current cash on hand confidential, generating liquidity with loans etc
• Daily cash burn confidential, aiming to be in top quarter of airlines for lowest cash burn
• Fuel hedge - we historically do not hedge.
• Spirit should be one of the first airlines to get future business (recover) due to our price structure. Leisure based low fare carriers are best positioned
• Trying to defer new plane orders
• OCC move to BNA is still on PAUSE.
• No immediate plans to try supplementing income by flying cargo
• Keep your chin up!

Also, a minimum of 5 minutes of beard discussion was included.

Good notes. It’s pretty much what we knew already, except I was hoping to hear bookings were picking up for the end of the summer. I guess public confidence remains at rock bottom levels even as states are reopening. He also mentioned that when bookings come back, they’ll be at dirt cheap prices. We can paint that picture ourselves: Debt thru the roof, revenue at the bottom.
For the first time I heard Ted being more realistic (or sincere) about the future. “Smaller airline” “right size” ..... I personally think it’s almost impossible we would be back to our pre-covid19 size on October 1st. How smaller? That’s the 2.5b dollar question. We’ll see what happens with states reopenings.
The good news: we are in a good position to to take advantage of the recovery momentum. Let’s hope we don’t chapter 11 first.
On a side note to Bendo: I’m glad I didn’t bid for a VIL in May :)

Nothing shocking, obviously if demand doesn’t come back by the fall they will have to cut costs further (ie giving planes back and furloughing).

It is illegal for them to disclose material information about the company that is not already public = nothing interesting or important in any “town hall” now or ever.

Earnings call on May 7 should have info

That should be a quick call.

People told to stay at home and inside equals zero revenue, which equates to zero earnings and then produces millions in losses .

Merger talks!

Cliff notes: Summer is down the drain (despite what some of the APC analysis had predicted). Hoping for demand to return in fall (ted says there is still hope for that, still a little early), and if not we will be right-sizing the airline

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https://i1.wp.com/www.time24.news/i/...80%2C383&ssl=1

Until Disney, Vegas and the Cruiselines open back up, what's the point of people flying on a leisure airline? Cant go to the beach, the Keys are closed to tourists, can't fly internationally. At least Everglades NP opens back up on Monday.

Yeah, I mean there’s literally nothing to do in this country if you’re not going cruising, gambling or to see the mouse. Literally nothing. And all of our relatives live next door.

our 3 busiest sations=fll, mco, las...fll/mia cruise capital of the world...mco mouse house and other parks..las gambling and entertainment capital of the usa...its a huge percentage of our traffic

Yes. I know. Follow me here. People will find other ****** to do if those places/things are not open for business when people gain confidence in traveling again. I have this funny feeling that the two will coincide.

Not sure how to post pics on here, but my friend in New Smyrna Beach showed me one she took this morning. Beaches PACKED.

https://www.volusia.org/news/new-smyrna.stml

currently, quite a few people there but not packed. Of course, currently, it is 17:45.

Thank you for the points, FivepointSlow

The most serious and disconcerting in my view.
Smaller or merged/acquired!
Bold statement means Frontier, which would be a disaster for us pilots...
Next worse option to furloughs.

Let’s remember that just because he didn’t immediately scream “NO MERGER”, that doesn’t mean we have an impending merger announcement. This APC page was convinced that SWA was gonna buy us like 3 months ago:rolleyes:

I agree^
BTW I would take a SWA merger, over a Frontier buy out, any day!
Stay away from their (F*#@9) toxic management...

no way, I’d much rather merge with F9 than get fisted by SWAPA........

Blue + Yellow = Green

yep, I agree. Be a good fit.

I was told starting June 1st we can start wearing green masks or if we don’t have green we can wear one with animal prints on it...whatever that means.

Even in south Florida, which they've said wont be "reopening" anytime soon, there are throngs of people out and about. I live on las olas and a lot of the restaurants and bars offer food and drinks to-go, and most seem to just camp out with their food and drinks. Some of the bars even have outdoor areas to congregate and people here are taking full advantage of it. Tonight I went running on the beach, which is technically closed, and I wasnt the only one out there. This isn't going to last much longer.

Orlando opens restaurants and shops (at limited capacity) tomorrow FWIW. Really hoping things bounce back by the fall

Yep! I’m glad people are sick of this and ready to get out. Walking las Olas 2 weeks ago was a ghost town, now yesterday was super busy.

Common sense is key. We can’t stay locked down til a vaccine is injected in most of the population. Since we know the hospitals aren’t being overwhelmed we need to open it all and just do extra hand washing and wear masks in congested spaces like airplanes or sporting events. And high risk categories can stay isolated.

The beach being crowded and the beach being crowded with separate groups of people that already live with each other look the same in a photo but are two entirely different things. I don’t sit six feet or closer to other families at the beach normally let alone now.

This makes way too much sense

Even if there is a vaccine, there’s already a significant part of the population who are going to refuse to take the vaccine.

theyve been promising a vaccine for AIDS, there still isn’t one 40 years later...

Couldn't agree more!