YourMom

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

RemoveB4flght

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

FivepointSlow

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!

FNGFO

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

Balker

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

Meep

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).

NKSpilot

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

Avro85

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 .

Skydreams14

Merger talks!

LandGreen

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