Episode Transcript
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Speaker 1 (00:00):
Many things to be thankful for. To be otherwise, brother,
you know that is I know it's been a very
good day.
Speaker 2 (00:04):
That's why I love the post you put up on
Facebook because I always have this inspirational, positive message. You know,
there's always something positive you can focus on, and that's
why I like you so much. You're good man. Jay
Rat left And what happened to Southwest? Real quick? Your
carve all time? Last time you were on you were talking.
I think it was Spirit Airlines who's getting rid of
reclining seats or you had to pay extra for them?
Speaker 1 (00:26):
Well, actually that's West Jets West Yet and yeah, west
Jet in Canada. They're they're kind of the Southwest Airlines,
if you will, of Canada to a smaller version. They're
premium seats. Are seats that we can pay extra for
if we want. If you want to read like the
premium service of reclining. Yes, exactly.
Speaker 2 (00:45):
But Southwest just has redesigned their interiors of all some
of their airplanes anyway, and they're now switching to brand
new Roccaro R two seats featuring multi adjustable headrest, kitchen,
integrated tablet and phone holder in the rear and in
seat power with integration USBA and seaports. Sounds like they're
going the opposite direction, didn't they pay attention to making
(01:05):
us more miserable in order to make more money?
Speaker 1 (01:08):
Jay, Well, you know, but part of this is also
so they can put in their premium seats, which are
things that they are just now doing because they've got
the assigned seats that are coming up, and they've got
the premium seats where you can pay to sit in
a seat that's got a little bit more leg room
because Southwest really learned a couple of years ago that
they really needed to start paying attention to the fact
(01:29):
that there's a segment of the traveling pump population that's
willing to pay above and beyond what they would normally
pay for an airfare for a more comfortable seat with
more legram. And I love the fact they're going to
assigned seating that means no more of these wheelchairs out
the door type of thing where people are just trying
to get on early. But the idea that you're going
(01:50):
to have the ability to have a premium seat which
is a little bit larger seat, a little bit more legram, well,
I don't think the seat's larger, but you've got more legroom,
more pitched between rows is going to be a great thing.
Because Delta and United reported earnings recently and they were
incredibly strong, and they credited this the premium seats that
they've been selling and how popular they have been, and
(02:14):
how they continue to make that one of their their
primary you know, marketing points. And you know other airlines
are doing the same thing. They're recognizing that. Look, yeah,
cramming as many seats onto an aircraft as you can
is one thing. It's like that double decker aircraft, the
airbus A three eighty. If it's all coach configuration, no
business class, no first class, no premium seats, you can
(02:36):
put eight hundred people on that airplane.
Speaker 2 (02:38):
Oh lord, I.
Speaker 1 (02:40):
Think that's tempting fate. But that's another story. But that's
the first from you got that right. So, but you know,
when when airlines start putting in the first class seats,
the business class, and then these premium seats, which are
the you know, the extra comfortable coach seats. Uh, some
airlines found out that the coat the premium coach seats
(03:02):
were more popular than some of their first class seats
and some of their business class. So We've actually seen
airlines over the last couple of years removing some of
the business class first class seats so they can make
more room to put more of these premium seats in,
because even though they obviously sell them at a reduced
price versus what they took out, they can put in
(03:22):
more of those, and they sell those out much more
frequently than they do the seats that many times they're
just an upgrade for people want with their frequent flyer miles,
where really, you know, they're not getting a huge, you know,
benefit from a revenue standpoint. So yeah, it's fascinating to
see this shift to premium seats. It doesn't surprise me
(03:42):
because as tough as it is to endure travel these days,
to pay a couple extra dollars to sit in those
premium seats it is certainly the way.
Speaker 2 (03:50):
To do it well and almost a requirement considering society's
collective girth is increasing even as we speak. Got to
have room to put the person, and I would be
willing to pay extra for some space if I had
a girth issue. Pause from it will bring Jay Raytlive
back plenty to talk about with his his massive A
new wreckon River near Tell High Chuck Ingram on fifty
(04:12):
five KO the talk station, We've never been in a
cockpit before? A thirty eight fifty one air CD talk
station returning with iHeartMedia Aviation expert Jay Rattlift. You were
one other thing right, and again not on your list?
Speaker 1 (04:27):
But how did why reference what I send you? That's mine?
Speaker 2 (04:32):
No, we'll get to all that. I just like to
build a fit all the time your show, brother, you lead.
I don't want to have to go back and lead
myself to my own devices. I have you as a
vehicle to keep the conversation going. Jay, you know what,
That's fine. Pete Heggsa's flight had to divert. They a
windshield got cracked. Oh how does a windshield get cracked?
(04:53):
Or is this a fairly common phenomenon. I'd never read
about that before.
Speaker 1 (04:57):
Well, you know, when when you're talking about a cockpit windshield,
you're talking about several different layers of protection. When you
look at it, because it's multi layered, it's obviously very
high strength, and there's a lot of times that this
this acrylic glass, if you will, can not shatter. It's
(05:19):
not like it blows out, but it cracks and when
you're in the cockpit. When that happens, it sounds like
a gun went off. But because of the fact it's
multi layered, a lot of times you've just got one
layer of those I think three that you have there
that has been impacted. So what happens is the plane
normally will make an unscheduled landing. It's not necessarily considered
(05:41):
an emergency landing. But the land because obviously the you're
worried about the rest of the windshield components, which even
though they're in separately, contains separately. It happens frequently. The
biggest issue is if they're landing, it could impair the
pilot's ability to see thee sure an extent, but no,
(06:01):
I mean it's they happen. And when you look at
the number of flights that we have in the course
of a day, a week, a month, a year, I'm
surprised we don't have more occurrences of that taking place.
But the pictures when you do a Google image of
the cockpit windshields when they do this, yeah, it's something
to look at for sure. Fair enough in aviation terms,
(06:25):
it's almost a non event other than the fact that
if you're drinking coffee. When it starts, you might spill
your coffee because you get it's quite a start because
you've got that cockpit the flight deck that's contained, so
anything in there it echoes, but at a much louder sound.
And believe me, the flight crew was made aware of
it immediately when.
Speaker 2 (06:43):
It happened, I imagine, So so in addition to cleaning
up the coffee, you probably had to hit the restroom
and do a shorts change, at least I would anyway.
Oh to Boeing, it looks like they're on the move
in terms of deliveries. They're increasing the deliveries behind air
busts though, but are they delivering planes that are set
jay We hope.
Speaker 1 (07:01):
So that is the plan, and normally Boeing an Airbus
it's fifty to fifty, but obviously with the production delays
that we've been talking about with Boeing, that's not been
the case for the last several years. But Boeing is
starting to close the gap. I was looking at the
numbers for Airbus. Airbus has delivered five hundred and sixty
eight aircraft to date and Boeing four hundred and forty.
(07:24):
Now that's a little bit closer than what it's been
of late. But what's really interesting, Brian, and we've talked
about this from time to time, is the backlog of airplanes. Now,
keep in mind, Airbus is hoping to deliver about nine
hundred airplanes this year. They have a backlog at Airbus
of eight thousand, seven hundred and sixteen jets that they
still have to build. Airbus has got the eighty seven hundred.
(07:47):
Boeing's backlog is sixty five hundred and thirty one jets
between them, that's fifteen thousand planes that have been ordered
that they have yet to be built and delivered. And
that's if you order a jet today, yeah, it's going
to be delivered sometime during the next presidential administration, because
it's going to take a long time. When you're cranking
(08:08):
out a thousand airplanes a year and you've got a
backlog of eighty seven hundred, Yeah, it's going to take
some time. And that's why a lot of times we
talked about why do one airline buy another airline because
the fact that if you want to increase the size
of your fleet, yeah, you can get in line with
everybody else, or you can go buy a spirit or
(08:29):
somebody else and immediately increase your fleet by a couple
hundred aircraft of the type that you that you want
to use. So that's one of the reasons a lot
of times you'll see those acquisitions. It's not so much
market based, you like where they fly to the schedule
type of thing. It's the fact that you want the
equipment that that air airline saw or flies. But yeah,
Boeing's making up some distance there and yeah, we'll see
(08:52):
if they can continue to close that gap.
Speaker 2 (08:54):
All right, Well, considering the data, the data of you know,
signing the contract to purchase and the data delivery decade,
what of all the technological advances that might occur over
that period of time, wouldn't you want the most state
of the art, safest, quietest, most efficient fuel wise aircraft?
And I got to imagine that type of research and
development is going on all the time. We've got a
lot quieter planes out in the world than we used to. So, yeah,
(09:16):
are you getting today? Like if I order in twenty
twenty five, is that the kind of technology I'm getting
in twenty thirty five when the thing shows up? Or
do you get the benefit of any improvements you do.
Speaker 1 (09:26):
Because what happens the avionics package is normally one of
the last things that they're going to be putting in,
so it's going to be the state of the art
of what you have a lot like the power plant
or the engines that you put on an aircraft or
are you know, towards the end of the aircraft be
being produced and installed. So that's one of the things
that you look at there. So yeah, you would be
getting the benefit of that. That would be almost insult
(09:47):
to injury if you had to worry, if you had
to worry about getting an airplane, Yeah that had a
package of you know, ten years old on some of
its components. Yeah, that's not what we're after, and fortunately
that's not the case. But you know, these airplanes, they
continue to get more quiet, they continue to get more
fuel efficient, and they allowed the airlines to be more profitable.
(10:09):
And you know, one of the things that blows my
mind to this day is continuing to see airlines like
Delta in United that report quarterly profits of more than
a billion dollars. Delta just last week announced their third
quarter profit was one point four billion dollars. In the
third United United was a much less impressive nine hundred million,
(10:32):
I think, or so in the third quarter. But Brian,
what what just blows my mind is I remember all
the decades when airlines were losing money like crazy. You
couldn't get Warren Buffet buy an airline stock if you
dared him. But what happened was airlines have gotten to
the point now where they're using the credit cards and
the other things to help them make this money. From
(10:53):
a revenue standpoint, last year, the big four airlines made
eight billion dollars in profit collectively. Those four. When you
look at the boring numbers what we talk about the
available seat miles per carrier and the revenue generated per
available seat mile, they're actually losing money on the transportation
side of the equation. Think about that. If all they
(11:15):
did was transportation and that was the sole vein of
their revenue stream, they would be losing money in a
lot of it. But because they've got the ancillary fairs
and those credit cards, you're now seeing this revenue being
generated at just an unbelievable pace. And that's why you know,
everybody's got a credit card that's tied to miles and
(11:36):
things of this nature. Whether or not we use them
or not another thing. But that's where they're making this
money from other resources in additional revenue streams, and it's
really become a multifaceted business where you've got these multiple
revenue streams that are contributing to these un I mean,
the idea that an airline could make a billion dollars
in profit in a year was unthinkable a number of
(11:58):
years ago. Now you've got United doing it almost every quarter,
as is Delta, and it's mind boggling mind modeling.
Speaker 2 (12:05):
Most notably that it isn't based upon the core function
of their business, which is air travel.
Speaker 1 (12:09):
Why do that? You know, any business has multiple revenue
streams they need to. But when you look at the
fact that, hey, we're in business to transport people and
just because of the competition, thank God for the low
cost carriers. That's why anytime we get a low cost
carrier in Cincinnati, and we've had some recent news with
Frontier and Allegiance which has really been exciting at Cincinnati.
(12:30):
I love it because the stronger these low cost carriers are,
the more in check they keep these larger legacy carriers.
And regardless of which city I'm talking to across the country,
when they say, hey, Jay, we just landed a Breeze
or a Legion or a Frontier. I'm thinking great, make
sure you support them because they're the reason that we
have these low fares. If these airlines, like a Spirit
(12:52):
and others start to disappear from the landscape, we're toached
because these large legacy carriers will start to raise their
their fare. As we've seen before, the old CDG.
Speaker 2 (13:02):
Yeah, the old CDG.
Speaker 1 (13:04):
And that's what well, we had no competition at the time,
no low cost carriers. So Frontier kind of broke that
model a number of years ago. Thank God for that,
bringing that one flight from Dayton that they had for
seven years down to Cincinnati to Denver and the next
thing you know, they're going crazy. Here comes Allegiant, here
comes everybody else. Right, So it's because of that, So
please continue to support those low cost carriers. And at
(13:24):
that the website at the Cincinnat Airport CBG Airport, you
can see where some of these new low cost carriers
are bringing him back some of their seasonal service, introducing
new service, and it's really some exciting things to see
and I'm thrilled that the community is supporting them as.
Speaker 2 (13:39):
We are Jay Ralip pause, we're bringing back for a
real quick hit. We'll end on a comical note and
even though it involves a sad and pathetic passenger and
to get a hub delay, don't go way right Backer
c Deep Talk Station eighth if you want, if you
have Karro Cite Talk Station closing another Thursday with one
more Segond with iHeartMedia Aviation. Next, Jay Ratliffe from the
(14:01):
Don't Be That Guy file, we got another passenger attacking
crew members. What's this one all about? Jay?
Speaker 1 (14:07):
Yeah, this is a don't be that woman story because
this was a sixty sixty one year old passenger that
was a boarded a Last Airlines flight. It was scheduled
to fly from Portland to Dallas. But during the course
of the flight, this woman started acting irrationally and flight
attendants were trying to come to her aid. Well that's
when she struck them, and that's all it took that
(14:28):
she was immediately restrained. Flight was diverted and you know
it's bad when you have to divert to Boise, Idaho,
but that's where they landed to get her off, and
obviously the airline quickly came out saying, you know charges
could be filed obviously, you know, assaulting a flight attendant,
and also that she'll never be flying the Last airlines
ever again, which is good. But then back to my
(14:49):
overused comment that she can still fly any other airline
in the country she wants to after assaulting a crew member,
which should not be allowed, but continues to be so.
So one of these, Brian, it's going to take something
serious and that's when the airlines are going to decide
that that's when they need to do it, at which
point we'll be screaming, why did it take this long
for us to make that kind of a decision.
Speaker 2 (15:12):
It's like our lithium battery discussions from time to time. Yeah,
wait till that happens on an eight hundred passenger airplane.
Jay Ratliff, Let's hope, not hope, not lee all right,
as we typically do or always do, if we can
fit in hub delays. How's it looking out there today
for air travel one of.
Speaker 1 (15:28):
The days of the week we've had to fly. I
think Salt Lake City is about the only hub that
I've been able to find from a weather standpoint that
could see some delays. Chicago may be late in the day,
but I think that's going to be minimal. I think
it's gonna be Salt Lake, and I don't think the
delays are going to be any more than thirty to
forty minutes there. So if you picked today, you picked
a great one, not only from the good weather standpoint,
(15:49):
but probably a reduction in turbulence, which is also nice.
But that doesn't mean not to keep seatbelt on. Please
do so is you fly fair enough?
Speaker 2 (15:56):
What I'm hearing is the government shut down, even though
it may m packed air traffic controller salaries or something,
is not impacting air travel itself at least yet.
Speaker 1 (16:05):
No. Last Friday we had thirty nine hundred flights that
were delayed, and a lot of that's being touted because
of the shot down blah blah blah blah blah. But again,
to introduce facts to the story, the average number of
delays we've had this year has been forty one hundred
a day. We actually had fewer delays on the snapshot
I took on Friday than what we normally have, So
(16:28):
that would lend me to say, yes, we are having
pockets of problems. I won't discount that, But Brian, don't
tell me we're having a coast to coast problem. If
we have fewer delays now per day than what we
have normally.
Speaker 2 (16:41):
Fair enough, Jay Rayleiff, thank you so much for joining
the program every week. I thoroughly enjoy our exchange and
the information we talk about. And I'll look forward to
next Thursday and another discussion between now and then. Best
of health and love to you, and of course you're
better half.
Speaker 1 (16:55):
Same to you, my friend.
Speaker 2 (16:56):
Thank you, Thanks brother. It's a fifty four right now.
If you get a chance to listen in
Many things to be thankful for. To be otherwise, brother,
you know that is I know it's been a very
good day.
Speaker 2 (00:04):
That's why I love the post you put up on
Facebook because I always have this inspirational, positive message. You know,
there's always something positive you can focus on, and that's
why I like you so much. You're good man. Jay
Rat left And what happened to Southwest? Real quick? Your
carve all time? Last time you were on you were talking.
I think it was Spirit Airlines who's getting rid of
reclining seats or you had to pay extra for them?
Speaker 1 (00:26):
Well, actually that's West Jets West Yet and yeah, west
Jet in Canada. They're they're kind of the Southwest Airlines,
if you will, of Canada to a smaller version. They're
premium seats. Are seats that we can pay extra for
if we want. If you want to read like the
premium service of reclining. Yes, exactly.
Speaker 2 (00:45):
But Southwest just has redesigned their interiors of all some
of their airplanes anyway, and they're now switching to brand
new Roccaro R two seats featuring multi adjustable headrest, kitchen,
integrated tablet and phone holder in the rear and in
seat power with integration USBA and seaports. Sounds like they're
going the opposite direction, didn't they pay attention to making
(01:05):
us more miserable in order to make more money?
Speaker 1 (01:08):
Jay, Well, you know, but part of this is also
so they can put in their premium seats, which are
things that they are just now doing because they've got
the assigned seats that are coming up, and they've got
the premium seats where you can pay to sit in
a seat that's got a little bit more leg room
because Southwest really learned a couple of years ago that
they really needed to start paying attention to the fact
(01:29):
that there's a segment of the traveling pump population that's
willing to pay above and beyond what they would normally
pay for an airfare for a more comfortable seat with
more legram. And I love the fact they're going to
assigned seating that means no more of these wheelchairs out
the door type of thing where people are just trying
to get on early. But the idea that you're going
(01:50):
to have the ability to have a premium seat which
is a little bit larger seat, a little bit more legram, well,
I don't think the seat's larger, but you've got more legroom,
more pitched between rows is going to be a great thing.
Because Delta and United reported earnings recently and they were
incredibly strong, and they credited this the premium seats that
they've been selling and how popular they have been, and
(02:14):
how they continue to make that one of their their
primary you know, marketing points. And you know other airlines
are doing the same thing. They're recognizing that. Look, yeah,
cramming as many seats onto an aircraft as you can
is one thing. It's like that double decker aircraft, the
airbus A three eighty. If it's all coach configuration, no
business class, no first class, no premium seats, you can
(02:36):
put eight hundred people on that airplane.
Speaker 2 (02:38):
Oh lord, I.
Speaker 1 (02:40):
Think that's tempting fate. But that's another story. But that's
the first from you got that right. So, but you know,
when when airlines start putting in the first class seats,
the business class, and then these premium seats, which are
the you know, the extra comfortable coach seats. Uh, some
airlines found out that the coat the premium coach seats
(03:02):
were more popular than some of their first class seats
and some of their business class. So We've actually seen
airlines over the last couple of years removing some of
the business class first class seats so they can make
more room to put more of these premium seats in,
because even though they obviously sell them at a reduced
price versus what they took out, they can put in
(03:22):
more of those, and they sell those out much more
frequently than they do the seats that many times they're
just an upgrade for people want with their frequent flyer miles,
where really, you know, they're not getting a huge, you know,
benefit from a revenue standpoint. So yeah, it's fascinating to
see this shift to premium seats. It doesn't surprise me
(03:42):
because as tough as it is to endure travel these days,
to pay a couple extra dollars to sit in those
premium seats it is certainly the way.
Speaker 2 (03:50):
To do it well and almost a requirement considering society's
collective girth is increasing even as we speak. Got to
have room to put the person, and I would be
willing to pay extra for some space if I had
a girth issue. Pause from it will bring Jay Raytlive
back plenty to talk about with his his massive A
new wreckon River near Tell High Chuck Ingram on fifty
(04:12):
five KO the talk station, We've never been in a
cockpit before? A thirty eight fifty one air CD talk
station returning with iHeartMedia Aviation expert Jay Rattlift. You were
one other thing right, and again not on your list?
Speaker 1 (04:27):
But how did why reference what I send you? That's mine?
Speaker 2 (04:32):
No, we'll get to all that. I just like to
build a fit all the time your show, brother, you lead.
I don't want to have to go back and lead
myself to my own devices. I have you as a
vehicle to keep the conversation going. Jay, you know what,
That's fine. Pete Heggsa's flight had to divert. They a
windshield got cracked. Oh how does a windshield get cracked?
(04:53):
Or is this a fairly common phenomenon. I'd never read
about that before.
Speaker 1 (04:57):
Well, you know, when when you're talking about a cockpit windshield,
you're talking about several different layers of protection. When you
look at it, because it's multi layered, it's obviously very
high strength, and there's a lot of times that this
this acrylic glass, if you will, can not shatter. It's
(05:19):
not like it blows out, but it cracks and when
you're in the cockpit. When that happens, it sounds like
a gun went off. But because of the fact it's
multi layered, a lot of times you've just got one
layer of those I think three that you have there
that has been impacted. So what happens is the plane
normally will make an unscheduled landing. It's not necessarily considered
(05:41):
an emergency landing. But the land because obviously the you're
worried about the rest of the windshield components, which even
though they're in separately, contains separately. It happens frequently. The
biggest issue is if they're landing, it could impair the
pilot's ability to see thee sure an extent, but no,
(06:01):
I mean it's they happen. And when you look at
the number of flights that we have in the course
of a day, a week, a month, a year, I'm
surprised we don't have more occurrences of that taking place.
But the pictures when you do a Google image of
the cockpit windshields when they do this, yeah, it's something
to look at for sure. Fair enough in aviation terms,
(06:25):
it's almost a non event other than the fact that
if you're drinking coffee. When it starts, you might spill
your coffee because you get it's quite a start because
you've got that cockpit the flight deck that's contained, so
anything in there it echoes, but at a much louder sound.
And believe me, the flight crew was made aware of
it immediately when.
Speaker 2 (06:43):
It happened, I imagine, So so in addition to cleaning
up the coffee, you probably had to hit the restroom
and do a shorts change, at least I would anyway.
Oh to Boeing, it looks like they're on the move
in terms of deliveries. They're increasing the deliveries behind air
busts though, but are they delivering planes that are set
jay We hope.
Speaker 1 (07:01):
So that is the plan, and normally Boeing an Airbus
it's fifty to fifty, but obviously with the production delays
that we've been talking about with Boeing, that's not been
the case for the last several years. But Boeing is
starting to close the gap. I was looking at the
numbers for Airbus. Airbus has delivered five hundred and sixty
eight aircraft to date and Boeing four hundred and forty.
(07:24):
Now that's a little bit closer than what it's been
of late. But what's really interesting, Brian, and we've talked
about this from time to time, is the backlog of airplanes. Now,
keep in mind, Airbus is hoping to deliver about nine
hundred airplanes this year. They have a backlog at Airbus
of eight thousand, seven hundred and sixteen jets that they
still have to build. Airbus has got the eighty seven hundred.
(07:47):
Boeing's backlog is sixty five hundred and thirty one jets
between them, that's fifteen thousand planes that have been ordered
that they have yet to be built and delivered. And
that's if you order a jet today, yeah, it's going
to be delivered sometime during the next presidential administration, because
it's going to take a long time. When you're cranking
(08:08):
out a thousand airplanes a year and you've got a
backlog of eighty seven hundred, Yeah, it's going to take
some time. And that's why a lot of times we
talked about why do one airline buy another airline because
the fact that if you want to increase the size
of your fleet, yeah, you can get in line with
everybody else, or you can go buy a spirit or
(08:29):
somebody else and immediately increase your fleet by a couple
hundred aircraft of the type that you that you want
to use. So that's one of the reasons a lot
of times you'll see those acquisitions. It's not so much
market based, you like where they fly to the schedule
type of thing. It's the fact that you want the
equipment that that air airline saw or flies. But yeah,
Boeing's making up some distance there and yeah, we'll see
(08:52):
if they can continue to close that gap.
Speaker 2 (08:54):
All right, Well, considering the data, the data of you know,
signing the contract to purchase and the data delivery decade,
what of all the technological advances that might occur over
that period of time, wouldn't you want the most state
of the art, safest, quietest, most efficient fuel wise aircraft?
And I got to imagine that type of research and
development is going on all the time. We've got a
lot quieter planes out in the world than we used to. So, yeah,
(09:16):
are you getting today? Like if I order in twenty
twenty five, is that the kind of technology I'm getting
in twenty thirty five when the thing shows up? Or
do you get the benefit of any improvements you do.
Speaker 1 (09:26):
Because what happens the avionics package is normally one of
the last things that they're going to be putting in,
so it's going to be the state of the art
of what you have a lot like the power plant
or the engines that you put on an aircraft or
are you know, towards the end of the aircraft be
being produced and installed. So that's one of the things
that you look at there. So yeah, you would be
getting the benefit of that. That would be almost insult
(09:47):
to injury if you had to worry, if you had
to worry about getting an airplane, Yeah that had a
package of you know, ten years old on some of
its components. Yeah, that's not what we're after, and fortunately
that's not the case. But you know, these airplanes, they
continue to get more quiet, they continue to get more
fuel efficient, and they allowed the airlines to be more profitable.
(10:09):
And you know, one of the things that blows my
mind to this day is continuing to see airlines like
Delta in United that report quarterly profits of more than
a billion dollars. Delta just last week announced their third
quarter profit was one point four billion dollars. In the
third United United was a much less impressive nine hundred million,
(10:32):
I think, or so in the third quarter. But Brian,
what what just blows my mind is I remember all
the decades when airlines were losing money like crazy. You
couldn't get Warren Buffet buy an airline stock if you
dared him. But what happened was airlines have gotten to
the point now where they're using the credit cards and
the other things to help them make this money. From
(10:53):
a revenue standpoint, last year, the big four airlines made
eight billion dollars in profit collectively. Those four. When you
look at the boring numbers what we talk about the
available seat miles per carrier and the revenue generated per
available seat mile, they're actually losing money on the transportation
side of the equation. Think about that. If all they
(11:15):
did was transportation and that was the sole vein of
their revenue stream, they would be losing money in a
lot of it. But because they've got the ancillary fairs
and those credit cards, you're now seeing this revenue being
generated at just an unbelievable pace. And that's why you know,
everybody's got a credit card that's tied to miles and
(11:36):
things of this nature. Whether or not we use them
or not another thing. But that's where they're making this
money from other resources in additional revenue streams, and it's
really become a multifaceted business where you've got these multiple
revenue streams that are contributing to these un I mean,
the idea that an airline could make a billion dollars
in profit in a year was unthinkable a number of
(11:58):
years ago. Now you've got United doing it almost every quarter,
as is Delta, and it's mind boggling mind modeling.
Speaker 2 (12:05):
Most notably that it isn't based upon the core function
of their business, which is air travel.
Speaker 1 (12:09):
Why do that? You know, any business has multiple revenue
streams they need to. But when you look at the
fact that, hey, we're in business to transport people and
just because of the competition, thank God for the low
cost carriers. That's why anytime we get a low cost
carrier in Cincinnati, and we've had some recent news with
Frontier and Allegiance which has really been exciting at Cincinnati.
(12:30):
I love it because the stronger these low cost carriers are,
the more in check they keep these larger legacy carriers.
And regardless of which city I'm talking to across the country,
when they say, hey, Jay, we just landed a Breeze
or a Legion or a Frontier. I'm thinking great, make
sure you support them because they're the reason that we
have these low fares. If these airlines, like a Spirit
(12:52):
and others start to disappear from the landscape, we're toached
because these large legacy carriers will start to raise their
their fare. As we've seen before, the old CDG.
Speaker 2 (13:02):
Yeah, the old CDG.
Speaker 1 (13:04):
And that's what well, we had no competition at the time,
no low cost carriers. So Frontier kind of broke that
model a number of years ago. Thank God for that,
bringing that one flight from Dayton that they had for
seven years down to Cincinnati to Denver and the next
thing you know, they're going crazy. Here comes Allegiant, here
comes everybody else. Right, So it's because of that, So
please continue to support those low cost carriers. And at
(13:24):
that the website at the Cincinnat Airport CBG Airport, you
can see where some of these new low cost carriers
are bringing him back some of their seasonal service, introducing
new service, and it's really some exciting things to see
and I'm thrilled that the community is supporting them as.
Speaker 2 (13:39):
We are Jay Ralip pause, we're bringing back for a
real quick hit. We'll end on a comical note and
even though it involves a sad and pathetic passenger and
to get a hub delay, don't go way right Backer
c Deep Talk Station eighth if you want, if you
have Karro Cite Talk Station closing another Thursday with one
more Segond with iHeartMedia Aviation. Next, Jay Ratliffe from the
(14:01):
Don't Be That Guy file, we got another passenger attacking
crew members. What's this one all about? Jay?
Speaker 1 (14:07):
Yeah, this is a don't be that woman story because
this was a sixty sixty one year old passenger that
was a boarded a Last Airlines flight. It was scheduled
to fly from Portland to Dallas. But during the course
of the flight, this woman started acting irrationally and flight
attendants were trying to come to her aid. Well that's
when she struck them, and that's all it took that
(14:28):
she was immediately restrained. Flight was diverted and you know
it's bad when you have to divert to Boise, Idaho,
but that's where they landed to get her off, and
obviously the airline quickly came out saying, you know charges
could be filed obviously, you know, assaulting a flight attendant,
and also that she'll never be flying the Last airlines
ever again, which is good. But then back to my
(14:49):
overused comment that she can still fly any other airline
in the country she wants to after assaulting a crew member,
which should not be allowed, but continues to be so.
So one of these, Brian, it's going to take something
serious and that's when the airlines are going to decide
that that's when they need to do it, at which
point we'll be screaming, why did it take this long
for us to make that kind of a decision.
Speaker 2 (15:12):
It's like our lithium battery discussions from time to time. Yeah,
wait till that happens on an eight hundred passenger airplane.
Jay Ratliff, Let's hope, not hope, not lee all right,
as we typically do or always do, if we can
fit in hub delays. How's it looking out there today
for air travel one of.
Speaker 1 (15:28):
The days of the week we've had to fly. I
think Salt Lake City is about the only hub that
I've been able to find from a weather standpoint that
could see some delays. Chicago may be late in the day,
but I think that's going to be minimal. I think
it's gonna be Salt Lake, and I don't think the
delays are going to be any more than thirty to
forty minutes there. So if you picked today, you picked
a great one, not only from the good weather standpoint,
(15:49):
but probably a reduction in turbulence, which is also nice.
But that doesn't mean not to keep seatbelt on. Please
do so is you fly fair enough?
Speaker 2 (15:56):
What I'm hearing is the government shut down, even though
it may m packed air traffic controller salaries or something,
is not impacting air travel itself at least yet.
Speaker 1 (16:05):
No. Last Friday we had thirty nine hundred flights that
were delayed, and a lot of that's being touted because
of the shot down blah blah blah blah blah. But again,
to introduce facts to the story, the average number of
delays we've had this year has been forty one hundred
a day. We actually had fewer delays on the snapshot
I took on Friday than what we normally have, So
(16:28):
that would lend me to say, yes, we are having
pockets of problems. I won't discount that, But Brian, don't
tell me we're having a coast to coast problem. If
we have fewer delays now per day than what we
have normally.
Speaker 2 (16:41):
Fair enough, Jay Rayleiff, thank you so much for joining
the program every week. I thoroughly enjoy our exchange and
the information we talk about. And I'll look forward to
next Thursday and another discussion between now and then. Best
of health and love to you, and of course you're
better half.
Speaker 1 (16:55):
Same to you, my friend.
Speaker 2 (16:56):
Thank you, Thanks brother. It's a fifty four right now.
If you get a chance to listen in
Brian Thomas News
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