Producers’ Pick | Nick Calio: What Airlines Are Doing to Stay in the Air

The main cash that's the advice we get from signature transportation so solving the problem. The Calio Hughes Airlines for American Pres. and CEO Georges no Nick I think your industry is everyone befuddled and angry. What happened well a lot of things happened right personal thank you for having me on.

I with a confluence of bad weather in the wrong places over to holidays with a surge in demand.

They came back faster than we expected and we've been in the process about trying to hire people pilots fly dependents customer service agents gate agents machinist for some time now and you know I guess I would say to that not everybody is angry. There's been a lot of press on it and shortly there have been difficulties and problems. We've all seen it. It's on the news every night were very high profile industry, but there are 40,000 flights every day. As many as 5000 points in the area at any given time. The vast majority of which go off seamlessly and that is our goal every single day to give the customer service that allows people to get to where they want to go, whether it be for business or for pleasure rhyme in the numbers astounding. So far in 2022, an average of one of every five flights a day. Arrived behind schedule total of more than 20,000 delayed flights. According to flight aware in 116,000 flights have been canceled. We personally have never had I travel a lot. I never have before. They just go you flights canceled anything to that is no reason this out hey you, sorry we have worked down a crew member know that just canceled by what you make in the first place but that a lot of people I've never seen more people more disillusioned by anyone industry and the question is if all the money came to the airlines to keep 700,000 people employed. Why aren't they running as smooth as they were before the pandemic. It for that but I will give you an answer that is true, and factually. The reason all the money it was provided. The airlines we acted as an unemployment agency for the federal government.

We pass right through to our employees the money that was given to us covered only about 65% of the cost of keeping those employees on and you need a little context.

If you go back two years we were bleeding billions and billions of dollars of cash every month so we are able to keep some people on but then we had to take self-help measures because we didn't know what flying would come back.

We were flying 96% less people then we work prior to the pandemic wanted to let that happen within a month so either companies were going bankrupt, like they did after 9/11, we had to take drastic measures to get people early retirement voluntary leaves and all that you know if the PSP hadn't happened.

You would be flying the summer plain and simple. That's what people need to keep there. I was losing money before the pandemic. So to say to a misunderstanding. No, we had 10 years in the role profitability okay and were you know we are making record profits, and you know things are going great we had at the time the week before the pandemic really good.

There was an investment conference up in New York with a lot of our airlines and there was recognition that we have so-called fortress balance sheets designed to withstand an event like 9/11 3 1/2 times as bad as 9/11. That all went out the window in three weeks. So a couple things just fact and fiction that the airlines mandated these all the pilots get vaccinated invited his givebacks in a lot just bailed out. Is that true friction. I don't think there's any material number people who did that but I know United mandated vaccinations for pilots correct correct did you guys had said okay go ahead United to do that some other standard as well, and the expectation to read their predictions that people would quit their job because they had to get vaccinated. Frankly, the really good jobs and the numbers were very small.

If any turned out so what about whatever happened to the flight attendants are you running out of flight attendants to flight attendant numbers are in pretty good shape. I think that we are hiring more will bring people back as quickly as we can't know the problem with the airline industry will have the same kind of problems that every other industry in this country having the bigger problem for an airline is because we are so focused on safety and security, all of our employees have to be trained and certified, and what we've been finding in some cases over the last few months. Ryan is bringing people back were getting them trained close to certified and then they decide they don't want the job, and again that's like every other industry in the country of the pandemic's funeral brought some very big changes in our employment market. They decide they don't want the job. So is it was just brutal as people of the people's behavior is at what flight attendants are feeling. For the most part. If you talk to the unions that they don't like the behavior or the treatment wouldn't. The reason is this used to be a coveted position. No one ever seemed to relinquish once I got it and we haven't seen any mass migration of flight leaving their jobs. There was a time when because of the masks and other regions where there's a lot of bad behavior on her plate and they were. They are the first responders are right in line and they do it admirably. The back part of the backbone of the industry just like our pilots are in all other employees so pilots retiring. Is that correct you sure pilots are mainline carriers, a 40 members are not having a pilot supply supply problem we have enough pilots which hiring furiously were training.

Many of our members started their own flight Academy. It takes a long time to become a pilot. It's very expensive. That's why we think the pilots in training ought to be like doctors in training or counseling training be able to get federal student loans across $200,000 where there is a problem quite candidly for the regional carriers.

The smaller carriers because that's our main source of hiring and they are in some cases had to pull down flights and stop service to communities because they do not have enough pilots so I saw it was its Delta that was on strike Leslie they want striking. They were protesting okay are they underpaid, I don't think so. These are good being a pilot is a well-paid job. Does everybody always want more money. Yes, and that's what the protests were about so well in some locations going on in the number of airlines jelly of the present CEO of airlines for America so Nick so the flight attendants at the rear. The ranks are pretty much okay you believe the so far the pilots, the numbers are okay except for some regional airlines you believe that the airline workers were having trouble staffing there is that correct were hiring as fast as we can man we want to go faster.

Right.

So when these delays are mounting up to the present. The worst ever. What do you what to quiz the quick answer or the longer answer on why this is happening and when do you think things go back to normal. That's a good question. We learn one thing throughout the pandemic.

You can plan but you can't forecast and so we planned and you know there's a lot of reasons for cancellations sure responsibilities across. There are staffing shortages in the federal government. Just as there are in you in our industry and were working our way through those as quickly as we can, but there's no easy answer because again it comes back to the training and certification issue. It takes time to get people trained and onboard, you can snap your fingers and do it in terms of air traffic controllers because of coven they had to shut down the training Academy for two years. That really dried up the pipeline and they're doing everything they can. The FAA is doing everything it can to get people on board were all working collaboratively together to try to figure out ways to hire faster, train faster and more efficiently, because that's we need to do and it's going to take some time to think by the end of the summer. I would hope by the end of the summer, but I can't predict that, you know, we've taken down our members to pull down a number flights about 50% of the flight. They'd originally planned to fly to make sure that there would be if you were due no cure. Cancellations and disruptions because of unavailability using would I think I people would like to know with all these flight delays and with the flight cancellations on top of that you're paying more for jet fuel. So which means the prices have to go up because you can't lose money with every flight.

So how does that factor into this price increase in oil and this is a big factor and you know we were going to moderate the prices to the degree that we can. Although the rising prices is still put this way demand is still high, which tell you something about the price, and we will have to factor in all of our costs are two greatest costs are fuel and labor in both of those costs are going up. I every chance for people listening right now from the from the passenger perspective. How do we yells the flight were booking has a shot at getting off on time, since it seems so random with the cancellation. My greatest recommendation would be airlines made vast improvements in technology available to customers is one of our greatest ways of communicating. So if you have taken name any airline.

If you have their app on your phone, you will get messages saying your flight is at Kate so-and-so is scheduled to go off on time you get another notice if it's delayed if it's canceled it allow you to rebook online rather than trying to call the customer service agent.

That's the number one thing you can do to the airport early your airlines app and keep checking because the information is all there for you and even because of the notification from the airline itself.

All you have to do is click on the app look at the different buttons, and check your choices and find out what your flight status is where your bags are almost kinds of good things. It's enough for technologically challenged person like me is not initially easy but it if I can do it. Almost anybody can do it since you think they know more than the gate agents believe your app over the gate agent leave your app over somebody at the airport. That's a very good question, but I would check.

I think it's easier than Stan queuing in line � the gate agent what the delay is for. I think my hope would be that there's a lot of communication from the gate agent or the pilots or the flight attendants to the customers so that they don't have to ask and finally Nick when it comes to all this I will in the ultimate passenger advice.

Is it true that you guys are told the people came over to get a first-class business class are treated better. Given first option so if there is money in the cookie jar to get that upper that first-class or business class ticket and you were to buy cancellations and rescheduling is a true first and business are prioritized. I can't really answer that. I do know that if your frequent flyer and a loyal customer for a particular line usually do get priority so that would help to get rescheduled on the Calio and bodily secretary transportation not doing something you want to do is Washington that doing something you been asking them to do know we work very closely with them at all about collaboration and coordination we do with the FAA we do with DOT we do with application security administration is a daily thing try to figure out where the demand is going to be and where the numbers are to be in hot therefore moving staffing around if need be to cover the demand at any particular time traffic controllers I heard that there was no train going on during the break during the two-year pandemic and therefore you short I think they are hiring as fast as I can and there is we need more air traffic controllers and you know that I did. I know you know this run that training is very extensive.

You do your training then you have to get on the job training and to get one of the busier centers it can take years to do so. How soon are you I don't have a number on that. We can certainly use more.

That way people get sick or something. You can have the other staff to cover the Calio. Thank you. Appreciate it.

Thank you. I just subscribe and listen to the federal prosecutor and four term US Congressman from South Carolina brings you a one-of-a-kind subscriber list.com