Nanook

Doug Parker was on CNBC Squawk Box this morning. Here's a video of that:

http://video.cnbc.com/gallery/?video=3000156520&play=1

Superguy

Could we get a brief summary? I apologize ... I can't stream at work.

SFO777

Zzzzzzz.
Are there are any dumber interviewers on TV today than these three CNBC idiots?

aztimm

Mod note: I found these posts in another thread and feel that this is deserving of a separate thread.

Also note: the transcript of the discussion is posted on the CNBC site to the right of the video feed. FT rules prohibit posting the whole thing, but here's a snapshot:

DCdeacon

Seriously. Just listened to this--the older guy sitting to Parker's right is an absolute idiot.

grahampros

I actually found it pretty good the folks grilling him on the pricing aspects. Praker couldn't obviously be totally honest, but it was clearly staged to debunke that the merger is about rising prices.

PHL

The whole issue of electronics being banned during takeoff/landing/under 10000 feet is interesting. Doug punted that one back to the FAA, and rightly so. Some people think that the airlines are putting these rules in place when in fact they are enforcing regulations that are mandatory.

That being said, I think people are only focused on "can my iPod bring down the plane" versus the bigger issue of needing to have minimal distractions, and potential projectile items stowed, during the most critical phases of flight.

If everyone has their cell phones out and laptops/tablets on during take off and landing, an emergency evacuation of any kind will be hampered by the need to stow these devices out of the way if they haven't already flown out of someones hands and into the back of their neighbor's head.

Given those kinds of scenarios, I am skeptical that the FAA will lift the ban.

DCdeacon

I guess I just don't buy the distraction argument. How is the seven pound college textbook the kid next to me on my last flight was reading less of a potential projectile than an iPad? Or how is the wide open paper copy of the WSJ or USA Today that I'm reading, that's blocking my view of the FA doing the safety demo, any less of a distraction than the Kindle that I'm not allowed to use until we hit 10,000 feet?

BoeingBoy

The few tidbits coming from the committee looking at possibly lifting some of the PED restrictions seem to suggest that reading/playing games on tablets may be allowed at any time, but only in airplane mode. Cell phones (making/receiving calls) will probably stay a no-no.

Jim

PHL

If that's the case, how will the F/A's enforce that people put their device in airplane mode?

DCdeacon

They won't be able to, just like they can't currently enforce or know that people's devices are fully "off" and not just in airplane mode. Which to me, makes all of this fairly pointless. If there were an actual risk to the safety of the flight from these devices, then the FAA/Airlines would put in place some procedure to force these devices to be off. The fact that this doesn't exist indicates to me that it's not a real threat.

william142

"more of the competition being based upon the inflight product which will be good for customers."

Most interesting comment he made...

flight62

What I am hearing as an employee is this:
The days of going cheap are over. LCC is dead. We are playing with the big boys now and we must compete accordingly. As we get to 3 legacies and SWA, yes, pricing will be more appropriate to the cost of living increases but still competitive. This should increase profits. With a consistent profit margin, money can go back to employees AND passengers in the way of upgrading the inflight product.

And I think Parker was a guest host, so the conversation was more light with a few persistent questions that reminded me of employees when he is on the airplane.

GNRMatt

I don't think they'll look to enforce that. However, if a F/A finds a passenger using their mobile device to make a phone call, that would be a violation and could be a punishable offense. I think a big reason not to use cell phone's on planes is just to not annoy fellow passengers and I'd be in support of that. Also, if you try turning your phone on when on a plane, you'll notice you either get no signal or it is very intermittent so it really isn't worth using it to make calls (and will kill your battery always searching for a signal).

Beckles

I can't believe all the positive press that the airlines have been getting on CNBC lately, while it's inarguable airlines have been a good short-term investment, in the long-term I see no reason to believe that two things won't occur:

1) As airlines continue to post large profits, the union groups will demand pay increases that they previously lost, holding the airlines hostage with the threat of strikes, increasing their costs; and

2) As airlines continue to post large profits, new competitors will be attracted to the industry and smaller competitors will grow more quickly than the indutry as a whole, often competing on price, either taking passengers from existing airlines or forcing existing airlines to lower pricing, either way, descreasing their revenues.

The airlines may be able to survive just those two things, but then at some point there will be a dramatic increase in fuel prices or a drop in overall demand for air travel or some other shock to the industry that will send the airlines back to where they were a few years ago ... unprofitability.