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THANK YOU SO MUCH FOR JOINING US.
US. I AM H. WAYNE WILSON.
I AM H. WAYNE WILSON. FOR THE NEXT HALF-HOUR, YOU AND
FOR THE NEXT HALF-HOUR, YOU AND I ARE GOING TO LEARN ABOUT THE
I ARE GOING TO LEARN ABOUT THE AIRPORTS IN PEORIA.
AIRPORTS IN PEORIA. YES, I SAID PLURAL.
YES, I SAID PLURAL. WE WILL BE TALKING ABOUT THE
WE WILL BE TALKING ABOUT THE GENERAL WAYNE ADOWNING PEORIA
GENERAL WAYNE ADOWNING PEORIA INTERNATIONAL AIRPORT, THE NEW
INTERNATIONAL AIRPORT, THE NEW TERMINAL, AIRLINE SERVICE, AND
TERMINAL, AIRLINE SERVICE, AND WE ARE ALSO GOING TO TALK LATER
WE ARE ALSO GOING TO TALK LATER IN THE PROGRAM ABOUT
IN THE PROGRAM ABOUT IMPROVEMENT, AT MOUNT HOLLY
IMPROVEMENT, AT MOUNT HOLLY AIRPORT.
AIRPORT. TO HAVE THAT DISCUSSION, WE WILL
TO HAVE THAT DISCUSSION, WE WILL HAVE DIRECTOR OFF AIRPORTS, GENE
HAVE DIRECTOR OFF AIRPORTS, GENE OLSON IS WITH US.
OLSON IS WITH US. THANK YOU SO MUCH FOR JOINING
THANK YOU SO MUCH FOR JOINING US.
US. >>GOOD TO BE HERE, H, THANKS.
>>GOOD TO BE HERE, H, THANKS. >>LET'S START WITH THE NEW
>>LET'S START WITH THE NEW TERMINAL.
TERMINAL. WE WILL GET INTO SOME AIRLINE
WE WILL GET INTO SOME AIRLINE SERVICE IN A MOAT.
SERVICE IN A MOAT. BECAUSE I KNOW THERE ARE SOME
BECAUSE I KNOW THERE ARE SOME QUESTION MARKS.
QUESTION MARKS. BUT THE TERMINAL -- I HAVE FLOWN
BUT THE TERMINAL -- I HAVE FLOWN IN AND OUT OF IT SEVERAL TIMES
IN AND OUT OF IT SEVERAL TIMES NOW THAT IT HAS BEEN OPEN.
NOW THAT IT HAS BEEN OPEN. IT IS A LOT NICER.
IT IS A LOT NICER. IS IT WORKING OUT THE WAY YOU H
IS IT WORKING OUT THE WAY YOU H HOPED?
HOPED? >> IT ACTUALLY IS.
>> IT ACTUALLY IS. IT HAS BEEN A GREAT EXPERIENCE
IT HAS BEEN A GREAT EXPERIENCE TO MOVE INTO THAT BUILDING AND
TO MOVE INTO THAT BUILDING AND START TO USE IT.
START TO USE IT. I THINK PROBABLY THE BIGGEST
I THINK PROBABLY THE BIGGEST FEEDBACK WE GET IS EVERYBODY
FEEDBACK WE GET IS EVERYBODY LIKES THE DECOR AND HOW OPEN AND
LIKES THE DECOR AND HOW OPEN AND AIRY IT IS.
AIRY IT IS. LIKE ANY BIG PROJECT, THERE IS A
LIKE ANY BIG PROJECT, THERE IS A FEW LITTLE BUGS YOU HAVE TO WORK
FEW LITTLE BUGS YOU HAVE TO WORK OUT, BUT NOTHING PASSENGERS
OUT, BUT NOTHING PASSENGERS WOULD NOTICE.
WOULD NOTICE. >>WELL, LET ME ASK ABOUT
>>WELL, LET ME ASK ABOUT BAGGAGE.
BAGGAGE. IF THERE WAS A COMPLAINT AT THE
IF THERE WAS A COMPLAINT AT THE OLD TERMINAL, IT WAS SLOW
OLD TERMINAL, IT WAS SLOW BAGGAGE.
BAGGAGE. >> MOSTLY THAT HAS BEEN TAKEN
>> MOSTLY THAT HAS BEEN TAKEN CARE OF OF ALL OF THE PHYSICAL
CARE OF OF ALL OF THE PHYSICAL IMPEDIMENTS TO QUICK BAGGAGE
IMPEDIMENTS TO QUICK BAGGAGE SERVICE HAS BEEN FIXED.
SERVICE HAS BEEN FIXED. WE STILL HAVE THINGS THAT MOTHER
WE STILL HAVE THINGS THAT MOTHER NATURE MIGHT THROW AT YOU FROM
NATURE MIGHT THROW AT YOU FROM TIME TO TIME.
TIME TO TIME. THERE IS SOME MAYBE PERSONNEL
THERE IS SOME MAYBE PERSONNEL ISSUES THAT I WOULD CALL IT.
ISSUES THAT I WOULD CALL IT. A LOT OF TIMES WHEN THE AIRLINES
A LOT OF TIMES WHEN THE AIRLINES WILL HAVE TWO FLIGHTS THAT COME
WILL HAVE TWO FLIGHTS THAT COME CLOSE TOGETHER, THEY ONLY HAVE A
CLOSE TOGETHER, THEY ONLY HAVE A VERY LIMITED STAFF.
VERY LIMITED STAFF. THEY WILL EMPTY ONE AIRPLANE,
THEY WILL EMPTY ONE AIRPLANE, AND THEN GO AND WORK ON THE
AND THEN GO AND WORK ON THE SECOND AIRPLANE, AND THEN PEOPLE
SECOND AIRPLANE, AND THEN PEOPLE WILL SEAT BAGGAGE COMING IN.
WILL SEAT BAGGAGE COMING IN. H THAT HAS CAUSED SOME DELAYS.
H THAT HAS CAUSED SOME DELAYS. WE TRIED TO FIX THAT BY MAKING
WE TRIED TO FIX THAT BY MAKING SURE OUR STAFF WALK THROUGHOUT
SURE OUR STAFF WALK THROUGHOUT BUILDING MORE WHEN WE KNOW THAT
BUILDING MORE WHEN WE KNOW THAT IS HAPPENING.
IS HAPPENING. WE ARE TRYING TO INCREASE THE
WE ARE TRYING TO INCREASE THE COMMUNICATION BETWEEN THE
COMMUNICATION BETWEEN THE AIRLINE STAFF AND OUR STAFF SO
AIRLINE STAFF AND OUR STAFF SO THAT WHEN THEY GET SWAMPED WITH
THAT WHEN THEY GET SWAMPED WITH AIRPLANES LIKE THAT, WE KNOW,
AIRPLANES LIKE THAT, WE KNOW, AND WE CAN GO AND PITCH IN AND
AND WE CAN GO AND PITCH IN AND HELP OUT.
HELP OUT. >>WE WILL COME BACK AND TALK
>>WE WILL COME BACK AND TALK ABOUT OTHER THINGS HAPPENING AT
ABOUT OTHER THINGS HAPPENING AT THE TERMINAL, INCLUDING A NEW
THE TERMINAL, INCLUDING A NEW TOWER THAT IS SOMEWHERE IN THE
TOWER THAT IS SOMEWHERE IN THE FUTURE.
FUTURE. BUT LET'S MOVE TO SERVICE FIRST.
BUT LET'S MOVE TO SERVICE FIRST. WE JUST SAW AMERICAN AMR
WE JUST SAW AMERICAN AMR CORPORATION, THE PARENT TO
CORPORATION, THE PARENT TO AMERICAN, AND HAD AMERICAN EAGLE
AMERICAN, AND HAD AMERICAN EAGLE BOTH FILING BANKRUPTCY.
BOTH FILING BANKRUPTCY. HAVE YOU HAD CONTACT WITH
HAVE YOU HAD CONTACT WITH AMERICAN AIRLINES?
AMERICAN AIRLINES? >> YES, THEY LET US KNOW, AS
>> YES, THEY LET US KNOW, AS SOON AS THEY FILED.
SOON AS THEY FILED. AIRPORT DIRECTORS ACROSS THE
AIRPORT DIRECTORS ACROSS THE COUNTRY HEARD ABOUT IT.
COUNTRY HEARD ABOUT IT. IT WAS NOT UNEXPECTED.
IT WAS NOT UNEXPECTED. THEY WERE THE LAST CARRIER THAT
THEY WERE THE LAST CARRIER THAT WENT THROUGH BANKRUPTCY.
WENT THROUGH BANKRUPTCY. EVERYONE SAYING "ARE THEY OR
EVERYONE SAYING "ARE THEY OR AREN'T THEY?"
AREN'T THEY?" WHEN THEY FINALLY PULLED THE
WHEN THEY FINALLY PULLED THE TRIGGER, NOBODY WAS THAT
TRIGGER, NOBODY WAS THAT SURPRISED.
SURPRISED. >>WHAT KIND OF REASSURANCE DID
>>WHAT KIND OF REASSURANCE DID THEY GIVE YOU IN TERMS OF
THEY GIVE YOU IN TERMS OF CONTINUED SERVICE IN PEORIA?
CONTINUED SERVICE IN PEORIA? >> THEY INDICATED TO US, AND IN
>> THEY INDICATED TO US, AND IN THE COMMUNICATIONS THAT WE GOT
THE COMMUNICATIONS THAT WE GOT THAT NOTHING WAS GOING TO CHANGE
THAT NOTHING WAS GOING TO CHANGE AND THEY WERE GOING TO OPERATE
AND THEY WERE GOING TO OPERATE ALL THE FLIGHTS THEY HAD
ALL THE FLIGHTS THEY HAD SCHEDULED.
SCHEDULED. THEY ARE GOING TO SELL TICKETS
THEY ARE GOING TO SELL TICKETS AND ALLOW PEOPLE TO CHANGE
AND ALLOW PEOPLE TO CHANGE TICKETS THE WAY THEY ALWAYS
TICKETS THE WAY THEY ALWAYS HAVE.
HAVE. SO OPERATION ALI, THEY HAVE
SO OPERATION ALI, THEY HAVE GIVEN US EVERY ASSURANCE NOTHING
GIVEN US EVERY ASSURANCE NOTHING WILL CHANGE.
WILL CHANGE. AND AGAIN, IT IS A
AND AGAIN, IT IS A REORGANIZATION.
REORGANIZATION. IT IS CHAPTER 11, SO THEY ARE
IT IS CHAPTER 11, SO THEY ARE REORGANIZING.
REORGANIZING. IT IS NOT A CHAPTER 7
IT IS NOT A CHAPTER 7 LIQUIDATION.
LIQUIDATION. YOU DON'T ANTICIPATE REDUCED
YOU DON'T ANTICIPATE REDUCED SERVICE FROM AMERICAN?
SERVICE FROM AMERICAN? >> NO, I DON'T.
>> NO, I DON'T. IF YOU LOOK AT THE PASSENGER
IF YOU LOOK AT THE PASSENGER NUMBERS THAT WE HAVE BEEN
NUMBERS THAT WE HAVE BEEN SEEING, THEIR PASSENGER NUMBERS
SEEING, THEIR PASSENGER NUMBERS FROM A YEAR AGO IN OCTOBER TO
FROM A YEAR AGO IN OCTOBER TO OCTOBER OF THIS YEAR, PASSENGER
OCTOBER OF THIS YEAR, PASSENGER NUMBERS GREW TEN AND A HALF
NUMBERS GREW TEN AND A HALF PERCENT.
PERCENT. THEY ARE O OUR BUSIEST CARRIER.
THEY ARE O OUR BUSIEST CARRIER. THEY HAVE ABOUT 32% OF THE
THEY HAVE ABOUT 32% OF THE MARKET HERE IN PEORIA.
MARKET HERE IN PEORIA. EVEN A YEAR AGO, THEY WERE --
EVEN A YEAR AGO, THEY WERE -- THEY HAVE ALWAYS BEEN, SINCE I
THEY HAVE ALWAYS BEEN, SINCE I HAVE BEEN IN PEORIA, THEY HAVE
HAVE BEEN IN PEORIA, THEY HAVE ALWAYS BEEN EITHER THE NUMBER
ALWAYS BEEN EITHER THE NUMBER ONE OR NUMBER TWO CARRIER.
ONE OR NUMBER TWO CARRIER. SO THEY ARE DOING WELL FROM THE
SO THEY ARE DOING WELL FROM THE NUMBERS THAT WE HAVE ACCESS TO,
NUMBERS THAT WE HAVE ACCESS TO, IT LOOKS LIKE THEY ARE STILL
IT LOOKS LIKE THEY ARE STILL MAKING PRETTY GOOD MONEY HERE IN
MAKING PRETTY GOOD MONEY HERE IN PEORIA.
PEORIA. SO I THINK THEY ARE GOING TO
SO I THINK THEY ARE GOING TO STICK AROUND A.
STICK AROUND A. >>CONTINUE TO FLY INTO ORD AND
>>CONTINUE TO FLY INTO ORD AND TO DALLAS FOR THE WORTH?
TO DALLAS FOR THE WORTH? >> YES.
>> YES. >> LET'S TALK ABOUT ANOTHER
>> LET'S TALK ABOUT ANOTHER AIRLINE, AND THE REASON I BRING
AIRLINE, AND THE REASON I BRING THIS UP IS WE SAW THAT THE
THIS UP IS WE SAW THAT THE SOUTHWEST PURCHASED AIR TRAN.
SOUTHWEST PURCHASED AIR TRAN. THERE WAS SOME QUESTION AS TO
THERE WAS SOME QUESTION AS TO WHAT SOUTHWEST WAS GOING TO DO
WHAT SOUTHWEST WAS GOING TO DO WITH AIR TRAN.
WITH AIR TRAN. BUT IT APPEARS THAT THEY HAVE
BUT IT APPEARS THAT THEY HAVE NOW MADE THE DECISION THEY ARE
NOW MADE THE DECISION THEY ARE GOING TO ELIMINATE AIR TRAN IN
GOING TO ELIMINATE AIR TRAN IN SEVERAL AIRPORTS ACROSS THE
SEVERAL AIRPORTS ACROSS THE COUNTRY IS THAT CORRECT?
COUNTRY IS THAT CORRECT? >> YES.
>> YES. THEY HAVE HAD A BUSINESS MODEL
THEY HAVE HAD A BUSINESS MODEL OF CONNECTING LARGE CITIES WITH
OF CONNECTING LARGE CITIES WITH HIGH FREQUENCIES USING ONE TYPE
HIGH FREQUENCIES USING ONE TYPE OF AIRPLANE.
OF AIRPLANE. AND IT APPEARS THEY ARE GOING TO
AND IT APPEARS THEY ARE GOING TO BE STICKING WITH THAT, THAT
BE STICKING WITH THAT, THAT BUSINESS MODEL.
BUSINESS MODEL. WEATHER H WEATHER AIR TRAN AS A
WEATHER H WEATHER AIR TRAN AS A NAME GOES AWAY OR WHETHER THEY
NAME GOES AWAY OR WHETHER THEY MAINTAIN THE OPERATION AS A
MAINTAIN THE OPERATION AS A SEPARATE NAME AND KEEP IT
SEPARATE NAME AND KEEP IT ACTIVE, THAT HASN'T REALLY BEEN
ACTIVE, THAT HASN'T REALLY BEEN DETERMINED YET.
DETERMINED YET. I THINK THERE ARE SOME LABOR
I THINK THERE ARE SOME LABOR ISSUES THAT SOUTHWEST IS GOING
ISSUES THAT SOUTHWEST IS GOING OVER WITH THE TWO PILOT UNIONS.
OVER WITH THE TWO PILOT UNIONS. IT IS ALWAYS COMPLEX WHEN YOU
IT IS ALWAYS COMPLEX WHEN YOU MERGE TWO AIRLINES HOW YOU WILL
MERGE TWO AIRLINES HOW YOU WILL MERGE THE SENIOR TY.
MERGE THE SENIOR TY. THAT'S IS ONE OF THE STICKIEST
THAT'S IS ONE OF THE STICKIEST THINGS THEY HAVE TO WORK ON.
THINGS THEY HAVE TO WORK ON. HOW THEY MANAGE THAT STILL
HOW THEY MANAGE THAT STILL REMAINS TO BE SEEN.
REMAINS TO BE SEEN. BUT THEY ARE STICKING WITH THE
BUT THEY ARE STICKING WITH THE MODEL OF BIG CITIES AND HIGH
MODEL OF BIG CITIES AND HIGH FREQUENCIES.
FREQUENCIES. >>AIR TRAN AND SOUTHWEST DO NOT
>>AIR TRAN AND SOUTHWEST DO NOT SERVE PEORIA, BUT YOU DO HAVE
SERVE PEORIA, BUT YOU DO HAVE ALLEGIANT AIRLINES.
ALLEGIANT AIRLINES. >>UH-HUH.
>>UH-HUH. HAS IT EVER CROSSED YOUR MIND
HAS IT EVER CROSSED YOUR MIND MAYBE SOMEONE WOULD BUY
MAYBE SOMEONE WOULD BUY ALLEGIANT?
ALLEGIANT? WE WILL TALK MORE ABOUT
WE WILL TALK MORE ABOUT ALLEGIANT AND THE KIND OF MODEL
ALLEGIANT AND THE KIND OF MODEL THEY HAVE HERE.
THEY HAVE HERE. WHAT MIGHT HAPPEN?
WHAT MIGHT HAPPEN? BECAUSE WE SAW BLOOMINGTON IS
BECAUSE WE SAW BLOOMINGTON IS APPARENTLY GOING TO USE AIR TRAN
APPARENTLY GOING TO USE AIR TRAN SERVICE AFTER THAT MERGER.
SERVICE AFTER THAT MERGER. ALLEGIANT?
ALLEGIANT? >> ALLEGIANT SORT OF CREATED A
>> ALLEGIANT SORT OF CREATED A NEW BUSINESS MODEL FROM SCRATCH.
NEW BUSINESS MODEL FROM SCRATCH. THEIR MANAGEMENT TEAM KIND OF
THEIR MANAGEMENT TEAM KIND OF INVENTED WHAT IT IS THAT
INVENTED WHAT IT IS THAT ALLEGIANT DOES.
ALLEGIANT DOES. THERE IS NO ONE ELSE WHO DOES
THERE IS NO ONE ELSE WHO DOES THAT.
THAT. THE SPIRIT AIRLINES KIND OF DOES
THE SPIRIT AIRLINES KIND OF DOES THAT, BUT ALLEGIANT CERTAINLY
THAT, BUT ALLEGIANT CERTAINLY DOES IT BETTER THAN EVERYBODY
DOES IT BETTER THAN EVERYBODY ELSE.
ELSE. THAT MODEL IS TO CONNECT WHAT
THAT MODEL IS TO CONNECT WHAT THEY WOULD CALL UNDERSERVED
THEY WOULD CALL UNDERSERVED AIRPORTS OR AIRPORTS IN SMALLER
AIRPORTS OR AIRPORTS IN SMALLER COMMUNITIES AND MORE RURAL
COMMUNITIES AND MORE RURAL AREAS, AND CONNECT THEM UP TO
AREAS, AND CONNECT THEM UP TO NICE PLACES TO GO.
NICE PLACES TO GO. SO WHAT THEY ARE DOING IS REALLY
SO WHAT THEY ARE DOING IS REALLY CASTING KIND OF A LONGER LINE IN
CASTING KIND OF A LONGER LINE IN TRYING IT TO GET A LARGER GROUP
TRYING IT TO GET A LARGER GROUP OF PEOPLE AND FILL THE AIRPLANE
OF PEOPLE AND FILL THE AIRPLANE EVERY TIME, EVEN IF THEY HAVE TO
EVERY TIME, EVEN IF THEY HAVE TO SELL THE LAST SEAT AT A DISCOUNT
SELL THE LAST SEAT AT A DISCOUNT BECAUSE THEY KNOW THEY ARE GOING
BECAUSE THEY KNOW THEY ARE GOING TO SELL THEM OTHER SERVICE LIKE
TO SELL THEM OTHER SERVICE LIKE THE RIDE TO THE HOTEL, THE HOTEL
THE RIDE TO THE HOTEL, THE HOTEL ROOM THEMSELVES, ITSELF IF THEY
ROOM THEMSELVES, ITSELF IF THEY CAN.
CAN. AND ONE OF THE THINGS THEY DO,
AND ONE OF THE THINGS THEY DO, IS THEY TARGET COMMUNITIES, THAT
IS THEY TARGET COMMUNITIES, THAT HAVE A VERY LARGE NUMBER OF
HAVE A VERY LARGE NUMBER OF HOTEL ROOMS.
HOTEL ROOMS. SO MEETING WITH ALLEGIANT AND
SO MEETING WITH ALLEGIANT AND LEARNING H HOW THEY OPERATE HAS
LEARNING H HOW THEY OPERATE HAS BEEN AN EDUCATION TORE ME.
BEEN AN EDUCATION TORE ME. I DON'T SEE ANOTHER AIRLINE OUT
I DON'T SEE ANOTHER AIRLINE OUT THERE THAT HAS THE SAME
THERE THAT HAS THE SAME PHILOSOPHY THEY DO.
PHILOSOPHY THEY DO. SO I THINK WHETHER THEY GET
SO I THINK WHETHER THEY GET ACQUIRED OR NOT BY ANOTHER
ACQUIRED OR NOT BY ANOTHER COMPANY IS PROBABLY A DIFFERENT
COMPANY IS PROBABLY A DIFFERENT ISSUE.
ISSUE. BUT I DON'T SEE ANYONE ELSE OUT
BUT I DON'T SEE ANYONE ELSE OUT THERE IN THE INDUSTRY DOING THE
THERE IN THE INDUSTRY DOING THE KIND OF FLYING THAT THEY DO.
KIND OF FLYING THAT THEY DO. >>WHAT PASSENGER LOAD DO THEY
>>WHAT PASSENGER LOAD DO THEY CARRY OUT OF PEORIA?
CARRY OUT OF PEORIA? >> THEY ARE USUALLY RIGHT LIKE
>> THEY ARE USUALLY RIGHT LIKE RIGHT NOW THEY ARE THE NUMBER
RIGHT NOW THEY ARE THE NUMBER TWO CARRIER. THEY ARE OUR
TWO CARRIER. THEY ARE OUR USUALLY IN THE NEIGHBORHOOD OF 5
USUALLY IN THE NEIGHBORHOOD OF 5 OR 6,000 PASSENGER A MONTH, AND
OR 6,000 PASSENGER A MONTH, AND THAT'S THE ENPLANING SIDE.
THAT'S THE ENPLANING SIDE. IT IS 12,000 WHEN YOU ADD THE
IT IS 12,000 WHEN YOU ADD THE DEPLANING SIDE.
DEPLANING SIDE. AND THERE ARE IN 150 -- THEIR
AND THERE ARE IN 150 -- THEIR AIRPLANES ARE CONFIGGED TWO
AIRPLANES ARE CONFIGGED TWO WAYS, 150 SEATS OR 166.
WAYS, 150 SEATS OR 166. THEY ARE GOING THROUGH A
THEY ARE GOING THROUGH A REVAMPING PROCESS WHERE THEY ARE
REVAMPING PROCESS WHERE THEY ARE TAKING ALL THE 150 SEATERS AND
TAKING ALL THE 150 SEATERS AND CONVERTING THEM TO 166.
CONVERTING THEM TO 166. THEY ARE DOING THAT BY TAKING
THEY ARE DOING THAT BY TAKING THE GALLEYS OUT.
THE GALLEYS OUT. NOT TOO MANY PEOPLE ORDER MEALS
NOT TOO MANY PEOPLE ORDER MEALS ON THOSE FLIGHTS.
ON THOSE FLIGHTS. SO WHY DO YOU NEED TO FLY AROUND
SO WHY DO YOU NEED TO FLY AROUND WITH AN EMPTY GALLEY.
WITH AN EMPTY GALLEY. >>THEY CURRENTLY SERVE THREE
>>THEY CURRENTLY SERVE THREE DIFFERENT DESTINATIONS OUT OF
DIFFERENT DESTINATIONS OUT OF PEORIA?
PEORIA? >> RIGHT.
>> RIGHT. THEY FLY DIRECT FLIGHTS TO LAS
THEY FLY DIRECT FLIGHTS TO LAS VEGAS AND MESA AND TAMPA-SAINT
VEGAS AND MESA AND TAMPA-SAINT PETE.
PETE. >> IS THERE ANY DISCUSSION ABOUT
>> IS THERE ANY DISCUSSION ABOUT MAYBE A FOURTH DESTINATION OUT
MAYBE A FOURTH DESTINATION OUT OF PEORIA?
OF PEORIA? >> THERE IS.
>> THERE IS. I MEAN WE WOULD LOVE TO SEE THEM
I MEAN WE WOULD LOVE TO SEE THEM FLY TO A COUPLE OF THE CITIES
FLY TO A COUPLE OF THE CITIES THAT THEY ARE CURRENTLY SERVING
THAT THEY ARE CURRENTLY SERVING AND ADD THAT H LEG BACK INTO
AND ADD THAT H LEG BACK INTO PEORIA.
PEORIA. WE ARE ALWAYS CONVERSING WITH
WE ARE ALWAYS CONVERSING WITH THEM ABOUT THAT.
THEM ABOUT THAT. THEY HAVE HAD KIND OF A
THEY HAVE HAD KIND OF A STRATEGIC PROGRAM IN PLACE.
STRATEGIC PROGRAM IN PLACE. WE HAVE SEEN THEM EXPAND TO
WE HAVE SEEN THEM EXPAND TO OTHER COMMUNITIES, AND WE HOPE
OTHER COMMUNITIES, AND WE HOPE TO SEE THEM EXPAND HERE THIS
TO SEE THEM EXPAND HERE THIS PEORIA, TOO.
PEORIA, TOO. >>CAN YOU SHARE ANY OF THOSE
>>CAN YOU SHARE ANY OF THOSE POSSIBLE DESTINATIONS WITH US?
POSSIBLE DESTINATIONS WITH US? >> NOT AT THIS TIME, NO.
>> NOT AT THIS TIME, NO. (LAUGHING).
(LAUGHING). >>I EXPECTED THAT ANSWER, BUT
>>I EXPECTED THAT ANSWER, BUT HAVE TO ASK.
HAVE TO ASK. >>PARTLY BECAUSE WE DON'T KNOW.
>>PARTLY BECAUSE WE DON'T KNOW. WE ARE TALKING TO THEM ABOUT
WE ARE TALKING TO THEM ABOUT SEVERAL ITEMS AND WE DON'T KNOW
SEVERAL ITEMS AND WE DON'T KNOW EXACTLY WHAT THEY WOULD LIKE TO
EXACTLY WHAT THEY WOULD LIKE TO DO AND WHAT FITS THEIR PLANS AND
DO AND WHAT FITS THEIR PLANS AND WHAT DOESN'T.
WHAT DOESN'T. >>WHAT KIND OF LOAD -- HOW FULL
>>WHAT KIND OF LOAD -- HOW FULL ARE THEIR AIRPLANES?
ARE THEIR AIRPLANES? >> THEIR AIRPLANES ARE FULL.
>> THEIR AIRPLANES ARE FULL. THEY ARE KIND OF AN AVERAGE LOAD
THEY ARE KIND OF AN AVERAGE LOAD FACTOR FOR AN AIRPLANE LINE
FACTOR FOR AN AIRPLANE LINE NOWADAYS IS 78%.
NOWADAYS IS 78%. ALLEGIANT FLIES IN THE 90% RANGE
ALLEGIANT FLIES IN THE 90% RANGE WHICH IS UNHEARD OF.
WHICH IS UNHEARD OF. NO OTHER AIRLINE FLIES THAT KIND
NO OTHER AIRLINE FLIES THAT KIND OF LOADS.
OF LOADS. BUT THEY HAVE SORT OF A
BUT THEY HAVE SORT OF A DIFFERENT PHILOSOPHY.
DIFFERENT PHILOSOPHY. EVERYBODY IS PROBABLY AWARE WHEN
EVERYBODY IS PROBABLY AWARE WHEN YOU BUY YOUR TICKET, YOU WANT TO
YOU BUY YOUR TICKET, YOU WANT TO BUY IT AS FAR IN A ADVANCE AS
BUY IT AS FAR IN A ADVANCE AS YOU CAN BECAUSE USUALLY THE
YOU CAN BECAUSE USUALLY THE PRICE IS LOWER.
PRICE IS LOWER. BUT ALLEGIANT WILL SAY "WELL, WE
BUT ALLEGIANT WILL SAY "WELL, WE HAVE GOT EMPTY SEAT, LET'S SELL
HAVE GOT EMPTY SEAT, LET'S SELL IT FOR 30 BUCKS."
IT FOR 30 BUCKS." IF YOU WATCH THE COMPUTER AND
IF YOU WATCH THE COMPUTER AND YOU KEEP AN EYE ON THE SPECIALS,
YOU KEEP AN EYE ON THE SPECIALS, AND YOU DON'T NES -- IF YOU HAVE
AND YOU DON'T NES -- IF YOU HAVE A LOT OF FLEXIBILITY ON WHEN YOU
A LOT OF FLEXIBILITY ON WHEN YOU CAN GO, YOU MIGHT BE ABLE TO
CAN GO, YOU MIGHT BE ABLE TO PICK UP A 30-DOLLAR TICKET AND
PICK UP A 30-DOLLAR TICKET AND FIND YOURSELF ON -- BEACH OR IN
FIND YOURSELF ON -- BEACH OR IN LAS VEGAS.
LAS VEGAS. >>YOU MENTIONED -- WE TALKED
>>YOU MENTIONED -- WE TALKED ABOUT THE THREE DESTINATIONS
ABOUT THE THREE DESTINATIONS ALLEGIANT GOES TO.
ALLEGIANT GOES TO. HOME DESTINATIONS FOR TOTAL OUT
HOME DESTINATIONS FOR TOTAL OUT OF PEORIA?
OF PEORIA? >> WE HAVE NINE CITIES. TWO
>> WE HAVE NINE CITIES. TWO AIRLINES THAT GO TO O'HARE, ON
AIRLINES THAT GO TO O'HARE, ON AVERAGE THE OTHER AIRLINES GO TO
AVERAGE THE OTHER AIRLINES GO TO TWO CITIES A PIECE.
TWO CITIES A PIECE. WE HAVE EIGHT NOW, BUT IN APRIL
WE HAVE EIGHT NOW, BUT IN APRIL WE WILL HAVE NINE.
WE WILL HAVE NINE. APRIL BECAUSE YOU ARE ADDING
APRIL BECAUSE YOU ARE ADDING ATLANTA BACK TO THE MIX?
ATLANTA BACK TO THE MIX? >> THAT'S RIGHT.
>> THAT'S RIGHT. WE WERE ABLE TO WORK WITH DELTA
WE WERE ABLE TO WORK WITH DELTA AIRPLANES LINES AND CATERPILLAR
AIRPLANES LINES AND CATERPILLAR AND PUT A TEAM TOGETHER TO
AND PUT A TEAM TOGETHER TO RESUME THOSE ATLANTA FLIGHTS.
RESUME THOSE ATLANTA FLIGHTS. WE WILL HAVE THREE A DAY.
WE WILL HAVE THREE A DAY. WE WILL HAVE A MORNING FLIGHT,
WE WILL HAVE A MORNING FLIGHT, MID-DAY FLIGHT AND ABOUT DINNER
MID-DAY FLIGHT AND ABOUT DINNER HOUR FLIGHT.
HOUR FLIGHT. THE LAST ARRIVAL WILL ACTUALLY
THE LAST ARRIVAL WILL ACTUALLY BE LATE AT NIGHT.
BE LATE AT NIGHT. SO THAT AIRPLANE WILL OVERNIGHT,
SO THAT AIRPLANE WILL OVERNIGHT, BE THE FIRST AIRPLANE OUT IN THE
BE THE FIRST AIRPLANE OUT IN THE MORNING.
MORNING. >>THIS -- I MEAN ATLANTA HAD
>>THIS -- I MEAN ATLANTA HAD BEEN SERVED ACTUALLY WHEN YOU
BEEN SERVED ACTUALLY WHEN YOU IFERS ARRIVED AT THE AIRPORT IN
IFERS ARRIVED AT THE AIRPORT IN '09?
'09? >> RIGHT.
>> RIGHT. I STARTED IN JUNE OF '09, AND WE
I STARTED IN JUNE OF '09, AND WE RECEIVED NOTIFICATION FROM DELTA
RECEIVED NOTIFICATION FROM DELTA IN JULY THAT THEY WERE GOING TO
IN JULY THAT THEY WERE GOING TO BE PULLING THAT FLIGHT, THAT
BE PULLING THAT FLIGHT, THAT CITY.
CITY. SO WE STARTED WORKING ON GETTING
SO WE STARTED WORKING ON GETTING IT BACK ALMOST BEFORE IT LEFT.
IT BACK ALMOST BEFORE IT LEFT. THE IT WAS A CHALLENGE PROJECT
THE IT WAS A CHALLENGE PROJECT TO GET DONE, BUT WE DID GET IT
TO GET DONE, BUT WE DID GET IT IT DONE.
IT DONE. >>HOW DO YOU GO ABOUT CONVINCING
>>HOW DO YOU GO ABOUT CONVINCING AN AIRLINE THAT PULLED OUT THREE
AN AIRLINE THAT PULLED OUT THREE YEARS AGO TO COME BACK ON THE
YEARS AGO TO COME BACK ON THE SAME ROUTE?
SAME ROUTE? >> THEY WERE STILL FILLING THE
>> THEY WERE STILL FILLING THE AIRPLANES WHEN THEY MADE THE A H
AIRPLANES WHEN THEY MADE THE A H MOUNT.
MOUNT. THEY WERE PROBABLY AT 75% LOAD
THEY WERE PROBABLY AT 75% LOAD FACTOR.
FACTOR. BUT THE MIX OF PASSENGERS H
BUT THE MIX OF PASSENGERS H CHANGED FROM BEING A LOT OF
CHANGED FROM BEING A LOT OF BUSINESS TRAVEL.
BUSINESS TRAVEL. BECAUSE IF YOU REMEMBER '09 WAS
BECAUSE IF YOU REMEMBER '09 WAS IN THE DEPTHS OF THE RECESSION.
IN THE DEPTHS OF THE RECESSION. SO THE MIX OF TRAVELER HAD
SO THE MIX OF TRAVELER HAD REALLY SHIFTED FROM BUSINESS TO
REALLY SHIFTED FROM BUSINESS TO LEISURE.
LEISURE. THEIR YIELDS, IN OTHER WORDS THE
THEIR YIELDS, IN OTHER WORDS THE NUMBER OF CENTS HER MILE THEY
NUMBER OF CENTS HER MILE THEY ARE GETTING OUT OF THOSE FLIGHTS
ARE GETTING OUT OF THOSE FLIGHTS HAD REALLY GONE DOWN.
HAD REALLY GONE DOWN. BUSINESS TRAVEL HAS REALLY COME
BUSINESS TRAVEL HAS REALLY COME BACK, AND WE ARE SEEING OF OUR
BACK, AND WE ARE SEEING OF OUR THREE TRADITIONAL CARRIERS, WE
THREE TRADITIONAL CARRIERS, WE ARE SEEING ALMOST DOUBLE DIGIT
ARE SEEING ALMOST DOUBLE DIGIT MONTH ON MONTH GROWTH COMPARED
MONTH ON MONTH GROWTH COMPARED TO THE SAME MONTH THE PREVIOUS
TO THE SAME MONTH THE PREVIOUS YEAR.
YEAR. SO WHEN THE BUSINESS TRAVELER
SO WHEN THE BUSINESS TRAVELER COMES BACK, THAT REALLY ENTICES
COMES BACK, THAT REALLY ENTICES THE TRADITIONAL CARRIERS TO COME
THE TRADITIONAL CARRIERS TO COME BACK.
BACK. THE REASON ATLANTA WAS SO
THE REASON ATLANTA WAS SO IMPORTANT BECAUSE OF THE
IMPORTANT BECAUSE OF THE INTERNATIONAL CONNECTIONS.
INTERNATIONAL CONNECTIONS. DELTA, ALONE, CONNECTS -- HAS
DELTA, ALONE, CONNECTS -- HAS 200 CITIES THAT THEY FLY TO FROM
200 CITIES THAT THEY FLY TO FROM ATLANTA.
ATLANTA. 208 I BELIEVE IT WAS, AND OF
208 I BELIEVE IT WAS, AND OF THOSE, ABOUT 70 ARE
THOSE, ABOUT 70 ARE INTERNATIONAL DESTINATIONS.
INTERNATIONAL DESTINATIONS. SO IT IF YOU -- IT IS KIND OF
SO IT IF YOU -- IT IS KIND OF INTERESTING.
INTERESTING. I ALWAYS TELL PEOPLE IF YOU FLY
I ALWAYS TELL PEOPLE IF YOU FLY FROM PEORIA AND WANT A DIRECT
FROM PEORIA AND WANT A DIRECT FLIGHT, YOU CAN GET TO EIGHT,
FLIGHT, YOU CAN GET TO EIGHT, AND PRETTY SOON NINE CITIES.
AND PRETTY SOON NINE CITIES. IF YOU TAKE A CONNECTING FLIGHT,
IF YOU TAKE A CONNECTING FLIGHT, YOU CAN GET ALMOST ANYWHERE IN
YOU CAN GET ALMOST ANYWHERE IN THE UNITED STATES AND PROBABLY A
THE UNITED STATES AND PROBABLY A GOOD CHUNK OF THE WORLD.
GOOD CHUNK OF THE WORLD. IF YOU TAKE TWO CONNECTING
IF YOU TAKE TWO CONNECTING FLIGHTS, YOU CAN GET EVERY WHERE
FLIGHTS, YOU CAN GET EVERY WHERE IN THE UNITED STATES AND MOST OF
IN THE UNITED STATES AND MOST OF THE WORLD.
THE WORLD. SO IT IS AMAZING FROM OUR LITTLE
SO IT IS AMAZING FROM OUR LITTLE FACILITY THAT YOU CAN HAVE THAT
FACILITY THAT YOU CAN HAVE THAT KIND OF ACCESS.
KIND OF ACCESS. >>WHAT KIND OF EQUIPMENT ARE
>>WHAT KIND OF EQUIPMENT ARE THEY GOING IT TO BE FLYING?
THEY GOING IT TO BE FLYING? >> THEY WILL BE FLYING 50 SEAT
>> THEY WILL BE FLYING 50 SEAT REGIONAL JETS.
REGIONAL JETS. MOST LIKELY THE CRJ200.
MOST LIKELY THE CRJ200. >>WE WILL TALK ABOUT THE CRJ-2 H
>>WE WILL TALK ABOUT THE CRJ-2 H HUNDRED IN A MOMENT.
HUNDRED IN A MOMENT. YOU MENTIONED BUSINESS AND YOU
YOU MENTIONED BUSINESS AND YOU MENTIONED LEISURE.
MENTIONED LEISURE. IS THERE A DIFFERENT PRICE
IS THERE A DIFFERENT PRICE STRUCTURE FOR THAT?
STRUCTURE FOR THAT? >> NOT REALLY DIFFERENT PRICE
>> NOT REALLY DIFFERENT PRICE STRUCTURE FORMALLY, BUT THE
STRUCTURE FORMALLY, BUT THE SEATS ARE AVAILABLE.
SEATS ARE AVAILABLE. THE AIRLINE DIVIDES THE AIRLINE
THE AIRLINE DIVIDES THE AIRLINE UP INTO BUCKETS AS THEY CALL T
UP INTO BUCKETS AS THEY CALL T THEY WILL HAVE A CERTAIN NUMBER
THEY WILL HAVE A CERTAIN NUMBER OF SEATS IN EACH BUCKET.
OF SEATS IN EACH BUCKET. THEY WILL HAVE A FEW VERY LOW
THEY WILL HAVE A FEW VERY LOW PRICE.
PRICE. THEY WILL HAVE A BUNCH IN THE
THEY WILL HAVE A BUNCH IN THE MIDDLE, AB THEN THEY WILL HAVE A
MIDDLE, AB THEN THEY WILL HAVE A FEW KIND OF STEEP.
FEW KIND OF STEEP. WHAT THEY DO IS THEY TRY TO GET
WHAT THEY DO IS THEY TRY TO GET THAT PERSON WHO ABSOLUTELY HAS
THAT PERSON WHO ABSOLUTELY HAS TO GO SOMEWHERE TOMORROW AND
TO GO SOMEWHERE TOMORROW AND DOESN'T HAVE ANY FLEXIBILITY,
DOESN'T HAVE ANY FLEXIBILITY, THAT PERSON BECOMES THEIR MOST
THAT PERSON BECOMES THEIR MOST REWARDING PASSENGER.
REWARDING PASSENGER. >>AND BUSINESS WOULD BE MORE
>>AND BUSINESS WOULD BE MORE LIKELY TO DO THAT AS OPPOSED TO
LIKELY TO DO THAT AS OPPOSED TO LEISURE TRAVELER, LEASHER
LEISURE TRAVELER, LEASHER TRAVELER WOULD SAY "I AM GOING
TRAVELER WOULD SAY "I AM GOING TO WAIT UNTIL NEXT MONTH."
TO WAIT UNTIL NEXT MONTH." >>RIGHT.
>>RIGHT. THE LEISURE TRAVELER MAKES
THE LEISURE TRAVELER MAKES LONGER PLANS.
LONGER PLANS. THEY USUALLY KNOW "I AM GOING TO
THEY USUALLY KNOW "I AM GOING TO TAKE A VACATION ON MEMORIAL
TAKE A VACATION ON MEMORIAL DAY."
DAY." THEY CAN PLAN OUT FAR.
THEY CAN PLAN OUT FAR. THE BUSINESS TRAVELER HAS SOME
THE BUSINESS TRAVELER HAS SOME PLANNING BUT HAS TO REACT A LOT
PLANNING BUT HAS TO REACT A LOT OF TIMES.
OF TIMES. >>LET'S TALK ABOUT THE CRJ-200.
>>LET'S TALK ABOUT THE CRJ-200. PLEASE EXPLAIN WHAT IT IS.
PLEASE EXPLAIN WHAT IT IS. >>CRJ IS 200, OWNED BY CANADAIR
>>CRJ IS 200, OWNED BY CANADAIR OWNED BY BOMBARDIA, TWO SEATS ON
OWNED BY BOMBARDIA, TWO SEATS ON EACH SIDE OF THE AISLE.
EACH SIDE OF THE AISLE. IT WAS ACTUALLY A DEVELOPMENT OF
IT WAS ACTUALLY A DEVELOPMENT OF THE CHALLENGER BUSINESS JET.
THE CHALLENGER BUSINESS JET. THEY INCREASED THE SIZE OF THE
THEY INCREASED THE SIZE OF THE BUSINESS JET, PUT BIGGER ENGINE,
BUSINESS JET, PUT BIGGER ENGINE, WIDER WINGSPREAD, AND PRESTO,
WIDER WINGSPREAD, AND PRESTO, YOU HAVE A 50 SEAT AIRLINER.
YOU HAVE A 50 SEAT AIRLINER. THE 50 SEAT RJ MARKET WAS REALLY
THE 50 SEAT RJ MARKET WAS REALLY BOOMING IN 1990'S, AND YOU WERE
BOOMING IN 1990'S, AND YOU WERE SEEING AIRLINES SNAP THEM UP AS
SEEING AIRLINES SNAP THEM UP AS FAST AS THEY COULD.
FAST AS THEY COULD. SOME OF THE AIRLINES LATE
SOME OF THE AIRLINES LATE COMMERCE TO THE GAME DIDN'T HAVE
COMMERCE TO THE GAME DIDN'T HAVE MUCH FLEXIBILITY TO BITE MODEL
MUCH FLEXIBILITY TO BITE MODEL THEY REALLY WANTED BECAUSE THEY
THEY REALLY WANTED BECAUSE THEY WERE ALREADY SOLD OUT.
WERE ALREADY SOLD OUT. >>THERE WAS ANOTHER
>>THERE WAS ANOTHER MANUFACTURER, EMBRAIR.
MANUFACTURER, EMBRAIR. >>EMBREAIR MAKES A SERIES OF
>>EMBREAIR MAKES A SERIES OF REGIONAL JETS.
REGIONAL JETS. THEIR'S ARE MOSTLY 50 SEATERS.
THEIR'S ARE MOSTLY 50 SEATERS. THEY ARE CONFIGGED.
THEY ARE CONFIGGED. THEY HAVE SINGLE AISLE, ONE SEAT
THEY HAVE SINGLE AISLE, ONE SEAT ON THE LEFT, AND TWO OR THREE ON
ON THE LEFT, AND TWO OR THREE ON THE RIGHT -- TWO OR THE RIGHT I
THE RIGHT -- TWO OR THE RIGHT I BELIEVE.
BELIEVE. I ACTUALLY LIKE THOSE BECAUSE I
I ACTUALLY LIKE THOSE BECAUSE I LIKE TO SET IN THAT LEFT SEAT.
LIKE TO SET IN THAT LEFT SEAT. A LOT MORE ROOM!
A LOT MORE ROOM! >>THE IMPORTANT ISSUE HERE IS
>>THE IMPORTANT ISSUE HERE IS THAT YOU MENTIONED THE LATE
THAT YOU MENTIONED THE LATE 90'S.
90'S. THAT WAS THE BOOM TIME FOR THESE
THAT WAS THE BOOM TIME FOR THESE KINDS OF AIRPLANES.
KINDS OF AIRPLANES. WHEN JET FUEL WAS 78 CENTS AT
WHEN JET FUEL WAS 78 CENTS AT THAT TIME, IT IS NO LONGER 78
THAT TIME, IT IS NO LONGER 78 CENTS A A GALLON.
CENTS A A GALLON. IT IS ABOUT -- OVER THREE BUCKS.
IT IS ABOUT -- OVER THREE BUCKS. >>RIGHT.
>>RIGHT. RIGHT.
RIGHT. >>SO WITH A FOUR-FOLD INCREASE,
>>SO WITH A FOUR-FOLD INCREASE, THE COST EFFECTIVENESS OF A A 50
THE COST EFFECTIVENESS OF A A 50 SEATER IS NO LONGER ACCEPTABLE!
SEATER IS NO LONGER ACCEPTABLE! >>IT DEFINITELY PUTS PRESSURE ON
>>IT DEFINITELY PUTS PRESSURE ON THE AIRLINES' BOTTOM LINE.
THE AIRLINES' BOTTOM LINE. ONE OF THE RECENT ACCOUNTS I
ONE OF THE RECENT ACCOUNTS I READ TALKED ABOUT BEING ABLE TO
READ TALKED ABOUT BEING ABLE TO FLY A 50 SEAT RJ, AND IT TOOK
FLY A 50 SEAT RJ, AND IT TOOK 19 GALLONS OF FUEL TO GET 50
19 GALLONS OF FUEL TO GET 50 SEATS' WORTH OF PASSENGERS
SEATS' WORTH OF PASSENGERS 500 MILES.
500 MILES. THEY SAID THEY COULD DO THE SAME
THEY SAID THEY COULD DO THE SAME THING IN A BIGGER AIRPLANE FOR
THING IN A BIGGER AIRPLANE FOR SEVEN GALLONS OF FUEL.
SEVEN GALLONS OF FUEL. WHAT THAT REALLY MEANS IS, IT
WHAT THAT REALLY MEANS IS, IT ONLY TAKES 26% MORE FUEL TO FLY,
ONLY TAKES 26% MORE FUEL TO FLY, SAY MB90500 MILES, AND YOU CAN
SAY MB90500 MILES, AND YOU CAN CARRY THREE TIMES THE NUMBER OF
CARRY THREE TIMES THE NUMBER OF PASSENGERS.
PASSENGERS. THE COST PER SEAT GOES WAY DOWN.
THE COST PER SEAT GOES WAY DOWN. >>THERE ARE SOME BIGGER REGIONAL
>>THERE ARE SOME BIGGER REGIONAL JETS, IS THAT CORRECT?
JETS, IS THAT CORRECT? >> YES, EMBREAIR, MOST COMPANIES
>> YES, EMBREAIR, MOST COMPANIES HAVE STOPPED PRODUCING THE
HAVE STOPPED PRODUCING THE SMALLER END OF THE REGIONAL JET.
SMALLER END OF THE REGIONAL JET. SO NOW WHAT YOU SEE IS EMBREAIR
SO NOW WHAT YOU SEE IS EMBREAIR IS BUILDING 90 SEATERS, CANDAIR,
IS BUILDING 90 SEATERS, CANDAIR, AND BO MOVEMENT BARDI AUBURN R
AND BO MOVEMENT BARDI AUBURN R IS LOOKING AT BIGGER ONES.
IS LOOKING AT BIGGER ONES. THERE IS REALLY NOT A LOT OF
THERE IS REALLY NOT A LOT OF DIFFERENCE.
DIFFERENCE. IF YOU LOOK AT SOME OF THE OLD
IF YOU LOOK AT SOME OF THE OLD EARLY DC-9'S, THOSE WERE ABOUT
EARLY DC-9'S, THOSE WERE ABOUT IN THE 90 TO ONE HUNDRED SEAT
IN THE 90 TO ONE HUNDRED SEAT MARKET.
MARKET. THEY ARE BIGGER AIRPLANE, BUT
THEY ARE BIGGER AIRPLANE, BUT THEY WERE SHORT.
THEY WERE SHORT. THEY HAD ABOUT THE SAME SEATING
THEY HAD ABOUT THE SAME SEATING CAPACITY.
CAPACITY. WE ARE SORT OF SEEING THE MARKET
WE ARE SORT OF SEEING THE MARKET RETURN TO THAT SIZE.
RETURN TO THAT SIZE. THAT WAS BACK UNDER THE
THAT WAS BACK UNDER THE REGULATED DAYS.
REGULATED DAYS. BUT WE ARE SEEING AIRCRAFT SIZE
BUT WE ARE SEEING AIRCRAFT SIZE SINCE THE DEREGULATION OF --
SINCE THE DEREGULATION OF -- DEREGULATION ACT OF 1978.
DEREGULATION ACT OF 1978. WE ARE SEEING THE AIRLINES
WE ARE SEEING THE AIRLINES TRYING TO ALWAYS STRUGGLE TO
TRYING TO ALWAYS STRUGGLE TO MATCH THE RIGHT EQUIPMENT TO THE
MATCH THE RIGHT EQUIPMENT TO THE RIGHT MARKET.
RIGHT MARKET. UNFORTUNATELY, IT TAKES YEARS TO
UNFORTUNATELY, IT TAKES YEARS TO DEVELOP AND CERTIFY AN AIRCRAFT.
DEVELOP AND CERTIFY AN AIRCRAFT. THEN WHEN YOU BUY IT, YOU HAVE
THEN WHEN YOU BUY IT, YOU HAVE SUNK SO MUCH MONEY INTO IT, YOU
SUNK SO MUCH MONEY INTO IT, YOU WANT TO OPERATE IT FOR 20 YEARS.
WANT TO OPERATE IT FOR 20 YEARS. AND SO THE CYCLE ON THE
AND SO THE CYCLE ON THE EQUIPMENT IS A LOT SLOWER THAN
EQUIPMENT IS A LOT SLOWER THAN THE MARKET CYCLE.
THE MARKET CYCLE. >>THAT BRINGS THE QUESTION UP OF
>>THAT BRINGS THE QUESTION UP OF IS THERE ANY ANTICIPATION OF
IS THERE ANY ANTICIPATION OF PEORIA LOSING THE NUMBER OF
PEORIA LOSING THE NUMBER OF FLIGHTS, THE FREQUENCY OF
FLIGHTS, THE FREQUENCY OF FLIGHTS?
FLIGHTS? BECAUSE WE HAVE THIS MISMATCH,
BECAUSE WE HAVE THIS MISMATCH, MIGHT THAT HAPPEN?
MIGHT THAT HAPPEN? >> YOU CAN'T SAY NEVER, BUT I
>> YOU CAN'T SAY NEVER, BUT I DON'T BELIEVE IT WILL HAPPEN.
DON'T BELIEVE IT WILL HAPPEN. WE HAVE ABOUT 900 SEATS -- WELL,
WE HAVE ABOUT 900 SEATS -- WELL, IN APRIL, WE WILL HAVE ABOUT 900
IN APRIL, WE WILL HAVE ABOUT 900 SEATS A DAY DEPARTING PEORIA.
SEATS A DAY DEPARTING PEORIA. AND IN FIVE YEARS, I AM HOPING
AND IN FIVE YEARS, I AM HOPING THAT WE WILL IS HAVE MORE SEATS
THAT WE WILL IS HAVE MORE SEATS DEPARTING PEORIA.
DEPARTING PEORIA. BUT IF I WERE TO TRY TO BREAK IT
BUT IF I WERE TO TRY TO BREAK IT UP AND PREDICT THE AIRCRAFT
UP AND PREDICT THE AIRCRAFT SIZE, I DON'T KNOW I WOULD WANT
SIZE, I DON'T KNOW I WOULD WANT TO MAKE A BET ON THAT.
TO MAKE A BET ON THAT. AS YOU INCREASE AIRCRAFT SIZE,
AS YOU INCREASE AIRCRAFT SIZE, IF YOU KEEP THE SEATS THE SAME,
IF YOU KEEP THE SEATS THE SAME, YOU LOOK AT DECREASE IN
YOU LOOK AT DECREASE IN FREQUENCY.
FREQUENCY. I OFTEN GET THE QUESTION "WHY
I OFTEN GET THE QUESTION "WHY DON'T WE HAVE SOUTHWEST IN
DON'T WE HAVE SOUTHWEST IN PEORIA."
PEORIA." IF YOU LOOK AT SOUTHWEST'S
IF YOU LOOK AT SOUTHWEST'S SMALLEST CITY, THEY HAVE FIVE
SMALLEST CITY, THEY HAVE FIVE DEPARTURES A DAY, BY 737'S ALL
DEPARTURES A DAY, BY 737'S ALL GOING TO ONE AIRPORT.
GOING TO ONE AIRPORT. THAT'S ABOUT THE SAME NUMBER OF
THAT'S ABOUT THE SAME NUMBER OF SEATS THAT WE HAVE IN PEORIA PER
SEATS THAT WE HAVE IN PEORIA PER DAY.
DAY. BUT WE DON'T GO TO ONE AIRPORT.
BUT WE DON'T GO TO ONE AIRPORT. WE GO TO EIGHT, SOON TO BE NINE
WE GO TO EIGHT, SOON TO BE NINE AIRPORTS.
AIRPORTS. SO OUR PEOPLE, WE ARE NOT
SO OUR PEOPLE, WE ARE NOT SENDING BIG GROUPS OF PEOPLE TO
SENDING BIG GROUPS OF PEOPLE TO ONE OR TWO LOCATIONS.
ONE OR TWO LOCATIONS. WE ARE SENDING LITTLE GROUPS OF
WE ARE SENDING LITTLE GROUPS OF PEOPLE ALL OVER THE WORLD.
PEOPLE ALL OVER THE WORLD. SO THE SMALLER AIRCRAFT ACTUALLY
SO THE SMALLER AIRCRAFT ACTUALLY FITS OUR MARKET BETTER.
FITS OUR MARKET BETTER. I THINK THAT THE RJ'S ARE STILL
I THINK THAT THE RJ'S ARE STILL GOING TO BE AROUND FOR QUITE
GOING TO BE AROUND FOR QUITE AWHILE.
AWHILE. I DO HOPE THAT WE SEE AN UPGRADE
I DO HOPE THAT WE SEE AN UPGRADE TO MAYBE THE 60 OR 70 SEATERS,
TO MAYBE THE 60 OR 70 SEATERS, ESPECIALLY THE 70 SEATERS
ESPECIALLY THE 70 SEATERS BECAUSE THAT INTRODUCES
BECAUSE THAT INTRODUCES TWO-CLASS SERVICE WHERE YOU CAN
TWO-CLASS SERVICE WHERE YOU CAN HAVE A COACH AND FIRST CLASS.
HAVE A COACH AND FIRST CLASS. THE A AIRLINES REALLY LIKE THAT
THE A AIRLINES REALLY LIKE THAT BECAUSE THEY CAN MAKE A LITTLE
BECAUSE THEY CAN MAKE A LITTLE BETTER YIELD.
BETTER YIELD. >>ARE YOU PREPARED TO DISCUSS
>>ARE YOU PREPARED TO DISCUSS POTENTIAL NEW DESTINATIONS
POTENTIAL NEW DESTINATIONS BEYOND THE NINE THAT WILL BE AT
BEYOND THE NINE THAT WILL BE AT THE AIRPORT BY NEXT APRIL?
THE AIRPORT BY NEXT APRIL? >> IN GENERAL TERMS, WE HAVE
>> IN GENERAL TERMS, WE HAVE TAKEN CARE OF A BIG BUSINESS
TAKEN CARE OF A BIG BUSINESS LINK THAT WAS MISSING BY
LINK THAT WAS MISSING BY REGAINING THE ATLANTA FLIGHT.
REGAINING THE ATLANTA FLIGHT. SO NOW WE ARE LOOKING TO MAYBE
SO NOW WE ARE LOOKING TO MAYBE ENTICE A CARRIER TO, AS THEY
ENTICE A CARRIER TO, AS THEY SAY, GO A STRAIGHT LINE TO A
SAY, GO A STRAIGHT LINE TO A BEACH SOMEWHERE.
BEACH SOMEWHERE. SO FLORIDA IS ALWAYS POPULAR.
SO FLORIDA IS ALWAYS POPULAR. THERE ARE SOME DESTINATIONS IN
THERE ARE SOME DESTINATIONS IN AND AROUND FLORIDA THAT WE WOULD
AND AROUND FLORIDA THAT WE WOULD LOVE TO SEE SERVICE TO FROM
LOVE TO SEE SERVICE TO FROM PEORIA.
PEORIA. THE KEY IS GOING TO BE FINDING
THE KEY IS GOING TO BE FINDING THE RIGHT CARRIER TO MATCH THAT
THE RIGHT CARRIER TO MATCH THAT UP WITH.
UP WITH. >>BUT YOU CAN'T SPECIFICALLY SAY
>>BUT YOU CAN'T SPECIFICALLY SAY WHAT DESTINATION?
WHAT DESTINATION? >> WE HAVEN'T REALLY TARGETED A
>> WE HAVEN'T REALLY TARGETED A SPECIFIC DESTINATION YET.
SPECIFIC DESTINATION YET. >>LET'S TALK WITH ABOUT THE IT
>>LET'S TALK WITH ABOUT THE IT TOWER.
TOWER. THERE IS A TOWER, OF COURSE, BUT
THERE IS A TOWER, OF COURSE, BUT YOU ARE GOING TO BE BUILDING A
YOU ARE GOING TO BE BUILDING A NEW ONE AT SOME POINT AND TIME.
NEW ONE AT SOME POINT AND TIME. >>RIGHT.
>>RIGHT. >>WHAT IS THE TIMETABLE?
>>WHAT IS THE TIMETABLE? WHERE IS IT GOING IT TO BE?
WHERE IS IT GOING IT TO BE? >> WELL, LET ME BACK UP A LITTLE
>> WELL, LET ME BACK UP A LITTLE BIT.
BIT. THE OLD TOWER, THE EXISTING
THE OLD TOWER, THE EXISTING TOWER IS ON TOP OF THE OLD
TOWER IS ON TOP OF THE OLD TERMINAL BUILDING.
TERMINAL BUILDING. SAME THINGS THAT MADE US WANT TO
SAME THINGS THAT MADE US WANT TO MOVE OUT OF THAT BUILDING AND
MOVE OUT OF THAT BUILDING AND BUILD A NEW AIRLINE TERMINAL,
BUILD A NEW AIRLINE TERMINAL, THOSE SAME FACTORS REALLY MAKE
THOSE SAME FACTORS REALLY MAKE THAT BUILDING UNTENNABLE AS
THAT BUILDING UNTENNABLE AS LONG-TERM TOWER.
LONG-TERM TOWER. WE HAVE ALREADY GONE THROUGH
WE HAVE ALREADY GONE THROUGH THAT PROCESS AND DONE A NEW SITE
THAT PROCESS AND DONE A NEW SITE SELECTION.
SELECTION. MY IDEA IS HAVE IT SOME OTHER
MY IDEA IS HAVE IT SOME OTHER PART OF THE AIRPORT, BUT IT IT
PART OF THE AIRPORT, BUT IT IT BECAME CLEAR ECONOMICALLY H TO
BECAME CLEAR ECONOMICALLY H TO BE IN A SMALL AREA TO SEE ALL
BE IN A SMALL AREA TO SEE ALL THE PAVEMENTS THEY HAVE TO SEE.
THE PAVEMENTS THEY HAVE TO SEE. WE ANALYZED 14 SITES, NARROWED
WE ANALYZED 14 SITES, NARROWED IT DOWN TO FOUR FOR REAL
IT DOWN TO FOUR FOR REAL DETAILED ANALYSIS, AND WE
DETAILED ANALYSIS, AND WE FINALLY, AS OF THE END OF
FINALLY, AS OF THE END OF SEPTEMBER, WE FINALLY SELECTED A
SEPTEMBER, WE FINALLY SELECTED A PREFERRED SITE WHICH IS LOCATION
PREFERRED SITE WHICH IS LOCATION BETWEEN THE OLD TERMINAL AND
BETWEEN THE OLD TERMINAL AND BYERLY AVIATION IN A GRASSY AREA
BYERLY AVIATION IN A GRASSY AREA RIGHT THERE.
RIGHT THERE. SOME OF THE OLD EMPLOYEE PARKING
SOME OF THE OLD EMPLOYEE PARKING FOR THE OLD TERMINAL WILL GET
FOR THE OLD TERMINAL WILL GET TURNED INTO THINGS LIKE BASE
TURNED INTO THINGS LIKE BASE BUILDINGS AND HOPEFULLY A
BUILDINGS AND HOPEFULLY A TRACON, A RADAR ROOM.
TRACON, A RADAR ROOM. >>NO TIMETABLE?
>>NO TIMETABLE? >> WE'D LIKE TO DO IT AS FAST AS
>> WE'D LIKE TO DO IT AS FAST AS POSSIBLE.
POSSIBLE. BUT I AM THINKING THREE TO FIVE
BUT I AM THINKING THREE TO FIVE YEARS IS AS FASTS THAT CAN GO.
YEARS IS AS FASTS THAT CAN GO. >>YOU CAN'T COMPLETELY TEAR DOWN
>>YOU CAN'T COMPLETELY TEAR DOWN THE OLD TERMINAL UNTIL THE NEW
THE OLD TERMINAL UNTIL THE NEW TOWER IS BUILT?
TOWER IS BUILT? >> EXACTLY.
>> EXACTLY. WE ARE IN PARTIAL DEMOLITION OF
WE ARE IN PARTIAL DEMOLITION OF THE OLD TERMINAL.
THE OLD TERMINAL. IF YOU KIND OF LOOK AT WHAT HAS
IF YOU KIND OF LOOK AT WHAT HAS THE OLD WHITE BRICK AROUND IT ON
THE OLD WHITE BRICK AROUND IT ON THE WEST SIDE, HALF THAT WHITE
THE WEST SIDE, HALF THAT WHITE BRICK WILL GO, AND THEN THE REST
BRICK WILL GO, AND THEN THE REST OF THE WHITE BRICK, AND THE BIG
OF THE WHITE BRICK, AND THE BIG BLACK CUBE WILL STAY.
BLACK CUBE WILL STAY. REST OF IT WILL GO.
REST OF IT WILL GO. >>LET'S TALK ABOUT THE LESSER
>>LET'S TALK ABOUT THE LESSER KNOWN AIRPORT, BUT AN IMPORTANT
KNOWN AIRPORT, BUT AN IMPORTANT ONE, MOUNT HOLLY.
ONE, MOUNT HOLLY. ONE WAY EXTENSION IS THE MOST
ONE WAY EXTENSION IS THE MOST IMPORTANT THING HAPPENING RIGHT
IMPORTANT THING HAPPENING RIGHT THERE.
THERE. >>RIGHT.
>>RIGHT. >>3600 TO 4,000 EXTENSION, WHY
>>3600 TO 4,000 EXTENSION, WHY IS THAT SO IMPORTANT?
IS THAT SO IMPORTANT? >> BIG THING ABOUT THAT,
>> BIG THING ABOUT THAT, 4,000 FEET IS KIND OF A MAGIC
4,000 FEET IS KIND OF A MAGIC NUMBER FOR INSURANCE COMPANIES.
NUMBER FOR INSURANCE COMPANIES. WHEN YOU SEE TWIN ENGINE
WHEN YOU SEE TWIN ENGINE AIRCRAFT, A LOT OF TIMES THE
AIRCRAFT, A LOT OF TIMES THE INSURANCE COMPANIES WANTS TO
INSURANCE COMPANIES WANTS TO HAVE 4,000 FEET OF LENGTH
HAVE 4,000 FEET OF LENGTH BECAUSE IT GIVES THE PILOT EXTRA
BECAUSE IT GIVES THE PILOT EXTRA MARGIN OF SAFETY IN CASE
MARGIN OF SAFETY IN CASE SOMETHING GOES WRONG.
SOMETHING GOES WRONG. SO THE EXTRA 400 FEET, WHILE IT
SO THE EXTRA 400 FEET, WHILE IT IS NOT A HUGE EXTENSION, GETS US
IS NOT A HUGE EXTENSION, GETS US OVER THAT MAGIC NUMBER.
OVER THAT MAGIC NUMBER. IT OPENS THE AIRPORT UP TO MORE
IT OPENS THE AIRPORT UP TO MORE SERVICE BY AIRCRAFT LIKE BEECH
SERVICE BY AIRCRAFT LIKE BEECH CRAFT KING AIRS WHICH IS KIND OF
CRAFT KING AIRS WHICH IS KIND OF A TWIN ENGINE PROPELLER BUSINESS
A TWIN ENGINE PROPELLER BUSINESS AIRPLANE.
AIRPLANE. ONE FINAL TOPIC, THE GIFT SHOP.
ONE FINAL TOPIC, THE GIFT SHOP. >> UH-HUH.
>> UH-HUH. >>YOU HAVE AN ANNOUNCEMENT ABOUT
>>YOU HAVE AN ANNOUNCEMENT ABOUT THE GIFT SHOP?
THE GIFT SHOP? >> WELL, WE ACTUALLY DO.
>> WELL, WE ACTUALLY DO. THE GIFT SHOP OPERATOR LET US
THE GIFT SHOP OPERATOR LET US KNOW THAT SHE WAS NO LONGER
KNOW THAT SHE WAS NO LONGER INTERESTED IN CONTINUING BEYOND
INTERESTED IN CONTINUING BEYOND THE END OF THE YEAR. WE HAVE A
THE END OF THE YEAR. WE HAVE A REQUEST FOR PROPOSALS OUT ON
REQUEST FOR PROPOSALS OUT ON STREET, AND IF ANYBODY IS
STREET, AND IF ANYBODY IS INTERESTED IN BEING OUR GIFT
INTERESTED IN BEING OUR GIFT SHOP OPERATOR, WE'D LOVE TO HAVE
SHOP OPERATOR, WE'D LOVE TO HAVE THEM CONTACT US.
THEM CONTACT US. WE WILL SEND A PROPOSAL PACKAGE,
WE WILL SEND A PROPOSAL PACKAGE, AND WE'D LOVE TO SEE WHO IS
AND WE'D LOVE TO SEE WHO IS INTERESTED OUT THERE.
INTERESTED OUT THERE. >>THE GIFT SHOP IS LOCATED?
>>THE GIFT SHOP IS LOCATED? >> IT IS RIGHT NEXT TO THE GREAT
>> IT IS RIGHT NEXT TO THE GREAT HALL BETWEEN THE GREAT HALL AND
HALL BETWEEN THE GREAT HALL AND BAGGAGE CLAIM.
BAGGAGE CLAIM. >>ONE MORE QUICK THOUGHT.
>>ONE MORE QUICK THOUGHT. THIS IS PERSONAL EXPERIENCE, I
THIS IS PERSONAL EXPERIENCE, I HAD A PROBLEM GETTING A MEAL AT
HAD A PROBLEM GETTING A MEAL AT THE NON-SECURED SIDE RESTAURANT.
THE NON-SECURED SIDE RESTAURANT. IT WAS IN THE MIDDLE OF THE DAY.
IT WAS IN THE MIDDLE OF THE DAY. IS THAT A PROBLEM?
IS THAT A PROBLEM? >> IT WAS INITIALLY WHEN WE
>> IT WAS INITIALLY WHEN WE MOVED INTO THE NEW BUILDING.
MOVED INTO THE NEW BUILDING. THE RESTAURANT OPERATOR WAS
THE RESTAURANT OPERATOR WAS STILL TRYING TO FIGURE OUT HOW
STILL TRYING TO FIGURE OUT HOW THINGS WERE WORKING IN THE NEW
THINGS WERE WORKING IN THE NEW BUILDING.
BUILDING. SO WE HAD SOME INITIAL
SO WE HAD SOME INITIAL COMPLAINTS ABOUT THE RESTAURANT
COMPLAINTS ABOUT THE RESTAURANT NOT BEING OPEN O WE HAVE WORKED
NOT BEING OPEN O WE HAVE WORKED WITH THE OPERATOR, AND THEY HAVE
WITH THE OPERATOR, AND THEY HAVE EXPANDED THEIR HOURS.
EXPANDED THEIR HOURS. IT IS KIND OF -- YOU KNOW, I
IT IS KIND OF -- YOU KNOW, I WOULD LOVE TO BE ABLE TO SAY
WOULD LOVE TO BE ABLE TO SAY "HEY, YOU HAVE TO STAY OPEN."
"HEY, YOU HAVE TO STAY OPEN." BUT THEY ARE NOT MY EMPLOYEES.
BUT THEY ARE NOT MY EMPLOYEES. IT IS AN INDEPENDENT BUSINESS.
IT IS AN INDEPENDENT BUSINESS. AND WE WORK WITH THEM TO TRY TO
AND WE WORK WITH THEM TO TRY TO MAKE SURE THE SERVICE IS
MAKE SURE THE SERVICE IS PROVIDED, BUT THEY STILL HAVE TO
PROVIDED, BUT THEY STILL HAVE TO MAKE A PRIVATE ALSO.
MAKE A PRIVATE ALSO. >>GENE OLSON, THANK YOU SO MUCH.
>>GENE OLSON, THANK YOU SO MUCH. I APPRECIATE YOUR SPENDING TIME
I APPRECIATE YOUR SPENDING TIME WITH US AND GIVING US UPDATE ON
WITH US AND GIVING US UPDATE ON THE WAYNE A DOWNING PEORIA
THE WAYNE A DOWNING PEORIA INTERNATIONAL AIRPORT.
INTERNATIONAL AIRPORT. >>MY PLEASURE.
>>MY PLEASURE. WE WILL BE BACK IN TWO WEEKS.
WE WILL BE BACK IN TWO WEEKS. WE ARE OFF NEXT WEEK, AND WE
WE ARE OFF NEXT WEEK, AND WE WILL BE BACK IN TWO WEEKS WITH A
WILL BE BACK IN TWO WEEKS WITH A LIVE PROGRAM HERE IN THE STUDIO
LIVE PROGRAM HERE IN THE STUDIO WE WILL HAVE THE MAYORS AND CITY
WE WILL HAVE THE MAYORS AND CITY MANAGERS OF BLOOMINGTON AND
MANAGERS OF BLOOMINGTON AND NORMAL ANSWERING YOUR QUESTIONS.
NORMAL ANSWERING YOUR QUESTIONS. YOU CAN SUBMIT QUESTIONS BY
YOU CAN SUBMIT QUESTIONS BY PHONE, TWITTER, BY E-MAIL.
PHONE, TWITTER, BY E-MAIL. WE WILL ALL DO IT TWO WEEKS FROM
WE WILL ALL DO IT TWO WEEKS FROM THIS THURSDAY NIGHT.
THIS THURSDAY NIGHT. THANKS FOR JOINING US.
THANKS FOR JOINING US. WE WILL SEE YOU IN TWO WEEKS.
WE WILL SEE YOU IN TWO WEEKS. >>