>> WELCOME BACK TO JENNA
RISE, EVERYBODY WILL AMERICAN
AIRLINES IS CUTTING THE BOEING
7.37 MAX FROM ITS SCHEDULE
UNTIL JANUARY 16TH, THE LONGEST
DELAY OF ANY US AIRLINE AS THE
GROUNDING OF THAT JET 10 USED
TO I GOT BOEING HAS SAID THAT
IT DOESN'T BACK THE F A TO
CLEAR THE MAX TO FLY AND FORTH
WATER, BUT WE'RE NOW INTO 4 AND
THERE'S NO SIGN OF REGULATORS
PREPARING TO CLEAR
THE JET. JOINING US NOW IS
PETER MORRIS CHIEF ECONOMIST
THAT
AVIATION CONSULTANCY SAND AND
OUR SENIOR SPECIAL WRITER AT
PARENTS GUYS IT'S GREAT THAT
BOTH YOU ON THE SHOW PETER WANT
TO START WITH YOU
WITH THE HOLIDAY TRAVEL SEASON
QUICKLY APPROACHING HOW DO YOU
THINK THESE DELAYS WILL IMPACT
FLIGHT CANCELLATIONS OR AT
LEAST CHANGE WITH THESE
COMPANIES ARE THINKING ABOUT
HOLIDAY SCHEDULES.
>> A CENT WHAT WE SCENE FOR THE,
FATE NUMB THIS IS SARAH TO
STRESS. SHE SAID HEADLINES
FOR ADOPTED. ONE OF WHICH IS
SIMPLY NOT TRUE
PARTICULAR CUSTODY. AND THE
OTHER ELEMENT IS STRUCTURE
REPLACES OLD RED CROFT WE'VE
SEEN LOCALLY THERE AND 700 ALSO
OLD RACR OFF REMAIN IN THE
SATES AND OTHERWISE WOULD
HAVE PAIN. SO THOSE ARE THE
KIND OF TOO STRESSED USE
AVAILABLE TO ALLY AND THIS
INTERESTING SEE THE POSSIBILITY
NORTH AMERICA
AS ARGUABLY ACTUALLY INCREASE
TO SOME EXTENT DURING
THIS TIME WAS THAT THE THE MAX
IS PAYING THIS IS AN ELEMENT OF
A SUPPLY COULD STRIKE
COMING IN TO ACTUALLY IN THE IN
TREND MEANS A PRICES ARE A BIT
HIGHER BECAUSE SARACENS AS MUCH
CAPACITY AVAILABLE.
>> AL YOU KNOW WE ASKED YOU
THIS YESTERDAY SOME GOING FOR
THE SAME QUESTION OVER TO PETER
AROUND THE.
YOU KNOW AND WHEN THE UNANIMOUS
NATURE OF OF HOW THESE
REGULATORS SHOULD WORK TOGETHER
OR NOT YOU WOULD A SAID AL WITH
US THAT YOU
FELT LIKE YOU KNOW PROBABLY
WOULD BE A GOOD IDEA THAT
EVERYBODY AGREED ON THE SAME
STANDARDS ACROSS THE
WORLD SO YOU DIDN'T HAVE ALL
THESE DIFFERENT ISSUES. PETER
DO YOU BELIEVE THIS ALSO MEAN
THAT THEY SHOULD ALL STRIVE
TOWARD THESE INTERNATIONAL.,
LINE REGULATORS IN AN AIRCRAFT
REGULARLY A GIVEN THAT THERE'S
A NOT DIFFER THIS ISN'T IN THE
WAY THAT EACH COUNTRY DECIDES
WHEN THESE PLANES ARE OKAY TO
GO BACK INTO PLAY.
>> I THINK THAT'S A NUMBER OF
REGULATORS ARE CONCERNED SITE
TO PROCESS
AS IT COULD THE FULL WAS PRETTY
MUCH NOT IT'S TRUE THAT SIMPLY
DIDN'T WORK AND I WAS RECENTLY
AT A CONFERENCE IN DUBAI WHERE
ONE PERSON WAS AN INSIGHT INTO
CHINA WAS SAYING TO THE
CHINESE REGULATORS. A ROAD TO
LAY FOR 5 MONTHS BEYOND THE
TIMES UH GREECE AND WHEN ASKED
WHY HE SAID BECAUSE THEY CAN.
>> GOOD THING HERE IN THE
MIDST OF A TRADE OUR WANT TO
BRING YOU IN AND JUST GET YOUR
TAKE ON THIS LATEST NEWS FOR
AMERICAN AIRLINES NOW MOVING
INTO 2020 FOR WHEN THEY
DO IT EXPECT THE 7.37 MAX TO BE
BACK IN THE SKIES, HOW DOES
THAT THIS MORNING'S NEWS CHANGE
THE WAY YOU'RE THINKING ABOUT
THIS JET THERE WHERE THE US
BACK.,
>> WELL IT'S A GOOD TO GET
QUESTION RATHER EVERY TIME THAT
THERE'S A YOU KNOW SOME
BAD NEWS AND YOU LOOK AT BOEING
STOCK PRICE YOU ALMOST THINK
ALL OF THAT
THE NEWS IS GOOD NEWS BECAUSE
YOU KNOW GOING START UP A
LITTLE BIT TODAY, IT'S STILL
RAINING DOWN AND AMERICAN SAID
TO
BARRON'S THAT.
>> THE THE DECISION TO CONTINUE
TO KEEP THEM AT OFFICE SCHEDULE
WAS MADE COLLABORATIVELY WITH
THE F A A
AND BOWEN THAT COULD INDICATE
TIME ONCE LETTING MY BUT THIS
LOOKS THAT WAY
AS WELL MAYBE THAT RETURN IS
LIKELY IN JANUARY SO MAYBE
THAT'S GOOD THING. SO IT
STILL IS CHANGE THE NARRATIVE
THAT BOEING STOCK
IS RAIN DOWNED A INVESTORS
FLYING PUBLIC AND ITS AIRLINE
CUSTOMERS ARE ALL JUST SORT OF
WAITING TO SEE WHAT HAPPENS
WITH MAX.
>> RIGHT AND THERE YOU
ARE WITH THE 2 DAY LOOK AT
SHARES OF BOEING HERE BROADER
MARKETS OF COURSE SEEING A BIG
LIFT TODAY SO WE'RE SEEING A
BIT OF THAT FLOW AROUND
EVERYWHERE
THIS SENTIMENT RAID MIGHT COME
TO MEDIA AT LEAST A LIMITED AND
IN TERMS OF THE TRADE.
TENSIONS,
PETER OUT COME BACK TO YOU AND
TALK ABOUT THESE DELIVERING
NUMBERS THAT WE ALSO SAW
AGAIN WE GET OUT THERE TALKING
ABOUT THIS I WANT TO GET YOUR
TAKE ON THE DELIVERY NUMBERS
WHICH FOR THE FIRST 9 MONTHS
BOEING BRINGING IN JUST 26 ARE
DELIVERING I SHOULD SAY DOWN
FROM 87 AIRBUS
ON THE OTHER HAND 571 AL HAD
MADE THE POINT THAT YOU JUST
DELIVER EASY ABOUT IT YOU
PRODUCE A LOT MORE.
WHAT DO YOU MAKE OF THESE 2
NUMBERS.
>> WHEN I SENT
AIDES OF THING, MAX ESSENTIALLY
GOING TO BE PRODUCING ABOUT 70%,
THE MONEY COMING IN AND
SOMETHING LIKE 30% PROFITS SO
IT IS THE ABSOLUTE CORE OF WHAT
BOEING DOES AND IT'S
QUESTION OF GUESSING THAT
MACHINE ROLLING AGAIN, BUT I
THINK EVERYBODY KNOWS SUNDAY
AND LAWNS THE F A A TO THE
OTHER REGULATORS IS
REALLY CONCERNED THAT THEY GET
IT RIGHT THIS TIME SAYS SIMPLY
ISN'T ENOUGH THE TIME TO GET IT
RIGHT AGAIN.
SO I THINK THEY'RE GOING TO
TAKE THE TIME THAT'S NECESSARY
WHICH I I SEE QUITE ON THE SEA
DRIFTING INTO
1ST QUARTER OF 2020 THE FULL
THE AIRCRAFT IS IN
OPERATIONAL SERVICE AND THEN
THIS WHOLE ROLLED RIGHT HAAS TO
HAPPEN BECAUSE YOU'VE GOT
TO RETURN. THE INITIAL JETS
10 YOU'VE GOT TO GO WITH THE
DELIVERY SAYS WELL YOU PUT A
LOT TO GAZA WAS A PILOT
TRAINING SINCE
BY AIRLINES. IT'S A PROCESS IS
GOING TO GO RIGHT THE WAY
THROUGH 2020.
>> I WANT TO BRING YOU IN
BECAUSE THIS
IS COSTING AIRLINES HUNDREDS OF
MILLIONS OF AMERICAN AIRLINES
SAID OVER THE SUMMER BACK IN
JULY. THAT IF THIS PLAN WILL
GET BACK IN THE SKIES BY
NOVEMBER WOULD STILL COST THE
COMPANY
400 MILLION THE CFO
DEREK ARE CALL ME JUST A FEW
WEEKS AGO THAT THEY'RE GOING TO
HAVE TO UPDATE THAT NUMBER IF
THIS DOES GET THE LEAD.
WHAT IS THE OVERALL COST THAT
YOU THINK NOT IN TERMS OF
NUMBERS, BUT YOU KNOW IN TERMS
OF WHAT THE COMPANY ACTUALLY
HAS TO DO IN ORDER TO ADJUST
HELP US JUST CONTEXTUALIZE THAT
FIGURE OF HUNDREDS OF MILLIONS
OF DOLLARS NOT JUST FOR
AMERICAN AIRLINES BUT FOR OTHER
AIRLINES AROUND THE WORLD AND
WHO'S GOING TO END UP PAYING
FOR THIS AND YET.
>> A QUESTION TAKE THE LAST
PART YOU KNOW, AND HAS
SET ASIDE $5 BILLION A
TO COMPENSATE. PEOPLE
ASSOCIATED WITH THE DALAI LAMA
TARA LYNN
CUSTOMERS SO SOME OF THAT MONEY
COULD BE RECRUITED TO BE
EARLIER POINT YOU DO HAVE THE
BEST INTERESTING DYNAMIC
WHERE IT'S LIMITED CAPACITY
GROWTH WHICH CAN BE
INCREASED AFFAIRS. BUT IT
SHIFTED THE MONEY AROUND RIGHT
THAT AIRLINES THAT PLY THAT
HAVE BEEN HURT MORE THAN
AIRLINES THAT DON'T FLY THE
AND AGAIN TO YOUR POINT WAS
PLANNING ON A COST OF MILLION.
YOU KNOW YESTERDAY SOUTHWEST.
YOU SO GOOD PILOTS ASSOCIATIONS
SAY THAT DAY WE'RE GONNA $100
MILLION
IN WAGES. YOU KNOW, SO THESE
ARE BIG NUMBERS NOW PARENT AND
YOU KNOW 400 $9 IS YOU KNOW 8
TO 10% OF TOTAL OPERATING
INCOME. AH SO THAT'S A BIG DEAL,
FOR US AMERICAN PIE, SO THEY'RE
ANXIOUS TO GET THE PLANE BUT
YOU KNOW IS JUST SO MANY MOVING
PARTS TO PEER ISRAEL POINT YOU
KNOW
IT'S DIFFICULT
TO PIN DOWN THE EXACT IMPACTS
BUT
VERY SIMPLY SURE AMERICA AND
AND SO THE OTHER AIRLINE
CUSTOMERS LIKE SOUTHWEST WILL
BE LOOKING FOR SOME OF THAT
5 BILLION A VOTE ON THE
SENATE SIDE.
>> THAT'S RIGHT AND SPEAKING OF
SOUTHWEST THE PILOTS ARE SUING
OVER THE GROUND
FOR COMPENSATION WAS THAT
THEY'RE ASKING FOR SPECIFICALLY
WHY HAS IT TAKEN THEM SO LONG
TO GET A RESOLUTION.,
>> I WAS YOU KNOW RELEASED THIS
WEEK.
>> YOU KNOW IT'S ACTUALLY AN
INTERESTING READ THE WHOLE
COMPLAINT
IS BILL AND SO THAT'S WHAT SHOW
WEST PILOTS ASSOCIATION WHAT
THEY SAY IS A VERY STRONG
LANGUAGE YOU KNOW WE WERE TOLD
>> AND HAPPY.
>> SO IT'S A NEW DEVELOPMENT
BUT TO YOUR POINT EARLIER
TURNED OVER TODAY'S YOU KNOW
STOCK IS ACTUALLY UP SO IT'S
ANOTHER ONE OF THESE
SITUATIONS WHERE OR NOT PEOPLE
SORT OF ASSUME YOU HAVE TO SIT
ONE PACKET COMPANY, YES, IT MAY
REQUIRE SETTLEMENT BUT THE
SETTLEMENT WE'LL BE IN A
HUNDREDS OF MILLIONS
OF DOLLARS THE RANGE FOR A
COMPANY LIKE BOEING WITH A
MARKET VALUE OVER 200 BILLION.
DOES IT SEEM THAT SIGNIFICANT.
>> YOU KNOW WHY NOW.,
>> I JUST THINK OCTOBER IS A
REALLY BIG MONTH FOR THE
COMPANY THEY'RE SUPPOSED TO
SUBMIT A CHANGE
TO REGULATORS A DENTIST ON BIRD
IS GOING TO BE TESTIFYING
BEFORE CONGRESS AT THE END OF
3RD QUARTER EARNINGS ARE COMING
OUT BEFORE IN SMALL NUMBER
TESTIFIES, IT'S GOING TO BE A
FLOOD OF
VOTING NEWS. INCLUDING THINGS
LIKE THIS YES, THE FIRST PILOT
LAWSUIT OVER THE NEXT 3 WEEKS.,
>> I WILL HAVE TO LEAVE IT
THERE GUYS, THANKS SO MUCH FO