WEBVTT - Breeze Airways CEO Feels 100% Safe Flying on Boeing Planes

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business

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<v Speaker 1>Week with Carol Messer and Tim Stenebeck on Bloomberg.

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<v Speaker 2>Radio Top of Mind for us. First of all, at

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<v Speaker 2>quick News, you know Boeing deliveries in the first quarter

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<v Speaker 2>dipping to the lowest since mid twenty twenty one, highlighting

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<v Speaker 2>how far the planemaker has to go on its road

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<v Speaker 2>to recovery from that near catastrophic accident early in January.

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<v Speaker 2>So no doubt, Tim, major airlines are watching for what

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<v Speaker 2>comes next from Boeing.

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<v Speaker 3>Well, when it comes to what is actually happening in

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<v Speaker 3>the space, it makes sense to keep a watch on.

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<v Speaker 3>Our next guest, who's well known in the commercial airline industry,

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<v Speaker 3>having founded five airlines, including Jet Blue, WestJet and the

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<v Speaker 3>latest Breeze Airways. With us now is the founder and

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<v Speaker 3>CEO of Breeze, David Nielman with us from Providence, Rhode Island. David,

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<v Speaker 3>good to have you back with us. How are you good?

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<v Speaker 1>Good? You know, it's been a long day but productive

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<v Speaker 1>day here.

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<v Speaker 3>Hey, this is not your first rodeo, as they say,

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<v Speaker 3>but your newest airline, Breeze, turned three years old in May.

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<v Speaker 3>Give us an update on expansion, give us an update

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<v Speaker 3>on growth here.

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<v Speaker 2>You said it was a productive day, So why was

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<v Speaker 2>it productive?

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<v Speaker 1>Well, I think you know, a lot a lot of

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<v Speaker 1>a lot of talking about you know, our new credit card,

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<v Speaker 1>a lot of you know, press interviews, and but I

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<v Speaker 1>think the biggest news that we have for today is

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<v Speaker 1>that we actually made our first profit. We've made a

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<v Speaker 1>profit in March, and we expect to be profitable for

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<v Speaker 1>the year. And you know, this is in a year

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<v Speaker 1>where you know, some of the ulccs are really struggling,

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<v Speaker 1>and you know, I'm just really proud of our team.

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<v Speaker 1>We've we've really carved out a really great niche where

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<v Speaker 1>people love flying on breeze. They love the the airplanes,

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<v Speaker 1>the service, the markets we fly, the NonStop we have

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<v Speaker 1>about ninety we have almost two hundred routes, and ninety

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<v Speaker 1>percent of them we have no NonStop competition. But there

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<v Speaker 1>are routes that people really love to fly. And so

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<v Speaker 1>that's that's really, you know, the most important thing for

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<v Speaker 1>us is profitability and continue to grow and continuing to

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<v Speaker 1>find great new markets and sturing the markets that we

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<v Speaker 1>have today. Well, just yeah, Providence, we need to give

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<v Speaker 1>the example Providence from here it's top of mind. We

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<v Speaker 1>have twenty destinations we serve from Providence. We have more

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<v Speaker 1>destinations from Providence any other airline. And you know it's

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<v Speaker 1>a We're flying Providence to Lax for example, Providence at Denver,

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<v Speaker 1>you know, Providence to you know, Florida of course, to Raleigh, Durham,

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<v Speaker 1>to mid Atlantic, all over the place, twenty different places.

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<v Speaker 1>And and you know, people in Providence love it. They

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<v Speaker 1>don't want to shop all the way up to the

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<v Speaker 1>Boston and you know, deal with traffic and all that

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<v Speaker 1>kind of stuff when they can fly out to the

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<v Speaker 1>hometown airport.

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<v Speaker 2>So talk to us a little bit about fares holding

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<v Speaker 2>up in this class. I mean, it feels like there

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<v Speaker 2>are a lot of budget seats in the market. I mean,

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<v Speaker 2>talk to us a little bit about fares and pricing

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<v Speaker 2>and summer demand. How you're starting to see that shape up.

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<v Speaker 1>Well, it's good. I mean we had a good first quarter.

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<v Speaker 1>You know, it was interesting. We did more revenue in

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<v Speaker 1>March than we did the whole first quarter of last year.

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<v Speaker 1>Kind of shows you our growth, you know, I guess

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<v Speaker 1>that's three hundred percent or more. Yeah, April looks good,

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<v Speaker 1>you know, May is May. It's a bit of a

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<v Speaker 1>transition month where we move a lot of our our

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<v Speaker 1>north south flying to east west. You know, we're starting

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<v Speaker 1>to fly San Diego for the first time, going from Norfolk,

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<v Speaker 1>which is a huge navy based to San Diego for example.

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<v Speaker 1>So you know, May looks pretty good and then June

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<v Speaker 1>summer looks strong and uh, you know, holding our projections

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<v Speaker 1>for a profitable years. So you know, it's interesting because

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<v Speaker 1>we have kind of a base fair that's you know,

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<v Speaker 1>kind of like a basic economy that everybody else has.

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<v Speaker 1>And then the jump ups where you go from nice

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<v Speaker 1>to nicest, too nice, nicer to nicest where you get

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<v Speaker 1>into a first class seat, isn't that bad? And people

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<v Speaker 1>people love it, you know, they see the upgrade. It

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<v Speaker 1>doesn't it doesn't feel like nicol and diming because we're

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<v Speaker 1>actually giving you something of value, including free internet, and

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<v Speaker 1>uh so you know it's it's it's working really well.

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<v Speaker 1>It's a really good model.

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<v Speaker 3>Hey David, I'm interested in the fleet. Uh, Airbus A

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<v Speaker 3>two twenty and Brayer one nineties and one ninety fives.

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<v Speaker 3>How are you able to survive with such a small

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<v Speaker 3>airplane when it seems like everybody else is increasing the

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<v Speaker 3>size of the planes that they're using to offset those

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<v Speaker 3>higher pilot salaries.

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<v Speaker 1>That's a great question. It's a really great question. So

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<v Speaker 1>the embraers we use primarily for charters. We do have

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<v Speaker 1>a little bit of scheduled service with them, and they're

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<v Speaker 1>going away by the end of this year and it'll

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<v Speaker 1>be all too twenties the one nineties. In the month

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<v Speaker 1>of March, we did almost six hundred charters that we flew,

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<v Speaker 1>you know, for NCAA, March Madness and all of that.

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<v Speaker 1>So we use those planes primarily for that operation, and

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<v Speaker 1>our pilots and flight crews do a great job. Now

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<v Speaker 1>the two twenty you're right, I mean, pilot salaries have

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<v Speaker 1>gone up, and fortunately the pilot shortage situation in the

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<v Speaker 1>US has has really gotten better, much much better, you know,

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<v Speaker 1>with you know, pilots getting ready to be laid off

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<v Speaker 1>at some airlines and a lot of airlines not hiring,

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<v Speaker 1>and a lot of that's because of boying deliveries, but

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<v Speaker 1>because the two twenties so efficient fuel burn and maintenance costs.

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<v Speaker 1>You know, we only have one hundred and thirty seven

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<v Speaker 1>seats and our trip cost that's our you know, our

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<v Speaker 1>being able to fly from A to B we believe

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<v Speaker 1>is about twenty percent lower fifteen to twenty percent lower

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<v Speaker 1>than a three twenty And a lot of our competitors

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<v Speaker 1>fly a three twenties, you know, be it Spirit or

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<v Speaker 1>Frontier or Allegiant or Jet Blue. So we can fly

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<v Speaker 1>for twenty percent lower, and that just opens up an

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<v Speaker 1>exponential amount of routes that we can fly because we

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<v Speaker 1>have lower trip costs because the plane is new and

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<v Speaker 1>it's efficient, and you know, has these long ranges, so

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<v Speaker 1>we can do these long, thin routes as well. So

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<v Speaker 1>you know, yeah, I mean what Spirits I think is

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<v Speaker 1>really struggling trying to figure out what do I do

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<v Speaker 1>with a two hundred and forty seed airplane. I got

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<v Speaker 1>a fly where everybody else is and you know the

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<v Speaker 1>other everybody else is not, you know, being kind of

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<v Speaker 1>late to them where eighty percent of their routes they

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<v Speaker 1>have NonStop competition, ninety percent of our routes we have

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<v Speaker 1>no NonStop competition.

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<v Speaker 2>You know, David, you've used airbus planes a lot in

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<v Speaker 2>your timeline and creation of five different carriers, if you will,

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<v Speaker 2>And yeah, the Airbus three twenties right, a big part

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<v Speaker 2>of Jet Blue back then. I'm just curious what you

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<v Speaker 2>make of what's going on with Boeing in trouble again

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<v Speaker 2>if you will. And you know it's a duopoly, right,

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<v Speaker 2>it's either Airbus are bowing at this point. But I'm

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<v Speaker 2>just curious how you were thinking about Boeing in its

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<v Speaker 2>future here and why don't you choose more Boeings.

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<v Speaker 1>Well, it just size.

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<v Speaker 3>Well.

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<v Speaker 1>I was interesting because my first airline, More Sarah, had

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<v Speaker 1>Boyings and I love Boying, and I went up to

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<v Speaker 1>Boeing and was fully intent on buying seven thirty seven's

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<v Speaker 1>for Jet Blue. We couldn't come to an agreement, so

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<v Speaker 1>we went and met with Airbus. Airbus just sold me

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<v Speaker 1>that they had a better product, a better airplane, better,

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<v Speaker 1>our customers would love it more, you know fly by

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<v Speaker 1>wy or just so many other vantage is better fuel burned,

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<v Speaker 1>and it was just a newer technology. It was a

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<v Speaker 1>newer technology airplane. So I picked Airbus at that time. Now,

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<v Speaker 1>the reason I picked it wasn't because of safety. It

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<v Speaker 1>was just because it was a better airplane for us,

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<v Speaker 1>and it was a better airplane for our customers. I

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<v Speaker 1>find seven thirty sevens on a weekly basis. They just

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<v Speaker 1>got off a United seven thirty seven last week. I

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<v Speaker 1>feel one safe. I'm I have total confidence in Boeing.

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<v Speaker 1>Obviously they're going through a rough patch here, you know,

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<v Speaker 1>but there's the safety record in the United States for

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<v Speaker 1>all commercial carriers is unbelievable. I mean, if you look back,

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<v Speaker 1>it's hard to find the last major accident by a

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<v Speaker 1>Boying airplane, you know, in the United States, and it's

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<v Speaker 1>really difficult. So, you know, my heart goes out to

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<v Speaker 1>Boying there, you know, there. I know they're going through it.

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<v Speaker 1>I know that this will make them a better company,

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<v Speaker 1>and I expect them to come out of it stronger

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<v Speaker 1>than ever.

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<v Speaker 3>Hey, David, we only have about thirty seconds left, but

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<v Speaker 3>got a question from a viewer who wants to know

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<v Speaker 3>if you're going to bring back flights between Los Angeles

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<v Speaker 3>and Westchester anytime soon.

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<v Speaker 2>You're squinting.

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<v Speaker 1>That's a good question.

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<v Speaker 2>You know.

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<v Speaker 1>Westchester is a slotted airport, and so we're bidding for

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<v Speaker 1>some slots actually today, and I hope I haven't heard

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<v Speaker 1>if we got somebody. If you do, that's certainly on

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<v Speaker 1>our list.

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<v Speaker 3>Okay, some news bidding for some slots at Westchester Airport today,

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<v Speaker 3>So come back and let us know how that turns out,

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<v Speaker 3>and certainly I know that many of her viewers who

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<v Speaker 3>fly out of the New York City area looking for

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<v Speaker 3>more flights out of Westchester kind of.

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<v Speaker 2>Love these like these, these hops that you can use

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<v Speaker 2>in these between kind of shorter justtinations, if you will,

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<v Speaker 2>it makes a lot of sense. Founder and CEO of

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<v Speaker 2>Breeze Airway, so well known in the airline industry, David Nielman,

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<v Speaker 2>are thanks to you.