WEBVTT - Databricks Raises $4 Billion, TikTok Finds Its Shopping Stride 0:00:02.520 --> 0:00:13.480 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live 0:00:13.480 --> 0:00:17.279 from coast to coast with Caroline Hide in New York 0:00:17.600 --> 0:00:19.560 and Ever though in sentrancs go. 0:00:21.960 --> 0:00:25.040 This is Bloomberg Tech coming up data bricks raising over 0:00:25.160 --> 0:00:28.080 four billion dollars. Is its valuation skyrockets to one hundred 0:00:28.080 --> 0:00:29.920 and thirty four billion. We have the details on the 0:00:29.960 --> 0:00:34.280 relentless investor demand for AI oriented tech companies as we 0:00:34.320 --> 0:00:37.080 talk the future of US China Tech relations with Jacob 0:00:37.120 --> 0:00:39.760 Helberg and a Secretary of State for Economic Affairs and 0:00:39.760 --> 0:00:43.000 founder of the Hill and Valley's Forum. This while shopping 0:00:43.000 --> 0:00:45.680 on China's TikTok Live is catching on in the US. 0:00:46.080 --> 0:00:49.240 We'll explore how big the experience might become for users, 0:00:49.800 --> 0:00:52.879 but first we talk about not particularly large moves in 0:00:52.880 --> 0:00:55.320 the market. Right now, we are unchanged on the NASA 0:00:55.440 --> 0:00:57.560 one hundred. It is a noisy jobs report that we 0:00:57.640 --> 0:00:59.840 tried to digest, but it does come across as a 0:01:00.120 --> 0:01:03.000 lowing data set that we see for non farm payrolls. 0:01:03.080 --> 0:01:06.280 Unemployment takes higher. The market tries to digest Bitcoin, though, 0:01:06.520 --> 0:01:09.520 just picking up about two percent where eight and sixty two. 0:01:09.600 --> 0:01:11.560 It has been under pressure over the last few training 0:01:11.640 --> 0:01:14.840 days and in fact could be the fourth ever annual 0:01:14.880 --> 0:01:19.040 loss for bitcoin. More broadly, but as we see nervousness 0:01:19.040 --> 0:01:23.520 around the overall public market phase, what about the private 0:01:23.560 --> 0:01:27.720 market phase. Data Bricks another tell raising over four billion 0:01:27.760 --> 0:01:29.440 dollars in a new funding round. That value is the 0:01:29.440 --> 0:01:32.040 private software firm one hundred and thirty four billion dollars. 0:01:32.000 --> 0:01:34.039 But he makes Body four joins us now to discuss 0:01:34.200 --> 0:01:36.480 what just seems to be relentless. Even though we have 0:01:36.560 --> 0:01:39.440 AI anxiety in the public markets, we are all in 0:01:39.440 --> 0:01:40.880 in the private sector fields. 0:01:40.880 --> 0:01:43.920 What a big valuation? I mean Series L isn't it. 0:01:45.520 --> 0:01:47.880 I mean, this is one of these companies that you know, 0:01:48.000 --> 0:01:50.280 for as long as I can remember, an IPO was 0:01:50.360 --> 0:01:53.200 six or twelve months out. But they just keep raising 0:01:53.240 --> 0:01:56.040 money from the private markets, and it's clear that private 0:01:56.040 --> 0:01:59.000 investors are happy to keep giving it to them. Right now, 0:01:59.040 --> 0:02:01.160 if you're able to tell an AI story, and for 0:02:01.240 --> 0:02:02.880 Data Bricks, that is, we're going to get all your 0:02:02.960 --> 0:02:04.880 data together and make it easy for you to run 0:02:05.120 --> 0:02:07.960 LMS on it, then investors will be lining up. And 0:02:07.960 --> 0:02:10.520 I mean, this is a company with very clean financials, 0:02:10.520 --> 0:02:13.640 with a lot of momentum, and so you know. My 0:02:13.720 --> 0:02:15.800 guess is in six months we'll be here again talking 0:02:15.800 --> 0:02:17.960 about the series whatever letters after l. 0:02:18.600 --> 0:02:20.800 Maybe get to z aligoci has I said, Look, I 0:02:20.800 --> 0:02:23.800 wouldn't be running a cash positive business if I didn't 0:02:23.800 --> 0:02:25.480 want to be tapping the public markets at some point. 0:02:25.480 --> 0:02:27.480 And it seems to be trying to also do secondary 0:02:27.520 --> 0:02:31.040 sales for employees. They are a competitor of Oracle and 0:02:31.040 --> 0:02:34.799 Snowfake in the public markets. Again, we're worrying about Oracle 0:02:35.080 --> 0:02:39.359 and exposure to leases for data centers. How much anxiety 0:02:39.440 --> 0:02:40.960 you hearing about around Oracle. 0:02:41.320 --> 0:02:44.360 So Oracle disclosed a big jump in its leases in 0:02:44.400 --> 0:02:46.880 a three month period. They inked one hundred and fifty 0:02:46.919 --> 0:02:50.240 billion dollars in leases. One hundred and fifty billion, and 0:02:50.320 --> 0:02:52.920 of course that's over the next fifteen nineteen years, but 0:02:52.960 --> 0:02:55.800 you break it down, that's what around sixteen billion a 0:02:55.840 --> 0:02:58.640 year in lease payments for the coming decade and a half. 0:02:59.040 --> 0:03:01.960 That's significant. It's a lot of money that was not 0:03:02.200 --> 0:03:05.040 necessarily known about. We knew they were leasing data centers, 0:03:05.040 --> 0:03:08.000 but probably not quite to this scale. And so it's 0:03:08.080 --> 0:03:11.720 just one more data point that's giving folks indigestion about 0:03:11.760 --> 0:03:13.799 how much is it going to cost to really get 0:03:13.840 --> 0:03:15.440 the AA data centers up and running. 0:03:15.800 --> 0:03:18.480 Intigestion's a nice turn of phrase for it. Ready forward, 0:03:18.520 --> 0:03:21.200 We'll see how this market digests as we enter the 0:03:21.320 --> 0:03:21.920 end of the year. 0:03:22.360 --> 0:03:24.440 Let's get more of a market perspective on that. 0:03:24.680 --> 0:03:27.480 Let's go to Carish Life Shares, the chief market strategist 0:03:27.520 --> 0:03:31.840 Bemo Private Wealth. Carol that anxiety around oracle, around companies 0:03:31.840 --> 0:03:34.400 that have been tapping the debt markets to finance the 0:03:34.480 --> 0:03:38.960 AI well focus on infrastructure. Do you think it's the 0:03:39.080 --> 0:03:41.520 right moment to be going into these sorts of names 0:03:41.560 --> 0:03:42.680 or to be putting back. 0:03:43.400 --> 0:03:46.480 I think it's very interesting because, as you know, there's 0:03:46.520 --> 0:03:48.920 been a lot of chat on the street, if you will, 0:03:48.960 --> 0:03:50.640 about are we in a bubble? Are we not in 0:03:50.680 --> 0:03:53.600 a bubble? But the fact that investors are being very discerning. 0:03:53.880 --> 0:03:56.400 They're putting money in private companies, they're putting money in 0:03:56.440 --> 0:03:59.280 some of those public companies, but then they're also pulling 0:03:59.320 --> 0:04:03.920 back from company is where they're not necessarily approving, if 0:04:03.920 --> 0:04:07.600 you will, of the total package, or don't like the 0:04:07.680 --> 0:04:11.440 surprises for increased spending or increased commitments. And so that 0:04:11.640 --> 0:04:15.880 discerning nature is really constructive, and we are big believers. 0:04:15.920 --> 0:04:18.760 In fact, one of our core big three macro themes 0:04:19.160 --> 0:04:21.960 that we'll be introducing in our capital market assumptions is 0:04:22.040 --> 0:04:25.200 Industrial Revolution four point zero, and we think AI is 0:04:25.279 --> 0:04:28.240 just part of it. There's a lot bigger, broader spend, 0:04:28.240 --> 0:04:32.359 but we are definitely in a revolution that's taking this 0:04:32.480 --> 0:04:34.760 economy and putting it in a whole different place. 0:04:34.880 --> 0:04:39.120 I mean, Carol, go deep on what discerning is discerning 0:04:39.160 --> 0:04:41.599 one hundred and thirty four billion dollar valuation for a 0:04:41.640 --> 0:04:44.720 private company that agreed has a revenue run rate of 0:04:44.720 --> 0:04:47.720 some four point eight billion dollars an eight hundred billion 0:04:47.800 --> 0:04:50.719 dollar market valuation for SpaceX and the private market, so 0:04:50.720 --> 0:04:53.440 it wants to be worth one point five trillion when 0:04:53.560 --> 0:04:56.920 IPO is in twenty twenty six. What spells out discerning 0:04:56.920 --> 0:04:58.880 to you? What are the financials you need to see? 0:05:00.320 --> 0:05:03.360 Discerning spells out somewhat if we just take the public 0:05:03.400 --> 0:05:05.960 markets and we look at, for example, when you had 0:05:06.040 --> 0:05:08.880 five of the meg seven all report in the same week, 0:05:09.120 --> 0:05:13.839 and they all for the most part be expectations, and 0:05:13.920 --> 0:05:17.479 yet some stocks rallied and some declined because of investors 0:05:17.520 --> 0:05:20.719 listening through to the story. So there's a piece there 0:05:20.760 --> 0:05:25.360 where investors want to participate in the industry in technology 0:05:25.360 --> 0:05:27.919 in general, and they're trying to figure out where. I 0:05:27.960 --> 0:05:30.520 think there is always that allure. It's tough to get 0:05:30.560 --> 0:05:33.200 your head around the financials, even though a number of 0:05:33.240 --> 0:05:36.280 different entities now are trying to provide US index on 0:05:36.400 --> 0:05:41.200 private companies. And I saw last week that the CBOE 0:05:41.360 --> 0:05:44.159 and others are looking to want to write options in 0:05:44.200 --> 0:05:48.680 futures on private companies. So there's different ways to participate 0:05:48.760 --> 0:05:51.400 in it. But investors want to foot in that market 0:05:51.400 --> 0:05:55.520 because I think for anyone who lived through prior periods, 0:05:55.520 --> 0:05:58.400 you don't want to miss out on not on having 0:05:58.440 --> 0:05:59.800 everything on the sideline. 0:06:00.240 --> 0:06:05.080 Carol, is that democratization or is that frothiness and a 0:06:05.160 --> 0:06:08.560 desire to just get in on super high valuations. 0:06:09.200 --> 0:06:11.120 Yeah, I think we're still trying to figure that out. 0:06:11.160 --> 0:06:14.520 For me, it's a way of persing risk in different places. 0:06:14.600 --> 0:06:17.320 It's sort of like too that we've seen this evolution 0:06:17.839 --> 0:06:23.120 of the prediction markets, where in the old days you 0:06:23.200 --> 0:06:26.600 had to, you know, your traditional sixty forty portfolio. If 0:06:26.600 --> 0:06:29.560 you're nervous about markets, you had to trim equity exposure. 0:06:30.000 --> 0:06:32.960 Now you have different ways to sort of execute on 0:06:33.080 --> 0:06:37.400 that risk nervousness, you might go buy a levered ETF, 0:06:37.560 --> 0:06:41.200 or if you own a single highly concentrated position in 0:06:41.279 --> 0:06:43.800 one name, you might go out and say, well, I'm 0:06:43.800 --> 0:06:49.200 going to buy an option or a single strategy ETF 0:06:49.279 --> 0:06:51.560 or a single stock ETF on that that's levered to 0:06:51.600 --> 0:06:54.800 the downside just to offset some of my potential. So 0:06:54.839 --> 0:06:58.080 there's different ways to play it, which we're still trying 0:06:58.080 --> 0:07:01.480 to figure out. You know, does it get and Frothy 0:07:01.560 --> 0:07:04.360 gets when everyone runs in the same direction and we've 0:07:04.440 --> 0:07:07.800 pushed these things all parabolic and despite the fact that 0:07:07.800 --> 0:07:10.640 they've been running for what three years now, they're not 0:07:10.760 --> 0:07:12.280 parabolic yet. 0:07:12.520 --> 0:07:16.960 Yeah, and therefore is the proof point yet again earning season? 0:07:17.560 --> 0:07:20.000 Is that why you start to see that actually valuations 0:07:20.040 --> 0:07:22.160 are in line because the PE evaluations aren't out of 0:07:22.160 --> 0:07:24.640 whack if you're really seeing the revenue that they're bringing 0:07:25.040 --> 0:07:27.160 and more broadly we see productivity board. 0:07:27.280 --> 0:07:29.320 Now, Yeah, I think. 0:07:29.120 --> 0:07:31.280 It's very interesting because actually when you looked at the 0:07:31.360 --> 0:07:33.160 last earning season, when you got to the end of 0:07:33.160 --> 0:07:35.440 it and you looked at forward earnings, and Video was 0:07:35.480 --> 0:07:39.080 trading with the lower forward PE ratio than Walmart was, 0:07:39.200 --> 0:07:44.320 and so part of that is the movement of those 0:07:44.440 --> 0:07:47.200 earnings we need to get for all of us. I 0:07:47.240 --> 0:07:50.360 can't wait till we get into the December report season, 0:07:50.960 --> 0:07:53.360 sooner or later we will have some sort of a 0:07:53.400 --> 0:07:57.720 handoff from all the focus and concentration around just those 0:07:57.760 --> 0:08:00.720 seven or ten or fifteen names. We do need to 0:08:00.720 --> 0:08:03.760 see more broadening in the markets because there's been a 0:08:03.760 --> 0:08:05.840 lot of interesting stuff going on in a lot of 0:08:05.880 --> 0:08:09.600 other sectors as well, or that some that are second 0:08:09.640 --> 0:08:12.960 and third iteration of related to technology and some that 0:08:13.000 --> 0:08:16.960 are totally unrelated. But our benefiting or will benefit from 0:08:17.080 --> 0:08:21.440 increased use of robotics and technology and down the road 0:08:21.480 --> 0:08:23.920 when we have a breakthrough in quantum. 0:08:24.040 --> 0:08:27.480 Carol, you're already excited for January twentieth when Netflix kicks 0:08:27.480 --> 0:08:30.640 off our tech earning Salem wishing away our end of 0:08:30.640 --> 0:08:32.120 the year. But it's so great to have you on 0:08:32.200 --> 0:08:34.960 to really push us forward to what your key areas are. 0:08:34.960 --> 0:08:37.240 Focus on carriage life always great in the show, Chief 0:08:37.240 --> 0:08:40.679 Market Structures and be Mo Private Wealth coming up. Well, 0:08:40.760 --> 0:08:43.560 let me joined by Jet Blue CEO because the airline 0:08:43.559 --> 0:08:45.680 prepares to open its first airport lounge. 0:08:45.720 --> 0:08:46.480 This is a really big. 0:08:46.400 --> 0:09:04.800 Tech Jet Blue and it's preparing to open its first 0:09:04.840 --> 0:09:07.280 airport lounge, just ahead of what's expected to be a 0:09:07.440 --> 0:09:11.040 busy holiday travel season. Blue Mags Lisa Ramowitz joins us 0:09:11.040 --> 0:09:14.199 now from John F. Kennedy Airport, a very special guest. 0:09:14.760 --> 0:09:15.520 Thank you so much. 0:09:15.640 --> 0:09:19.040 Yes, Caroline, I am here with Joanna Garrity, the CEO 0:09:19.280 --> 0:09:21.920 of Jet Blue, in the very first lounge. It is 0:09:22.080 --> 0:09:25.160 fashioned like an Art Deco New York City apartment from 0:09:25.280 --> 0:09:28.880 the nineteen forties, thirties, seventies, thirties. Okay, I think I 0:09:28.960 --> 0:09:31.120 got it right, Joanna. Thank you so much for being 0:09:31.160 --> 0:09:33.760 here before the launch later this week. I want to 0:09:33.760 --> 0:09:35.959 start with just how this fits into the strategy of 0:09:36.000 --> 0:09:39.760 Jet Blue right now to make the airline truly profitable 0:09:39.800 --> 0:09:41.200 for a sustainable period of time. 0:09:41.280 --> 0:09:42.120 Yeah, thanks for the question. 0:09:42.160 --> 0:09:44.200 Great to be here and have you in Blue House, 0:09:44.280 --> 0:09:47.360 jet Blue's first foray into lounges. This is very much 0:09:47.360 --> 0:09:50.200 part of our jet Forward strategy. We've been working very 0:09:50.200 --> 0:09:53.360 hard for the last several quarters. I'm really turning towards 0:09:53.400 --> 0:09:56.240 premium and trying to make sure that we're offering more 0:09:56.240 --> 0:09:58.439 opportunities for customers who want to pay a little more, 0:09:58.440 --> 0:10:00.880 and the lounge is part of that. Our transition to 0:10:01.000 --> 0:10:03.800 a first class product next year, domestic first class product. 0:10:04.120 --> 0:10:04.800 We'd be part of that. 0:10:04.880 --> 0:10:08.040 Our premier card are even more as a cabin and 0:10:08.120 --> 0:10:10.320 really excited to start seeing all of that come to 0:10:10.400 --> 0:10:11.680 life in twenty twenty six. 0:10:11.840 --> 0:10:14.080 All of the big airlines we've talked about loyalty and 0:10:14.120 --> 0:10:17.679 how important loyalty and premium offerings is to their profitability 0:10:17.679 --> 0:10:20.640 going forward. How is it different for Jet Blue because 0:10:20.679 --> 0:10:24.840 there isn't the sort of obvious business customer that typically 0:10:24.920 --> 0:10:26.200 fuels the loyalty offering. 0:10:26.320 --> 0:10:27.520 I mean, we're a leisure carrier. 0:10:27.600 --> 0:10:29.040 We tend to get you know, a nice share of 0:10:29.040 --> 0:10:31.839 business customers because they love the product. You know, we're 0:10:31.880 --> 0:10:34.199 back at the top net promoter score, so really proud 0:10:34.200 --> 0:10:35.960 of that. But at the end of the day, this 0:10:36.040 --> 0:10:38.120 is really designed around trying to make sure that customers 0:10:38.160 --> 0:10:40.400 who travel for vacation have a reason to come back 0:10:40.440 --> 0:10:43.400 again and again, providing with a little oasis of peace, 0:10:44.160 --> 0:10:46.200 and you know, really through our loyalty program, we want 0:10:46.200 --> 0:10:48.640 to reward people who choose Jet Blue because they love 0:10:48.640 --> 0:10:50.360 the product, the service and what we offer. 0:10:50.559 --> 0:10:53.880 You have already offered Mint and other premium rollouts. How 0:10:53.880 --> 0:10:54.560 has it been going. 0:10:54.840 --> 0:10:56.960 It's been great, Mint's been a very strong source of 0:10:57.000 --> 0:10:59.319 revenue for Jet Blue for well over the last decade, 0:10:59.320 --> 0:11:01.160 and so I'm not new to this. We have a 0:11:01.200 --> 0:11:04.880 brand that definitely associates with more of a higher end 0:11:04.920 --> 0:11:08.680 leisure customer, providing more to customers at a very reasonable fare. 0:11:08.800 --> 0:11:10.960 We want to make sure that we offer something for 0:11:11.080 --> 0:11:13.920 everybody across the full spectrum, whether you want sort of 0:11:13.920 --> 0:11:16.440 a dialed down experience, still free Wi Fi and great 0:11:16.480 --> 0:11:19.920 leg room and great snacks and drinks TVs. But then 0:11:19.920 --> 0:11:21.240 if you want to pay a little more, you have 0:11:21.280 --> 0:11:24.400 the opportunity for a lounge our Mint Class for Transatlantic 0:11:24.480 --> 0:11:26.920 and then when we launched domestic first later this year, 0:11:26.920 --> 0:11:28.560 that's going to be a great product offering for customers 0:11:28.640 --> 0:11:29.280 want a little more. 0:11:29.360 --> 0:11:32.520 So I was shuttled into here through very log security 0:11:32.559 --> 0:11:34.800 lines and lots of people with screaming children trying to 0:11:34.840 --> 0:11:37.439 get to different destinations for their warm holidays. 0:11:38.200 --> 0:11:39.520 This is the busy season. 0:11:39.720 --> 0:11:41.760 How is it looking in terms of demand given the 0:11:41.760 --> 0:11:43.800 fact that there were some hiccups in the past couple 0:11:43.840 --> 0:11:46.120 of months, But at this point people are getting back 0:11:46.160 --> 0:11:47.199 to what they originally had. 0:11:47.320 --> 0:11:49.240 Yeah, twenty twenty five has been a very tough year. 0:11:49.240 --> 0:11:52.040 Whether it was the macro setback, or the government shut down, 0:11:52.240 --> 0:11:54.520 or the list goes on and on. We're really looking 0:11:54.600 --> 0:11:57.360 forward to the holiday season. Bookings are coming in strong 0:11:57.559 --> 0:11:59.880 as we go into twenty twenty six. We're optimistic that 0:12:00.040 --> 0:12:02.679 the consumer is healthy and that we're going to start 0:12:02.960 --> 0:12:05.480 really ramping up the initiatives that we have been working 0:12:05.520 --> 0:12:07.440 really hard for the last year to execute too and 0:12:07.480 --> 0:12:09.800 seeing the benefit as we move through twenty twenty six, 0:12:09.960 --> 0:12:10.360 how long do. 0:12:10.360 --> 0:12:12.679 You think it'll take before you start to actually turn 0:12:12.760 --> 0:12:14.079 profitable and sustain that. 0:12:14.240 --> 0:12:16.480 You know, our goal next year is to break even 0:12:16.520 --> 0:12:18.839 from an operating margin perspective, and that's the first step 0:12:18.840 --> 0:12:21.840 back to profitability. We have a great team here. Everybody's 0:12:21.840 --> 0:12:24.120 pulling for us. We're doing all the right things, whether 0:12:24.360 --> 0:12:28.000 it's our focus on operational reliability, that promoter score, all 0:12:28.080 --> 0:12:31.800 the premium products that we're launching, our laser focus on costs, 0:12:32.000 --> 0:12:34.880 and really trying to make sure that we're delivering a 0:12:34.880 --> 0:12:38.400 great product offering for customers. Because Jeblue has this wonderful 0:12:38.400 --> 0:12:40.760 brand and this sense of people want to love us 0:12:40.760 --> 0:12:42.640 and they want to see us succeed, and twenty twenty 0:12:42.679 --> 0:12:44.280 six is going to be our year with everything we 0:12:44.360 --> 0:12:46.479 put into place, because twenty twenty. 0:12:46.240 --> 0:12:48.120 Five was not the year for a lot of airlines. 0:12:48.120 --> 0:12:49.080 There are a lot of airlines. 0:12:49.120 --> 0:12:50.720 There are a lot of issues, and you talk about 0:12:50.720 --> 0:12:53.080 the government shutdown, this has been a big discussion among 0:12:53.120 --> 0:12:55.680 a lot of the air airlines CEOs where they've said, 0:12:55.679 --> 0:12:57.760 we just can't make up that kind of revenue, so 0:12:57.800 --> 0:13:00.000 there will be some sort of hit. Have you disclosed 0:13:00.120 --> 0:13:02.720 to any kind of revenue loss as a result of 0:13:02.720 --> 0:13:03.960 some of the shutdown. 0:13:03.559 --> 0:13:05.480 You know, we haven't disclosed any kind of revenue loss. 0:13:05.520 --> 0:13:07.360 You know, we've said that we remain on track for 0:13:07.440 --> 0:13:09.720 Q four and I think we're pleased with what we're 0:13:09.720 --> 0:13:11.880 seeing in terms of bookings coming in for the for 0:13:11.960 --> 0:13:14.720 the balance of the month. We definitely saw some softness 0:13:14.760 --> 0:13:17.680 obviously during the government shut down, but we're recovering coming 0:13:17.679 --> 0:13:19.680 out of that. I think most have shared that, but 0:13:19.720 --> 0:13:21.760 it was it was definitely an impact and unfortunate that 0:13:21.800 --> 0:13:23.920 the airlines were put, you know, right in the middle 0:13:23.960 --> 0:13:25.600 of that shut down. You know, all the great air 0:13:25.640 --> 0:13:27.960 traffic controllers and the TSA workers they need to be 0:13:28.320 --> 0:13:30.480 you know, cast as essential workers. We really need to 0:13:30.480 --> 0:13:33.480 make sure that if anything, this industry is so essential 0:13:33.520 --> 0:13:35.560 to our economy. I mean, think about all the people 0:13:35.600 --> 0:13:38.319 who were traveling for weddings and funerals or doctor's appointments 0:13:38.360 --> 0:13:41.440 that were displaced because we couldn't get on the same 0:13:41.480 --> 0:13:44.120 page in Washington, d C. So we're really hopeful that 0:13:44.280 --> 0:13:45.880 you know, we've turned a page there and that we 0:13:45.880 --> 0:13:47.480 can move forward, you know, looking at that end of 0:13:47.559 --> 0:13:50.040 January date with you know a little bit of nervousness, 0:13:50.200 --> 0:13:52.720 but I'm confident that DC will pull it together and 0:13:52.720 --> 0:13:54.520 get get us in the back end of that. 0:13:54.640 --> 0:13:57.640 Yeah, somehow, being an airline CEO probably wasn't in your 0:13:57.640 --> 0:14:00.119 BINGO card that you'd be well focused on healthcare legislation. 0:14:00.520 --> 0:14:03.480 With your fingers crossed heading into January, I'm wondering how 0:14:03.559 --> 0:14:06.440 much you're hoping to attract a new class of customers 0:14:06.800 --> 0:14:09.520 versus capitalized and the ones that you have that might 0:14:09.559 --> 0:14:11.440 be willing and able to pay a little bit more 0:14:11.600 --> 0:14:12.720 with some of the new offerings. 0:14:12.800 --> 0:14:14.160 It's a little bit of both. We know we have 0:14:14.200 --> 0:14:17.480 customers today that want our first class product, and so 0:14:17.800 --> 0:14:19.800 it's really you know, offering that to them so that 0:14:19.800 --> 0:14:22.160 they can buy up when that opportunity to presents it. 0:14:22.280 --> 0:14:24.440 But it's also making sure that we're competitive with the industry. 0:14:24.480 --> 0:14:27.160 Everybody's moved towards premium. You know, we're going to continue 0:14:27.200 --> 0:14:30.120 to move towards premium because it is a resilient customer segment. 0:14:30.280 --> 0:14:32.000 But we're not going to forget the folks that fly 0:14:32.080 --> 0:14:34.280 in our coach product. I mean, they're just as important, 0:14:34.480 --> 0:14:36.520 and we want to make sure that Je Blue offers 0:14:36.520 --> 0:14:37.400 something to everyone. 0:14:37.720 --> 0:14:39.840 It really does feel a little bit like the Sharks 0:14:39.840 --> 0:14:41.320 and the Jets when you speak to some of the 0:14:41.440 --> 0:14:44.360 airline industry CEOs where they talk about, you know, it's 0:14:44.400 --> 0:14:46.800 become a game of consolidation, and it's become a game 0:14:46.880 --> 0:14:49.720 of the big fish really dominating the fields in a 0:14:49.760 --> 0:14:51.480 lot of different ways. They say, it's going to be 0:14:51.560 --> 0:14:54.560 very hard to be a more budget focused airline. 0:14:54.760 --> 0:14:55.640 How do you fight back? 0:14:55.680 --> 0:14:57.880 How do you sort of create a viable business model 0:14:58.280 --> 0:15:00.360 at a time when you do see this consolid of 0:15:00.400 --> 0:15:03.840 profitability and travel in the biggest airlines. 0:15:03.880 --> 0:15:05.920 I mean, it's definitely hard. We talk about the need 0:15:06.000 --> 0:15:08.640 for a more level playing field. When four carriers have 0:15:08.680 --> 0:15:11.160 eighty percent of the domestic seats, that's a real problem. 0:15:11.400 --> 0:15:13.320 You know, we fight very hard in DC to try 0:15:13.360 --> 0:15:16.000 to make sure that we're heard that the challenges we face, 0:15:16.080 --> 0:15:19.120 whether it's cost pressures, the lack of scale, the lack 0:15:19.200 --> 0:15:23.000 of you know, consolidated purchasing, the you know, inability to 0:15:23.000 --> 0:15:25.400 get access to gates. We just been on a gate 0:15:25.640 --> 0:15:28.560 a Heathrow, a Heathrow slot and we were denied it. 0:15:28.960 --> 0:15:31.080 And so, you know, while maybe understand why it went 0:15:31.120 --> 0:15:34.080 to a legacy larger carrier, those are little things that 0:15:34.120 --> 0:15:36.600 add up over time, and the smaller carriers really need 0:15:36.640 --> 0:15:39.040 to be given a fair shot to win in this 0:15:39.120 --> 0:15:41.760 environment and that's not happening right now. So we're focused 0:15:41.760 --> 0:15:43.680 on what we can control. We're focused on a whole 0:15:43.720 --> 0:15:46.600 series of initiatives under our Jet Forward program. It's getting 0:15:46.680 --> 0:15:48.680 us moveing in the right direction. I'm excited about what 0:15:48.720 --> 0:15:51.320 it's going to bring. But we do need the government 0:15:51.400 --> 0:15:53.520 to kind of make that a more level playing field 0:15:53.560 --> 0:15:55.600 so smaller carriers can more effectively compete. 0:15:55.680 --> 0:15:59.240 In the meantime, you do have this cooperation with United 0:15:59.640 --> 0:16:03.160 fix banding in a host of different places. Is that 0:16:03.280 --> 0:16:06.040 the template going forward, maybe not consolidation due to the 0:16:06.080 --> 0:16:09.360 recent issues, but in terms of the previous merger that 0:16:09.440 --> 0:16:12.720 was denied, but going forward, having some sort of partnership 0:16:12.840 --> 0:16:14.600 with major airlines to expand the route. 0:16:14.680 --> 0:16:17.040 So we've got fifty airline partners across the globe and 0:16:17.080 --> 0:16:19.000 now we have the Blue Sky partnership with United. That 0:16:19.080 --> 0:16:21.680 is most certainly a part of trying to provide more 0:16:21.760 --> 0:16:25.760 utility to our loyalty program and providing a broader global 0:16:25.760 --> 0:16:28.200 network for our customers when eventually in Q one they 0:16:28.240 --> 0:16:30.440 can book a Jet Blue flight on United dot Com 0:16:30.560 --> 0:16:33.520 and vice versa through our interline agreement, and so we're 0:16:33.560 --> 0:16:35.360 excited about what it's going to bring. Does it solve 0:16:35.360 --> 0:16:38.120 the problem fully, No, it doesn't, but it's definitely a 0:16:38.160 --> 0:16:40.920 meaningful revenue initiative that gets us back movement in the 0:16:40.960 --> 0:16:41.480 right direction. 0:16:41.640 --> 0:16:44.240 Do anticipate consolidation at any point in your future? Is 0:16:44.240 --> 0:16:45.280 that sort of on the back burner. 0:16:45.320 --> 0:16:47.000 So that's on the back burner. We're really focused on 0:16:47.080 --> 0:16:49.400 Jet Forward. You know, I'm really excited with the progress 0:16:49.400 --> 0:16:52.680 we're making. We're seeing it. We're seeing improved operational reliability, 0:16:52.720 --> 0:16:56.000 improved customer scores. We have not let the grass grow 0:16:56.080 --> 0:16:58.360 under our feet. In twenty twenty five. We've executed a 0:16:58.360 --> 0:17:01.520 whole series of revenue initiatives. We've kept our costs under 0:17:01.520 --> 0:17:04.280 control despite pulling a point and a half capacity this year. 0:17:04.800 --> 0:17:06.720 So twenty twenty six really is the year that we 0:17:06.760 --> 0:17:09.520 should reap the benefits of all these initiatives that we 0:17:09.520 --> 0:17:10.920 put into place in twenty twenty five. 0:17:11.200 --> 0:17:13.800 Before I let you get back to celebrating the new lounge, 0:17:13.840 --> 0:17:16.040 I do want to just ask you about the recent 0:17:16.080 --> 0:17:19.560 incident and with a pilot, a four jet plu plane 0:17:19.560 --> 0:17:23.920 that was in the route between Krosau and JFK. There 0:17:24.080 --> 0:17:25.560 was a close call within the. 0:17:25.560 --> 0:17:27.040 US Air Force jet. 0:17:27.240 --> 0:17:29.960 Do you have any more information about what happened there 0:17:30.040 --> 0:17:31.639 to make sure that it doesn't happen again. 0:17:31.720 --> 0:17:33.840 Yeah, I'm really proud of our pilot. He reported the 0:17:33.840 --> 0:17:37.280 event and we train them for situations like this. We 0:17:37.320 --> 0:17:39.880 reported the incident to the government. We're waiting to hear 0:17:40.080 --> 0:17:42.520 the results of their investigation. But just please with how 0:17:42.560 --> 0:17:44.800 our pilot handled it and how attract Control handled it. 0:17:44.880 --> 0:17:48.000 There's a whole series of safety nets in place in 0:17:48.160 --> 0:17:51.199 the era, in the national airspace system, and the pilot 0:17:51.320 --> 0:17:53.159 is the last line of defense and he absolutely did 0:17:53.160 --> 0:17:55.520 his job, did it well. And you know, my hope 0:17:55.560 --> 0:17:56.920 is that doesn't that doesn't happen again. 0:17:57.040 --> 0:17:58.919 So Aana Garty thank you so much for being with us. 0:17:59.000 --> 0:18:02.000 Joanna Guardy, CEO of jeff Blue. I'll send it back 0:18:02.000 --> 0:18:02.199 to you. 0:18:02.560 --> 0:18:05.560 Great looking lounge, Bloombg's Lisa Obama, it's great interviews. 0:18:05.800 --> 0:18:06.400 We thank you. 0:18:06.760 --> 0:18:10.960 Coming up is the EV revolution stalling or shifting gears 0:18:11.440 --> 0:18:12.080 That discussion. 0:18:12.080 --> 0:18:13.360 Next is the Bloomberg. 0:18:12.960 --> 0:18:32.399 Tech It's really about moving to more profitable vehicles. You know, 0:18:32.440 --> 0:18:36.440 we're going to make in Tennessee now an affordable pickup truck, 0:18:36.560 --> 0:18:38.399 so these are going to be better investments for the 0:18:38.440 --> 0:18:42.000 company profit and all those hybrid sales, you know, those 0:18:42.000 --> 0:18:44.320 are really profitable vehicles for us. 0:18:44.720 --> 0:18:47.280