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American Airlines C.E.O. on Why He's Not Requiring You, Or His Workers, to Be Vaccinated

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American Airlines C.E.O. on Why He's Not Requiring You, Or His Workers, to Be Vaccinated 8/5/2021 Opinion | American Airlines C.E.O. on Why He’s Not Requiring You, or His Workers, to be Vaccinated - The New York Times https://www.nytimes.com/2021/08/05/opinion/sway-kara-swisher-doug-parker.html TRANSCRIPT American Airlines C.E.O. on Why He’s Not Requiring You, or His Workers, to be Vaccinated American Airlines C.E.O. Doug Parker tries to explain why massive bailouts didnʼt solve the problems that plague your travel and why heʼs not enacting a vaccine mandate. Thursday, August 5th, 2021 [MUSIC - JACKIE DESHANNON, “WHEN YOU WALK IN THE ROOM”] Jackie Deshannon (SINGING) When you walk in the room, do you have sway? Kara Swisher I’m Kara Swisher, and you’re listening to “Sway.” Travel was one of the first sectors to feel the impact of the pandemic last year and arguably one of the hardest hit. No one knows this better than Doug Parker, the chairman and C.E.O. of American Airlines. Last year as borders closed and cities went into lockdown, American was forced to cancel around 40% of its flights per day, and one of its most prominent stakeholders, Warren Buffett, jumped ship. Things got so bad that the federal government stepped in, bailing out the airline industry to the tune of $54 billion. That’s a lot of little bags of peanuts. But now, air travel is back, which has created a whole new set of challenges. Archived Recording American Airlines said it canceled hundreds of flights over the weekend. Passengers gone wild at 40,000 feet, fights over face coverings leading to major crackdowns. This as the more contagious Delta variant spreads across the country, some concerned about their summer travel plans. Kara Swisher So I wanted to talk to Parker about the havoc that the pandemic has wrought and what he sees in the future for air travel. Hi, Doug. Thanks for being here. Doug Parker Thank you, Kara. I’m happy to be here. Kara Swisher Let’s talk about in the recent earnings report, American announced that it’s finally back to profitability, a tiny profit of $19 million for the quarter, but that includes a $1.4 billion of government assistance. Without the aid, you were actually in the red, with a net loss of $1.1 billion. Southwest and Delta are in similar positions, though with smaller net losses. So how are you assessing the current state of your airline? Doug Parker Yeah, well, we’ve got a lot of momentum. As bad as those numbers are, they’re so much better than they were a quarter ago. We lost over $3 billion in the first quarter. And so while we’re not happy about losing a billion dollars, it’s a lot better than we were. Our revenues in the second quarter were up 87% versus the first quarter. So anyway, the momentum is there. There’s enormous pent-up demand for travel. People are flying. And as they return to the skies, we’re ready. And those losses will turn to profits before too long. I’m certain of that. And so actually, we’re really excited about what lies ahead. Kara Swisher 8/5/2021 Opinion | American Airlines C.E.O. on Why He’s Not Requiring You, or His Workers, to be Vaccinated - The New York Times So, but we’re also seeing a rise in the cases of Delta variant. And probably pretty relieved it’s not called the American Airlines variant, it’s called the Delta variant. But how worried are you about the possibility of another major lockdown of cities in the US? Doug Parker Well, if it happens, we’re preparing for it. I mean, again, we’ve proven through this and what our team has proven is how resilient they are. So so far, we’ve seen no change in our bookings. Indeed, they continue to increase from day to day. That doesn’t mean that it will stay that way, of course. And should they trail back for a little bit, we’ll respond. My guess is we’ll respond by still flying as much as we were flying before, but we’ll not do as well as we had hoped. That’s okay. We’re prepared for that. Kara Swisher How do you plan for that? Because obviously, people didn’t know a lot about Covid at the beginning, back in early 2020, but now we have some knowledge. So how do you look at this differently, if at all? Doug Parker Because of the situation on the aircraft today, it doesn’t change much for us, other than it may have an impact on demand for air travel. On the airplane, as you’ll see when you fly again, everyone is required to wear a mask. It’s a federal mandate. And because of the way the air flows within an airliner, something we have all learned and educated customers on through this pandemic, with a mask on sitting next to someone on an airplane, Delta variant or not, you’re safer than you are in a grocery store or in a restaurant, because of the way the air flows. So I guess it may have some impact on demand for our product, but it won’t dramatically change what we do. Kara Swisher When you see companies like Apple and Google change back to work dates to mid-October, how do you react to that? Doug Parker It’s certainly having an impact on business travel. I think that’s had as much of an impact on why business isn’t traveling as anything is that large companies still haven’t brought their teams back to the office. So as those get pushed back, our recovery gets pushed back, but modestly. A year from now, I don’t expect we’ll be talking about any of these things. People will be back to work, people will be traveling, and that’s where we’re looking. Kara Swisher Back in March, American was part of a group of airlines that were pushing the White House to lift international travel restrictions. Right now, there are restrictions on travelers from China, the European area, the U.K., Ireland, and others for entering the U.S. The White House recently said they intend to keep those restrictions in place for now. Was that a disappointment? Talk a little bit about what airlines need from the White House and the government on this issue. Doug Parker Well, it’s a disappointment, yes. Because again, as I said, there’s huge pent-up demand. That’s what we just continue to hear from our particularly business customers is, when we start flying internationally? It’s important for business, and important for international commerce. The folly of the situation right now is those restrictions were put in place back in March of 2020 when the President of the United States at that time deciding on national TV and announced that we’re going to be tough on this virus, we’re not going to let it come to the United States. We’re going to do that by not letting people from Europe come to the United States. But we had a consultant come in, she’s from Munich. She, in order to get to the United States, flew to Cancun for two weeks, and then she was allowed to enter. She was a lot safer in Munich than she was in Cancun. But that’s what we’re doing. So that’s been our point to the administration is let’s do this. Let’s go back to science. Let’s start opening countries that have high vaccination rates and low Covid rates. All that makes sense as I say it. The problem — and we get it — is those are relaxations of the status quo, which sends the wrong signal. And right now, I don’t think the administration, C.D.C., Jeff Zients, who I think is brilliant — I just don’t think they want to do anything that sends a signal that things are — that might look like it’s getting better. By the way, we could do that and not send that signal, but I agree. It’s a complex message. So we’re fine with it. We’ll wait it out. Kara Swisher So this is an almost arbitrary restrictions is what you’re saying, is either make them not arbitrary, or lift them in a way that doesn’t make people think the lock is off, everybody could do whatever they want. Doug Parker 8/5/2021 Opinion | American Airlines C.E.O. on Why He’s Not Requiring You, or His Workers, to be Vaccinated - The New York Times Exactly. We were making some progress, having really nice conversations, at least, with the administration. And now with the variant spreading, much less likely that they’ll do anything that could even be perceived as a relaxation of a restriction. Kara Swisher Right. So you talk about Jeff Zients, who works for President Biden on this topic. One of the things you were pushing for is a group with some kind of digital vaccine passport. Have you pushed that further for international travel? The E.U.‘s digital health certificate or a QR code, for example, do you think that could be a solution to this? Doug Parker Absolutely. And again, we are prepared for any of those things. There are a number of countries — the U.K.
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