fellow from rhode island like you i have been sticking close to home lately but i have had to fly recently and it was a very different experience than the one i was accustomed to during my weekly commute back and forth to the r.t. america broadcast center in washington before all this started is this the new normal for air travel let's ask christy i anchor of boom bust here on r t america and st marc business development consultants president hillary ford which ladies welcome to the big picture. thank you and as you. as we've all

been in stay at home mode lately the airlines have slashed a reported 75 percent of capacity parking 2 thirds of the fleet delta which is retiring its entire boeing triple 7 fleet has offered employee buyouts says our southwest and american airlines credit suisse analysts surmise that we have moved well past the point of no return with respect to covert 19 and its potential to have an enduring multi-year impact on the commercial aviation industry kristie this pandemic reminds us how much we have taken for granted we used to just be able to go to a baseball game or to get on a flight. american airlines and all the others were vying for our business with fare wars can we get back to air travel business as usual

it's definitely going to take some time because if we look back at history the other several times where the airline suffered shocks the one most clearly was 911 and after 911 happened it took approximately 3 to 4 years before demand and capacity and people felt safe to travel again so it is going to take some time and then afterwards subsequently you have the sars virus as i mean isolated within asia but even so the airline industry they're also reported that it took about 5 additional years for people to feel safe traveling in a confined space together and this not only applies to airlines it's also applies to cruise ships trains and all of those commuting across the united states it's going to be it's going to really suffer as a result of this. yeah i have read that southwest airlines is offering their employees with 10 years of service a year of pay and flight privileges for a year if they take an early retirement package they're limiting the number of seats per flight so that middle seat won't be occupied but with fewer employees and

fewer seats and fewer flights it's kind of an addition by subtraction supply side strategy with 40000000 americans now unemployed and many who can afford to fly still virus wary hillary isn't demand the ball game. you're right holland yes demand is the board game and i would address in 2 ways one when i look at my corporate clients the corporate internationally obviously have seen that for their bottom line they don't have to have as much trouble like we're doing we're having this can remotely zoom of course has benefited tremendously and people are realizing that they can service their clients and have the same kind of customer and client interaction virtually so there has been a great globalization of the virtual industry but also and importantly i would look at the long term aspects because it is mentioned about 5 years look at the e.t.f.

back in march the global object. e.t.f. they had 33000000 in assets and now they have 950000000 because the 65 days straight then net flow of investors has increased why because overall long term it may take proceeds that it may take 5 years there will be a comeback of the airline so the issue is 2 things it's time and black swan how a lot how much time nobody exactly knows and will there be another black swan will there be another recurrence of this in the for people are predicting somewhere around thanksgiving we don't know so those are the 2 big factors to consider and yes tomorrow will be down definitely corporately because of the contribution to the bottom line and maybe personally where a number of percent a great percentage of the population will be reluctant to fly. yeah and i think that if you take the long view while we may be hunkered down in almost a survivalist mode now that's

a venture early again to get old and we're going to want to go somewhere but in order for people to travel they need to want to go somewhere the new protocols that mickey mouse has announced make the magic kingdom look a lot less fun than it used to be we remember how carefree it was to mingle with strangers in las vegas before all of this the carefree camaraderie kristie aren't airlines ultimately at the mercy of destination appeal. absolutely because as hilary said if we separate out the passengers into 2 groups just business corporate travel vs leisure trap and america alone business travel direct accounts for 334 bit and 20. vertices on the leisure side 2000000000 so as you can see leisure travel account for a huge bulk of not only airline business but just gross g.d.p. the tourism industry encompasses airlines hotels and all these other aspects so if

you look at it with there with no destination appeal as you said that's a great phrase to quiet when the destination appeal people are going to be hard pressed to find places to go to vacation to and as a result the entire tourism industry suffers and there's going to be countries who depend on tours and countries like countries like indonesia like japan whose g.d.p. is probably 70 to 80 percent accountable for tourism alone so those guys are going to be hit very hard and there is quite a lot of systemic risk stemming from the decay of airlines now kristie to that point would you say that there is a proximity threshold where we may feel safer going to nearby places like new to the bahamas etc then the pacific rim. i think that people right now that there was a great quote that right now coronavirus made people adopt a hyper localized ation mentality so that before that only applied to our food chain and our supplies and consumer staples but now apparently the supply into just

our daily lives when you work you want to live close to where you were before people didn't really care because it was so easy just to hop on a plane fly across the country to go to to go to headquarters or take the train down to a different state in order to come into work every single morning that's no longer the case that people are focused on this hyper local like they should mentality not only for work for leisure but just for every single day activity including getting including getting supplies for businesses business not to manage the. airline is also include getting supplies and packing to get back into play. this is a common thread safety has always been job one for the airlines and just a year ago with the big story was the boeing 737 max crash now the safety story is sanitizing the airplanes hilary do you think that all this cost cutting that the airlines have to do is going to trigger new concerns about safety inspections that we were hearing back during the mats issue. well i don't

think that there's going to be safety issues i think it's so perception forces reality and or the budget discount airline investor bill frankly he said the entire industry is actually going to depend on the confidence of the flying public and so i would say though that the concern is going to be something that n.p.r. talked about actually back in october and that is the globalization of maintenance one of 5 planes until now it was actually repaired somewhere other than with by the airline in the u.s. a lot of the repairs are going to south america and some to asia that may well see given that the supply chain globally has been disrupted so extensively but i think that the airlines are going to realize that should there be was maintenance safety issues they are totally and utterly shot so i said i do think it will and you'll see a doubling down even though they're cutting costs to make sure that doesn't happen and the n.t.s.b. is going to be on this because the n.t.s.b.

as a regulator for the safety the national safety and standard transportation board is going to be taking a deeper and harder look at those issues because of the cost cutting so i don't think it's something that we should fear but the perception is reality the question is will the public that. you're right about perception is reality because there's a lot of outsourcing in that business it is been said that it's a little too easy to start an airline because you're going to out source things like around maintenance and during the years of the trump shuttle all you have to do is put his name on the tail the planes were all leased etc maybe there is a psychological comfort in the fact that the airline itself is servicing its planes even if they're held to the same standard as we outsource but hilary do you think that outsourcing generally is going to be a victim or a benefactor of all that we've gone through during this pandemic. into an industry

that was speaking about. it's going to it'll go by industry to industry but think about something outsourcing is definitely going to increase in terms of delivery i mean for the new economy that we're going to have asked this pandemic there's one word that comes to mind and that is delivery deliberate as christine mentioned when she was talking about this localization people we never thought anything of even going you know that drive to a restaurant people now are going to be at home and it's going to be delivery of everything end to end so to that extent yes there will be outsourcing by whether it's a restaurant whether it's any kind of retail outlet of course amazon has taken over a lot of that world but you see now supermarket chains across the board expediting their delivery services so outsourcing delivery yes definitely see c.e.o. gary kelly told c.n.n. b c that southwest has burned through some 900000000 in cash and april are lone

airlines are an essential industry are among those propped up by money from uncle sam and asking for billions more kristie as a component of the overall u.s. economy are the airlines too big to fail. absolutely it is definitely one of those essential industries that can not be allowed to fail because there's just too much systemic risk inherently buried there because $2900.00 here the number there were $1.00 trillion dollars in travel spending and that generated $2.00 trillion and total economic output in the u.s. alone and that also support a $15800000.00 american jobs so the travel industry is a huge component of this entire and next and not only are we talking about airlines we're also just talking about tourism in general that accounts for hotel chains the service this industry restaurants leisure travel that entire component which is a huge again a huge generator and not only in america worldwide american travelers they're one

of the largest consumer spenders when they travel and that is something that supports the g.d.p. and the economy of other smart countries such as japan such as south korea and the all the other stuff the civic education so the airline industry is one of those industry that is too big to fail simply because there is no telling what the contagion and the systemic risks are if this were allowed to fail. for the 1st time ever a aaa did not issue a memorial day highway traffic estimate hillary give me the one sentence answer is this going to be the summer of the staycation. yes or no but it just sounded from that the case that k.o.a. the campgrounds america everybody predicted that over one 3rd of look leisure travelers who can who previously were camping of notice that the camp because it's a perfect social distancing sort of the ocean so yes the city sing with it in nations i believe so i think you'll see tourism in the u.s.

and you got you know graphic right now about beaches it will depend also whether the beaches are open in the u.s. how far people will travel but they will stay with the nation people will be domestically staying at home so actually to assume that you could say that road travel could expand. well that was the one sentence i was hoping for hilary and christie you're going to stay with us and after the break you remember when amazon dot com was a bookstore how the way we shop during the pandemic will endure after the pandemic in the new normal this is the big picture on our t.v. america.

was a clip of she was no use to you. but the way it's always ok it was a. moment of. well that's the. yes. yes. there was a period let's call it the unique polo you know period after the end of the cold war where the u.s. and nato countries and other people sort of wanted russia to become what they

described as a normal country what they meant by normal was a country that was democratic by western standards that was capitalist that was a member of u.s. led international rules grace thought or established by the u.s. i think a lot of people saw that as sort of criminal and 2nd class status in the u.s. system and i think it's pretty clear that russia in particular has been pushing back on that. alexa. play crosby stills and nash. if she is in the same room you are there may be background music starting shortly if you're amazon prime i went

prime just for the free shipping and now i'm getting discounts at checkout at whole foods and hundreds of movies and t.v. shows some of which i can't get elsewhere and all of that was happening before this to billet tating sheltering at home moment where we just need what's delivered to us now amazon is going to hire close to 200000 employees who had been temping their staffing up just to keep up with us our brick and mortar stores now obsolete and what other trends already in motion are going to accelerate in the new normal we are with r t boom bust anchor christi i stroll marc c.e.o. hillary ford which shopping malls have been closing for several years some are being repurposed to health care facilities and for other purposes we read that

neiman marcus and j. crew are among the legacy department stores declaring bankruptcy just in the month of may kristie this has got to be a buyer's market if there are buyers for commercial retail real estate business. i think you hit the nail on the head if there are any buyers to begin with because right now here in california there is a proposal on the table that is allowing commercial tenants to potentially exit their commercial leases without any penalty and this is completely unheard of and it's merely a proposal that's being floated on the table right now the hasn't passed yet but a. does show you the climate that we are in right now that there is absolutely no appetite for any brick and mortar retail locations or commercial lease locations and this of course land men lawyers are very very opposed to because this is going to cause tremendous credit default risk out the entire local california economy but it also shows that right now there's just simply no appetite for landlords and

brick and mortar retail locations they're having difficulty attracting any lisi so if there are any buyers of these locations they're going to have a very difficult time b. sing out simply because we won the moratorium when none of these cases we're paying rent for about 3 months now that just ended here that just ended in june but further out business is our businesses are still 100 percent up and running that mally opening at this point and there are probably at about 40 to 3040 to 50 percent capacity at this moment so without any business it's going to be very difficult to generate any revenue in order to afford these very very expensive brick and mortar locations where right now as hillary just mentioned everything is basically delivery and service e-commerce focused. and we've gotten very accustomed to the convenience of bring it to me the world's wealthiest person even after the divorce jeff bezos has the luxury of vision and when he bought the washington post i am told that at

a staff meet and greet where the atmosphere was not initially warm he was asked why did you buy the washington post and he instantly turned a bunch of frowns upside down when he said to give you a longer runway meanwhile newspapers everywhere seem to be going belly up and these amazon prime delivery trucks we see everywhere have laid the ecosystem for more developers with less deep pockets have kind of wandered away from the robocar thing that jeff bezos is steering his company into and that the ecosystem will also support ride sharing so he could be big foot stomping on the left hilary for years we have debated whether companies such as the airlines which we just discussed are too big to fail is it possible that amazon is too big to succeed. i don't think so ashley

hall and this debate is the mindset for many years now and jeff basis you're quite correct i didn't have that quote at that 1st stop meeting with the washington post but also he is noted to saying around that time i believe the year afterwards that amazon he wanted to be amazon of everything and i remember reading even about antiques and about cars and i remember thinking if i was a car dealership or an antique store and you might do so no i think that what we found is that this pandemic has been a silver lining for amazon and jeff bezos just recently was quoted as saying that their 2nd quarter profits estimated to be. 4000000000 and are going to go right back into and forcing in reengaging and reestablishing even greater safety measures and as you just mentioned employing more people in terms of their entire supply chain so i think no it's not too big to fail because of the trends within our

society and they are right now at the very forefront of these trains and you know ai is being implemented in all of their warehouses you're seeing the robotics is taking over and so they're not even going to have stopping issues some day so they're right at the cost of everything that's happening throughout this pandemic and the way the world's going. and a lot of the t.v. commercials are showing now put a good spin on how it is to work for the company that had some bad press but it does soon as the only as a welcome act now for future kristie some of the more heartbreaking images we have seen on t.v. lately are independent retailers stores being trashed and looted during the riots in many cases these shops are the a lifelong work of now destitute entrepreneurs with chain stores imperiled by amazon and other online sellers can the charm of one off shops

continue to bring us into brick and mortar commerce. well before the coronavirus epidemic happened there was actually a push as i said everybody wanted things locally made they want to support local businesses so there was actually this huge push to veer away from big conglomerates and tech giants such as amazon because there was a focus on the local community thinking that amazon was just taking over so before all this happened yet there was a big question mark just before the local communities but by default all the smaller brick and mortar mom and pop shops i default there price point it's much higher then something like a chain store like c.v.s. at the target or wal-mart because they buy things in bulk from overseas they are able to afford a much lower price point so yes now given the coronavirus and the fact that most consumers are strapped for cash at this point given the high unemployment rate they're less likely to want to focus on the smaller mom and shop even if they want to support it simply because they do not have the wall of budget in order to in order to make these contributions they much rather have to focus on these consumer

staples that are necessary in order to maintain households and the only people who are going to benefit from that is as we said the big giant wal-mart target c.v.s. amazon and these are the consumer staple names that you seen rallying at the stay at home trader on wall street. hilary similar question for you since some of your clients are small businesses are you emphasizing to them to project their personality. well it's actually yes the one big key for any business regardless of size is personalization and experience the experience will aspect is something that amazon will never deliver we had in only a segment we were talking about more than about real estate that's one thing that a lot of malls are going to they're going to these experiences and malls in minnesota and in california and actually in illinois that have you know miniature train sets for the children who are going to ride the strains that if you haven't experienced the sale that can be do it duplicated that cannot come in an amazon box

ever so experience and then you have personalization for the professional service tech firms that i advise it comes to customisation and personalization differentiating your business from the next business that similar to that sort of something special that the customer feels when they come to you where they don't want to go anywhere else i will say that throughout this entire pandemic also the clients that i have seen be the most successful are those that are agile and those that have been able to adopt adapt to the whole remote servicing of their clients the c.e.o. of microsoft was quoted as saying that we see 2 years of digital transformation in just 2 months in terms of the amount of remote work learning in terms of sales and customer service that is critical as well as cloud computing a lot of information moving to the cloud that had before so for my clients and same person as asian differentiation and find a way to make your service experience sure for your clients because then they come

to you and they can't get it in a box. yes we're speaking with her strong marc c.e.o. hillary ford which boom bust anchor christi i. among the trends already in motion which have accelerated during the pandemic distance learning school was out in many cases and here in rhode island we did the remarkably well big companies were donating laptops big telcos are passing out hot spots and are donating free wi-fi the fall semester is a. question mark because a lot of parents are squawking about paying full boat to wishin if college is going to do a glorified correspondence course and the buzz word we've been hearing is credit wars meaning will the legacy university accept the credits that we earned for those 1st couple of years of western civ an english comp back home at the community college hilary as a college parent yourself i got one minute left but for see the fall seminar and

what about this credit wars issue. well i would say to you yes well and normal is a transaction the pain but something to your students to enjoy to benefit from to grow and to learn it is just online learning they're not having the entire experience so i don't think there are many parents that expect. what you see is a number of things you're seeing that schools are actually reimbursing from last year the board because obviously people can't board and live at school so they are going to find that's going to be the same thing in the fall that's number one number 2 a lot of the sooner versity actually that will change students of course to work on campus to defer their student loan to pay their student loan payments those are being cut so you're seeing tuitions somewhat remaining at the moment stable that room and board jobs on campus and all those have been either be funded or a lot of the advice also has been to actually delayed the semester and to not even do the semester but the pushback has been there was even

a recent article in the wall street journal saying what else will you do if you can't be employed you're not going to really be traveling so you might as well get on with it and go back to school might as well hilary ford which christie i thank you for stepping into the big picture and thank you all for watching the big picture if you can't see us live set your d.v.r. and if you see us somewhere less convenient you can watch the live stream for our america you tube dot com slash r t america we're on directv channel 321 we are on the pluto t.v. channel 279 dish 280 and if you haven't yet you must download our portable t.v. app starring dennis miller larry king jesse ventura and yours truly it's a scream and it's in the app store and it's free holland cook here at home in rhode island the ocean state we'll talk to you next week in the meantime stay safe and

question more. is you'll be a reflection of reality. in a world transformed. what will make you feel safe from. thyssen nation full community. are you going the right way or are you being that. direct. what is true what is faith.

in the world corrupted you need to descend. to join us in the depths. or a maybe in the shallows. they can come and blow our brains out at any given time and we can't really do anything actually america is the only country in the world where you can kill people outside war and legally get away with. all the fire crawls stillbirth all the trouble here is pretty fail the point is it's hollow flying to k.k.k. exists because america wants it to exist they are the biggest terrorist group to ever operate in this country and they're dead to me they're worse all than the people who destroyed the world trade centers of the scroll.

but there was a clear the sea was. no use lee. oskar crises gear but the way it's always at the back a was a. thorough. more want of the elite. like you me the new thing in me. the most was yours for those it was you who do it because the way to which you were given gift when your gibberish is in the leaves and eat it up was to kosik away these coalitions are words with so when you're with your thinking what would you.