when the same day as our interview with doug parker, southwest airline cfo said the airline capacity 7% to 8% this year. that caused southwest to tumble 9% in a single session. only going lower since then. clearly luv is for sale. it's the symbol of southwest. how concerned should we be? do we need to be worried? or is the market overreacting? creating a nice buying opportunity in a well run airline, one long been known as the best operator in the country, longest record of profitability. not to mention a stock best performing up 124%. the chairman and ceo of southwest airlines a total straight shooter, yet a better sense of where his company's headed. welcome to "mad money." >> hey, great to be with you, jim. >> i'm not going to try to paraphrase. i'm going to play you a quote that sent these stocks down by doug parker and maybe you can illuminate us about whether it was the right reaction by the stock market. go ahead. >> some capacity's being added. not by us by some of our competitors. and we will obviously respond to that. but we're not going to be the ones that are -- >> yeah s

doug parker one of the most exciting ceos in the company.ot a big integration coming. >> i had to go to usair. >> that is about to change. there was some bad interaction. >> doug parker is a thoughtful man. maybe he can get it going tonight on "mad." >> see you tonight "mad money." when we return speaking of financials jpmorgan chase meeting about to get under way. >>> grub hut ceo matt maloney. the design evolves the engineering advances. but the passion to drive a mercedes-benz is something that is common... to every generation of enthusiast. the 2015 dream machines, from mercedes-benz. today's icons. tomorrow's legends. visit the dream machine event today for up to $3,500 towards purchase. my feet felt so heavy at the end of the day. they used to get really tired. until i started gellin'. i got dr. scholl's massaging gel insoles. when they're in my shoes my feet and legs feel less tired. it's like walking on a wave dr. scholl's massaging gel insoles, i'm a believer! >>> good tuesday morning. welcome back to "squawk on the street." sara ei

doug parker says american will not lose customers based on price. feel costs have held discount carriers cut fares. american is completing its merger with u.s. airways forming the world's largest airline. and mansion featured in the film "the king's speech" has been sold. , jailededward davenport for his role in a fake lending operation. proceeds will be used to repay about $20 million from a government confiscation order. eventse in london hosted attended by the rich and famous. that was a good movie. those are our top stories. coming up, we look at the battle between delta and travel websites. why the airline is holding back data on flights and fairs and what that costs you. pimm: an insider pass view on the big business of sports broadcasting and why it is not seen as much digital disruption as the rest of the television industry. betty: cbs brought -- but the sullivan theater for $4 million. we will tell you how that has paid off. pimm: the department of justice clamping down on some of the world's largest banks, charging citicorp, j.p. morgan c

in an interview with bloomberg news, doug parker said the airline will compete against discount carrierst are piling on added seats. that sounds at the beginning of a price war. olivia: that's a good news for me. pimm: the planes are about 85% full, carrying about hundred 22 million passengers between june and august. the airlines have also -- airline stocks are down. airlines have said they are going to withhold certain bits of information such as scheduling and fares from these third-party sites such as tripadvisor. airlines got a blow from the u.s. government because they said they are going to allow the expansion of the persian gulf carriers in the united states. olivia: several reasons why we are seeing a drop in the bloomberg airlines index. pimm: are you going to travel now? olivia: the weekend. it's wednesday. i would like to leave. it is pretty obvious. pimm: always a pleasure. mark ahead, target versus -- target versus walmart. ♪ pimm: welcome back to the bloomberg market day. markets are closing in europe. let's go to john farrell in london. -- jonathan ferrell in london. jona

. >> doug parker. you became ceo of american airlines in 2013. that followed the merger with u.s. airways and had been ceo at u.s. airways. before that you were ceo of america west. now you're seeing the gulf carriers adding new routes and now you want the u.s. government to take an unusual step of freezing new routes. doesn't sound like what a competitor would do. why are you taking this strange step? >> we don't think it's strange at all. we think it's what the bilateral agreement calls for. the request is simply to have consultations and talks. that hasn't happened. we should note that these simply sense we have announced or since we laid out our case in january those three carriers have increased their capacity in united states by 25%. they are clearly doing everything they can to win the race against the clock because the reality is we put forward an extremely compelling case as jeff outlines. our government can't ignore it. they won't ignore it and they will have consultations. those carriers know that. that's why they are adding so much capacity and why they are making comm

specifically last night, doug parker, the always candid and i mean incredibly candid ceo of american airlines came on the show and said some of his competitors decided to ramp up capacity and take advantage of the strong travel market. he admitted they're being too aggressive in adding routes and planes and that can lead for dogfights for customers in particular delta has gotten very bullish. maybe way too bullish. cnbc airline reporter pointed out today and that means trouble ahead for the whole industries profitability. just listen to what parker told us last night on the show. >> some capacity is being added not but us but by some competitors. next year you'll see growth of 5 or 6% domestic. that will have a negative impact. there's no doubt about that. >> gulp. respond to lower fares by lowering fares themselves. that's a key metric. oh, doctor. that means estimates are probably too high and needs to be slashed. it means the stock is not as cheap as it looks. but something much higher. why, the estimates have to come down and only that mean lower stock price which is is exactly w

. >> doug parker a little bit about you. you became ceo of american airlines in 2013 and that followed the merger with u.s. airways and you had been ceo at u.s. airways. before that ceo of america west. you are seeing these gulf carriers adding new routes and now you want the u.s. government to take really an unusual step of freezing new routes, doesn't sound like what a competitor would do. why are you taking this strange step? >> we don't think it's strange at all. we think it's exactly what the bilateral agreement calls for. the request is simply to have consultations, to have talks. we have added to that request that until we can get through those talks that we'd like to see a freeze in the flying. that by the way, hasn't happened. we should note that these simply since we have announced or laid out our case in january, those three carriers have increased their capacity by 25%. so they are clearly doing everything they can to win the race against the clock because the reality is we have put forward an extremely compellin

doug parker of american seemed to suggest a little softness was coming here. >> i don't follow the airlinesllow anybody that moves people. it's a lousy business. that said we respectfully disagree. we think the value of the dollar accelerating the way it has, we think the cessation of fracking activity, and the cessation of all the other industrial activity that follows that is a death nail for the rails in the short to intermediate term. we've gone through 11 straight weeks of negative rail volume. petroleum volumes are down. ag volumes are down. no matter how you slice it and dice it, what's happening with the lower relatively low price of oil and the strength of the dollar is a death nail for the u.s. based railroads. >> donald can i just ask you -- you said i don't follow anybody that moves people. it's a lousy business. we heard this from ed hamburger when we were talking to him about freight rail and asking why isn't passenger rail profitable. what is it about passenger rail or passenger airlines if you will, that you think is just never going to be a good business model? >> well i ha

and doug parker talking about two subjects last night. >> a lot what you're seeing what's happening fuel prices have fallen. more capacity has been added. capacity in excess of the growth and demand so you're seeing revenues falling at a time that the -- you know, somewhat in a catch up for what's happening, our largest cost has fallen 30%, 40%, not an instant change. some capacity success added not by us by some of our competitors and we obviously will respond to that. >> are the airlines back to their old spending undisciplined ways? >> seems like it. there's a stand off between ground and cutback capacity. the available seat miles is something ultimately these guys are all fighting to increase at a time when gdp may not be. so for investors that said everything is different in the airlines industry, margin expansion is a tail wind, it's a very challenging time today. >> at the same time are some airlines -- are you convinced that certain airlines will be more disciplined than others? >> i would hope so. i'm not convinced because we know the history of what happened. right now the reac

doug parker of american airlines.s latest tune on the heels of its starbucks partnership. a dramatic new announcement from a top exec. what spotify doigs now to try to stream past the competition. "squawk alley" tomorrow 11:00 eastern on cnbc. >>> it is time! lightning round! are you ready, skee-daddy. phil in florida. phil! >> hey, triple boo-yah, jim. >> qaudruple boo-yah right back. what's going on? >> okay. excuse me. considering the strength of the asset managers advisers et cetera i've been watching the great progress of lazard. and my question can we expect to see a leaping la zard? >> i think la zard is good. i was going over with brian ashberg. he's got la zard as a big winner. going to stay. i think you're in shape. troy in illinois. troy. >> boo-yah jim, from the windy city. want to talk about one of the big disrupters last year now turning into a roller coaster in volatility, lending club. good? >> i met with the people from affirm recently. i think affirm may have a better model than lending club. i think

doug parker on with cramer last night saying look outthe airline industry after a long period of nots like it's finally coming. that's going to mean a fare war eventually. >> going to mean profit margins could come down as well. transports are feeling it all 20 components of the dow transports are lower today. >> the dow theorists will be frustrated. that does it for "squawk alley," let's get back to headquarters and the half. >>> carl, welcome to the halftime show, let's meet the starting lineup. steven weiss is with us along with jim lebenthal. josh brown, pete najarian and mike santelli with yahoo finance. on target, after the retailer beats and raises, we hear from the company if an exclusive interview. >>> competitive edge, sports biz expert rick harrow on who won the nba lottery and why the patriots back down. >>> we begin with a question asked many times on this show. but today perhaps the most solid piece of evidence to date. that there is in fact danger lurking in one part of this market -- how exactly is it

here's doug parker last night on mat money. >> i think next year with the growth of something, 5% or 6%. okay, thank you very much. let's get out to sue herera for a quick news alert. >> we have news concerning the department of financial service, specifically that benjamin who heads that division is going to be departing the new york financial services after four years as serving as the agency's first superintendent. he was quite aggressive and pursuing wrongs on wall street. he was the first put in charge after the 2008 financial crisis. he has been in that position for four years. they were creating that position after the aftermath of the 2008 financial crisis. you had him on power lunch and he will depart after four years of heading that agency. >> thank you very much. investments in the u.s. were not distant just a decade ago. the economic power house pumping a ton of money into the united states now. michelle has these numbers. michelle? >> as a result of that, mandy, thousands and thousands of americans are working for chinese companies right here in the united states. we wil

ceo doug parker says america will not lose customers based on price.price has helped discount carriers to up there is an they are completing the merger with u.s. airways forming the world's largest airline. stephanie: when we return target tops estimates. ♪ erik: we are a few minutes from the opening bell. livedeal's former ceo and bloomberg news editor at large. michael, i will begin with you. what matters to investors right now? michael: the main event is the fed this afternoon. i love the way are fed reporters handled it. they started saying is the glass half full or half empty? if you look at economic data the fed has been observing, job data is pretty good, housing data is pretty good. on the other side, inflation data is a low and the question is, will these show that they are confident that this deflationary pressures have been transitory? that is the big issue for people in the fed. erik: michael, do you see inflation out there? michael: certainly not in the apparel business. it was interesting looking at the home depot numbers that they showed

remember since doug parker came on mad money and said price work. >> what was he talking about? again, what was he saying i'm not? certainly, when you go to book airline tickets i think you're usually amazed at how much money you're spending. whose putting it on? >> delta. >> delta. delta has wide big eyes. they think they can add a lot of capacity. they're still making a huge amount of money. it is interesting that someone broke ranks and decided you know what we're going to start adding a lot of queens and roots and that has been the source of the strength. >> still earning more. >> i am not. >> those fears justified or are people still sort of remembering basically the entire history of the public airlines? >> estimates were too high. u.s. air, american airline, the combination selling at five times the fernearnings. if fuel comes down and delta says hey, wait a second, we don't need to do this or whatever then the dollar has hurt them. that's why talking about tiffany, the strong dollar hurts tourism, i was surprised the strong dollars hurt tourism. these american companies

comes down to sentiment and whether or not you believe the current group of executives including doug parkerrow capacity rationally and smartly. the fear is profits will come down and what happens if jet fuel continues to move higher. it is the growth limited for the industry. something to keep in mind. someone talks about ticket prices. they have airline prices over the past five years. they took in $50 billion and there is no indication that ancillary growth slowed down. delta, southwest, and stocks over the last couple of years. all up more than 100%. people are concerned about capacity growth and the question is to grow the capacity without gutting profits. >> the transports at large, they are a buying opportunity. good to have you with us. i'm going to start off with you. it seemed like at first, lower oil shipments and now they have continued to face the head winds of coal and the ag trade. i see cheep natural gas. at least less and less coal shipments. when i see they are plummeting in ag exports as a host of other things we are trying to export. the strength of the dollar has been th

>> we've got -- last week i had doug parker from american air.s it's a price war. southwest is one of the ones other than delta that added capacity. gary kelly -- this group is a freefall. maybe gary kelly is saying love should no longer be for sale. p and i think popeyes with many restaurant stocks including sonic, dine equity and jack are starting to come back. they're domestic plays again and people are worried about the strong dollar. >> the strong dollar figuring into investment decisions. now there is something on that that says cancel power off. >> how can that be? it's on reserve power. >> reserve power. will robinson. all right. that's technology all right. that's something. >>> coming up breaking news on pending home sales. interview with the president of target.com. that is live from the code conference and more. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challe

. >> and amr, cramer was talking about it doug parker was tweeting about it a great ceo, one of the best't want to get andrew started on the monopoly that u.s. airlines are enjoying right now. it's hard. it's barrier to entry. you've got to buy planes there's routes. >> talk to the emirates. this is the problem. global perspective, right? they're just supporting labor and they can build the airports they want to and they have already crushed the europeans. i just wonder if you think that's coming over here too? >> well, that's the problem. clearly the emirates airlines is being subsidized and it's unfair competition and they are coming here. and american is screaming down in washington. >> i've seen it all, delta i know. >> when you look at the big picture in the airline industry demand is continuing to increase. capacity is being constrained. prices are relatively well controlled. down 1% or so in fares. cash flow is exploding. american has an extra kicker which is the synergies from the merger with -- >> what year is it? >> we're in 2015. >> 1981 merrill lynch, the biggest producer in

-dot parker several questions that are just for you to some. >> doug likes to combine questions. one of the questions along the lines of this from a american as part of the oneworld alliance for british airways is a a key partner in the one alliance. british airways partner is in support of the middle east and care your position on this. is a member of the oneworld alliance and apparently supported their entry into the alliance couple of years ago. maybe i want one another. it certainly makes for a peculiar get together in one world will little awkward when oneworld gets together all in one room. how do how do you figure all of the south? it does not seem to make sense. >> let me try to explain because it makes sense to me. we are part of the oneworld alliance because it is important to our customers. we customers. we have customers that want to get to parts of the world america does not serve such as the middle east. and that i think is the right thing to do for american airlines customers. that does not mean that we should sit and watch subsidize travel and allow the us governm

parker was wearing brass knuckles. >> i believe he did have on brass knuckles just because of the injury itself and how he cut the teacher's eye. >> of the teacher is taken care of, doug estle starts the investigation into who could have done this. several years earlier murphy high school installed an elaborate system of cameras for security purposes. they have used it in the past to catch petty thieves and late-night break-ins, but this is the first for an assault of this magnitude. >> a couple of my assistant principals went to the camera room and immediately started backing it up and take a look at who it was. we also had students already in the hallway who identified both young men. >> and because of the tapes and the student identifications, the police were able to apprehend the suspects quickly. mobile district attorney john tyson. >> well, the tape speaks for itself. we have two young men who are in on it. one is to take photographs. the other is going to actually accomplish the assault. and we can clearly see, as the teacher walks out, that the ambush is on, and he throws a haymaker and floors the teacher right there in the hall. >> randolph parker is charged