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JetBlue founder David Neeleman on the success of Azul Brazilian Airlines and airlines’ efforts to reduce fuel costs.
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Aren't just four years old -- old Brazilian airlines already accounting for nearly 10% of Brazilian domestic air travel pretty impressive our own David -- he's -- as well as well.
Some of the Milken conference in Beverly Hills -- -- -- that -- And jetBlue Airways David -- and David taken away.
David -- -- minutes is a good friend of parts business we're very pleased to have -- on again and he is doing.
Very well in Brazil of course is not a unfamiliar environment to your right you grow up there.
I did I was born there actually and I spent the first five years my life there that I serve my mission.
For the for the Mormon Church down there and so I love Brazil I love the people wise old now has it's the number three carrier right it is -- -- percent of all the business 10% from growing.
Growing our competitors if -- are contracting a little bit and we're.
PT to grow and our customers love it -- Atlanta's -- because we got the best people servant.
Now there's news today that Delta Air -- Is -- -- wants to buy their own refinery gets around Philadelphia from Phillips 66 right it's gonna cost a 150 million -- so much -- best they say eventually could save 300 million.
A year would you think of doing something like that.
Absolutely I mean you know what airlines -- just for years.
Other than doing hedges it just laid down and let.
You know the price of oil the traders.
-- the refineries.
You know we we get absolutely annihilated.
You know by the costs of oil I mean we can't put out like truckers -- we can pass the fuel surcharges along.
It you know delta spent twelve billion dollars almost last year and in the price of oil and they paid three dollars over three dollars a gallon.
Now they've paid two dollars a gallon you know -- -- four billion more dollars so that's.
You know they're they're being criticized from a lot of guys saying you don't know -- doing.
There's no crude there.
And delta flight you know forget dominated -- 150 million bucks would you be able to do that in Brazil well I even if I had the opportunity and I could save.
Spend a 150 million save 300 million or your day right that's good but yeah.
You know that so it's -- -- You know the -- guys are just like -- fighter who we can't do this because.
You know there's no crude and delta says well there's crude right over here in the midwest like four states away.
And they say well you know we have a -- -- were given up.
We are closing down lay out 5000 people from delta says -- what we traded traded over and they will -- -- down from Albany until we get a pipeline going.
You know so it's -- when you're doing -- its stake in -- pay the bill.
And it's been injured you know you're on the line for your shareholders -- get creative in their you know I plot about how that works out -- because you know they should do is something.
Yeah all right you're doing great Brazil.
Argentina recently went through this crazy old the move back to the past where they took over white -- the oil the private oil company.
Are you worried that that kind of thinking might spill over into Brazil the old socialist thinking.
I don't think so I mean I'm certainly Brazil -- more socialistic by -- provided by US standards then what you know the United States is but.
No I think when when when -- that got into office.
He likes it was by the way Marxist labor leader who became very business friendly we became president when he is also clear when he became president ever was nervous.
And he went and I wouldn't -- he embraced.
And went around and embraced everybody.
You know that there that people living up -- is the salons the rich people and said let's -- result better place.
And so you know.
President Dilma -- is his predecessor you know is is basically come -- to his position and she's continued to advance.
So you know worried about emerging markets going back to -- I'm worried about taxes I'm worried about user fees and all that stuff that you know.
And I'm worried about them taxing.
The airline business which they think is still for the elite classes and I'm saying -- I'm playing a lot of people these.
You see driving go by bus and used it travels so I'm -- about that but I'm not worried about them.
You know becoming.
Nationalize and stuff they're they're more privatizing still they -- privatize three airports.
Including the one that we have are our home base of operations so.
I think I think yeah.
I don't think things are looking up and it's a shame that Argentina.
You know can't really see alike is that that's a great country with great natural resources.
Bet that Brazil is -- is that I hope what happens in Argentina's -- -- -- -- it will.
They -- I'm confident that David they haven't always on the cutting edge of the airline business great to see a congratulations on your -- and --
