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Sandy to Cost Airline Industry $300M?

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    Boyd Group Chairman Mike Boyd on Hurricane Sandy's impact on the airline sector.

  • Duration 4:04
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Established -- let's go to Mike Boyd whose an airline analyst right now Mike we know that nine different airports are still closed.

But the airports like Dulles and DC and Philly and Baltimore are open at the moment but what is the status for the airlines that are most affected and these would be.

It carriers that really affect the East Coast.

-- what you're looking at here is carriers are prepared for this ahead of time.

-- went ahead like jetBlue moved its airplanes out of harm's way American did delta did for the harm to the airline be less than you might expect.

We think -- the bottom line after you sort out everything in balance everything out hit to the airline industry's going to be about.

A quarter billion to 300 million dollars at the end of the day.

Mike when you're you're looking at that kind of number I would suspect that it would begin to rather quickly affect the bottom line the current quarter of some of these airlines.

Well there's no doubt it will mean -- jetBlue to define airline.

You know they have a well a big part of their operation focused to Kennedy Airport that means for several days or not to be operating at the rule number one.

-- Gateway airport American Airlines is 25% of the traffic at JFK united has about 70% of the traffic it.

At -- so we're gonna have some hits at the bottom line but again.

You know this is though the business they've chosen in the airline business.

Robbery -- of jetBlue he's the chief operating officer we just want people to know will be joining us live.

In the next hour to talk about how that one is being affected but you're -- -- united delta.

Not to mention as we said American Airlines these are carriers that specifically feet to the East Coast.

Talk about what they're doing what it comes to re booking and and the impact because the the impact diameter is that call -- of this storm.

800.

-- so this is not just a new York New Jersey specific story is that not.

-- we're talking buffalo being effective -- Charleston, West Virginia being affected.

But of the I think the airline's -- father -- -- accommodating passengers.

Is going to be more than you might think -- re booking passengers on another flight -- many people never got to their destination in their home.

You know watching watching this show so it's really gonna be real booking people don't wanna go but -- that's gonna get lost and began to innovate balancing it out.

300 million dollars lost to the bond.

Line 300 million to the bottom line not to not to you know imagine what what else is affecting -- -- mean there there are many different tentacles.

Of the airline industry we've got.

Obviously the -- situation we've got fed ex and UPS a lot of people FedEx their bags so.

Things are lost how long do you think it will take for the airlines to get back up on regular schedules.

Well yeah it depends on how long it's gonna take before LaGuardia -- stops looking like a lake but I I would think.

By a -- Saturday or Sunday you're gonna be a lot more back and back into and you think airlines are very very vibrant in terms of getting themselves.

You'll back up and running and they prepared for this week.

Looking at the cancellation fees now this could be a big PR disaster for some -- and if they have a look correctly it can be a real plus for them.

Do you think that they will waive the cancellation fees are you hearing anything about that.

We have sure they're gonna say they do it probably some airlines do they say well he can't -- -- your ticket that you can change your trip.

Well -- -- funerals on Thursday and not gonna -- two weeks from now.

So I think they need to be very careful about how they're going to refund tickets in just again one of the issues as airlines have in many ways.

Remember rules and forgotten the customer is one time -- they want to reduce the damage remember the customer.

First that is very true we hope they will Mike thank you for getting in the chair force on the show I don't an absolutely nuts everywhere.

We truly appreciate you coming on to talk about -- -- their particular airline that you think comes out on top.

People it -- -- as it is this is a business network where I was looking for the next big story.

There's no airline that comes on top every airline and America whether it be even Hawaiian Airlines has -- been effective with their one flight to Kennedy says nobody comes on top.

Some people come out less on top.

Mike Boyd thank you very very much we appreciate seeing you next time.

Stay tuned.

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