ISTAT Jetrader - Summer 2022 - 19

AUDIENCE POLL
Which aircraft type has seen
LEFT: The Airline Panel, from left:
moderator Catherine O'Brien, Joe
Allman, Jude Bricker, Gerry Laderman
and Meghan Montana.
the biggest change in value in
the secondary market during
the pandemic?
Airbus A330-300:
RIGHT:
Sarah Aoun, head
of capital markets
financing at
Airbus, providing
Tuesday's opening
remarks.
Boeing 777-300ER:
at S&P Global Ratings; and Greg Willis, executive vice president and chief financial
officer at Air Lease Corporation.
Streeter started the discussion by acknowledging the " two elephants in the
room: Russia and Ukraine, and fuel prices. " The panelists then considered whether
new investors are sticky enough to weather the current market volatility, how the
use of loyalty and routes/slots/gates financings has impacted their view of financing
the industry long term, and rising interest rates.
Hendry, speaking to what's changed for United Airlines' financing strategy since
the start of the pandemic, said: " The only thing that has changed for us internally
is how much cash we decide to use to purchase any or all of the aircraft. From the
standpoint of what are we going to do moving forward, as long as we get the rates
and structure that's attractive for us, we may end up doing more financing and keep
the cash on the books because we never know what surprise will be around the
next corner. "
Airlines
The final panel of the day was the Airline Panel, moderated by Catherine O'Brien,
global investment research at Goldman, Sachs, & Co., and featuring Joe Allman,
chief financial officer and senior vice president finance at Republic Airways; Jude
Bricker, chief executive officer of Sun Country; Gerry Laderman, executive vice
president and chief financial officer at United Airlines; and Meghan Montana, vice
president and treasurer at American Airlines.
Allman spoke to the pilot shortage, saying, " The industry right now is 5,000
pilots short. We see the shortage growing to a net 8,000 pilots. For us, that means
utilization will be constrained. As an industry, we need to drive more entrants into
the business. It'll be a rough go for this year and next for the regionals. "
O'Brien asked Laderman how the industry should be thinking about the passthrough
of higher fuel costs, to which he responded: " This is the million-dollar
question. The last week hasn't been great for oil prices or U.S. airline stocks. We
don't know how long this is going to last. We can't predict the full impact, nor
48%
26%
16%
3%
Boeing 737 NG:
Airbus A320ceo:
can we predict how much, if any, can
get recaptured. There is data you can
come up with that shows the industry
recaptured 60% of fuel price increases,
but there really is no precedent for
what's going on right now. We'll have to
wait and see. "
Day Two
Tuesday, 8 March, began with a breakfast
discussion, " The Inspirational Impact of
D&I Awareness, " where attendees could
learn and share with senior executives
from the industry. To learn more about
the event, turn to page 28.
After the breakfast, Sarah Aoun,
head of capital markets financing at
Airbus, provided opening remarks in
the general session hall and wished
Jetrader * SUMMER 2022 * 19
ISTAT Jetrader - Summer 2022

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