Wednesday, April 18, 2018

CVG CEO Candace McGraw talks growth, fares

CVG CEO Candace McGraw talks growth, fares

THE QUESTION OVER EVIDENCE. NEW RECORDS IN THIS CASE. IT IS ALL COMING UP IN THIS. WEEK IN CINCINATTI.

>>> GOOD MORNING. THANK YOU FOR JOINING US FOR. THIS WEEK IN CINCINATTI. THEAIRPORT, CVG, ITS FORTUNES.

ARE CLIMBING AGAIN AFTER A. PATCH OF ROUGH ERROR -- AIR AND. THREATENED TO PUT ADENT IN ITS. ROLE AS AN ECONOMIC ENGINE.

THAT IS CHANGING. LOCAL PASSENGERS WAS -- WERE UP. 16%. NEW AIRLINES ARE AT THE AIRPORT.

AND IT IS ON TRACK TO GROW AS A. MAJOR FREIGHT HUB WITH THE. ADDITION OF AMAZON PRIME. JOINING US NOW TO TALK ABOUT.

ALL OF THOSE ISSUE IS CANDACE. McGRUFF. THANK YOU FOR JOINING US.>> THANKS FOR HAVING ME. >>> EVERYONE HAS BEEN TALKING.

ABOUT AMAZON FOR SEVERAL WEEKS. HOW LONG DID IT TAKE TO GET. THIS DEAL DONE? >> IT WAS A SHORT PERIOD OF. TIME.

WE HAD SOME VERY FOCUSED. DETAILED DISCUSSIONS FOR A FEW. MONTHS AND THEN THE DEAL WAS. EXECUTED.

IT WILL BE A GREAT DEAL. THEY WILL LEAST 900 ACRES FOR. 50 YEARS BRINGING IN 100 AIRCRAFT'S ON THE GROUND. IT WILL BE A GREAT DEAL FOR THE.

COMMUNITY AND THE AIRPORT.>> THE START ON MONDAY? >> YES. 14 AIRCRAFT ARRIVING IN THEN WE. WILL GROW FROM THERE. >> PEOPLE MAY NOT UNDERSTAND, HOW DOES THIS IMPACT THEM? WITH AMAZON MOVING IN, DOES.

THIS IMPACT WHAT YOU ARE PAYING. FOR TICKET FLYING OUT? >> NO. THE ONE THING THAT WILL BE A. BENEFIT TO THE PASSENGER.

CARRIERS, THMORE AIRCRAFT WE. HAVE, THE LOWER LANDING FEES. WHILE THERE IS NO DIRECT. CORRELATION BETWEEN THE AMOUNT.

OF PLANES WE HAVE AND THE. LANDING FEES, IT WILL HELP TO. REDUCE COSTS FOR PASSENGER. CARRIAGE OR -- CARRIERS.>> WHEN.

WE TALK ABOUT SECURITY, WE HAVE. DEALT WITH A MAN ARRESTED. TRYING TO FLY OUT OF THE. COUNTRY TO GO SUPPORT ISIS.

WHEN WE TALK ABOUT TSA AS A. COMPONENT OF SECURITY, WHEN WE. SPEAK ABOUT AMAZON MOVING IN. AND DHL, WE SEE DRUGS.

INFILTRATING THE TRI-STATE AND. BEING SHIPPED HERE. DOES CVG PLAY A ROLE FOR WHAT. THEY BE RESPONSIBLE FOR THEIR.

OWN SECURITY WITH IT COMES TO. THINGS BEING IMPORTED? >> NO. IT IS A MULTILAYERED APPROACH. WE HAVE HER OWN POLICE.

DEPARTMENT AND WHAT -- AND. OFFICERS. WE WORK WITH FEDERAL AGENCIES. THAT ALSO HAVE A PRESENCE AT.

THE AIRPORT. THEN, THE PRIVATE SECURITY. FEATURES THAT THE CARRIERS SUCH. AS AMAZON AND DHL HAVE.

WE WORK IN ACONCERTED EFFORT. TO KEEP PASSENGERS AND. STAKEHOLDERS AND EMPLOYEES. SAFE.

>> EVERYONE IS WORKING -- >> EVERYONE WORKS VERY CLOSELY. TOGETHER AND VERY WELL. TOGETHER. WE HAVE VERY GOOD RELATIONSHIP.

WITH ALL OF OUR LOCAL AND. FEDERAL AGENCIES. >> LET'S TALK ABOUT WILL CAST. -- COST FARES.

EVERYONE WANTS TO PAY THE LEAST. AMOUNT. WHEN YOU SPEAK ABOUT LOW-COST. AIRLINES AND FRONTIER, IS A.

KIND OF A DOUBLE EDGED SWORD OR. IS IT RISK AND REWARD. WE HAVE SEEN A LOT OF LOW-COST. CARRIERS FAIL.

THEY GO BY THE WAYSIDE OR ARE. ABSORBED BY ANOTHER AIRLINE. WHAT IS THAT RISK REWARD WHEN. YOU TRY TO FIGURE OUT THE.

OPERATIONS AND WHETHER THAT LOW- COST CARRIER WILL LAST ONE YEAR. OR TWO YEARS? >> RIGHT NOW WE HAVE NINE OR 10 PASSENGER CARRIERS AT THE. AIRPORT. DELTA IS THE LARGEST WITH 45% OF OUR TRAFFIC LOW-COST CARRIERS.

MAKE UP 25% OF THE TRAFFIC. OUR GOAL AT THE AIRPORT IS TO. OFFER GOOD QUALITY SERVICE AT. ALL LEVELS OF SERVICES AND.

PRICE POINTS. IF YOU WANT THE LOW-COST. VACATION TICKET TO HILTON HEAD. OR TO FLORIDA, YOU CAN FIND.

THAT. IF YOU PREFER HIGHER CLASS, YOU. CAN BINDED PAPER THAT. WE HAVE AN AGREEMENT WITH A.

LEGION AND FRONTIER FOR FIVE. YEARS. THEY HAVE A LEASE DEAL. THAT IS NOT THE CASE A LOT OF.

AIRPORTS IN THE COUNTRY. ALL OF OUR CARRIERS ARE. COMMITTED.>> SOMETIMES WHEN. ANNOUNCEMENT IS MADE, SOUTHWEST.

COMING HERE AND PEOPLE ARE. DISCUSSING THAT, THERE IS ONLY. ONE FLIGHT OF TWO FLIGHTS. IT IS NOT NECESSARILY TO THE.

CITY THAT PEOPLE WANT TO GO TO. BUT MAYBE YOU WENT THERE ONE. TIME FOR VACATION. WHAT IS THE CHALLENGE AND HAVE.

YOU NEGOTIATE THAT? HOW DO YOU SAY WE WOULD REALLY. LIKE YOU TO FLY DIRECT TO NEW. YORK BECAUSE THAT IS WHAT OUR. PASSENGERS WANT? >> A COUPLE DIFFERENT THINGS.

ALLEGIANCE NOW HAS 14 MARKETS. OUT OF CBG AND FRONTIER HAS 17. SOME OF THE LOWER CROSS. CARRIERS ONLY FLY COUPLE TIMES.

A WEEK. BOTH OF THOSE CARRIERS ARE. DOING SO WELL THEY HAVE. EXPANDED SERVICES.

WE WORK WITH EVERY CARRIER. OUR LEGACY CARRIERS TO THESE. LOW-COST CARRIERS ARE CARRIERS. THAT WE ARE TRYING TO ATTRACT A.

CBG WE BUILD A BUSINESS CASE. FOR EACH OF THEM WEEK NOWHERE. YOU WOULD COME FROM IN THE. MORNING AND WHERE YOU WANT TO.

END UP IN THE AFTERNOON. WE TRIED TO PUT THOSE CASES. TOGETHER. WOULD GO TO THE CARRIERS AND.

SHOW THEM WHERE THEY WOULD BE. PROPER -- PROFITABLE. IF THEY WOULD INCREASE SEATS. THEY WOULD HAVE MORE TRAFFIC.

ETC. WE HAVE TO DEDICATED PEOPLE IN. STAFF THAT DO NOTHING BUT. THAT.>> THIS IS AN AGENCY, WHEN.

YOU TALK ABOUT AIR TRAVEL, HAND- IN-HAND WITH THE ECONOMY. IF THE ECONOMY GOES SOUTH, FEWER PEOPLE TRAVEL. WHAT HAVE YOU SEEN, IF YOU DO. THAT PARALLEL, WHAT HAVE YOU.

SEEN THE CORRELATES DIRECTLY. WITH ECONOMY. >> IT HAS CONTINUEDTO CLIMB. OVER THE PAST THREE YEARS.

WE'RE UP THIS QUARTER FROM LAST. YEAR ABOUT 15% OR SO. YOU ARE RIGHT, THE ECONOMY. PLAYS A ROLE.

IF PEOPLE HAVE DISCRETIONARY. DOLLARS, -- ALLEGIANCE SAYS. THEIR COMPETITION IS THE COUCH. BUT FOR THE LOW-COST, PEOPLE.

WITH AT HOMON THE WEEKEND. WE DID AN IMPACT STUDY IT 2013 AND WE DID THAT SAME STUDY AND. WE HAVE NOW A 4.4 A $4.4 BILLION IMPACT ON THE. COMMUNITY.

I WAS UP 22% FROM JUST 3 YEARS. AGO. >> WE HAVE ABOUT 30 SECONDS. LEFT.

IN THE EXPANSIONS IN THE WORK. -- WORKS? >> WE HAVE MASTER PLAN STUDY. MORE TO COME ON THAT. THAT WILL SET OUR COURSE FOR..

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