Specialist
C-level executive at AirInsight Group, LLC
Agenda
- Current and potential valuation of SGR (slots, gates and routes) across major airlines
- Alignment of existing non-aircraft assets with long-term competitive strategy – domestic and international
- Opportunities for carriers to enter new markets via SGR purchases – potential acquirers vs potential sellers
- Short- and long-term outlook – drivers of valuation change
Questions
1.
How do US airlines acquire their slots?
2.
How are the gates allocated?
3.
How do the routes end up with the airlines? Do they choose their own slots, or are they defined ahead of time?
4.
How would an airline going bankrupt impact the slots or the gates?
5.
How wide a range would there be between prime slots, depending on the time of day?
6.
How has the value of these assets been affected since the onset of the pandemic? How does that compare to prior lows?
7.
How long is the waiver for the use-it-or-lose-it rule?
8.
What is your domestic recovery forecast for 2024 and your international forecast for 2025? When did you set that forecast? Have you revised that since the crisis?
9.
What do you think about the spread and the values of these assets between a hub and a regional airport? How material would that be?
10.
Is a percentage of appraised value a useful concept in evaluating the SGR [slots, gates and routes]?
11.
Historically, which airlines have used SGR assets as a source of financing?
12.
You mentioned the Delta USD 5bn deal for bonds backed by slots, gates, and routes. Where does that rank? Is that the biggest one deal ever made?
13.
Do you have any thoughts on the recent American Airlines debt deal backed by SGR assets?
14.
Are there other airlines you would expect to use SGR as a source of financing?
15.
How deep do you think the market is for monetising SGR assets? You said it’s small but growing, and 9% or 10% of debt was backed by SGR at one point.
16.
Where do you think SGR ranks as a source of financing relative to other opportunities, given the focus from investors on cash burn and liquidity?
17.
What do you think are the key changes to date out of the airlines? The focus has been on cutting costs and stopping cash burn.
18.
What do you think airlines can do to rebuild passenger confidence? Is anyone doing a better job at it?
19.
Are any companies providing retractable slide curtains or air systems that deflect downward innovating or getting a lead?
20.
How are governments or airports handling the situation?
21.
We talked about a potential recovery in 2024 and 2025. How do you think we can get from here to there?
22.
What questions should we ask airlines about SGR, or any other topics we haven’t covered?
