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Quest Means Business
Countries Attempting To Restart Economies See Coronavirus Cases Spike; Avianca Has Filed For Bankruptcy Protection. Aired 3-4p ET
Aired May 11, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:36]
RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS: An hour to go before the closing bell on Wall Street, 60 minutes of trade and the market
that opened down quite sharply more than 200 points has rallied over the course of the session looking at the way the Dow is going to be in the last
hour.
We're still down, but there's that little taut of green just after one o'clock. So, we're bouncing around the zero level. It could go anywhere
between now and the close. Those are the markets or that is the market and the reasons why.
Well, there are new infections in some old hotspots. Coronavirus has returned to some places that thought that it got rid of it, especially as
they're trying to reopen.
The world's second oldest airline is going bankrupt.
And the Disney theme park empire is starting to reopen and it begins in Shanghai. Timed entries, loads of tickets and social distancing.
Live from New York on Monday. It is May the 11th. I'm Richard Quest, and of course, I mean business.
Good evening. It's a story of caution. It is confusion and fear. They are the sentiments being expressed across Europe and beyond as countries start
to reopen after the long lockdown.
Stocks are lower as investors start to try to weigh up exactly how these way openings are going, what it means for the infection rates, and of
course, how companies are going to respond.
So, these are the developments to begin with. The new -- there is a new warning from the World Health Organization, which says that the virus is
surging in countries that are easing restrictions.
Germany, of course, was Europe's success story. Now infections are rising days after easing the lockdown. In South Korea, they are reversing plans to
open or to reopen schools after a new spike in cases that's been tied specifically to nightclubs in Seoul.
And in the United States, Donald Trump tries to move on, the outbreak is now though inside the White House and that to some extent under cuts his
message that it is safe to reopen many businesses.
In the United Kingdom, there is confusion over Boris Johnson's plan. Businesses and labor unions are all demanding clarity. There are
conflicting message from the other national countries of Scotland, Wales and Northern Ireland.
And a moment or two ago, Boris Johnson responded to that criticism.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: What we said is basically stay at home and the British public heard that message loud and clear.
And in the U.K., people have stayed at home overwhelmingly, and that's been a good thing in terms of delivering our ability to combat the disease and
to get the R, the rate of transmission down.
But it's a very -- obviously, a very simple message. It's really -- it couldn't be as start as stay at home. Now, it's when you come to take small
steps back to normality, as we are now, that clearly the message becomes finer and more complicated.
(END VIDEO CLIP)
QUEST: Days after the ease -- the lockdown began to ease in Germany, the rate that the Prime Minister of the U.K. there was talking about, the R
rate has now risen above one in Germany. It's a sign that the virus is most likely spreading.
CNN's Fred Pleitgen is in Rostock in Germany. It's a small and visiting a small business negotiating the reopening and the difficulties they are in.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Walking through the pedestrian zone and Rostock in Northern Germany, you
could almost forget this country is in the middle of a pandemic. Most shops are open and now, so are the cafes and restaurants.
At the Old Western Steakhouse, owner Borwin Weneger says he is thrilled to be serving customers again. But he doesn't think he is making much money.
"I'm not even dreaming about making a profit right now," he says, "But if we are operating at about plus or minus zero for the moment and then we
could make a profit when things pick up again, that would be great."
[15:05:10]
PLEITGEN (voice over): Like all restaurants in Germany, the Old Western has to adhere to strict hygiene measures. Tables have to be at least 1.5
meters or about five feet apart, meaning the restaurant can only be filled to about half its usual capacity.
PLEITGEN (on camera): Patrons who come to eat here don't even have to wear masks, only the staff wears masks, but you do have to fill out this form
here.
Now, it asks you for your name and asks you for your address, your phone number, the table that you sat at and the date that you were here and the
reason for that is should there ever be a coronavirus case in this establishment, the authorities want to know exactly how to trace everybody
who was here.
PLEITGEN (voice over): Across the country, Germany is easing many of the measures meant to combat the novel coronavirus. The area at the rugged
Baltic Coast is gearing up to welcome tourists back to its beaches soon.
While in other parts of the country, people are working out to get in shape for the beach, after gyms in some regions have been allowed to open things
up.
"It's awesome," this man says, "But I am a bit concerned about how many people are in here."
Angela Merkel is concerned as well, telling Germans not to get complacent or risk a new spike in infections and possibly a harsh new lockdown.
"We are entering a new phase of the pandemic," Merkel said and it will be very important that despite the easing of restrictions, we ensure that
people adhere to the fundamentals of physical distancing and wearing masks.
But many are fed up with a physical distancing measures. Police made several arrests this weekend, as thousands protested across Germany against
what they feel is an infringement on their civil rights, which they say needs to end now.
Fred Pleitgen, CNN, Rostock, Germany.
(END VIDEOTAPE)
QUEST: And so to the U.K. now where the people are trying to work out exactly what Boris Johnson meant. And today, he has to clarify.
With me is Max Foster who joins me from outside London. Max, before you answer, we've all been getting -- I'm sure you've had it in your e-mail box
this comic video from the comedian, Matt Lucas, have a listen and tell me how typical this is for the level -- I can see you're smiling already --
you know which one we're going to show you.
MAX FOSTER, CNN LONDON CORRESPONDENT: It's genius.
QUEST: But everybody in Britain seems to be sending it to each other, which is an indication of how complicated or confused the Prime Minister
was. I beg your pardon, that was our confusion there, we didn't know -- Max, there is a lot of talk about what the Prime Minister meant. What do
people understand by this -- the measures in the United Kingdom?
FOSTER: Well, they're quite complex last night and you know, we were all sort of pouring over the detail, and today, we've had this huge document, a
dossier really outlining more detail.
It just becomes much more complicated, and I think the shame here is that the government did have a very clear messaging policy, stay-at-home.
And as we were reporting yesterday, three of the nations in the U.K. have stuck with that -- Scotland, Northern Ireland and Wales, so people aren't
allowed out.
Boris Johnson now coming out in Downing Street and saying the rules are changing, but not clarifying that actually, on this, he only really has
jurisdiction over England.
So, a huge amount of frustration and mixed messaging. So, it depends where you are in the nation. So, for example, if you are told by Boris Johnson,
as you were last night, you're allowed to travel as far as you like within a day so long as you're back within that day.
It means you can't cross over the border into Scotland or Wales. He didn't clarify that, but we have to, as journalists now clarify that for people,
much confusion.
Also, there's lots of questions about the going back to work bit. Obviously, people don't want to go out if they don't feel safe at work or
in the public transport system. Is it up to them to define what is safe or is up to the employers to define what is safe?
We're going to have some segments next -- tomorrow, I think it is from the Treasury. The Chancellor of the Exchequer is going to have to clarify a lot
of that. There's a huge amount of question around that as well. If he wants to lift the lockdown, how does it actually work?
QUEST: Max, enjoy this moment. You were talking about whether people can go to work or not. I think this puts it very nicely.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: So, we are saying, don't go to work, go to work. Don't take public transport, go to work, don't go to work. Stay indoors. If you
can work from home, go to work, don't go to work. Go outside, don't go outside. And then we will or won't -- something like that.
(END VIDEO CLIP)
[15:10:05]
QUEST: If it wasn't so serious, but it is well put. So, what is the thinking now about when businesses. I know restaurants and bars may open in
July, but not before, but in terms of an old fashioned solicitors business and office business, when can they reopen?
FOSTER: Okay, so we had one update today, which was about people in the U.K. being allowed to go out and meet one other person.
But again, it's all this muffled languaging around it, so we had to dig into the detail on this as well and then we find out you can meet one
person, it has to be outside, but it can't be in your garden. It has to be two meters apart.
But then you come to the question of, if I want to go back to work, my kids are at home. If they can't go to school is the onus on me to make the
decision not to go back to work? Will I be penalized for that?
So, that's a huge question. If I do go to work, I'm apparently allowed childcare. But obviously, with childcare, you can't guarantee the two meter
rule.
So, even an annex at the back of this document saying perhaps you can open a window. Also cleaners are allowed in homes now, because I might need a
cleaner if I'm out at work.
But it's not clear where the social distancing rules come into that. So, there's so much that isn't clear. I think a lot of people frankly, are
going to want to stay at home because not sure they're going to be safe if they go out.
This is where Boris Johnson has a big problem.
QUEST: Max Foster is in London. Max, thank you.
Sir Christopher Pissarides is the Nobel Prize winning economist. He joins me now. We'll talk about herd immunity in just a second, but your view is -
- and it's good to see you as always, Sir Christopher -- your view is that as long as this confusion reigns, people simply just don't obey the rules.
SIR CHRISTOPHER PISSARIDES, NOBEL PRIZE WINNING ECONOMIST: I think there is a very big risk of that. People are getting a little bit tired. There's
a lot of compliance in Britain to stay at home. It's something like 75 percent at least.
It's now been after for seven weeks, and I think the reason for this rather confusing message is that you sort of get the impression that deep inside
the Prime Minister and his advisers, they didn't really want to relax the rules but they realized that if they kept them as strict as before, they
would be breaking the rules, so why not relax it a little bit so that you give people a little bit more freedom.
The irony it is that is that they are not really give people more freedom if you look at the important things like schools, childcare going to work.
I mean, how could you have childcare and the child minder cannot get within two meters of your child? It's impossible.
The rule even before was that work from home, and if it is really essential work and you have to go to an office, go but be very careful and keep the
social distancing.
It's more or less what's being said now, but they're giving it a little bit more emphasis now than before. Before it was an absolute necessity. Now,
it's more like, if you really have to do it, then you can do it, then do it.
QUEST: This focus on R, the level of reinfection rate getting it under one, and as it relates to the management of this crisis now, this is
something not unfamiliar to economists who work with similar ideas on unemployment.
You, I know, have done much work in this area yourself on the economic front as opposed to say the public health front, but the two can learn a
lot from each other at this crucial time, in terms of how we reopen, so that R remains less than one.
PISSARIDES: There has been actually -- and it is amazing, it is the first time I think that we observed in economics over many, many decades, so much
work being done on a new topic.
I mean, two months ago, no one was working on these things. And suddenly they discovered these new models, the SIR model as they call them, the
epidemiologists have been using for a hundred years.
And we could apply the techniques of labor and economics, the techniques of moving in and out of unemployment. You know, the models that I work for
most of my career.
I mean, just think of it, what the epidemiologists are saying is that there is a group of people who are infected, they're in a bad state and others
will come in and then they find the conditions under which they will come in, which is social contact and others will leave to recovery or simply
remove from the that.
[15:15:08]
QUEST: Right.
PISSARIDES: Now, it's very similar to what economists are saying there, you can't be employed without a job and they might leave that under
circumstances and that's when they meet a company that has a job vacancy to fill.
But then others might come in, because the job they had before is no longer productive. So, instead of getting infected by something and it goes out.
So, they are very similar models. And what we're trying to do in our economic research now is to draw lessons for epidemiologists, because there
are some things that economists emphasize that epidemiologists we're not emphasizing before, to the best of my knowledge, at least, which is based
on incentives. What incentive do people have to stay at home or go out?
QUEST: Right. Sir Christopher, good to see you, sir. Thank you. I appreciate it. Thank you.
Now, let's go to Saudi Arabia, which is taking drastic action to shore up the economy. First of all, VAT is going from five to 15 percent. It's a
tripling of it.
It's also cutting oil supply by a million barrels, and cutting $26 billion in spending, including vision 2030 projects.
John Defterios is live in Abu Dhabi. Let's take this bit by bit, the cutting -- the tripling of the VAT. Well, when that VAT came out in Saudi
Arabia that was a controversial move in the first place.
Now to triple it, I presume, and there are all sorts of stopping allowances or certain allowances, and this is obviously designed to reduce government
spending and increase the coffers.
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: It certainly is, Richard. This is a case here, I think that the Crown Prince's
diversification plans are clashing with austerity measures and the latter takes priority. This is today's reality.
As you were suggesting, the VAT is pretty new. It was introduced just two years ago at five percent, to triple it during a projected recession kind
of is counter cyclical.
Also ditto for the cost of living adjustments which came in during the last oil crisis. So, it'll cost government workers about $300.00 a month. And
despite all of these cuts, Richard, it still leaves -- get this -- a gaping hole of 13 percent of GDP in the budget deficit for 2020, two times the
target for the government, which begs the question, what happens to the pet projects of the Crown Prince Mohammed bin Salman? The Mega City on the Red
Sea called Neom, mountain resorts are being developed, a major entertainment park outside of Riyadh.
We'll find out in about 30 days because there's a budget committee coming together under the auspices of the Minister of Finance, Mohammed Al-Jadaan,
who you spoke to recently.
This all came to the fore, Richard because of the numbers we saw in March for reserves were tumbling down to $465 billion, the sharpest monthly drop
on record. That figure was $750 billion back in 2014.
It created such a panic that the Central Bank had to come out and say, we still support the dollar-rial peg because the reserves are dropping so
quickly. That's the austerity we're talking about today.
QUEST: Okay, so is this a -- I mean, it's clearly something, a big dose of reality of economic reality because not -- and I'm wondering whether 2030
Vision eventually just has to be abandoned because there's going to be no sizable extra money between now and then.
DEFTERIOS: I believe that a recession this year of a negative 2.3 percent. I think the International Monetary Fund is being ambitious and suggests we
could get growth equal to that amount on the plus side in 2021.
How desperate is the situation, Richard? The Minister of Energy announced the plan to cut another million barrels a day in production through June.
Get this -- this takes their production output to an 18-year low, just under seven and a half million barrels a day.
If you asked me that question in March, during the heat of the price war, when they took up their production to 12.3 million barrels a day, I would
suggest you're nuts. That's quite a swing of nearly five million barrels a day.
And Richard, in this austerity picture, it is still not enough. UBS, the investment bank was saying that we could get to -- what -- $45.00 a barrel
by the end of the year. The latest figures from the IMF is suggesting the breakeven price for Saudi Arabia, even with this austerity is at $76.00 and
we're at $30.00 today.
So, that budget deficit is going to be under strain until this oil market gets rebounds. Not good times, for the number one exporter in the world.
QUEST: John Defterios in Abu Dhabi, thank you very much.
Now, when we come back, two airline stories to bring you. Firstly, Avianca, the Colombian airline has gone bankrupt. We'll explain what that means.
And secondly, Frontier Airlines in the United States hopes to be at the forefront of keeping everything moving as the disinfected airline, after
this.
(COMMERCIAL BREAK)
[15:22:44]
QUEST: The Colombian airline Avianca has filed for bankruptcy protection here in New York. Avianca has just celebrated last year its hundredth
anniversary. It is the world's second oldest airline behind KLM for those who are interested.
The airline, Avianca hasn't had bombings, crashes or poor safety records. Stefano Pozzebon on the fate of Avianca, reports from Bogota.
STEFANO POZZEBON, JOURNALIST: Yes, Richard. This story is generating a lot of interest because Avianca is an institution here in in Colombia. It's the
world's second oldest airline still in operation.
It's a source of national pride, and part of the company is still based in the city of Barranquilla, where it was founded in 1919 by a group of German
and Colombian citizens.
Today, Avianca is one of the busiest airlines in South America and the ratio of the company is a testament to how much the Colombian economy grew
in the past decade.
Now, the company is not new to these sort of situations. It filed for Chapter 11 in 2003, and at the end of that process, it was purchased by an
international conglomerate and recently won an award for the best airline of South America, even open to international investors via the New York
Stock Exchange.
Speaking with Colombian media, Avianca CEO, Anko van der Werff mentioned similar cases of airlines which filed for bankruptcy in the last 20 years
or so, in particular, United, Delta and American Airlines, saying all these companies came back stronger after the process, and with the hope that
Avianca could similarly avoid halting operations.
Avianca was particularly fragile in front of the pandemic because it is mostly based out of the airport in Bogota. And when the airport was shut
down two months ago, it meant almost all of Avianca's flights got canceled and went on burning most of its reserves. This month, its employees will be
paid minimum wage.
Here in Colombia, there is a lot of concern for the future of more than 20,000 employees, but actually, Richard, the workers union support the
filing for bankruptcy. They say it is a route that will allow the company to keep operating.
And so, Richard, it's still very much unclear what will happen when flights will eventually resume hopefully next month after the lifting of the
lockdown.
But Avianca is saying that it will do whatever it takes keep the flights open, and all of its employees a well-paid -- Richard.
[15:25:23]
QUEST: Stefano, thank you in Bogota. Look at these pictures from United Airlines, which are doing the rounds. It's from a united flight and it's
causing some consternation, as you might guess.
It's raising questions about social distancing in the sky. Apparently, it seems to be flouting the promises that the airline made on assuring safety,
not least of which about the so-called middle seat.
The Frontier Airlines is backtracking on a controversial proposal. Initially, it had proposed to charge passengers for keeping the middle seat
empty. It was an option that they said passengers could if they wish to pay for.
Now, amidst potential congressional outrage and public relations disaster, the company has decided to change that.
Joining me now is the CEO of Frontier, Barry Biffle, he joins me from Las Vegas to talk obviously about the measures that you're doing and the
airline is doing.
Barry, before we talk about keeping an eye on the future of the industry. I just want to know -- now, I can see how these things happen. But was it in
hindsight wise to even think of mooting a plan that involved charging to keep the middle seat empty?
BARRY BIFFLE, CEO, FRONTIER AIRLINES: Well, thanks for having us on, Richard. Look, I think from the beginning, Frontier has been in the
forefront of keeping passengers safe, whether it be the air filtration system that in two to three minutes recirculates to the aircraft.
We were the first airline in the U.S. to require masks of our employees. We now are requiring it of passengers as well. We're instituting temperature
checks.
And so we believe this layered approach of all the things that we're doing is actually keeping you safe on an aircraft and you don't need to actually
block middle seats.
But we recognize that some people wanted the option and we wanted to guarantee it because what you're seeing, as many airlines are saying,
they're making best efforts. But oftentimes, it's not guaranteed.
But there was confusion about it, I think people don't realize that our average fare is only $50.00 even with the $39.00 option, so it's less than
$100.00.
But we've walked it back and we now have over 40 seats that are available with a blocked seat next to it.
QUEST: All right, so obviously, flying with the middle seat empty long term is not a viable proposition for any airline in any part of the world.
That much we talk about regularly.
But I do wonder about the ability of airlines to survive and to thrive -- well, maybe survive for the moment. Once reopening begins, convincing the
public to travel to get the load factors that you can remain profitable, it's not going to be possible for some time to come.
BIFFLE: Well, look, we're doing our part to keep passengers safe and that confidence in is coming back. We're starting to see sales rebound.
The question now, Richard is, is what destinations are open? You know, I'm in Las Vegas right now. There's big question when the casinos are going to
come back. Whether it be in Disney World down in Orlando or Universal Studios, people want to know, is there something to do when I get there?
So, at this point, I think people feel safe on board aircraft. They are actually safer and most than you are in most buildings given the filtration
and all of the cleaning, but they have got to have something to do when you fly there.
QUEST: Right. So how long can you keep Frontier going at these sorts of levels? If you look at the past of RASK and CASK and you look at yield, you
know you are having to fill a large number of seats just to make a bit of money. And the margins weren't that good to start with.
But you've obviously hunkered down, you've drawn down your lines of credit. How long can you keep it going at this sort of rate?
BIFFLE: So, we've got our cash burn rate to a very low level. We went into this, Richard, with actually lowest cost in the United States. And
actually, we're the second highest margin last year in 2019.
So because of our low cost, it doesn't take that much to get back to break even. So, we feel pretty good about the future. We're also not leveraged to
international long haul or business travel, so we're more visiting friends and relatives and some leisure. So, that is the first thing that will come
back.
But I think business travel and I think international long haul, maybe a ways to go.
QUEST: Good to have you, Barry. Thank you. As this progresses, please, let's keep in touch and talk more about this in the future. Thank you. Kind
of you for giving us time. I appreciate it.
Now, this is QUEST MEANS BUSINESS. We'll be back in just a moment.
(COMMERCIAL BREAK)
[15:30:00]
(COMMERCIAL BREAK)
RICHARD QUEST, CNN INTERNATIONAL HOST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. The CEO of Qatar Airways Akbar
Al Baker will be with us hopefully, to tell us why he's giving away 100,000 tickets to health workers when travel may not return for some time, and
will also visit Disneyland in Shanghai. The happiest place on earth reopens. But who is going and after a lockdown? First, of course, this is
CNN, and on this network, the news always comes first.
The British Prime Minister has shared with Parliament his plan to lift the lockdown. It outlines some loosened restrictions, it allows leisure time
outside, and its switch stay at home to stay alert. Critics say, however, the national address just last night was confusing. COVID-19 cases in
Germany have risen days after the lockdown measures loosened. The so-called key rate of -- the key infection rate metric, the R-value has risen back
above one, and that may force the government to reimpose lockdown measures, but pressing forward with the reopening so far.
China is reporting five new infections in Wuhan, where the Coronavirus outbreak first emerged. The city have got more than a month with no cases.
Officials say the new infections are clustered in the same residential district. U.S. House Democrats are finalizing their proposals for another
massive round of stimulus funds, where sources say it could be unveiled on Tuesday. Republicans including President Trump have resisted calls for more
stimulus. They said they want to evaluate existing rescue programs first.
Disneyland Shanghai has reopened and would appear to be trying to do the impossible, how to bring a relatively large number of people less than
before, but still a large number of people together safely and still ensure they have fun? CNN's David Culver is in Shanghai and has been to Disneyland
to find out.
[15:35:14]
(BEGIN VIDEOTAPE)
DAVID CULVER, CNN INTERNATIONAL CORRESPONDENT: It is a strange contrast as some cities in China are going on lockdown, you've got places like this,
Shanghai Disneyland reopened. CNN getting rare access to what it took to pull this off. Welcome into Shanghai Disneyland, where we are getting a
sneak peek of what the new operations are going to look like for this park and reopening 3-1/2 months after they had to shut down because of the novel
coronavirus outbreak here in China.
Now normally, when you're in the park, as they reopen, you're going to have to wear a mask. We're able to take ours off because the crowd isn't in just
yet. But as you can see, the preparations are underway. They've used this time to rethink how they're going to have people coming in safely. Keeping
that social distance and avoiding any sort of contact, not only with each other, but also with cast members. So, it's going to have things looking a
little bit differently. I'm going to take you outside the park to show you how we got in with Senior Vice President of Operations Andrew Bolstein.
ANDREW BOLSTEIN, SENIOR VICE PRESIDENT OF OPERATIONS, SHANGHAI DISNEY RESORT: We asked our guest to do a few things now differently than before.
One is that we ask every one of our guests to have temperature screening as they arrive here at the resort. We also ask them to show their QR code,
which is a Shanghai specific health code. We put a little more structured decaling and markers in place. So, these are very clear. Don't stand here.
Yeah. And then, you stand in the blank space in between. As always, we require government I.D. to redeem your tickets at the entrance. But we're
also going to be capturing government I.D. information for every guest that comes into the park, not just one per party, as part of the traceability
measures that we have in place now for the government guidelines.
CULVER: Give us an idea. I mean, as we're walking through what folks will notice that's different. I mean, one thing that stands out to me constant
sanitation.
BOLSTEIN: Yes. So, we have a very dedicated team of custodial cleaners that we've even increased the numbers of those throughout the park that are
constantly wiping down all the surfaces.
CULVER: And noticing that parade go by, obviously a distance, but as you can still see, the characters. Not the big hug and high fives, right?
BOLSTEIN: Exactly. More of selfie moment and take the photos, but again, it gives the guests that ability to have an emotional moment and that
connection.
CULVER: As you're walking along the line here, you'll notice places you can stop and the places you need to keep a distance. And then, eventually, you
make it to the attraction. Notice this, I want to point this out, as I go into number one, normally you have number two to go into. They've got it
roped off.
Stepping off the ride, the new normal. And they've got several more along the way out.
BOLSTEIN: As for the guests' understanding for your health and safety, the tables unavailable. So basically, we're asking the guests not to sit here,
sit there. And again, it creates kind of that separation between all the different parties.
CULVER: Safe spacing even for the performances. This is one of the stages. Look here in the crowd. Pick a box, that's where you and your family unit
will stand, keeping that distance.
BOLSTEIN: We'll be able to strike that right balance between the safety and health and competence side and then the magic that we're able to deliver
every day.
CULVER: Do you feel in many ways that not only other parts of the company are looking here and other parks hopefully, you know, are going to be
reopening, but maybe even other companies saying, well, let me see how they're doing it. Maybe this could help us reopen, too.
BOLSTEIN: Everywhere is a little bit different though. There's different regulations, there's different environments, people are at different phases
of the epidemic. But I think what we have can be a model, hopefully some inspiration for them, and they'll adapt it for what their local conditions
are. Same thing with the other operators around the world. We communicate and we share. In this type of environment where we want to focus on safety
and health, that's an area we all share together.
CULVER: Decided to end our day in Tomorrowland. The reality is the future is uncertain, not only here in China, but across much of the world. And
places like this, while they operate a bit differently than we're used to, you were the face mass, you got to keep that social distance, you still
find it to be an escape from the noise of the rest of the world, and a place to soak in the joy. David Culver, CNN, Shanghai Disneyland.
(END VIDEOTAPE)
QUEST: A moment. A company that is giving away the food that airlines and other big institutionalized companies don't need or want, after the break.
[15:40:00]
(COMMERCIAL BREAK)
QUEST: Tonight's "VOICE OF THE CRISIS" is that brings airline food to those who need it most. It's saving jobs at the same time. It all starts with
Project Isaiah, which approached Gate Gourmet to deliver more than a million bucks meals to 11 U.S. cities. The co-founder Devon Spurgeon is
from Oxford and from Maryland and joins me via Skype. And when I read this, it's a it is a sort of beautifully ingenious idea that brings a need to
those have, and puts the two together elegantly. But first of all, let's do the business side, Devon, who is paying for these meals?
DEVON SPURGEON, CO-FOUNDER, PROJECT ISAIAH (via Skype): So, I raised funds from high net worth individuals, philanthropies, companies, basically
anyone, it costs about $5.00 a meal. So, $20.00 can really move the needle and feed a family of four.
QUEST: Really, really. And when you run Gate Gourmet because the other quote I've heard about you, is that you're not -- you're basically someone
sitting there in your pajamas with a computer and a phone. And so, when you sat down in your pajamas on the phone, and rang Gate Gourmet, what did they
say?
SPURGEON: Well, you know, I cold called them and they definitely were not expecting this, but they were completely open to the idea because, as you
can imagine, their business just completely stopped when the airplanes started, you know, stop taking off. So, they were game to participate. And
since then, we've been able to do a lot of good for a lot of different people.
QUEST: Okay, so you've got -- you've got this together. It's working. I'm not sure how it's working, but it seems to be holding together and doing
remarkably well by your own admission. There are difficulty -- I mean, you'd have no experience of this before, had you?
SPURGEON: None. No, I'm the least qualified person you can imagine to be doing this. But I'm tough and I am good at making a bunch of calls. And I
think like many people, very motivated to try to make the world better given what's going on.
QUEST: Extraordinary. And when this is over, and Gate Gourmet can keep its employees on and is providing food for airline passengers, do you hope to
somehow continue this? Because the awful part even in very wealthy countries like the United States, the U.K. and E.U. is that there is a need
and a hunger?
[15:45:11]
SPURGEON: Well, I will never look at airplane food the same way again, I can say that definitively. And I'm permanently changed by this experience
and by the organizations that I've been working with. I don't know what the future holds. But I know that this model works and is very effective of
getting a lot of food distributed to people safely through great nonprofits that really, really have done a very effective job at distributing these
meals to those employees that are in need.
QUEST: And one other thing is, the peanuts and the pretzels. The peanuts, I'm assuming you're not, you know, allergic to nuts, the peanuts and the
pretzels, which most of us sort of look at and snare in the little back packet. You relish them, these are perfect. Why?
SPURGEON: Well, I think, you know, we're able to provide the peanuts and pretzels along with some fresh sandwiches. But you know, you, relish things
when you talk to the people that are profoundly grateful to have them. And in many cities, we're providing the only full meals that people may get in
a week because we provide several days' worth so they can shelter in place. So, you look at differently that way.
QUEST: Devon, Devin, remind me the mathematics again, of how many meals you -- what was the number you gave me? How many dollars feeds, how many -- how
many meals?
SPURGEON: So, for $20.00, you feed four people that are desperately in need. So, even just a donation of $10.00 allows us to feed a couple. So,
anything is helpful. And this is all volunteers. And so, every penny goes to feeding people, literally every penny.
QUEST: All right. Normally, we make a promise that we will come to see you or we will check in with you. Tonight's promise from QUEST MEANS BUSINESS,
oh, I don't know, we will feed a couple of thousand people for you tonight.
SPURGEON: Thank you.
QUEST: The producer will be in touch with you afterwards to work out the logistics from me to you. But certainly, this program which puts such
importance in travel and aviation must not forget our duty and our responsibilities. So, a couple of thousand meals certainly heading your way
one way or another. Thank you, Devon.
SPURGEON: Thank you.
QUEST: We'll be in touch. Lovely. All right. Think about that when we all sit down to our dinners, and our lunches, and our breakfast, wherever you
are in the world, watching us tonight. It's QUEST MEANS BUSINESS. We'll be back.
(COMMERCIAL BREAK)
[15:50:00]
(COMMERCIAL BREAK)
QUEST: Qatar Airways has announced it's to give away 100,000 tickets to healthcare workers. It will be done by in different every country in the
world, in various different allocations, over a campaign period that starts tonight. A hundred thousand can go to any healthcare worker who registers
and it's two tickets for that person. It's an economy ticket anywhere in the world with no restrictions.
Akbar Al Baker is the chief executive -- group chief executive of the Qatar Group and Qatar Airways. Akbar is with me now. Chief, good to have you,
sir. Now, you're giving away all these tickets. It's a lot of tickets. Why? Where did this idea come from?
AKBAR AL BAKER, CEO, QATAR AIRWAYS (via telephone): Well, it came within the airline, because we wanted to appreciate the thousands of men and women
in the medical field that have put their lives at risk to serve and cure all the sick people all over the world. So, it is a contribution from Qatar
Airways to recognize their bravery. They are our heroes. And this is a small part of what Qatar Airways and my country can do to appreciate these
medical workers from all over the country, from all over the countries in the world.
QUEST: Now, Akbar, you say all countries, so it always begs the question, and you -- first of all, what are the blockaded countries, Saudi, the UAE
and, of course, what about Israel? Are health workers in those countries? Are they also eligible to join?
AL BAKER: Well, every single country in the world, including our neighboring countries, including the State of Israel, will be allocated
numbers of tickets, depending on the populations and the size of the country, so that we equally distribute proportionately the hundred thousand
tickets that we are offering. There is no difference. There is no barriers in medical field. There are no boundaries.
QUEST: Now, let's talk about the business, in the airline business, you're still saying -- you're saying 2023 before things perhaps, get back to what
they were, but you're going to start meaningful flying again, much sooner, as early as June. You're going to be putting a lot more planes back in the
air. I'm guessing there won't be the passengers there. So, what what's the theory here, Chief?
AL BAKER: No, I don't think that's right. There are a lot of passengers still stranded. There are millions of passengers that are all over the
world that couldn't go back to their countries because all these airports started shutting down. So, we feel that as soon as the airports are open,
we will start operating flights. Of course, it will not be according to the schedule that we used to do in 2019.
We will have reduced frequencies. We will only spread our network to 80 destinations and instead of nearly 180 destinations we used to operate. So,
we feel that there is business to do and at the same time, to carry cargo. You know, we are still doing over 110 cargo flights a day, including the 35
destinations we are still operating in our networks.
QUEST: So, the future for the industry and, you know, I'm aware, of course, that you do the sovereign fund of course, you have -- you directly have
holdings in IAG, a sizable holding in IAG. There's also a holding in Heathrow Airport and a variety of other airlines in order -- when Warren
Buffett says he doesn't think the airlines are a good investment in the foreseeable future, do you agree with him?
AL BAKER: Well, it is not good investment maybe for American carriers. But our investments are good. And we have confidence in our investments. And we
still feel that post COVID-19, the aviation industry has to bounce back, though it will take maybe two or three years, but I'm confident that the
industry will get back to 2019 figures in this period of time. And this is a long-time investment, and we are going to pursue it.
[15:55:14]
QUEST: Thank you, Akbar Al Baker, very glad to have you with us. Thank you, sir. And we'll watch the hundred thousand and see who got what, and the
gist and everything at the end of it. Thank you, sir. A hundred thousand tickets being given away to healthcare workers in all countries, as Mr. Al
Baker was very keen to point out.
Look at the markets and see how they are trading, quickly, before we take a break, and you'll see that having been very sharply down, 200 points, down
1 percent of the open, now down just a quarter of a percent. So, there was a rally, but I don't think we're going to end in the positive. I think
that's pretty much where we're going to be, one of a profitable moment after the break.
(COMMERCIAL BREAK)
QUEST: Tomorrow night, QUEST MEANS BUSINESS, a special edition of the program. The debate between opening up the healthcare risks versus the
economic necessity. Join me tomorrow night, we will have on the program. We'll have the Gary Cohn, President Trump's former economic adviser, and
Mohamed El-Erian, of course, will be with us (INAUDIBLE) and the Nobel Prize winning economist Paul Krugman. The debate is going to be the true
cost of reopening the global economy.
The health workers, the health experts say, no, we've got to make sure we get it below R-1. The economists say we have to open up now. Because if we
don't, there won't be an economy to open up next to. And then the society people say, but what about those who have been injured, hurt? Those who are
psychologically damaged, those have been wounded in a sense, the price that we've paid?
It is the biggest debate, probably in my lifetime, which comes down to health versus economy versus the issues of society. It will all be tomorrow
night on QUEST MEANS BUSINESS. Richard.quest@cnn.com. Give me an e-mail and throw me a thought. Where did I put the bell? I haven't got the bell. You
have to tell whatever it is. It's at the back. That's the bell of the back. Never mind. That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in
New York, whatever you're up to in the hours ahead, I hope it's profitable. Jake Tapper and THE LEAD is in progress.
END
