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>> All I have is my credibility.

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When it comes to ice cometh the strategy of letting activists do

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the talking, while Mac remains silent cannot continue.

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The airport doesn't need to express an opinion they just

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need to acknowledge reality.

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Today that means talking about how

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Ice is detaining people on jet as they board their flights even

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when traveling domestically.

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Many Minnesotans will immediately dismiss concerns

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when they're coming from the union or some heavy set hippie,

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your continued silence is harming the state

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that you are supposed to be serving.

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The voice of the airport needs to do more than tell people

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to call police when they can't do anything or defer comment

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to the feds.

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We have been coming here asking for you to do better for months.

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Tomorrow will observe the 5,000th person getting flown

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away from their homes by ice here at MSP.

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Including your workers.

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Including Minnesota's children.

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When will it be enough for you to speak?

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I continue to be impressed every time

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I interact with the staff and the workers here.

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They are proactive common courteous common many

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have privately offered praise and support for my remarks here.

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If there are any continued hard feelings about tone or disunity,

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I suggest the problem is coming from that end of the room,

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and not this side of the podium.

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Once again to be clear I'm not blaming the commission for Ice

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activity, I'm asking for transparency and accountability

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for your workers, for the traveling public, the commitment

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for acknowledging the truth.

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Max values are to take ownership, treat

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each other well, act with integrity,

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and continuously improve.

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It's time to start doing your job.

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Thank you.

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>> Thank you.

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Is there anyone else who would like to take this opportunity

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to speak before the commission?

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Hearing none, we go through to item 1.5,

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and I call on Naomi to come forward.

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Thank you.

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>> Who am I?

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Where am I?

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Okay thank you.

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Well, good afternoon Chair Lawrence and Commissioners.

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I'm Naomi Pesky the vice president of strategy

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and stakeholder engagement.

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And I am very pleased to be here to share that the Mac has

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recently earned two honors from the Minnesota Association

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of Government Communicators.

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Through its Northern Lights Awards program.

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This is a long standing program that

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recognizes outstanding work and Minnesota's government,

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educational, and nonprofit communications.

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Entries are judged by government communicators in North Carolina.

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To remove any local bias.

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The two awards that we are sharing today

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demonstrate the excellence of the Mac's

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internal and external communications, led

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by our strategic Marketing and Communication

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Department in partnership with stakeholders across the Mac.

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Here are the 2026 award winning projects.

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Okay.

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So, the first one is for the MSP Airport threads account.

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For this, we won the Northern Lights Award

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which is the name of the first place award.

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It is in the social media engagement

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category for large entities.

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This category recognizes documented successes

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in building community engagement and social media.

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Threads is a meta platform where posts are text first rather than

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image first.

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Threads launched three years ago and has already

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grown past 500 million monthly users on that platform.

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Which is on par with X. Our digital marketing manager

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Isaac Rossouw, Where is Isaac?

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Hi Isaac!

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In partnership with the full strategic marketing

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and communications team launched the MSP Airport Threads account

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in 2025.

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On threads, a distinct voice is what stands out.

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And, in the past year a team has built a following

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based on local humor and airport personality.

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Such as focusing on Minnesota things like hot dish,

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duck duck gray duck, keeping MSP and travel top of mind

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for our local followers -- you can see a clip post gives some

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taste for some of the local humor and airport personality.

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The approach has been successful,

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Mac has been able to nearly double the account's followers

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without any paid media spend which

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is increasingly very challenging in today's social media

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landscape.

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And users engage with posts through likes, comments,

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and shares, 10,000 times.

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Our posts have earned over 200,000 impressions.

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The second award is for a Silver award,

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our second place in the agency Event program or service video

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category.

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This category recognizes videos that educates or informs

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audiences about an initiative.

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In December, the video making Triazole

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was the first story in a new video

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series called Mac Spotlight.

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The series is primarily designed as an internal communication

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strategy to engage and inform Mac employees

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about the people, places, and work across our organization.

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However, there are some installments

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such as this one which are also relevant

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for our external audiences.

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It provides an authentic social media content

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to strengthen engagement and support

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external brand recognition of the Mac's owner and operator

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MSP.

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The Spotlight series is produced by Manager of Strategic

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Communications Jeff Lee.

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In partnership with the Marketing Communications

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Department and subject matter experts across the Mac.

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For the first installment the key stakeholder group

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that he partnered with was Airport Development.

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This video takes viewers behind the scenes of a major component

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to the recently completed airport modernization program

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that resulted in the largest interior makeover of Msp's

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terminal one.

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Since it opened in 1962.

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The video showcases the skilled craftsmanship behind Terrazzo

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flooring and how these improvements enhance

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the passenger experience.

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I would like to show you a 62nd clip of the original three

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minute long video so that you can get a taste of what this

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great video does.

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I'm not sure why that's not working.

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Have MCs here for wheelchair pushers, for folks with bags

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>> After 17 years the custom fields are brown gray and beige

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have been flipped for harder shinier Terrazzo.

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>> It lasts a very long time, it's got an ROI of over 25

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years, makes more sense comments cheaper to clean,

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it's easier for wheelchair pushers, for folks with bags.

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>> Berkshire bays coastal fog and Sleigh bells.

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>> On this night Terrazzo finisher Randy Larson and team

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helped to create the white mix.

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A recipe of marble, and seashell chips.

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At the poor sight there's no grand machine laying down

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the floor on the g c SkyBridge.

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Just the well experienced hands of two Terrazzo craftsmen.

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In a decade's time MSP will have gained

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the equivalent of nine football fields of Terrazzo.

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Making travel seamlessly smoother

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while providing a unique canvas of art underfoot.

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Pointing travelers away and home again

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and reflecting the changing times and shadows

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of an airport in motion.

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For Max spotlight, Jeff Lee.

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>> Thank you Brad for your help.

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So, I will just wrap up, I'm not going to pull open

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another presentation.

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But I will just close with sharing

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that we are we were two of nearly 200 entries

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that were submitted for consideration for this year's

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awards.

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And the categories were many.

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We competed against other large scale government entities,

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several State Department Metro Transit Metro area

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counties and cities with robust communication programs as well.

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And I'm really proud of the team the awards recognize

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the quality of our communications

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and the demonstrated success.

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Not only reaching but truly engaging.

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Our target audiences are both internal and external

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so I want to congratulate our talented strategic marketing

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and communications team members whose work

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continues to elevate the Mac's purpose, share our story,

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and extend the MSP brand across digital channels.

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And thank you to all of our stakeholders

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who enable us to have great work to amplify and enable us

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to do great work together.

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And who are always there to help us out.

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Right Brad?

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Okay.

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So, I will close with that, and if anybody

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has any questions or anything they want to share,

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I can stand for that.

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>> Any questions?

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Comments?

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Congratulations to you and the team.

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For those awards.

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I think next up is Angela and Ross.

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>> Good afternoon Chair Lawrence and commissioners I'm Angela

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Enright the senior project manager with Mac airport

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development and I'm here to announce that the terminal one

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operational improvements project won a finance and Commerce Top

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Project award for 2025.

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So this was for our entire operational improvements program

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over the last ten years.

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So, the project was honored for this year

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for its degree of difficulty, creativity and design,

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innovative construction techniques, cooperation

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among contractors and management,

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and sustainability efforts that were

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woven through the effort making it not only transformative,

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but responsible.

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So operational improvements was a ten year $600 million

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renovation, of the entire front of house at terminal one.

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That originally opened in 1962.

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And, the project encompassed 730,000ft².

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Of space to be remodeled including about a 1600

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zero square foot new addition on the front portion

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of the terminal.

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So nearly every part of the passenger journey

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was touched from curbside arrival and ticketing

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to baggage baggage claim.

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So, remarkably all of this was completed while maintaining full

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24/7 airport operations for the entire decade that the project

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was under construction.

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So, I want to sincerely acknowledge

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our design team and the contractors,

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our Mac stakeholders and tenants, and the airlines

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for their unwavering dedication and teamwork to the project, as

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well as our commissioners.

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Thank you for your steadfast support

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throughout this project's long and ambitious journey.

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So come on this project wasn't just a renovation,

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it was a decades long commitment to shaping

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the future for our travelers and passengers.

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So, thank you for being part of that journey for us.

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We accepted the award in July excuse me August.

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And this is just a small portion of our design team.

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So there were dozens if not hundreds

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of people involved from the design team and contractor side.

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So it was very nice to be honored with that award.

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>> Well deserved and congratulations from me

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and I'm sure all the other commissioners.

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Does anybody have a question?

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Comment?

236
00:19:47,948 --> 00:19:50,280
Thank you very much.

237
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>> Thank you.

238
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>> Now turning back to the agenda,

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we have had some people arrive a bit late.

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Who did want to speak in the public comment.

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I hope I pronounced the name right.?

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Please join us.

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Thank you.

244
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And I'm sorry hello everybody my name is --

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I'm here I drive Uber and Lyft, I'm also organized with SRU.

246
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Thank you for the opportunity to speak with you today.

247
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I'm here to speak support for the proposal (Indiscernible)

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We have running water improvement with a new facility

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will be a big improvement from that.

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We are also grateful to have we now

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have a regular communication with airport

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staff and the drivers union.

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It is good to work together.

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As we are working and we plan to improve conditions for drivers,

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we ask that we involve us in the plan process.

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And we will then be waiting for a long time.

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We'll need the break area doesn't shelter from the area.

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It takes care of the customers here at MSB.

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We need dignity, and a facility like all other workers.

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We want to make the airport safe and a welcome place

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for everyone.

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And thank you so much.

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>> Thank you.

264
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There's one other.

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So, Sean Smith Atkins?

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>> Sharon Smith Atkinson.

267
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>> Please come forward.

268
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>> Is this where we go?

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This is my first time.

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00:22:39,921 --> 00:22:41,398
Good afternoon everybody.

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00:22:41,398 --> 00:22:44,428
I've got my notes so I can be concise.

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00:22:44,428 --> 00:22:48,348
Good afternoon everybody my name is Sharon Smith Atkinson

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I represent the Ray McKenzie Group

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and I'm here today on behalf of our hometown icons.

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Jimmy Jam and Terry Lewis.

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00:22:55,941 --> 00:22:58,808
You may know that they are coming home to the State Fair

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on August 29th for a celebration of the Minneapolis Sound.

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They are bringing so many amazing artists with them,

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it will be three hours of 50 to 60 hits, all made in Minnesota.

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They were born and raised in Minnesota,

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and we all know that we have the same goal of making sure

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that we are doing tourism, we want

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00:23:20,388 --> 00:23:23,848
people to say amazing things about our city, amazing things

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about our airport.

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So I thought, since I was the one well it took seven years

286
00:23:30,163 --> 00:23:32,788
but I was the one that put the mural up in downtown Minneapolis

287
00:23:32,788 --> 00:23:36,156
for Prince, I just want to make sure that we don't forget.

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That we have some awesome arts and culture and celebrities here

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that love us.

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And I just want to make sure that we treat them

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and welcome them with respect that they deserve.

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So, what I would like to do is simply

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00:23:50,651 --> 00:23:56,492
request an LED sign that says when they come home

294
00:23:56,492 --> 00:23:58,748
welcome home Jimmy and Jerry.

295
00:23:58,748 --> 00:24:01,688
They're also bringing 12 or 13 artists,

296
00:24:01,688 --> 00:24:04,634
and I would like to request some gate access.

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00:24:04,634 --> 00:24:08,472
So in other words we have amazing carts,

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00:24:08,472 --> 00:24:12,360
maybe we can pick them up and drop them to baggage claim.

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00:24:12,360 --> 00:24:13,378
That's my ask.

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00:24:13,378 --> 00:24:18,348
What can we do to say welcome home Jimmy and Jerry?

301
00:24:18,348 --> 00:24:21,268
And because of everything that they're doing at the State Fair

302
00:24:21,268 --> 00:24:25,281
our great Minnesota get together was made in Minnesota.

303
00:24:25,281 --> 00:24:27,100
That's my ask.

304
00:24:27,100 --> 00:24:31,748
So I would like to just make Minneapolis Saint Paul Airport

305
00:24:31,748 --> 00:24:34,748
the beginning of their welcome.

306
00:24:37,453 --> 00:24:38,411
>> Thank you very much.

307
00:24:38,411 --> 00:24:39,556
>> You're welcome.

308
00:24:39,556 --> 00:24:41,848
>> The purpose of public comment is for people to share

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00:24:41,848 --> 00:24:43,348
their thoughts with the Commission,

310
00:24:43,348 --> 00:24:46,348
it's a listen only mode.

311
00:24:46,553 --> 00:24:51,628
When the CEO gets to his part, perhaps he

312
00:24:51,628 --> 00:24:53,692
will want to say something.

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00:24:53,692 --> 00:24:57,140
But thank you very much for joining us today.

314
00:24:57,140 --> 00:24:59,190
>> Thank you for having me.

315
00:24:59,190 --> 00:24:59,940
>> You're welcome.

316
00:24:59,940 --> 00:25:02,441
Okay we have no items either under public presentations

317
00:25:02,441 --> 00:25:03,332
or hearings.

318
00:25:03,332 --> 00:25:07,228
And I would invite the representative of the Met

319
00:25:07,228 --> 00:25:11,434
Council and MnDOT to speak if they were here but they're not.

320
00:25:11,434 --> 00:25:14,644
So we're going to move into the consent agenda.

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00:25:14,644 --> 00:25:16,588
The way I'm going to do it, is we

322
00:25:16,588 --> 00:25:20,108
are going to work our way through this bit by bit.

323
00:25:20,108 --> 00:25:24,840
And if any commissioner has a comment or question,

324
00:25:24,840 --> 00:25:26,865
and we'll take it up.

325
00:25:26,865 --> 00:25:29,828
If not we'll just keep moving through

326
00:25:29,828 --> 00:25:34,548
and there will be a single vote at the end

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00:25:34,548 --> 00:25:40,348
if the commission so wishes to approve the consent agenda.

328
00:25:40,348 --> 00:25:43,881
So the first items are approval of the minutes

329
00:25:43,881 --> 00:25:45,988
of the full commission.

330
00:25:45,988 --> 00:25:51,388
And there are reports and there are lease actions.

331
00:25:52,941 --> 00:25:55,900
So that's at the full commission level.

332
00:25:55,900 --> 00:25:57,148
I will pause there.

333
00:25:57,148 --> 00:25:58,348
Any comments?

334
00:25:58,348 --> 00:25:59,300
Questions?

335
00:25:59,300 --> 00:26:00,313
Hearing none.

336
00:26:00,313 --> 00:26:02,548
We will go on to the committees.

337
00:26:02,548 --> 00:26:06,748
We will begin with planning, development, environment

338
00:26:06,988 --> 00:26:08,108
Committee.

339
00:26:08,108 --> 00:26:10,508
Which Chair Ginsburg leads.

340
00:26:13,788 --> 00:26:17,988
And there's nothing much in open forum.

341
00:26:18,196 --> 00:26:23,596
Its own consent report, they had both changed management

342
00:26:25,340 --> 00:26:28,340
and authorizations and so forth.

343
00:26:29,868 --> 00:26:32,268
Bids received, purchase approvals

344
00:26:33,108 --> 00:26:36,708
and I'm going to pause there.

345
00:26:37,400 --> 00:26:39,404
Any questions or comments?

346
00:26:39,588 --> 00:26:41,796
Anything from the chair?

347
00:26:41,796 --> 00:26:42,908
Okay.

348
00:26:42,908 --> 00:26:47,108
Very important point is the business items.

349
00:26:47,948 --> 00:26:52,148
And we already heard earlier about item 3.4.

350
00:26:54,244 --> 00:26:57,244
The capital Improvement program amendment.

351
00:26:57,668 --> 00:26:59,972
Which I think that the community felt.

352
00:26:59,972 --> 00:27:05,372
We had made very good progress as an airport,

353
00:27:06,478 --> 00:27:12,340
and we're showing what it means to be proper Minnesotans

354
00:27:12,340 --> 00:27:14,254
and how we have handled that.

355
00:27:14,254 --> 00:27:18,972
And I want to just thank the Chair for leading

356
00:27:18,972 --> 00:27:20,412
that effort for the Commission.

357
00:27:20,412 --> 00:27:24,428
I want to thank Brian and your team for that.

358
00:27:24,428 --> 00:27:28,664
So, I've made my comments on the business

359
00:27:28,664 --> 00:27:30,428
items, any other comments?

360
00:27:30,428 --> 00:27:32,328
Rich?

361
00:27:32,328 --> 00:27:37,768
>> Real quick on 3.4, I want to thank the chairs lead Brian

362
00:27:37,768 --> 00:27:43,548
and staff and working with the drivers to get to a very solid

363
00:27:43,548 --> 00:27:46,688
resolution that took a lot of time and effort.

364
00:27:46,688 --> 00:27:48,688
So, thank you.

365
00:27:53,468 --> 00:27:54,380
Thank you.

366
00:27:54,380 --> 00:27:55,292
Anyone else?

367
00:27:55,292 --> 00:27:58,232
Okay then we'll move on to O FNA and we

368
00:27:58,232 --> 00:28:03,632
will begin with any questions from the open forum.

369
00:28:06,428 --> 00:28:08,828
From the consent agenda.

370
00:28:12,228 --> 00:28:14,628
From the business items?

371
00:28:16,436 --> 00:28:21,836
I think one important one was 3.5 policy 2801 the Consultant

372
00:28:23,548 --> 00:28:24,156
Policy.

373
00:28:24,156 --> 00:28:28,956
This one which the committee and the commissioners

374
00:28:29,708 --> 00:28:36,308
wrestled with, I think they have come to very good conclusion.

375
00:28:38,108 --> 00:28:43,708
The version, which is in the papers for the meeting today

376
00:28:43,708 --> 00:28:46,108
is the final version.

377
00:28:46,481 --> 00:28:50,281
And I would then ask is there any questions?

378
00:28:50,281 --> 00:28:53,281
Otherwise, hearing none, I'm going

379
00:28:53,810 --> 00:28:59,468
to ask for a motion to approve the consent agenda.

380
00:28:59,468 --> 00:29:00,508
>> Moved,

381
00:29:00,508 --> 00:29:01,758
>> Second.

382
00:29:01,758 --> 00:29:03,508
>> The motion has been moved and seconded.

383
00:29:03,508 --> 00:29:05,580
Can we do a roll call?

384
00:29:05,580 --> 00:29:07,580
Okay.

385
00:29:08,599 --> 00:29:10,599
[Members voting]

386
00:29:29,616 --> 00:29:31,199
>> Thank you all ladies and gentlemen.

387
00:29:31,199 --> 00:29:32,993
There are no business items today.

388
00:29:32,993 --> 00:29:37,748
But, we have a couple of very interesting and important

389
00:29:37,748 --> 00:29:38,836
information items.

390
00:29:38,836 --> 00:29:42,692
And we will begin with the airline industry

391
00:29:42,692 --> 00:29:46,292
and MSP air service update presentation.

392
00:29:47,134 --> 00:29:49,134
Welcome.

393
00:29:51,156 --> 00:29:53,489
>> Thank you chair Lawrence good afternoon commissioners

394
00:29:53,489 --> 00:29:56,656
I'm Brian Peters director of Air service development for the Mac,

395
00:29:56,656 --> 00:29:59,708
and I'm happy to be here today to introduce our consulting team

396
00:29:59,708 --> 00:30:04,948
from Asian Pacific Consulting Brad Furey and Oliver Lam who

397
00:30:04,948 --> 00:30:06,708
will provide their annual update.

398
00:30:06,708 --> 00:30:08,336
For new commissioners this is an update

399
00:30:08,336 --> 00:30:11,232
they provide about once a year around this time of year.

400
00:30:11,232 --> 00:30:15,432
Brad and Ali founded a consulting in 2009

401
00:30:16,264 --> 00:30:18,818
currently lead a team of about 14 professionals

402
00:30:18,818 --> 00:30:21,574
that provide air service development

403
00:30:21,574 --> 00:30:23,964
consulting for both airports and communities.

404
00:30:23,964 --> 00:30:27,232
About 40 of them throughout the United States, Canada,

405
00:30:27,232 --> 00:30:30,659
Australia, and I think New Zealand even.

406
00:30:30,659 --> 00:30:32,862
So, with that I will hand it over to Ali,

407
00:30:32,862 --> 00:30:34,611
and he will get going and we would

408
00:30:34,611 --> 00:30:36,694
be happy to answer any questions that you may have

409
00:30:36,694 --> 00:30:38,694
throughout the presentation.

410
00:30:43,748 --> 00:30:47,788
Thank you Brian, Commissioner Lawrence and commissioners

411
00:30:47,788 --> 00:30:49,591
thank you for having us here today.

412
00:30:49,591 --> 00:30:53,468
It's always an honor to talk about this community.

413
00:30:53,468 --> 00:30:56,494
What we're going to do today is we're

414
00:30:56,494 --> 00:30:58,896
going to talk through four big areas of discussion.

415
00:30:58,896 --> 00:31:00,854
First of all we're going to have a look at what

416
00:31:00,854 --> 00:31:02,896
has happened in terms of our air service capacity

417
00:31:02,896 --> 00:31:06,368
over the last 12 months, and put that into broader context.

418
00:31:06,368 --> 00:31:07,868
And then Brad's going to talk to you

419
00:31:07,868 --> 00:31:09,785
about what's happening in the broader industry

420
00:31:09,785 --> 00:31:12,463
and how that affects us here in Minneapolis Saint Paul.

421
00:31:12,463 --> 00:31:15,542
Then we are going to talk about our two wonderful hub carriers

422
00:31:15,542 --> 00:31:18,140
at Hub Minneapolis and Saint Paul and what they're doing

423
00:31:18,140 --> 00:31:20,748
and how they're evolving and how that's changing on the story.

424
00:31:20,748 --> 00:31:22,633
And then finally I'm going to close off and talk to you

425
00:31:22,633 --> 00:31:24,425
a little bit about the international trends

426
00:31:24,425 --> 00:31:26,348
that we are seeing both nationwide and here

427
00:31:26,348 --> 00:31:27,697
in Minneapolis Saint Paul.

428
00:31:27,697 --> 00:31:30,254
And hopefully that will leave us with enough time

429
00:31:30,254 --> 00:31:35,654
to get into some juicy questions at the end.

430
00:31:36,277 --> 00:31:36,777
Excellent.

431
00:31:36,777 --> 00:31:40,700
So what I'd like to start with is

432
00:31:40,700 --> 00:31:42,405
to talk about what we've seen within the last 12 months

433
00:31:42,405 --> 00:31:44,252
in terms of air service capacity.

434
00:31:44,252 --> 00:31:47,328
What you can see on this chart is the comparison

435
00:31:47,328 --> 00:31:49,628
of air service capacity for the last 12 months

436
00:31:49,628 --> 00:31:51,132
versus the previous 12 months.

437
00:31:51,132 --> 00:31:53,828
And this shows the whole calendar year of 2026

438
00:31:53,828 --> 00:31:54,648
versus 2025.

439
00:31:54,648 --> 00:31:58,335
We have highlighted in blue, the Midwest hub airports,

440
00:31:58,335 --> 00:32:00,659
and you can see there that Minneapolis Saint

441
00:32:00,659 --> 00:32:04,259
Paul is sitting about 99.4% of 2025 capacity.

442
00:32:05,428 --> 00:32:09,628
So 0.6% below where we were at in 2025.

443
00:32:10,908 --> 00:32:13,521
You compare that to the right hand side

444
00:32:13,521 --> 00:32:16,290
you can see that Detroit is sitting about 3 or 3.5%

445
00:32:16,290 --> 00:32:17,742
below where it was in 2025.

446
00:32:17,742 --> 00:32:19,841
And at the other end of the scale

447
00:32:19,841 --> 00:32:22,588
you can see Chicago O'hare sitting at about 12%

448
00:32:22,588 --> 00:32:24,588
above where it was in 2025.

449
00:32:24,588 --> 00:32:26,828
The unique thing about what we are

450
00:32:26,828 --> 00:32:28,278
seeing with the two airports that

451
00:32:28,278 --> 00:32:30,958
are sitting in the far left hand side of this chart, Chicago,

452
00:32:30,958 --> 00:32:34,311
O'hare, and San Diego, they are in the middle of a hub battle

453
00:32:34,311 --> 00:32:36,104
between two airlines right now.

454
00:32:36,104 --> 00:32:38,444
And that's meaning that we are seeing in Chicago

455
00:32:38,444 --> 00:32:41,788
a record amount of growth from American Airlines in the United

456
00:32:41,788 --> 00:32:44,812
Airlines as they battle it out in Chicago.

457
00:32:44,812 --> 00:32:47,308
By contrast coming here in Minneapolis Saint Paul

458
00:32:47,308 --> 00:32:51,508
we are seeing a pretty flat 2025 to 2026.

459
00:32:52,668 --> 00:32:56,428
Let's dig a little deeper in terms of why that's happening.

460
00:32:56,428 --> 00:32:58,106
Why are we seeing the flat trajectory

461
00:32:58,106 --> 00:33:00,610
between 2025 and 2026?

462
00:33:00,610 --> 00:33:02,741
On this slide we've broken it down

463
00:33:02,741 --> 00:33:04,324
by airline to show you what's happened

464
00:33:04,324 --> 00:33:05,772
at each of these airlines because they

465
00:33:05,772 --> 00:33:07,830
are various stories going on.

466
00:33:07,830 --> 00:33:14,283
On the far left hand side of this chart you can see

467
00:33:14,828 --> 00:33:19,628
the United's added over 100 thousand seats frontier has

468
00:33:20,648 --> 00:33:25,448
added 76,000 seats all up nearly 300,000 seats being added

469
00:33:25,772 --> 00:33:27,884
in the Minneapolis Saint Paul Market.

470
00:33:27,884 --> 00:33:30,134
On the right hand side you can see our biggest losers.

471
00:33:30,134 --> 00:33:32,734
In red you can see for instance spirit which has pulled out

472
00:33:32,734 --> 00:33:34,948
of not only Minneapolis Saint Paul but every market

473
00:33:34,948 --> 00:33:35,618
in the country.

474
00:33:35,618 --> 00:33:36,780
Spirit has gone bankrupt.

475
00:33:36,780 --> 00:33:38,588
So it no longer operates anywhere

476
00:33:38,588 --> 00:33:41,491
in the United States or anywhere in the world I should say.

477
00:33:41,491 --> 00:33:45,280
You can also see sun country sun country reduced its capacity

478
00:33:45,280 --> 00:33:48,434
here in Saint Paul by 176,000 seats and Brad will talk about

479
00:33:48,434 --> 00:33:50,934
in more detail about what's happening in that space and what

480
00:33:50,934 --> 00:33:52,340
we can expect going forward.

481
00:33:52,340 --> 00:33:55,292
But you can see within that headline

482
00:33:55,292 --> 00:33:58,273
story we are 0.6% below where we were in 2025.

483
00:33:58,273 --> 00:34:00,450
There is a variety of different stories

484
00:34:00,450 --> 00:34:02,212
depending on which airline you're talking about that

485
00:34:02,212 --> 00:34:03,676
are going on beneath the surface.

486
00:34:03,676 --> 00:34:05,534
And I would like you to remember the story

487
00:34:05,534 --> 00:34:06,772
that we are seeing in 2026.

488
00:34:06,772 --> 00:34:10,791
You can see Delta growing in some sun country contracting

489
00:34:10,791 --> 00:34:13,118
because we will come back to that story later on.

490
00:34:13,118 --> 00:34:16,913
And if we have a look a bit broader

491
00:34:16,913 --> 00:34:18,961
and we look at a longer time period,

492
00:34:18,961 --> 00:34:22,652
and we go back to pre-pandemic and where we were at

493
00:34:22,652 --> 00:34:25,292
pre-pandemic, you can see here that the story is a little bit

494
00:34:25,292 --> 00:34:26,680
different again.

495
00:34:26,680 --> 00:34:28,897
Again are three Midwest hub is highlighted in blue.

496
00:34:28,897 --> 00:34:30,647
You can see Minneapolis Saint Paul sitting

497
00:34:30,647 --> 00:34:34,685
at 93% of where it was at in 2019, Detroit sitting about 19%

498
00:34:34,685 --> 00:34:37,876
of where it was in 2019, and Chicago O'hare

499
00:34:37,876 --> 00:34:40,776
which was until this year sitting line ball with us

500
00:34:40,776 --> 00:34:45,401
in terms of growth has now grown by 12% thanks to that battle

501
00:34:45,401 --> 00:34:48,548
that we are seeing in Chicago O'hare.

502
00:34:48,548 --> 00:34:49,948
So you can see there's still room

503
00:34:49,948 --> 00:34:52,458
to grow in terms of where we were at pre-pandemic to where

504
00:34:52,458 --> 00:34:53,698
we are at today.

505
00:34:53,698 --> 00:34:56,412
But again, beneath this story lies a really interesting story

506
00:34:56,412 --> 00:34:57,704
between the different airlines.

507
00:34:57,704 --> 00:34:59,878
So if you remember two slides ago

508
00:34:59,878 --> 00:35:02,396
I showed you that Sun Country had actually contracted

509
00:35:02,396 --> 00:35:03,774
over the last 12 months.

510
00:35:03,774 --> 00:35:07,568
When we cast a wider view, since before the pandemic,

511
00:35:07,568 --> 00:35:10,892
Sun Country has actually been the biggest contributor

512
00:35:10,892 --> 00:35:13,688
to growth of any airline compared

513
00:35:13,688 --> 00:35:15,854
to the pre-pandemic period.

514
00:35:15,854 --> 00:35:17,988
By contrast, you can see excluding

515
00:35:17,988 --> 00:35:20,268
spirit which has exited the market,

516
00:35:20,268 --> 00:35:22,770
Delta still hasn't recovered in Minneapolis Saint Paul

517
00:35:22,770 --> 00:35:25,228
so even though they are one of the fastest growing airlines

518
00:35:25,228 --> 00:35:28,788
over the last 12 months, which is a really positive trend as we

519
00:35:28,788 --> 00:35:31,870
look forward, they still haven't recovered to where they were at

520
00:35:31,870 --> 00:35:32,412
pre-pandemic.

521
00:35:32,412 --> 00:35:35,370
So the story does look different when we look at different time

522
00:35:35,370 --> 00:35:37,437
scales in this regard.

523
00:35:37,641 --> 00:35:40,201
On this slide I'd like to talk a little bit about what

524
00:35:40,201 --> 00:35:41,576
makes this really unique compared

525
00:35:41,576 --> 00:35:44,670
to some of those other hubs that we are talking about.

526
00:35:44,670 --> 00:35:47,408
This chart shows the proportion of seats

527
00:35:47,408 --> 00:35:52,114
that are operated by the largest carrier in each of these hub

528
00:35:52,114 --> 00:35:52,614
markets.

529
00:35:52,614 --> 00:35:55,485
As you can see in the far left end of this chart

530
00:35:55,485 --> 00:35:58,717
you can see the hubs that are most dominated by one carrier.

531
00:35:58,717 --> 00:36:00,384
Taking Charlotte at the very far extreme

532
00:36:00,384 --> 00:36:03,840
to the left more than two thirds of it capacity

533
00:36:03,840 --> 00:36:06,684
is provided by one American airline.

534
00:36:09,588 --> 00:36:13,180
The shortest column shows the second largest carrier

535
00:36:13,180 --> 00:36:13,868
in these markets.

536
00:36:13,868 --> 00:36:16,180
What's really unique about Minneapolis-Saint Paul

537
00:36:16,180 --> 00:36:18,588
and something that is a huge strength to this market

538
00:36:18,588 --> 00:36:22,508
is that our number two carrier is proportionately stronger

539
00:36:22,508 --> 00:36:25,108
than any of those other hubs to the left of us.

540
00:36:25,108 --> 00:36:26,500
So those hubs which are dominated

541
00:36:26,500 --> 00:36:28,000
by really strong number one carrier,

542
00:36:28,000 --> 00:36:31,788
and we do have a very strong number one carrier in fact

543
00:36:31,788 --> 00:36:35,538
it's the strongest number one financially in the industry,

544
00:36:35,538 --> 00:36:39,338
it's also supported by a very strong number two in sun Country

545
00:36:39,338 --> 00:36:41,588
that makes us unique and it's one of the key strengths

546
00:36:41,588 --> 00:36:43,306
that Minneapolis-Saint Paul has.

547
00:36:43,306 --> 00:36:45,223
And it's one of those charts that I showed you

548
00:36:45,223 --> 00:36:48,238
before when Delta was growing Sun Country was contracting when

549
00:36:48,238 --> 00:36:51,728
Sun Country was growing Delta was contracting, that strength

550
00:36:51,728 --> 00:36:54,423
and diversification allows us to be really

551
00:36:54,423 --> 00:36:55,776
strong hub in the Midwest.

552
00:36:55,776 --> 00:36:59,450
And we've had some really good news this year.

553
00:36:59,450 --> 00:37:01,253
This is a beautiful picture of our newest destination

554
00:37:01,253 --> 00:37:03,844
that all of you will be able to fly to this winter.

555
00:37:03,844 --> 00:37:06,910
Maui, which will now be a nonstop destination out

556
00:37:06,910 --> 00:37:08,800
of Minneapolis Saint Paul which is a fantastic

557
00:37:08,800 --> 00:37:12,208
addition to our network, even though it's

558
00:37:17,828 --> 00:37:21,708
a domestic destination for all intents and purposes it is

559
00:37:21,708 --> 00:37:25,668
an international because it uses an international aircraft,

560
00:37:25,668 --> 00:37:28,415
it's going to be flying nonstop to Maui.

561
00:37:28,415 --> 00:37:29,998
So at the end of this year we're going

562
00:37:29,998 --> 00:37:32,398
to have 167 nonstop destinations.

563
00:37:33,680 --> 00:37:37,359
Nearly closing in on our target of 170 destinations by 2027.

564
00:37:37,359 --> 00:37:40,412
It'll be a race to the finish line to get to that 170

565
00:37:40,412 --> 00:37:43,200
but you can see here, we are really

566
00:37:43,200 --> 00:37:45,408
closing in on that target with some really exciting wins

567
00:37:45,408 --> 00:37:48,202
and we hope that by this time next year we

568
00:37:48,202 --> 00:37:49,948
can report some exciting wins.

569
00:37:49,948 --> 00:37:52,668
With that I'm going to hand it over to Brad.

570
00:37:52,668 --> 00:37:53,348
>> Thanks.

571
00:37:53,348 --> 00:37:55,688
So this year we want to talk a little bit more

572
00:37:55,688 --> 00:37:58,620
about the industry in general, and what's going on.

573
00:37:58,620 --> 00:38:01,208
Because what's happening externally from MSP

574
00:38:01,208 --> 00:38:02,748
impacts MSP tremendously.

575
00:38:02,748 --> 00:38:05,834
What we've seen over the last several years

576
00:38:05,834 --> 00:38:08,948
is that the network carriers are driving all of the industry

577
00:38:08,948 --> 00:38:09,534
profitability.

578
00:38:09,534 --> 00:38:12,280
And that profitability is specifically

579
00:38:12,280 --> 00:38:13,588
being driven by two carriers.

580
00:38:13,588 --> 00:38:15,880
Delta and United.

581
00:38:15,880 --> 00:38:19,584
If you look at this waterfall chart you see that $46 billion

582
00:38:19,584 --> 00:38:23,948
of industry profits were made by Delta and United

583
00:38:23,948 --> 00:38:27,178
out of a total of nearly 45.5 billion total.

584
00:38:27,178 --> 00:38:30,468
Everybody else basically has netted out negatively.

585
00:38:30,468 --> 00:38:33,588
There's a few carriers who are making money including Allegiant

586
00:38:33,588 --> 00:38:34,561
and Sun Country.

587
00:38:34,561 --> 00:38:37,241
But by the time you net it all out,

588
00:38:37,241 --> 00:38:39,308
American and Delta basically account

589
00:38:39,308 --> 00:38:40,948
for all of the industry's profits

590
00:38:40,948 --> 00:38:42,668
over the last several years.

591
00:38:42,668 --> 00:38:44,716
So why is that?

592
00:38:44,716 --> 00:38:47,980
What's happened in the low fare category that's caused

593
00:38:47,980 --> 00:38:49,370
those carriers to underperform?

594
00:38:49,370 --> 00:38:50,731
Let me go back real quick.

595
00:38:50,731 --> 00:38:52,148
All the carriers that are in green

596
00:38:52,148 --> 00:38:54,400
would be classified as low fare carriers.

597
00:38:54,400 --> 00:38:56,268
Three of those are negative, we know

598
00:38:56,268 --> 00:38:57,768
spirit went out of business, Jetblue

599
00:38:57,768 --> 00:39:00,508
is suffering tremendously Jetblue has been suffering

600
00:39:00,508 --> 00:39:03,508
tremendously, the only profitable carriers

601
00:39:04,468 --> 00:39:06,164
were Allegiant and Sun Country.

602
00:39:06,164 --> 00:39:07,133
So what happened here?

603
00:39:07,133 --> 00:39:08,508
If you look at the last ten years

604
00:39:08,508 --> 00:39:10,294
you'll see that real GDP grew 126%,

605
00:39:10,294 --> 00:39:14,612
but low fare capacity by those types of carriers grew 136%.

606
00:39:14,612 --> 00:39:17,276
So they outgrew the economy.

607
00:39:17,276 --> 00:39:19,410
They got real real aggressive on growth.

608
00:39:19,410 --> 00:39:21,388
They put a lot of seats in the market

609
00:39:21,388 --> 00:39:24,228
and they outgrew the demand.

610
00:39:24,228 --> 00:39:28,108
Meanwhile the network carriers were much more conservative

611
00:39:28,108 --> 00:39:30,892
Pierce the network carriers have managed their capacity

612
00:39:30,892 --> 00:39:32,948
to demand much better.

613
00:39:32,948 --> 00:39:35,748
And how does that translate into the real world?

614
00:39:35,748 --> 00:39:39,993
You see here the green are the average domestic one way

615
00:39:39,993 --> 00:39:41,728
fare for a low fare carrier.

616
00:39:41,728 --> 00:39:43,588
In 2025 $74.

617
00:39:43,588 --> 00:39:46,374
This was pre taxed one way.

618
00:39:46,374 --> 00:39:48,428
The average was 188 in the network

619
00:39:48,428 --> 00:39:50,428
carriers were getting 229.

620
00:39:50,428 --> 00:39:52,692
Well a low fare carrier it should

621
00:39:52,692 --> 00:39:55,399
have low fares that's great at 60 to 65% lower

622
00:39:55,399 --> 00:39:57,303
than the network carriers.

623
00:39:57,303 --> 00:40:00,980
The problem here is that with those lower fares

624
00:40:00,980 --> 00:40:04,196
they were able to achieve a really strong position

625
00:40:04,196 --> 00:40:05,228
in the market.

626
00:40:05,228 --> 00:40:07,500
They grew to be 12% of the industry.

627
00:40:07,500 --> 00:40:09,718
Today they are down to nine.

628
00:40:09,718 --> 00:40:11,764
And that's partly spirit going out,

629
00:40:11,764 --> 00:40:14,368
it's partly frontier scaling back.

630
00:40:14,368 --> 00:40:17,908
But overall, that segment is shrinking.

631
00:40:17,908 --> 00:40:20,900
And the reason it's shrinking is basically network carriers

632
00:40:20,900 --> 00:40:22,900
won the battle.

633
00:40:23,360 --> 00:40:25,578
If you look at what happened with the Ulcc,

634
00:40:25,578 --> 00:40:27,764
the ultra low cost carrier model,

635
00:40:27,764 --> 00:40:29,780
you see the competitive changes on the left.

636
00:40:29,780 --> 00:40:32,948
This is where network carriers discovered they could

637
00:40:32,948 --> 00:40:35,108
offer a basic economy fare.

638
00:40:35,108 --> 00:40:42,308
Basically the same fare that you would get on a frontier spirit

639
00:40:45,668 --> 00:40:48,630
you get the quality of service associated with that.

640
00:40:48,630 --> 00:40:50,168
So people started voting, you get

641
00:40:50,168 --> 00:40:53,158
the same fare are you going to get fly spirit or Delta.

642
00:40:53,158 --> 00:40:54,688
So that started to happen.

643
00:40:54,688 --> 00:40:56,663
Also the network carriers brand won out

644
00:40:56,663 --> 00:40:58,288
they started bundling packages together

645
00:40:58,288 --> 00:41:00,665
they just offered a better product with more choices.

646
00:41:00,665 --> 00:41:03,979
You have a lot more options when you fly a network carrier

647
00:41:03,979 --> 00:41:06,424
than you do a low fare carrier.

648
00:41:06,424 --> 00:41:09,434
We also saw the impact of the carrier economy

649
00:41:09,434 --> 00:41:13,448
where the top part of the economy we're

650
00:41:13,448 --> 00:41:16,564
doing better than people are in the lower ends

651
00:41:16,564 --> 00:41:19,156
people who had been flying couldn't

652
00:41:19,156 --> 00:41:22,134
afford to fly how they did in the first few years out

653
00:41:22,134 --> 00:41:22,801
of the pandemic.

654
00:41:22,801 --> 00:41:25,259
And I already mentioned the fact that the low fare carriers

655
00:41:25,259 --> 00:41:25,878
Overexpanded.

656
00:41:25,878 --> 00:41:28,848
At the same time this was happening

657
00:41:28,848 --> 00:41:30,348
they were losing on the revenue side

658
00:41:30,348 --> 00:41:31,908
with the competitive changes.

659
00:41:31,908 --> 00:41:35,780
At the same time their costs were converging.

660
00:41:35,780 --> 00:41:37,448
They had aging fleets that needed more maintenance.

661
00:41:37,448 --> 00:41:40,186
The honeymoon of having brand new airplanes you all

662
00:41:40,186 --> 00:41:41,728
know that when your warranty runs out

663
00:41:41,728 --> 00:41:44,300
on your new car that's basically what was happening here.

664
00:41:44,300 --> 00:41:48,328
At the same time, their pilots and flight attendants

665
00:41:48,328 --> 00:41:51,680
fly the same airplanes, they want the same wages.

666
00:41:51,680 --> 00:41:54,680
It's a competitive labor market.

667
00:41:57,308 --> 00:42:00,764
All of a sudden their pilots are getting paid the same or roughly

668
00:42:00,764 --> 00:42:02,668
the same as the network carriers.

669
00:42:02,668 --> 00:42:05,520
There was some issues with engine durability

670
00:42:05,520 --> 00:42:06,344
that I won't get into.

671
00:42:06,344 --> 00:42:10,158
But basically what you can see the cost advantage that low fare

672
00:42:10,158 --> 00:42:11,778
carriers had has dissipated.

673
00:42:11,778 --> 00:42:13,228
They still have one.

674
00:42:13,228 --> 00:42:16,518
But it's not as big as it used to be.

675
00:42:16,518 --> 00:42:18,760
In the meantime the network carriers

676
00:42:18,760 --> 00:42:21,260
have a lot more opportunity to generate more revenue.

677
00:42:21,260 --> 00:42:23,298
So the equation just changed.

678
00:42:23,298 --> 00:42:26,132
Now network carriers hold a very strong advantage.

679
00:42:26,132 --> 00:42:29,561
And we see where consolidation has happened.

680
00:42:29,561 --> 00:42:31,714
The biggest consolidation move in the industry

681
00:42:31,714 --> 00:42:34,308
in the last few years is happening right here.

682
00:42:34,308 --> 00:42:36,734
With allegiance acquisition of Sun Country.

683
00:42:36,734 --> 00:42:42,958
And you can see the 72 there sun country over there was

684
00:42:42,958 --> 00:42:45,958
responsible for 12,000 seats a day,

685
00:42:47,894 --> 00:42:51,334
you add that into the Allegiant thing you're at 74,000 seats

686
00:42:51,334 --> 00:42:55,828
but you can still see the scale of those low fare carriers.

687
00:42:55,828 --> 00:42:57,810
Spirit is out come everybody else is

688
00:42:57,810 --> 00:43:01,190
a bit player you've got frontier and Jetblue, they are bigger.

689
00:43:01,190 --> 00:43:02,681
But they're not that big.

690
00:43:02,681 --> 00:43:04,788
So you really see this consolidation.

691
00:43:04,788 --> 00:43:07,458
We consider southwest to be a network carrier now

692
00:43:07,458 --> 00:43:11,108
comet's repositioning itself to be more similar to the big three

693
00:43:11,108 --> 00:43:12,668
than a low cost carrier anymore.

694
00:43:12,668 --> 00:43:17,828
So you can really see how the network carriers have basically

695
00:43:17,828 --> 00:43:19,828
won this battle.

696
00:43:19,868 --> 00:43:22,680
So how does that impact us here?

697
00:43:22,680 --> 00:43:25,719
Fortunately at MSP, not all low fare carriers are created equal.

698
00:43:25,719 --> 00:43:28,694
In the two best as I mentioned the profitability last year

699
00:43:28,694 --> 00:43:31,788
they were the only profitable low fare carriers,

700
00:43:31,788 --> 00:43:34,684
this past quarter Allegiant, which

701
00:43:34,684 --> 00:43:38,588
has the sun country numbers built into it now,

702
00:43:38,588 --> 00:43:42,325
because they are one company, was the most profitable airline

703
00:43:42,325 --> 00:43:44,271
in the margin basis in the country.

704
00:43:44,271 --> 00:43:45,854
Just slightly beating Delta.

705
00:43:45,854 --> 00:43:47,988
So we've got a good base here.

706
00:43:47,988 --> 00:43:50,132
And the reason that that's important

707
00:43:50,132 --> 00:43:53,883
is Sun Country had a limited opportunity to grow

708
00:43:53,883 --> 00:43:55,948
and you have to grow in the industry

709
00:43:55,948 --> 00:43:57,948
to keep your costs in check.

710
00:43:57,948 --> 00:44:01,634
Sun Country was painted into a corner

711
00:44:01,634 --> 00:44:03,982
more or less in terms of what it could do.

712
00:44:03,982 --> 00:44:06,968
So what it did, as it put itself up for sale basically.

713
00:44:06,968 --> 00:44:09,774
In the one airline that is the best match for Sun

714
00:44:09,774 --> 00:44:11,528
Country is the one that bought it.

715
00:44:11,528 --> 00:44:14,903
So now you have two airlines that have very similar business

716
00:44:14,903 --> 00:44:15,748
model.

717
00:44:15,748 --> 00:44:19,268
Really the only difference is the philosophy of the routes

718
00:44:19,268 --> 00:44:22,251
that they fly in that all of Sun Country's routes

719
00:44:22,251 --> 00:44:24,628
were originating here, going south.

720
00:44:24,628 --> 00:44:27,978
Whereas most of the allegiant's routes were south going north.

721
00:44:27,978 --> 00:44:29,596
From smaller markets.

722
00:44:29,596 --> 00:44:33,196
But overall, a very complimentary marriage.

723
00:44:35,348 --> 00:44:38,580
And he said this several times publicly,

724
00:44:38,580 --> 00:44:40,148
but it's really important to reiterate.

725
00:44:40,148 --> 00:44:44,620
Without MSP, sun country was not relevant to Allegiant.

726
00:44:44,620 --> 00:44:47,800
The reason that they were buying MSP or buying

727
00:44:47,800 --> 00:44:48,574
Sun Country in the first place was

728
00:44:48,574 --> 00:44:50,136
to get access to this market.

729
00:44:50,136 --> 00:44:51,698
It's not for the charter program,

730
00:44:51,698 --> 00:44:53,156
it's not for their Amazon contract,

731
00:44:53,156 --> 00:44:55,681
they could get that on their own if they wanted it.

732
00:44:55,681 --> 00:44:58,324
Allegiant is a very very focused carrier,

733
00:44:58,324 --> 00:44:59,828
they are very successful.

734
00:44:59,828 --> 00:45:03,680
They wanted MSP for the Twin Cities market.

735
00:45:03,680 --> 00:45:05,138
And that's important to understand,

736
00:45:05,138 --> 00:45:07,676
they're not going to give it up just because there's

737
00:45:07,676 --> 00:45:08,646
been a merger.

738
00:45:08,646 --> 00:45:10,521
That's why they bought it in the first place.

739
00:45:10,521 --> 00:45:13,998
And if you look at MSP today is the largest station

740
00:45:13,998 --> 00:45:15,636
in the combined airline's network.

741
00:45:15,636 --> 00:45:20,468
The rest of them are all Florida and Arizona basically Las Vegas.

742
00:45:20,468 --> 00:45:22,148
Those are all destination markets.

743
00:45:22,148 --> 00:45:24,996
Even though MSP is a very different kind

744
00:45:24,996 --> 00:45:27,366
of market, the customer, the passenger

745
00:45:27,366 --> 00:45:29,228
is the same kind of passenger.

746
00:45:29,228 --> 00:45:32,685
The passenger that sun country flies out of here

747
00:45:32,685 --> 00:45:35,468
is the same kind of person that Allegiant

748
00:45:35,468 --> 00:45:37,428
is flying in its network.

749
00:45:37,428 --> 00:45:40,580
You're going on vacation come you're going for a long weekend

750
00:45:40,580 --> 00:45:42,738
someplace, for a bachelorette party

751
00:45:42,738 --> 00:45:46,188
or, you're going down to visit Grandma and Grandpa in Florida.

752
00:45:46,188 --> 00:45:49,454
Whatever it is, it's a very similar customer.

753
00:45:49,454 --> 00:45:52,649
So that's a good combination, but MSP

754
00:45:52,649 --> 00:45:55,128
will be the biggest airport in the system probably

755
00:45:55,128 --> 00:45:57,448
for the foreseeable future.

756
00:45:57,448 --> 00:46:01,692
Moving on to Delta Delta is growing in MSP slowly,

757
00:46:01,692 --> 00:46:04,468
but its current focus is not here.

758
00:46:04,468 --> 00:46:06,828
They still remain the second largest hub,

759
00:46:06,828 --> 00:46:08,828
growing slightly just 0.5%.

760
00:46:10,428 --> 00:46:14,476
It's important here to note, that the hubs

761
00:46:14,476 --> 00:46:18,324
in red, Minneapolis, Detroit, Atlanta, and Salt Lake

762
00:46:18,324 --> 00:46:19,993
are referred to as the core hubs.

763
00:46:19,993 --> 00:46:23,658
All of the other hubs are coastal hubs and that's probably

764
00:46:23,658 --> 00:46:24,738
pretty self-explanatory.

765
00:46:24,738 --> 00:46:28,561
But this is where their hubs are and where they are investing.

766
00:46:28,561 --> 00:46:30,228
And we will get into a little bit of why

767
00:46:30,228 --> 00:46:31,436
that's important in a minute.

768
00:46:31,436 --> 00:46:32,654
Oh, here it is right here.

769
00:46:32,654 --> 00:46:36,153
So, delta has spent the last several years

770
00:46:36,153 --> 00:46:38,361
investing in what some people call once in a lifetime

771
00:46:38,361 --> 00:46:40,945
opportunity spirit with all of the things that are shaking out

772
00:46:40,945 --> 00:46:43,448
in the industry, Delta has an opportunity

773
00:46:43,448 --> 00:46:47,958
because of its strength to go into these very very constrained

774
00:46:47,958 --> 00:46:51,420
markets in the Northeast and the Pacific coast

775
00:46:51,420 --> 00:46:54,188
and carve out real estate.

776
00:46:54,188 --> 00:46:59,738
And to make a claim for longer term presence in those markets.

777
00:46:59,738 --> 00:47:01,824
And they've done that by adding a lot of capacity

778
00:47:01,824 --> 00:47:04,348
and investing a lot in facilities in the coast.

779
00:47:04,348 --> 00:47:07,883
There is a limited opportunity for them to do that.

780
00:47:07,883 --> 00:47:10,258
These airports are filling up some of them are full today

781
00:47:10,258 --> 00:47:13,364
and there's not new growth happening anytime soon at most

782
00:47:13,364 --> 00:47:14,114
of these airports.

783
00:47:14,114 --> 00:47:15,531
So it's sort of a land grab if you

784
00:47:15,531 --> 00:47:16,748
want to think of it that way.

785
00:47:16,748 --> 00:47:19,576
In the meantime, the core hubs have not

786
00:47:19,576 --> 00:47:22,120
been invested in, primarily because it

787
00:47:22,120 --> 00:47:24,920
isn't as important right now.

788
00:47:24,920 --> 00:47:27,468
They can come back to all of the core hubs at any point.

789
00:47:27,468 --> 00:47:30,108
There's not a significant competitive pressure

790
00:47:30,108 --> 00:47:33,854
that's requiring them to attend to them today.

791
00:47:33,854 --> 00:47:36,788
So they are investing in those coastal hubs

792
00:47:36,788 --> 00:47:42,548
while they can to set themselves up for success in the long run.

793
00:47:42,548 --> 00:47:46,212
You can look at year over year the growth

794
00:47:46,212 --> 00:47:48,254
has been primarily in the coastal hubs.

795
00:47:48,254 --> 00:47:51,588
But like I said, those hubs are reaching their capacity limits

796
00:47:51,588 --> 00:47:53,648
there's not a lot of growth at JFK or Laguardia

797
00:47:53,648 --> 00:48:00,248
up here at Once that's complete they'll have to return growth

798
00:48:07,276 --> 00:48:08,436
to the core hubs.

799
00:48:08,436 --> 00:48:15,360
Which by the way, finance the growth in the coastal hubs.

800
00:48:15,561 --> 00:48:18,449
Stepping back and just taking a look at where they are today,

801
00:48:18,449 --> 00:48:22,913
MSP is the third largest originating market for Delta,

802
00:48:22,913 --> 00:48:26,321
these are passages not connecting here.

803
00:48:26,321 --> 00:48:28,711
But passengers who live here or who

804
00:48:28,711 --> 00:48:31,378
are traveling to the Twin Cities it's the third largest hub here

805
00:48:31,378 --> 00:48:34,978
it was at 0.2 million to 11.1 million,

806
00:48:35,831 --> 00:48:39,588
while connections were down just a little bit from 10.5 to 10.3

807
00:48:39,588 --> 00:48:41,921
million but it's still the second largest connecting hub

808
00:48:41,921 --> 00:48:43,361
as well in the network.

809
00:48:43,361 --> 00:48:48,900
We know in the past there has been concern

810
00:48:48,900 --> 00:48:52,146
about the ratio of local versus connecting passengers,

811
00:48:52,146 --> 00:48:55,670
and we've seen that, we talked about this last year.

812
00:48:55,670 --> 00:48:56,961
Last year it was 49% connecting.

813
00:48:56,961 --> 00:49:01,343
Off of a base a decade ago of about 60%.

814
00:49:01,343 --> 00:49:03,890
It went down just a little bit one

815
00:49:03,890 --> 00:49:04,945
more percentage point this last year.

816
00:49:04,945 --> 00:49:08,426
But you'll note, it's very similar between to Detroit

817
00:49:08,426 --> 00:49:10,134
and Salt Lake which are the two hubs that

818
00:49:10,134 --> 00:49:12,161
are closest in size for Delta.

819
00:49:12,161 --> 00:49:14,161
Very similar situation.

820
00:49:14,831 --> 00:49:17,187
We've seen that not just with Delta but most

821
00:49:17,187 --> 00:49:18,401
of the other airline hubs.

822
00:49:18,401 --> 00:49:21,393
The major hubs have all pretty much

823
00:49:21,393 --> 00:49:23,955
seen a declining share of connecting traffic over time.

824
00:49:23,955 --> 00:49:26,227
That's partly due to the fact that there's not

825
00:49:26,227 --> 00:49:28,791
a lot of nonstop service available on couriers

826
00:49:28,791 --> 00:49:29,497
like Allegiant.

827
00:49:29,497 --> 00:49:33,527
So people who used to fly out of Duluth going to Florida,

828
00:49:33,527 --> 00:49:37,601
over MSP, a lot of them are flying nonstop now.

829
00:49:37,601 --> 00:49:38,911
This isn't a bad thing.

830
00:49:38,911 --> 00:49:41,292
Delta is doing great here so it's not a bad thing,

831
00:49:41,292 --> 00:49:44,330
it's just how the traffic has balanced.

832
00:49:44,330 --> 00:49:48,810
And we will note that this year MSP will be the ninth busiest

833
00:49:48,810 --> 00:49:49,921
connecting hub in the country.

834
00:49:49,921 --> 00:49:53,881
Which when you consider that MSP is the 22nd largest owned

835
00:49:53,881 --> 00:49:58,907
market, demand market basically and the 16th largest MSA is

836
00:49:58,907 --> 00:50:03,891
still very very well positioned for the long run we don't see

837
00:50:03,891 --> 00:50:06,891
any particular challenges to that.

838
00:50:07,702 --> 00:50:10,369
>> Things give the guy with the accent the international markets

839
00:50:10,369 --> 00:50:11,113
to deal with.

840
00:50:11,113 --> 00:50:11,641
Perfect.

841
00:50:11,641 --> 00:50:11,887
Awesome.

842
00:50:11,887 --> 00:50:14,120
So I'm going to talk to you a little bit about what

843
00:50:14,120 --> 00:50:16,950
we are seeing in terms of an international context

844
00:50:16,950 --> 00:50:18,361
because I think it's really important that we focus

845
00:50:18,361 --> 00:50:20,944
on this because it's going to inform some of the conversations

846
00:50:20,944 --> 00:50:23,247
that we will be having with you over the next 12 months

847
00:50:23,247 --> 00:50:24,609
in terms of what's changing.

848
00:50:24,609 --> 00:50:27,401
On this slide we are looking at the two big components

849
00:50:27,401 --> 00:50:28,761
of international demand.

850
00:50:28,761 --> 00:50:32,401
Those components are Americans who travel abroad,

851
00:50:32,401 --> 00:50:34,409
and visitors who come to the United States.

852
00:50:34,409 --> 00:50:36,911
So in the dark blue you can see those Americans

853
00:50:36,911 --> 00:50:38,810
who are traveling abroad.

854
00:50:38,810 --> 00:50:40,729
People who buy their tickets here in the United States

855
00:50:40,729 --> 00:50:41,794
to travel abroad.

856
00:50:41,794 --> 00:50:43,377
In light blue you can see the visitors

857
00:50:43,377 --> 00:50:44,585
coming to the United States.

858
00:50:44,585 --> 00:50:48,223
What we saw between 2024 and the start of 2025

859
00:50:48,223 --> 00:50:50,537
was that both were growing, in fact visitation

860
00:50:50,537 --> 00:50:53,721
to the United States was growing really strongly and up 10% year

861
00:50:53,721 --> 00:50:54,556
over year.

862
00:50:54,556 --> 00:50:56,751
Then something happened in January 2025

863
00:50:56,751 --> 00:50:58,221
we can all speculate what.

864
00:50:58,221 --> 00:51:00,651
And we can see what happened.

865
00:51:00,651 --> 00:51:03,334
Outbound demand from the United States Americans traveling

866
00:51:03,334 --> 00:51:06,561
abroad continued to grow, but visitation into the United

867
00:51:06,561 --> 00:51:07,841
States fell off.

868
00:51:07,841 --> 00:51:10,287
And so what that has translated to is

869
00:51:10,287 --> 00:51:11,881
if you talk to the different airlines,

870
00:51:11,881 --> 00:51:15,665
the U.S. Carriers are saying our international demand is looking

871
00:51:15,665 --> 00:51:19,670
good because they predominantly sell to Americans traveling

872
00:51:19,670 --> 00:51:22,201
abroad, however when we talk to foreign carriers

873
00:51:22,201 --> 00:51:24,543
the foreign carriers who's traveling to Saint Paul

874
00:51:24,543 --> 00:51:26,100
they're saying the opposite they're

875
00:51:26,100 --> 00:51:28,101
saying it's not looking good, and that's

876
00:51:28,101 --> 00:51:29,601
all being driven by this falling off

877
00:51:29,601 --> 00:51:32,610
a cliff of the international demand coming into the United

878
00:51:32,610 --> 00:51:33,110
States.

879
00:51:33,110 --> 00:51:34,814
And when we dig a little bit deeper

880
00:51:34,814 --> 00:51:36,881
and we look at this on an individual market base

881
00:51:36,881 --> 00:51:39,257
across the United States, since that inflection

882
00:51:39,257 --> 00:51:40,785
point of January 2025.

883
00:51:40,785 --> 00:51:43,929
We have broken down each of the top 25 United States markets

884
00:51:43,929 --> 00:51:45,813
to see what that's meant from a visitation

885
00:51:45,813 --> 00:51:47,271
into the United States perspective.

886
00:51:47,271 --> 00:51:50,947
Some markets, a few markets have performed well.

887
00:51:50,947 --> 00:51:53,341
Dallas, Honolulu, Orlando, although I

888
00:51:53,341 --> 00:51:54,841
will note that some of those markets

889
00:51:54,841 --> 00:51:56,508
didn't do very well during the pandemic.

890
00:51:56,508 --> 00:51:58,611
And the overall United States average

891
00:51:58,611 --> 00:52:00,401
from visitation into the United States

892
00:52:00,401 --> 00:52:03,313
fell by 4.3% since that inflection point

893
00:52:03,313 --> 00:52:04,486
in January of 2025.

894
00:52:04,486 --> 00:52:07,707
Here at MSP we saw that drop 7%.

895
00:52:07,707 --> 00:52:09,877
So worse than the national average.

896
00:52:09,877 --> 00:52:11,377
We've heard that time and time again

897
00:52:11,377 --> 00:52:13,605
from our foreign flag carriers.

898
00:52:13,605 --> 00:52:16,753
The negative press particularly over this past winter

899
00:52:16,753 --> 00:52:20,481
that Minneapolis Saint Paul got and many foreign markets really

900
00:52:20,481 --> 00:52:22,561
impacted the perception of Minneapolis Saint

901
00:52:22,561 --> 00:52:24,101
Paul in those markets.

902
00:52:24,101 --> 00:52:27,366
People chose not to come because of what they saw on TV.

903
00:52:27,366 --> 00:52:29,740
That is a problem that we have to battle.

904
00:52:29,740 --> 00:52:30,866
That is a problem outside of our wheelhouse

905
00:52:30,866 --> 00:52:33,189
but it is a problem that we have to battle nonetheless.

906
00:52:33,189 --> 00:52:35,930
So that will inform the conversations

907
00:52:35,930 --> 00:52:36,385
that we have with our airlines.

908
00:52:36,385 --> 00:52:39,569
Over time we hope that those memories will fade away

909
00:52:39,569 --> 00:52:41,777
and hopefully people will come back.

910
00:52:41,777 --> 00:52:43,810
That's our goal.

911
00:52:43,810 --> 00:52:46,225
But that is the context in which we are operating.

912
00:52:46,225 --> 00:52:49,191
And with that, we would just like to summarize and close out.

913
00:52:49,191 --> 00:52:51,441
And I think there's a couple of things that are really

914
00:52:51,441 --> 00:52:52,971
important to remember.

915
00:52:52,971 --> 00:52:55,457
The fundamentals here in the Twin Cities in Minnesota

916
00:52:55,457 --> 00:52:56,437
are really strong.

917
00:52:56,437 --> 00:52:58,661
We have an incredible hub carrier

918
00:52:58,661 --> 00:53:00,360
in Delta come one of the strongest

919
00:53:00,360 --> 00:53:01,938
airlines in the industry, we have

920
00:53:01,938 --> 00:53:05,361
the only consistently profitable low cost carrier

921
00:53:05,361 --> 00:53:07,681
as Brad talked about merging with the most

922
00:53:07,681 --> 00:53:10,781
profitable low cost carrier in the industry.

923
00:53:10,781 --> 00:53:12,737
That's an incredible position for us to have.

924
00:53:12,737 --> 00:53:14,561
We have an incredible community that

925
00:53:14,561 --> 00:53:17,410
is driving this ongoing growth and demand

926
00:53:17,410 --> 00:53:19,649
whether it's from a perspective of outbound travel,

927
00:53:19,649 --> 00:53:21,829
or from a connecting perspective.

928
00:53:21,829 --> 00:53:26,290
We are very close to our 2027 target,

929
00:53:26,340 --> 00:53:28,661
we have tempered our expectations here

930
00:53:28,661 --> 00:53:31,389
because we don't want to over bake the cake on this one.

931
00:53:31,389 --> 00:53:35,810
But we do want to get close to that 2027 target of 170

932
00:53:35,810 --> 00:53:36,401
nonstop destinations.

933
00:53:36,401 --> 00:53:40,601
Our low fare carrier economics are changing.

934
00:53:40,601 --> 00:53:42,574
They have been challenged significantly

935
00:53:42,574 --> 00:53:44,827
over the last couple of years.

936
00:53:44,827 --> 00:53:46,633
But nonetheless Minneapolis-Saint Paul

937
00:53:46,633 --> 00:53:48,254
is positioned better than anybody else

938
00:53:48,254 --> 00:53:52,221
to cope with that transition as low cost carriers transition

939
00:53:52,221 --> 00:53:56,409
and we merge the two strongest couriers in that space.

940
00:53:56,409 --> 00:53:58,410
And what's also really interesting

941
00:53:58,410 --> 00:53:59,931
is looking at how Delta is growing.

942
00:53:59,931 --> 00:54:02,313
Delta has prioritized those coastal hubs

943
00:54:02,313 --> 00:54:04,641
as Brad talked about, but the time

944
00:54:04,641 --> 00:54:06,845
will come when those coastal hubs have closed out,

945
00:54:06,845 --> 00:54:09,313
their full, and delta will turn its attention

946
00:54:09,313 --> 00:54:10,945
back to the core hubs that generate

947
00:54:10,945 --> 00:54:13,427
the profit that MSP and the other core hubs

948
00:54:13,427 --> 00:54:14,280
have demonstrated.

949
00:54:14,280 --> 00:54:18,601
And with that we would like to open the floor up for questions.

950
00:54:18,601 --> 00:54:22,401
>> Thank you Mr. Chair, I want to go back to the comment about

951
00:54:22,401 --> 00:54:26,100
what transpired in Minneapolis Saint Paul.

952
00:54:26,752 --> 00:54:32,836
And if I heard this right, that had a very significant impact

953
00:54:32,836 --> 00:54:35,185
on foreign travel here.

954
00:54:35,185 --> 00:54:39,161
Do we have the facts and figures to back up

955
00:54:39,161 --> 00:54:43,257
what the perception was of foreign travelers?

956
00:54:43,257 --> 00:54:45,787
Was it any certain issue?

957
00:54:45,787 --> 00:54:48,665
Was it any particular reason?

958
00:54:48,665 --> 00:54:50,489
That we can cite?

959
00:54:50,489 --> 00:54:53,441
Because that's a pretty broad statement.

960
00:54:53,441 --> 00:54:57,195
Because I've been hearing it in a lot of different ways

961
00:54:57,195 --> 00:54:58,713
and different groups using it.

962
00:54:58,713 --> 00:55:02,100
So I would like to get a sense of what you see.

963
00:55:02,100 --> 00:55:04,281
>> That's a wonderful question Commissioner Ginsberg.

964
00:55:04,281 --> 00:55:07,390
Maybe I can paraphrase what one airline said to us.

965
00:55:07,390 --> 00:55:09,777
They pulled up the front page of the German newspaper

966
00:55:09,777 --> 00:55:13,113
and they said when you search Minneapolis Saint

967
00:55:13,113 --> 00:55:15,961
Paul in the German newspaper look at what you see?

968
00:55:15,961 --> 00:55:18,332
To be fair this was in March of this year

969
00:55:18,332 --> 00:55:20,313
and it was a particularly sensitive time,

970
00:55:20,313 --> 00:55:22,905
but they said people don't want to travel to somewhere where

971
00:55:22,905 --> 00:55:24,905
they feel like there are rights and the streets.

972
00:55:24,905 --> 00:55:26,294
That was the perception.

973
00:55:26,294 --> 00:55:28,260
We obviously challenged that perception

974
00:55:28,260 --> 00:55:31,942
and said that's obviously you know only part of the story

975
00:55:31,942 --> 00:55:34,601
and that the Twin Cities in Minnesota has a lot to offer.

976
00:55:34,601 --> 00:55:37,121
And I think certainly the conversations are definitely

977
00:55:37,121 --> 00:55:40,641
changing now because that sensitive period has changed.

978
00:55:40,641 --> 00:55:42,201
But to answer your question directly,

979
00:55:42,201 --> 00:55:47,441
the reality was the Ice agents in the streets

980
00:55:47,441 --> 00:55:53,441
was the real problem that people saw in foreign >> Wonderful.

981
00:55:54,700 --> 00:55:56,481
So whatever the event was in January 2025?

982
00:55:56,481 --> 00:56:01,281
Will that continue to be a negative now that the surge

983
00:56:01,281 --> 00:56:05,178
issue seems to be I'm just trying

984
00:56:05,178 --> 00:56:11,426
to get a sense of how much more we could look forward to losing.

985
00:56:11,426 --> 00:56:13,801
>> Look I wish I had a crystal ball Commissioner Ginsberg

986
00:56:13,801 --> 00:56:15,997
to tell you what was going to happen over the next 12 months.

987
00:56:15,997 --> 00:56:18,601
But our hope, and certainly the tenor of the conversations

988
00:56:18,601 --> 00:56:22,101
that we are having now is that things are certainly improving

989
00:56:22,101 --> 00:56:23,873
from a perception basis.

990
00:56:23,873 --> 00:56:25,463
We hope that continues.

991
00:56:25,463 --> 00:56:27,258
We don't want to go back to I don't

992
00:56:27,258 --> 00:56:29,148
think anybody in this community wants to go back to what

993
00:56:29,148 --> 00:56:30,148
we saw this past winter.

994
00:56:30,148 --> 00:56:34,805
And I certainly think the airline cares shares

995
00:56:34,805 --> 00:56:37,805
the same impact same opinion.

996
00:56:38,934 --> 00:56:41,818
>> I think it's fair to share if we get back to the level

997
00:56:41,818 --> 00:56:44,121
of every other U.S. Destination would be great,

998
00:56:44,121 --> 00:56:47,689
but the bar has gone higher, however you want to say it.

999
00:56:47,689 --> 00:56:49,681
But everything has gotten much worse overall

1000
00:56:49,681 --> 00:56:50,996
for the whole country.

1001
00:56:50,996 --> 00:56:53,297
So we have to be realistic about what

1002
00:56:53,297 --> 00:56:59,297
the foreign demand for travel to the United States is.

1003
00:57:09,257 --> 00:57:11,257
>> Coming from a community that's been targeted,

1004
00:57:11,257 --> 00:57:14,367
I think ice does have a really huge impact.

1005
00:57:14,367 --> 00:57:16,689
You have Ice in your policies right?

1006
00:57:16,689 --> 00:57:20,410
So coming from higher education, even international students

1007
00:57:20,410 --> 00:57:21,184
are not coming.

1008
00:57:21,184 --> 00:57:26,584
And I think there was a newspaper article today

1009
00:57:26,789 --> 00:57:31,305
in the Forbes magazine about the declining international students

1010
00:57:31,305 --> 00:57:34,281
and the impact on revenue with college and universities.

1011
00:57:34,281 --> 00:57:36,531
Many of the colleges rely heavily

1012
00:57:36,531 --> 00:57:38,489
on international students from India

1013
00:57:38,489 --> 00:57:41,907
from China and from other places.

1014
00:57:41,907 --> 00:57:49,707
So the ice raid I would call it, we basically scared them away.

1015
00:57:50,441 --> 00:57:55,201
The other thing is I think even with the recent policy directive

1016
00:57:55,201 --> 00:58:01,201
from Washington D.C. They were focused on African nations.

1017
00:58:01,835 --> 00:58:02,509
Visas.

1018
00:58:02,509 --> 00:58:08,223
Where you have to deposit $20,000 in order to do that so I

1019
00:58:08,223 --> 00:58:11,810
think it's these series of not only just ice,

1020
00:58:11,810 --> 00:58:13,701
but also policies that can have an impact.

1021
00:58:13,701 --> 00:58:17,667
My mother in law wanted to travel to France,

1022
00:58:17,667 --> 00:58:22,301
and we didn't want her to go, but she wanted to go.

1023
00:58:22,301 --> 00:58:25,229
So she's over there now, she's coming back in the conversation

1024
00:58:25,229 --> 00:58:27,789
that I had with my wife yesterday was

1025
00:58:27,789 --> 00:58:31,840
I'm afraid that she might be detained on the way back.

1026
00:58:31,840 --> 00:58:32,834
Even though she's a United States citizen.

1027
00:58:32,834 --> 00:58:37,810
So it's that kind of fear that I think is preventing people.

1028
00:58:37,810 --> 00:58:40,227
You don't want to find out.

1029
00:58:40,227 --> 00:58:41,841
What's going to happen.

1030
00:58:41,841 --> 00:58:46,461
But, I think that's really affecting a lot of these.

1031
00:58:46,461 --> 00:58:48,801
>> We've heard it from multiple international airlines,

1032
00:58:48,801 --> 00:58:53,281
that just the sentiment, like we have conversations with them.

1033
00:58:53,281 --> 00:58:56,865
They're very concerned about the demand

1034
00:58:56,865 --> 00:59:00,841
from foreign points of sale to the U.S.

1035
00:59:00,841 --> 00:59:03,987
And we are seeing that in real world.

1036
00:59:03,987 --> 00:59:06,161
>> Also Commissioner to validate what you're saying,

1037
00:59:06,161 --> 00:59:08,137
we're also hearing from communities of interest

1038
00:59:08,137 --> 00:59:10,626
in the Twin Cities who are U.S. Citizens who don't want

1039
00:59:10,626 --> 00:59:13,100
to travel to their homeland because they're worried about

1040
00:59:13,100 --> 00:59:15,849
whether they can come back much like what you're expressing.

1041
00:59:15,849 --> 00:59:19,965
So what you are saying we hear absolutely.

1042
00:59:19,965 --> 00:59:22,700
>> It's impacting air service around the country.

1043
00:59:22,700 --> 00:59:23,382
For the first time in a long time

1044
00:59:23,382 --> 00:59:28,100
we're starting to see foreign carriers suspend U.S. Routes.

1045
00:59:28,100 --> 00:59:31,721
We hadn't really seen much of that for several years.

1046
00:59:31,721 --> 00:59:34,886
They're starting to pull back a little bit now.

1047
00:59:34,886 --> 00:59:38,947
So that is impacting close to home as well.

1048
00:59:38,947 --> 00:59:40,801
>> Other comments or questions?

1049
00:59:40,801 --> 00:59:42,801
Yes?

1050
00:59:45,437 --> 00:59:46,395
>> Thank you Mr. Chair.

1051
00:59:46,395 --> 00:59:49,141
I was just curious if you see a time Allegiant they've canceled

1052
00:59:49,141 --> 00:59:51,441
like 33% of their flights.

1053
00:59:51,441 --> 00:59:57,441
How long is this going to >> Our conversation with them,

1054
00:59:58,608 --> 01:00:00,233
it's not going to be a long term thing.

1055
01:00:00,233 --> 01:00:04,761
Whenever you have a merger, the union contracts

1056
01:00:04,761 --> 01:00:06,689
for the pilots in particular which

1057
01:00:06,689 --> 01:00:10,881
is a very transferable skill, they become an issue.

1058
01:00:10,881 --> 01:00:12,713
If you were at the bottom of a seniority

1059
01:00:12,713 --> 01:00:14,261
list going into a merger.

1060
01:00:14,261 --> 01:00:17,449
It's a good time to make a change

1061
01:00:17,449 --> 01:00:19,314
if the opportunity exists.

1062
01:00:19,314 --> 01:00:22,881
While all of that is happening, Delta

1063
01:00:22,881 --> 01:00:26,781
has been going through a pretty major hiring phase on pilots.

1064
01:00:26,781 --> 01:00:28,481
Two different things, coincidence

1065
01:00:28,481 --> 01:00:30,384
it happened at the same time and as you

1066
01:00:30,384 --> 01:00:31,801
can imagine if you're an MSP based

1067
01:00:31,801 --> 01:00:35,161
pilot is going to be at the bottom of a combined seniority

1068
01:00:35,161 --> 01:00:40,347
list and Delta is hiring, you might take a look.

1069
01:00:40,347 --> 01:00:41,467
So that's been part of it.

1070
01:00:41,467 --> 01:00:44,401
It's only part of it.

1071
01:00:44,401 --> 01:00:48,165
Sun country always pulls back in September

1072
01:00:48,165 --> 01:00:49,941
so that's also pretty typical.

1073
01:00:49,941 --> 01:00:53,139
From the indications we've gotten you know they're hiring.

1074
01:00:53,139 --> 01:00:54,889
They're bringing people into their classes

1075
01:00:54,889 --> 01:00:56,783
they'll get back up here Allegiant actually

1076
01:00:56,783 --> 01:00:59,170
has a bit of a pilot surplus right now.

1077
01:00:59,170 --> 01:01:02,221
So once they actually merge the operating certificates

1078
01:01:02,221 --> 01:01:05,766
and can start cross-training pilots and moving them around,

1079
01:01:05,766 --> 01:01:07,121
they shouldn't have a problem.

1080
01:01:07,121 --> 01:01:09,641
Allegiant's never really had a problem attracting pilots.

1081
01:01:09,641 --> 01:01:14,670
Being a profitable airline is a very very attractive place

1082
01:01:14,670 --> 01:01:15,722
for a pilot to land.

1083
01:01:15,722 --> 01:01:18,376
Because you know we just saw what happened to spirit,

1084
01:01:18,376 --> 01:01:20,501
and those guys are going to be at the bottom of all

1085
01:01:20,501 --> 01:01:22,501
of the seniority lists looking for new jobs now.

1086
01:01:22,501 --> 01:01:24,511
So it will sort itself out.

1087
01:01:24,511 --> 01:01:27,987
But it is a little bit of a problem at the moment for sure.

1088
01:01:27,987 --> 01:01:29,295
>> Okay thank you.

1089
01:01:29,295 --> 01:01:30,753
>> Any other questions or comments?

1090
01:01:30,753 --> 01:01:32,681
Thank you very much.

1091
01:01:32,681 --> 01:01:34,607
It's been a very useful presentation.

1092
01:01:34,607 --> 01:01:37,694
Thanks for the very good work.

1093
01:01:37,694 --> 01:01:40,401
Now, before we move on to the agenda,

1094
01:01:40,401 --> 01:01:43,321
there have been some late arriving

1095
01:01:43,321 --> 01:01:45,497
people wishing to speak.

1096
01:01:45,497 --> 01:01:50,549
And I'm going to just, I believe you all

1097
01:01:50,549 --> 01:01:52,178
are affiliated with the SEIU?

1098
01:01:52,178 --> 01:01:56,418
I want to give you the opportunity either individually

1099
01:01:56,418 --> 01:02:00,618
or as a pair or a triple.

1100
01:02:02,581 --> 01:02:04,741
I have the names.

1101
01:02:04,741 --> 01:02:07,741
I apologize for mispronouncing. --

1102
01:02:23,977 --> 01:02:25,185
I believe I have two for you.

1103
01:02:25,185 --> 01:02:26,721
So I may have missed somebody.

1104
01:02:26,721 --> 01:02:29,605
So is there anyone who would care to speak,

1105
01:02:29,605 --> 01:02:30,713
please come forward.

1106
01:02:30,713 --> 01:02:34,313
We've got your cards I hope.

1107
01:02:55,262 --> 01:02:57,429
>> Hello to the Commission, thank you for the chance

1108
01:02:57,429 --> 01:02:58,867
to speak with you today.

1109
01:02:58,867 --> 01:03:05,467
My name is Abdurrahman, I drive for Uber and Lyft serving

1110
01:03:05,577 --> 01:03:11,577
customers here at the MSP, I'm a member of SEIU.

1111
01:03:12,681 --> 01:03:13,774
Local 26.

1112
01:03:13,774 --> 01:03:16,969
I'm here to speak about the proposal

1113
01:03:16,969 --> 01:03:19,369
to build permanent restrooms.

1114
01:03:19,641 --> 01:03:22,641
In the driver's waiting area.

1115
01:03:23,561 --> 01:03:25,790
I think it's something good.

1116
01:03:25,790 --> 01:03:28,265
Drivers have been struggling for a long time.

1117
01:03:28,265 --> 01:03:32,981
The first bathrooms we had were outside portables

1118
01:03:32,981 --> 01:03:35,121
that were very hot during the summer and cold

1119
01:03:35,121 --> 01:03:37,121
during the winter.

1120
01:03:40,410 --> 01:03:45,701
I want to thank the MSP for improving the bathrooms that

1121
01:03:45,701 --> 01:03:51,701
have been running water and the drivers washing their hands,

1122
01:03:54,841 --> 01:03:58,993
I want to thank the members of the leaders of Siu look

1123
01:03:58,993 --> 01:04:00,993
who have kept standing together with the drivers

1124
01:04:00,993 --> 01:04:06,369
and other workers, we have come here together so many times,

1125
01:04:06,369 --> 01:04:09,610
along with the bathrooms which was appreciated,

1126
01:04:09,610 --> 01:04:11,934
but drivers also need a waiting area

1127
01:04:11,934 --> 01:04:14,601
where we can escape the heat and cold

1128
01:04:14,601 --> 01:04:17,100
without running our engines.

1129
01:04:17,810 --> 01:04:23,681
This will be a place where drivers could stay while we

1130
01:04:24,241 --> 01:04:27,241
wait to serve customers nearby.

1131
01:04:27,313 --> 01:04:31,537
I want to share my things with the union and everyone who

1132
01:04:31,537 --> 01:04:34,233
is working to make the drivers lives better.

1133
01:04:34,233 --> 01:04:36,633
Thank you so much.

1134
01:04:37,641 --> 01:04:38,574
>> Thank you sir.

1135
01:04:38,574 --> 01:04:42,129
I believe there is Mark Sharif who wishes

1136
01:04:42,129 --> 01:04:43,781
to speak is that correct?

1137
01:04:43,781 --> 01:04:45,681
Please come forward.

1138
01:04:45,681 --> 01:04:47,681
Thank you.

1139
01:04:54,200 --> 01:04:55,681
>> Thank you my name is Mohamed Sharif.

1140
01:04:55,681 --> 01:05:00,481
I have been driving Uber and Lyft since 2023,

1141
01:05:01,810 --> 01:05:03,481
I moved from Boston.

1142
01:05:07,161 --> 01:05:10,658
I didn't drive Uber and Lyft in Boston

1143
01:05:10,658 --> 01:05:14,258
but I drove taxi and limousine.

1144
01:05:14,761 --> 01:05:17,219
And I think the union for this opportunity

1145
01:05:17,219 --> 01:05:20,521
to come in front of you.

1146
01:05:20,521 --> 01:05:24,121
The gentleman before me we really

1147
01:05:27,541 --> 01:05:32,341
appreciate the permanent bathroom in the waiting area.

1148
01:05:34,921 --> 01:05:41,521
In addition, even 15ft place as a waiting place it would

1149
01:05:47,296 --> 01:05:51,520
wouldn't be necessary for us to run the engine in idle

1150
01:05:51,520 --> 01:05:53,920
in the waiting area.

1151
01:05:57,201 --> 01:06:01,281
We ask if you can add that into the proposal

1152
01:06:01,281 --> 01:06:06,961
and also in addition to that the Uber and Lyft pick up

1153
01:06:06,961 --> 01:06:09,361
area inside the airport.

1154
01:06:14,481 --> 01:06:19,881
We think very well organized direct customers and drivers

1155
01:06:20,401 --> 01:06:22,901
in moving lane and also for parking.

1156
01:06:22,901 --> 01:06:23,961
But.

1157
01:06:23,961 --> 01:06:26,961
Our experience for security customer

1158
01:06:28,340 --> 01:06:30,809
when they come to the airport.

1159
01:06:30,809 --> 01:06:34,220
They are eagle to eager to get out of the airport

1160
01:06:34,220 --> 01:06:37,361
and to get their car and to move on.

1161
01:06:37,361 --> 01:06:41,640
So many times customers come to the airport

1162
01:06:41,640 --> 01:06:46,440
and get out and just cross the line.

1163
01:06:46,560 --> 01:06:51,825
And go to the back to get their car.

1164
01:06:51,825 --> 01:06:58,425
And that creates very risky , and in front I have experience

1165
01:07:00,441 --> 01:07:04,206
in Boston people dying in that case.

1166
01:07:04,206 --> 01:07:08,767
If we put the additional sign directing people

1167
01:07:08,767 --> 01:07:13,567
not to cross the lane the moving lane,

1168
01:07:14,281 --> 01:07:19,972
and also the elevator is in front of the a.

1169
01:07:19,972 --> 01:07:22,543
And number A is on a.

1170
01:07:22,543 --> 01:07:26,196
So people are crowded in zone A all the time

1171
01:07:26,196 --> 01:07:28,498
and now the drivers have a lot of traffic

1172
01:07:28,498 --> 01:07:30,981
to get in front of the customer.

1173
01:07:30,981 --> 01:07:38,781
So if we put the sign, they can move to B or C,

1174
01:07:39,161 --> 01:07:40,313
direct to the customer.

1175
01:07:40,313 --> 01:07:41,561
Then that would be helpful.

1176
01:07:41,561 --> 01:07:43,561
Thank you.

1177
01:07:44,134 --> 01:07:46,534
>> Thank you very much.

1178
01:07:47,156 --> 01:07:49,741
Again I've had a number of these cards come up, some of them

1179
01:07:49,741 --> 01:07:50,605
are duplicates.

1180
01:07:50,605 --> 01:07:53,274
So I think I've called on everybody who wishes

1181
01:07:53,274 --> 01:07:55,887
to speak in the public forum?

1182
01:07:55,887 --> 01:08:00,667
If so, let's move down to Alice and Kelly

1183
01:08:00,667 --> 01:08:05,467
with an update on the Mac labor agreements.

1184
01:08:10,946 --> 01:08:11,446
>> Hello.

1185
01:08:11,446 --> 01:08:13,446
Good afternoon.

1186
01:08:19,761 --> 01:08:21,761
All right.

1187
01:08:22,170 --> 01:08:27,417
I'm Allison Kelly, I'm the labor and employee relations

1188
01:08:27,905 --> 01:08:31,530
manager for the Mac, chair and commissioners

1189
01:08:31,530 --> 01:08:32,992
I'm happy to be here.

1190
01:08:32,992 --> 01:08:35,985
As the last of our Mac labor agreements were approved today,

1191
01:08:35,985 --> 01:08:39,641
and also to give you an information session summarizing

1192
01:08:39,641 --> 01:08:43,841
the conclusion of our Mac bargaining season.

1193
01:08:45,100 --> 01:08:49,410
This was my first round of negotiations here at the Mac.

1194
01:08:49,410 --> 01:08:51,441
With these Mac groups.

1195
01:08:53,241 --> 01:08:55,241
There have also been several new commissioners

1196
01:08:55,241 --> 01:08:58,601
who have joined us along the way as these contracts have settled.

1197
01:08:58,601 --> 01:09:00,627
I'm hoping this is good information sharing

1198
01:09:00,627 --> 01:09:04,463
and everybody gets a good grasp of what we did

1199
01:09:04,463 --> 01:09:08,481
and where we are at today and what we have to look forward to.

1200
01:09:08,481 --> 01:09:13,817
So, let me -- let me give you some summary here.

1201
01:09:13,817 --> 01:09:18,961
We have about 826 permanent employees who work for the Mac.

1202
01:09:18,961 --> 01:09:20,434
About half of those are employees

1203
01:09:20,434 --> 01:09:22,761
who are represented by a labor union.

1204
01:09:22,761 --> 01:09:25,313
We have a total of 13 labor contracts.

1205
01:09:25,313 --> 01:09:28,374
All of our Mac's permanent employees

1206
01:09:28,374 --> 01:09:32,441
are defined as public employees, and the collective bargaining

1207
01:09:32,441 --> 01:09:36,905
process is governed by the Minnesota public Labor Relations

1208
01:09:36,905 --> 01:09:38,777
Act and para.

1209
01:09:38,777 --> 01:09:41,777
Under State statute chapter 179 a.

1210
01:09:42,361 --> 01:09:44,761
So the Mac employees that work in and around

1211
01:09:44,761 --> 01:09:48,451
the MSP airport and campus as well as our six reliever

1212
01:09:48,451 --> 01:09:50,451
airports.

1213
01:09:51,201 --> 01:09:54,396
Sometimes it gets confusing we have

1214
01:09:54,396 --> 01:09:57,174
Mac folks intertwined with a lot of other MSP employees.

1215
01:09:57,174 --> 01:10:01,331
So com a total of 13 contracts, let's break that down.

1216
01:10:01,331 --> 01:10:04,321
I'm going to break it down by the expiration time,

1217
01:10:04,321 --> 01:10:07,901
so we have eight contracts that expire December 31st of 2025.

1218
01:10:07,901 --> 01:10:11,241
So the eight tend to expire at the end of the year.

1219
01:10:11,241 --> 01:10:13,385
Or every three years.

1220
01:10:13,385 --> 01:10:16,201
And during our negotiation period,

1221
01:10:16,201 --> 01:10:21,601
those eight expire first, and then those groups begin

1222
01:10:23,100 --> 01:10:25,241
negotiating in late summer or early fall,

1223
01:10:25,241 --> 01:10:28,144
and they kind of work through the process however long each

1224
01:10:28,144 --> 01:10:29,420
1st May take.

1225
01:10:29,420 --> 01:10:34,820
We have our International Union of Operating Engineers local 70,

1226
01:10:34,961 --> 01:10:36,881
we have our firefighters driver operators

1227
01:10:36,881 --> 01:10:41,810
fire captains, battalion chiefs, our emergency communications

1228
01:10:41,721 --> 01:10:44,817
specialist, those are like our 911 dispatch folks.

1229
01:10:44,817 --> 01:10:46,849
We have police officers, police sergeants

1230
01:10:46,849 --> 01:10:50,177
come a place youth tenants, and our international local

1231
01:10:50,177 --> 01:10:51,946
operators 49, those are the eight that

1232
01:10:51,946 --> 01:10:53,668
expire at the end of the year.

1233
01:10:53,668 --> 01:10:57,801
Then we have our three that expire in the spring and April.

1234
01:10:57,801 --> 01:11:00,801
The same as April of 2026.

1235
01:11:02,361 --> 01:11:05,449
And we typically start meeting with those folks

1236
01:11:05,449 --> 01:11:07,321
in early February or March, sometimes

1237
01:11:07,321 --> 01:11:09,721
there's a little bit of overlap.

1238
01:11:09,721 --> 01:11:11,901
Those are all completed.

1239
01:11:11,901 --> 01:11:15,487
And most of those happened pretty close to on time.

1240
01:11:15,487 --> 01:11:16,457
Which is good.

1241
01:11:16,457 --> 01:11:18,491
We have one contract that expires June 30th,

1242
01:11:18,491 --> 01:11:21,330
we just approved that one you did your final approval on that

1243
01:11:21,330 --> 01:11:21,881
one today.

1244
01:11:21,881 --> 01:11:26,454
And then we have one last one, a trades group that expires April

1245
01:11:26,454 --> 01:11:28,540
30th of 2027.

1246
01:11:28,540 --> 01:11:31,841
The reason that last trades contract is a little different

1247
01:11:31,841 --> 01:11:36,641
is because we pay the outside total package

1248
01:11:37,401 --> 01:11:38,489
rate for those plumbers.

1249
01:11:38,489 --> 01:11:42,934
So we've lined up their time, to line up with our outside plumber

1250
01:11:42,934 --> 01:11:43,707
contract.

1251
01:11:43,707 --> 01:11:47,565
So, some of our major highlights from negotiations,

1252
01:11:47,565 --> 01:11:51,513
we have our 2026 wage increase of three and a half,

1253
01:11:51,513 --> 01:11:56,913
our 2027 wage increase of 3% in 2028 and our 3.5% wage increase.

1254
01:11:56,934 --> 01:11:58,673
So all of our represented folks are

1255
01:11:58,673 --> 01:12:00,961
going to receive those wage increases.

1256
01:12:00,961 --> 01:12:03,781
We did do market adjustments where

1257
01:12:03,781 --> 01:12:06,610
warranted by analysis about five bargaining units

1258
01:12:06,610 --> 01:12:07,594
were impacted by that.

1259
01:12:07,594 --> 01:12:10,701
We did achieve consistency of observed holidays,

1260
01:12:10,701 --> 01:12:13,869
and when floating holidays are used by across the Mac

1261
01:12:13,869 --> 01:12:16,281
we kind of had a mish mash of different dates

1262
01:12:16,281 --> 01:12:18,301
so it's nice to have that all consistent.

1263
01:12:18,301 --> 01:12:20,801
We had numerous changes to our leave of absence language

1264
01:12:20,801 --> 01:12:24,281
to comply with recent state legislation for sick

1265
01:12:24,281 --> 01:12:26,141
and leave time.

1266
01:12:26,141 --> 01:12:28,937
And Family medical leave and lining those up

1267
01:12:28,937 --> 01:12:30,921
with policies and the Mac's approach

1268
01:12:30,921 --> 01:12:32,457
to those various leaves.

1269
01:12:32,457 --> 01:12:35,521
We had our East weather exemption language,

1270
01:12:35,521 --> 01:12:39,721
and we had our vacation accrual process,

1271
01:12:40,810 --> 01:12:42,833
so every unionized group and Mac employee will

1272
01:12:42,833 --> 01:12:46,691
have had their opportunity to do that process by the end

1273
01:12:46,691 --> 01:12:48,250
of this calendar year.

1274
01:12:48,250 --> 01:12:51,961
We also achieved some compliance with our health care savings

1275
01:12:51,961 --> 01:12:56,141
plan accounts based on how Msrs prefers that we structure those,

1276
01:12:56,141 --> 01:12:59,100
so we made some really good achievements,

1277
01:12:59,100 --> 01:13:02,261
you know, the unions primarily have various economic proposals

1278
01:13:02,261 --> 01:13:04,221
common in this round of negotiations

1279
01:13:04,221 --> 01:13:07,281
there's a fair amount of language proposals.

1280
01:13:07,281 --> 01:13:09,870
Mostly due to a lot of legislative changes.

1281
01:13:09,870 --> 01:13:10,641
And we were able to work through all

1282
01:13:10,641 --> 01:13:13,201
of those items for each of the different groups really

1283
01:13:13,201 --> 01:13:15,201
successfully.

1284
01:13:16,810 --> 01:13:19,810
So, gratitude and what's next.

1285
01:13:19,201 --> 01:13:22,711
I think in my role, which I think sometimes

1286
01:13:22,711 --> 01:13:28,907
isn't always viewed as the most favorite person in the room.

1287
01:13:28,907 --> 01:13:31,377
I think it's really important to show gratitude,

1288
01:13:31,377 --> 01:13:34,200
because the work that we do together

1289
01:13:34,200 --> 01:13:37,625
is a lot it's intense work.

1290
01:13:37,625 --> 01:13:39,407
And it's sensitive.

1291
01:13:39,407 --> 01:13:43,101
And it has to do with the livelihood of our employees.

1292
01:13:43,101 --> 01:13:48,881
So I want to just take a minute to give my gratitude.

1293
01:13:48,881 --> 01:13:51,547
The negotiation process is long.

1294
01:13:51,547 --> 01:13:54,381
It takes a lot of people to successfully work through it

1295
01:13:54,381 --> 01:13:54,881
all.

1296
01:13:54,881 --> 01:13:59,500
I want to -- there's a lot of people to thank through this

1297
01:13:59,500 --> 01:13:59,505
process.

1298
01:13:59,505 --> 01:14:04,391
So first, each and every union Steward and representative

1299
01:14:04,391 --> 01:14:07,345
who engaged in the negotiations this round,

1300
01:14:07,345 --> 01:14:09,901
I give my gratitude and appreciation.

1301
01:14:09,901 --> 01:14:12,681
Many of our contrasts face some challenging topics,

1302
01:14:12,681 --> 01:14:16,214
whether it was the state imposed changes, compensation structure

1303
01:14:16,214 --> 01:14:18,571
changes, holidays, there was really

1304
01:14:18,571 --> 01:14:20,478
no issue too small or too big for us

1305
01:14:20,478 --> 01:14:22,670
to tackle collaboratively.

1306
01:14:22,670 --> 01:14:24,665
The union stewards put their time and efforts

1307
01:14:24,665 --> 01:14:27,269
into this process, and it does not go unnoticed.

1308
01:14:27,269 --> 01:14:29,561
I also want to thank the department representatives who

1309
01:14:29,561 --> 01:14:32,761
sat at each table with me, it was a time consuming process,

1310
01:14:32,761 --> 01:14:34,511
they each had other competing priorities,

1311
01:14:34,511 --> 01:14:37,770
but they made thoughtful and creative contributions

1312
01:14:37,770 --> 01:14:39,534
and they took time to ensure that I understood

1313
01:14:39,534 --> 01:14:42,361
their operations and their needs to make bargaining

1314
01:14:42,361 --> 01:14:43,761
productive and transparent.

1315
01:14:43,761 --> 01:14:47,221
Which is really critical for the success of bargaining.

1316
01:14:47,221 --> 01:14:51,201
I want to acknowledge the fellow comrades in HR and finance,

1317
01:14:51,201 --> 01:14:53,410
the Business partners coordinators

1318
01:14:53,410 --> 01:14:55,311
benefits team payroll team, all of their work

1319
01:14:55,311 --> 01:14:57,894
through the bargaining process and implementing these changes.

1320
01:14:57,894 --> 01:14:59,521
No matter what I do at the table,

1321
01:14:59,521 --> 01:15:02,614
they have to help me implement it and work it through.

1322
01:15:02,614 --> 01:15:03,867
So their work is critical.

1323
01:15:03,867 --> 01:15:07,334
And lastly I want to appreciate or highlight my appreciation

1324
01:15:07,334 --> 01:15:10,881
for Kathy McGarry, Vice President of Human Resources

1325
01:15:10,881 --> 01:15:12,251
and Labor Relations.

1326
01:15:12,251 --> 01:15:15,137
Her support and leadership along with the executive team

1327
01:15:15,137 --> 01:15:17,467
helped set the tone with the labor groups,

1328
01:15:17,467 --> 01:15:19,711
they've been really clear communicators with me

1329
01:15:19,711 --> 01:15:21,547
about their expectations with my role

1330
01:15:21,547 --> 01:15:23,801
as I engage with labor throughout this process,

1331
01:15:23,801 --> 01:15:26,377
this is an organization that cares about its employees,

1332
01:15:26,377 --> 01:15:28,561
and that starts at the top with Brian.

1333
01:15:28,561 --> 01:15:31,396
And it's obvious, and it shows up at the bargaining table.

1334
01:15:31,396 --> 01:15:33,241
If you've ever negotiated a labor contract

1335
01:15:33,241 --> 01:15:36,121
or had the privilege to even be close to the universe

1336
01:15:36,121 --> 01:15:38,617
of negotiating a labor contract, you

1337
01:15:38,617 --> 01:15:41,787
know it can easily become contentious and frustrations

1338
01:15:41,787 --> 01:15:42,721
escalate.

1339
01:15:42,721 --> 01:15:45,407
That isn't to say that each table this round was easy

1340
01:15:45,407 --> 01:15:47,427
or that people didn't get frustrated,

1341
01:15:47,427 --> 01:15:50,427
but overall, everyone was respectful,

1342
01:15:50,701 --> 01:15:52,409
people took time to listen to each other,

1343
01:15:52,409 --> 01:15:55,340
and while that may seem like a very common sense approach,

1344
01:15:55,340 --> 01:15:58,234
it surely is an easy thing to take for granted.

1345
01:15:58,234 --> 01:16:01,281
But it does make a world of difference in the process.

1346
01:16:01,281 --> 01:16:05,852
So, given that everyone is asking me what's next!

1347
01:16:05,852 --> 01:16:08,161
What do we do?

1348
01:16:08,161 --> 01:16:10,578
So we really do have to finalize the implementation of all

1349
01:16:10,578 --> 01:16:11,411
of these agreements.

1350
01:16:11,411 --> 01:16:12,881
There is quite a bit of work to do

1351
01:16:12,881 --> 01:16:15,447
on that on the back end that's kind of invisible.

1352
01:16:15,447 --> 01:16:18,601
And then we monitor for the mid changes,

1353
01:16:18,601 --> 01:16:20,406
we did a lot of things in the out years

1354
01:16:20,406 --> 01:16:22,865
so we have to make sure that those things get completed.

1355
01:16:22,865 --> 01:16:26,798
We continue, I will do information sharing sessions

1356
01:16:26,798 --> 01:16:29,131
with departments to make sure that everybody understands

1357
01:16:29,131 --> 01:16:30,667
how to administer the contract.

1358
01:16:30,667 --> 01:16:33,753
And then we just continue to work through that process

1359
01:16:33,753 --> 01:16:35,490
with key partners.

1360
01:16:35,490 --> 01:16:37,601
We will get back to our regular management committees,

1361
01:16:37,601 --> 01:16:39,376
and maintain good consistent communication

1362
01:16:39,376 --> 01:16:40,769
with our labor groups.

1363
01:16:40,769 --> 01:16:43,601
And then just general continued labor relations

1364
01:16:43,601 --> 01:16:45,398
program administration, addressing issues

1365
01:16:45,398 --> 01:16:47,273
as they arise throughout the contract period.

1366
01:16:47,273 --> 01:16:50,235
There's never really a shortage of something to work on.

1367
01:16:50,235 --> 01:16:53,210
And then, in the spring we will start negotiations

1368
01:16:53,210 --> 01:16:55,601
with the United Association of Plumbers Local 34

1369
01:16:55,601 --> 01:16:59,340
so you will get a break from me until about then.

1370
01:16:59,340 --> 01:17:03,834
But that's kind of the big thing ahead.

1371
01:17:04,253 --> 01:17:07,940
I appreciate your time and support,

1372
01:17:07,940 --> 01:17:09,494
and understanding this process.

1373
01:17:09,633 --> 01:17:12,647
I think that's important for our employees to know and hear.

1374
01:17:12,647 --> 01:17:15,972
I think that's important for you all to know in here as well.

1375
01:17:15,972 --> 01:17:18,316
The Mac works because we all put the work in to do it

1376
01:17:18,316 --> 01:17:19,233
and we are successful.

1377
01:17:19,233 --> 01:17:20,934
So thank you for your time.

1378
01:17:20,934 --> 01:17:24,361
I will stand for any questions or I'll just

1379
01:17:24,361 --> 01:17:27,241
be so good that I'll just go.

1380
01:17:27,241 --> 01:17:29,795
>> Allison thank you so much and I think I can speak

1381
01:17:29,795 --> 01:17:33,521
for the whole commission when I express express appreciation

1382
01:17:33,521 --> 01:17:37,771
just as you have done to all of the people who enabled us to get

1383
01:17:37,771 --> 01:17:41,971
these agreements settled in a fair, equitable,

1384
01:17:42,241 --> 01:17:43,977
and speedy and transparent manner.

1385
01:17:43,977 --> 01:17:45,285
So thank you.

1386
01:17:45,285 --> 01:17:47,321
Are there any questions?

1387
01:17:47,321 --> 01:17:49,321
Commissioner?

1388
01:17:49,561 --> 01:17:50,121
>> Same.

1389
01:17:50,121 --> 01:17:53,467
I mean this was your first shot come you hit the grand slam.

1390
01:17:53,467 --> 01:17:54,481
So congratulations.

1391
01:17:54,481 --> 01:17:58,521
My question is if the legislature changes,

1392
01:17:58,521 --> 01:18:01,310
paid family leave or sick save time,

1393
01:18:01,310 --> 01:18:03,431
does that impact contracts?

1394
01:18:06,161 --> 01:18:07,191
>> Yes it certainly can.

1395
01:18:07,191 --> 01:18:09,149
It really depends on what those changes may be.

1396
01:18:09,149 --> 01:18:12,890
I think we try really hard when we

1397
01:18:12,890 --> 01:18:16,889
reach agreements on topics like that under state

1398
01:18:17,490 --> 01:18:19,771
leave to leave ourselves enough flexibility where

1399
01:18:19,771 --> 01:18:22,172
if the legislature tweaks a thing or two

1400
01:18:22,172 --> 01:18:26,410
then we can kind of work it in with the agreement that we have.

1401
01:18:26,410 --> 01:18:29,186
But there is certainly, I mean in the last 5 to 7 years

1402
01:18:29,186 --> 01:18:33,100
there has been more legislative changes that affect employers

1403
01:18:33,100 --> 01:18:35,779
than we have seen in probably 20 years.

1404
01:18:35,779 --> 01:18:39,961
So, sometimes we have to do supplemental modifications,

1405
01:18:39,961 --> 01:18:42,361
clarifications, so, it can.

1406
01:18:42,683 --> 01:18:46,381
It just depends on what it is really.

1407
01:18:46,381 --> 01:18:48,800
>> Thank you.

1408
01:18:48,800 --> 01:18:49,341
>> Other questions and comments?

1409
01:18:49,341 --> 01:18:51,341
Yes?

1410
01:18:52,410 --> 01:18:53,499
>> Hi, I just want to thank you.

1411
01:18:53,499 --> 01:18:56,731
It appears that you have a lot of respect for the labor groups,

1412
01:18:56,731 --> 01:19:02,131
and that doesn't always happen with every large corporation

1413
01:19:02,541 --> 01:19:04,501
or whatever.

1414
01:19:04,501 --> 01:19:08,736
But, coming from a labor job, I just

1415
01:19:08,736 --> 01:19:10,754
want you to know that it is so appreciated

1416
01:19:10,754 --> 01:19:13,549
and such a breath of fresh air to have somebody

1417
01:19:13,549 --> 01:19:17,401
speak in the manner that you do about getting

1418
01:19:17,401 --> 01:19:23,401
along and listening to the union stewards, it's really admirable.

1419
01:19:23,841 --> 01:19:25,841
So thank you.

1420
01:19:26,374 --> 01:19:28,374
>> Thank you.

1421
01:19:29,540 --> 01:19:31,481
>> And again, thank you very much.

1422
01:19:31,481 --> 01:19:34,541
Thanks to all of your colleagues, and thanks to all

1423
01:19:34,541 --> 01:19:35,789
of our union partners.

1424
01:19:35,789 --> 01:19:36,583
Thank you.

1425
01:19:36,583 --> 01:19:40,831
We now turn to the CEO report with Brian.

1426
01:19:40,831 --> 01:19:42,947
So, over to you.

1427
01:19:42,947 --> 01:19:45,361
>> Thank you chair Lawrence, good afternoon commissioners

1428
01:19:45,361 --> 01:19:48,267
Commissioner horn I appreciate what you just said.

1429
01:19:48,267 --> 01:19:49,961
For those of you who don't know Allison

1430
01:19:49,961 --> 01:19:52,606
used to sit on the other side of the table.

1431
01:19:52,606 --> 01:19:56,674
So I think us being able to obtain her

1432
01:19:56,674 --> 01:20:02,321
in this role really allows us to progress in a positive way.

1433
01:20:02,321 --> 01:20:07,721
And she's got the ability to be straightforward, upfront,

1434
01:20:08,401 --> 01:20:12,601
and generate trust, and that's what it

1435
01:20:13,574 --> 01:20:15,125
takes to get these things done.

1436
01:20:15,125 --> 01:20:17,497
But I asked her to come and do this

1437
01:20:17,497 --> 01:20:18,914
because I really wanted all of you

1438
01:20:18,914 --> 01:20:23,714
to know how much we appreciate our 13 bargaining

1439
01:20:25,488 --> 01:20:28,690
units and all that they do.

1440
01:20:28,690 --> 01:20:31,194
I mean they do first class professional work for us

1441
01:20:31,194 --> 01:20:33,569
and we are very proud of the things that they accomplish.

1442
01:20:33,569 --> 01:20:36,561
So thank you for saying that.

1443
01:20:36,561 --> 01:20:40,654
Relevant to the third public speaker today chief Operating

1444
01:20:40,654 --> 01:20:44,458
Officer Fuhrman has already spoken with her,

1445
01:20:44,458 --> 01:20:48,369
so we will work with them to accommodate

1446
01:20:48,369 --> 01:20:51,265
what we can in that regard.

1447
01:20:51,265 --> 01:20:55,689
So, hopefully we will take care of that one.

1448
01:20:55,689 --> 01:20:59,169
The presentation the air service development presentation

1449
01:20:59,169 --> 01:21:02,731
comm I won't go into any more detail other than to say

1450
01:21:02,731 --> 01:21:05,641
our top priority is to move those numbers back

1451
01:21:05,641 --> 01:21:08,410
in a positive direction.

1452
01:21:08,905 --> 01:21:12,310
And, you know we were more ambitious about where

1453
01:21:12,310 --> 01:21:14,369
our passenger numbers would be this year

1454
01:21:14,369 --> 01:21:19,271
and we had the war happened with the spike in fuel prices,

1455
01:21:19,271 --> 01:21:21,165
airlines cut their capacity.

1456
01:21:21,165 --> 01:21:23,361
But we are doing okay.

1457
01:21:23,361 --> 01:21:27,401
June here today as you can see in your report or your packet

1458
01:21:27,401 --> 01:21:29,241
we are down 1.45%.

1459
01:21:29,241 --> 01:21:31,410
Year to date we are down about 2.5%.

1460
01:21:31,410 --> 01:21:33,900
After the first quarter earnings calls

1461
01:21:33,900 --> 01:21:35,414
that we saw with Delta and other airlines

1462
01:21:35,414 --> 01:21:37,634
we kind of projected about a 3% decrease.

1463
01:21:37,634 --> 01:21:41,137
So we are hoping to be a little bit better than that.

1464
01:21:41,137 --> 01:21:46,710
We are now moving through our busy summer season, June, July,

1465
01:21:46,710 --> 01:21:47,241
and August.

1466
01:21:47,241 --> 01:21:51,410
And once sports activities start in schools

1467
01:21:51,410 --> 01:21:53,667
we start to see that flatten a little bit.

1468
01:21:53,667 --> 01:21:56,161
So that will begin here, and then

1469
01:21:56,161 --> 01:22:01,114
we will look forward to the busy October May that weekend

1470
01:22:01,114 --> 01:22:03,614
and then we get into holidays.

1471
01:22:03,614 --> 01:22:10,814
So -- we will see where things go as we move forward.

1472
01:22:11,100 --> 01:22:14,119
You are all advised throughout the last 3 to 4 weeks,

1473
01:22:14,119 --> 01:22:16,770
and had a couple of events that we have here we

1474
01:22:16,770 --> 01:22:18,477
call them irregular operations.

1475
01:22:18,547 --> 01:22:22,534
Because they're not normal by any standpoint.

1476
01:22:22,534 --> 01:22:29,734
Staff managed through two major events in the past month in July

1477
01:22:35,574 --> 01:22:39,774
there was some bad conditions in Chicago

1478
01:22:40,330 --> 01:22:45,389
so we had flights routed to us, talking to folks around here

1479
01:22:45,389 --> 01:22:47,970
that was the largest amount of diversions

1480
01:22:47,970 --> 01:22:50,492
that we've had that they ever recall.

1481
01:22:50,492 --> 01:22:52,734
So, it was a big event.

1482
01:22:52,734 --> 01:22:54,857
Because many of the diversions were

1483
01:22:54,857 --> 01:22:57,857
wide body and international flights,

1484
01:22:58,374 --> 01:23:03,570
the airlines did not have staff that operated here.

1485
01:23:03,570 --> 01:23:07,497
So, it required extensive coordination by our teams,

1486
01:23:07,497 --> 01:23:09,461
and I will just say our operations.

1487
01:23:09,461 --> 01:23:11,461
And Mac teams.

1488
01:23:11,801 --> 01:23:13,881
They activated our diversion plan,

1489
01:23:13,881 --> 01:23:16,281
and just did a tremendous amount of coordination

1490
01:23:16,281 --> 01:23:19,381
with federal partners, other service providers

1491
01:23:19,381 --> 01:23:24,181
to support these operations without the local equipment

1492
01:23:24,881 --> 01:23:26,971
that airlines typically have.

1493
01:23:26,971 --> 01:23:30,945
We assisted with remote parking locations, for aircraft,

1494
01:23:30,945 --> 01:23:35,601
we assisted with passenger transport for those aircraft.

1495
01:23:35,601 --> 01:23:39,201
And connecting flight crews, we assisted

1496
01:23:39,345 --> 01:23:43,110
with fueling operations, obviously and other needs.

1497
01:23:43,110 --> 01:23:47,281
What you may or may not know, is once an aircraft comes

1498
01:23:47,281 --> 01:23:53,231
in and sits on the ramp, for domestic three hours,

1499
01:23:53,231 --> 01:23:55,234
those passengers have to be unloaded.

1500
01:23:55,234 --> 01:23:57,931
And it's four hours for international flights.

1501
01:23:57,931 --> 01:24:03,931
So, we also coordinated with CBP to process about 2000 passengers

1502
01:24:04,361 --> 01:24:09,161
through our customs and border facilities here at.

1503
01:24:09,185 --> 01:24:12,209
Which, you know, when that happens,

1504
01:24:12,209 --> 01:24:14,796
it typically happens when the facility is busy to.

1505
01:24:14,796 --> 01:24:17,821
So there was a lot of movement of aircraft off of gates.

1506
01:24:17,821 --> 01:24:19,376
And then we had about 200 individuals

1507
01:24:19,376 --> 01:24:20,931
that ended up spending the night,

1508
01:24:20,931 --> 01:24:23,529
so we did our best to accommodate them here

1509
01:24:23,529 --> 01:24:24,873
in the terminal.

1510
01:24:24,873 --> 01:24:28,606
And then, a second event occurred just maybe a week

1511
01:24:28,606 --> 01:24:32,947
or week and a half later on August 6th when f a had

1512
01:24:32,947 --> 01:24:39,610
a regional equipment outage and it triggered a ground stop here

1513
01:24:39,610 --> 01:24:39,851
at Minneapolis.

1514
01:24:39,851 --> 01:24:42,601
Something that we don't see very often.

1515
01:24:42,601 --> 01:24:47,401
Again, our staff initiated the emergency Operations center,

1516
01:24:48,121 --> 01:24:50,225
we worked closely with the airlines,

1517
01:24:50,225 --> 01:24:55,429
we stayed in contact with the f a, to really get a handle on it

1518
01:24:55,429 --> 01:24:58,681
and what could be expected moving forward.

1519
01:24:58,681 --> 01:25:02,821
Unfortunately it only lasted about two hours,

1520
01:25:02,821 --> 01:25:05,721
and then we had to accommodate some passengers here again

1521
01:25:05,721 --> 01:25:06,553
that evening.

1522
01:25:06,553 --> 01:25:10,753
But again, I think both events impact

1523
01:25:11,511 --> 01:25:14,286
and highlight our staff here at.

1524
01:25:14,286 --> 01:25:15,953
When things happen people always ask me,

1525
01:25:15,953 --> 01:25:18,441
what's the biggest thing at a hub airport?

1526
01:25:18,441 --> 01:25:23,827
And my answer is when something happens, it happens like that,

1527
01:25:23,827 --> 01:25:27,141
and there are so many triggering impacts beyond that.

1528
01:25:27,141 --> 01:25:29,474
Is just a monopoly of things that you have to deal with.

1529
01:25:29,474 --> 01:25:34,225
But our staff is well trained and did just a fantastic job.

1530
01:25:34,225 --> 01:25:37,429
So I just wanted to thank them for all that they

1531
01:25:37,429 --> 01:25:39,271
did in both of those events.

1532
01:25:39,271 --> 01:25:43,711
Changing topics, on August 4th our airport police department

1533
01:25:43,711 --> 01:25:49,489
once again hosted a Night to Unite celebration which is

1534
01:25:49,489 --> 01:25:51,745
our version of National Night Out,

1535
01:25:51,745 --> 01:25:54,941
the event takes place here in the terminal midday.

1536
01:25:54,941 --> 01:25:59,100
In the airport mall it brought together about 800 passengers

1537
01:25:59,100 --> 01:26:01,250
and employees in airport partners

1538
01:26:01,250 --> 01:26:05,825
to really focus on connections and giving travelers

1539
01:26:05,934 --> 01:26:10,929
a chance to meet the teams who keep MSP airport safe.

1540
01:26:10,929 --> 01:26:13,781
Again, thanks to the airport police department

1541
01:26:13,781 --> 01:26:16,115
and our airport fire department was on hand,

1542
01:26:16,115 --> 01:26:20,100
we had a number of other partners, TSA, federal air

1543
01:26:20,100 --> 01:26:22,191
marshals, airport Foundation, and others

1544
01:26:22,191 --> 01:26:24,810
that really helped that event.

1545
01:26:24,810 --> 01:26:26,771
Again it's a nice promotional event for passengers.

1546
01:26:26,771 --> 01:26:28,905
The police department gives out backpacks

1547
01:26:28,905 --> 01:26:33,631
for kids, that are preparing to go to school in a few weeks.

1548
01:26:33,631 --> 01:26:35,698
So really a nice event.

1549
01:26:35,698 --> 01:26:38,941
I also wanted to do a shout out to our airport police department

1550
01:26:38,941 --> 01:26:41,341
relative to a new milestone.

1551
01:26:41,341 --> 01:26:44,341
With its new cadet program.

1552
01:26:44,881 --> 01:26:47,881
Grace Donahue and Savannah Hutchins

1553
01:26:48,769 --> 01:26:52,881
were the program's inaugural graduates this summer.

1554
01:26:52,881 --> 01:26:55,831
And both returned to our airport police department

1555
01:26:55,831 --> 01:26:58,810
as full time officers this month.

1556
01:26:58,810 --> 01:27:01,681
So they started as cadets, and moved through.

1557
01:27:01,681 --> 01:27:05,970
They will be sworn into this commission at a future date.

1558
01:27:05,970 --> 01:27:09,297
The cadet program was launched last year,

1559
01:27:09,569 --> 01:27:11,121
and what we would hope would build

1560
01:27:11,121 --> 01:27:13,921
a strong pipeline for our airport police department

1561
01:27:13,921 --> 01:27:14,851
officers.

1562
01:27:14,851 --> 01:27:18,921
Both Grace and Savannah shared that the combination

1563
01:27:18,921 --> 01:27:22,401
of classroom learning and real world airport operations

1564
01:27:22,401 --> 01:27:25,951
from air traffic direction to airfield security

1565
01:27:25,951 --> 01:27:30,729
made them more confident and prepared for full time service.

1566
01:27:30,729 --> 01:27:33,177
We also help pay them for that education

1567
01:27:33,177 --> 01:27:36,227
as they are going through that cadet program.

1568
01:27:36,227 --> 01:27:40,670
So I want to thank both airport police department

1569
01:27:40,670 --> 01:27:46,670
leadership and HR for bringing that program here to MSP.

1570
01:27:46,521 --> 01:27:50,369
Also, some nice recognition, I don't know,

1571
01:27:50,369 --> 01:27:52,934
did we send that recognition out to the commissioners?

1572
01:27:52,934 --> 01:27:55,292
I can't remember if we did or not.

1573
01:27:55,292 --> 01:27:57,689
But you all probably heard about the devastating fire

1574
01:27:57,689 --> 01:28:03,361
in Saint Louis Park that damaged 90 units at the helix apartment

1575
01:28:03,361 --> 01:28:04,153
complex.

1576
01:28:04,153 --> 01:28:07,753
That fire required a significant response,

1577
01:28:08,441 --> 01:28:12,489
and our airport fire department was part of that response.

1578
01:28:12,489 --> 01:28:16,391
The firefighters involved in that it was a very hot day,

1579
01:28:16,391 --> 01:28:17,657
so heat was an issue.

1580
01:28:17,657 --> 01:28:19,356
It was challenging conditions.

1581
01:28:19,356 --> 01:28:22,121
As they were working across multiple agencies.

1582
01:28:22,121 --> 01:28:23,921
But we received a thank you letter

1583
01:28:23,921 --> 01:28:28,281
from Mayor Nadia Muhammad and City Manager Kim Keller

1584
01:28:28,281 --> 01:28:30,281
following the incident.

1585
01:28:30,576 --> 01:28:34,181
And some of the things they said in their incidents of this scale

1586
01:28:34,181 --> 01:28:36,657
remind us that no agency responds alone.

1587
01:28:36,657 --> 01:28:39,810
Your team and others came together seamlessly

1588
01:28:39,810 --> 01:28:41,737
to protect lives, care for people,

1589
01:28:41,737 --> 01:28:43,385
and bring that fire under control.

1590
01:28:43,385 --> 01:28:46,281
Your willingness to answer the call is deeply appreciated.

1591
01:28:46,281 --> 01:28:49,187
And we are fortunate to work alongside partners

1592
01:28:49,187 --> 01:28:52,187
who consistently demonstrate professionalism, expertise,

1593
01:28:52,361 --> 01:28:55,510
and a shared commitment to serving our community.

1594
01:28:55,510 --> 01:28:58,301
So again I thank you to our airport fire department

1595
01:28:58,301 --> 01:28:59,928
who answered the call.

1596
01:28:59,928 --> 01:29:02,921
We are really proud of the relationships that we have,

1597
01:29:02,921 --> 01:29:07,631
with our fire department and area police departments.

1598
01:29:07,631 --> 01:29:10,441
And their relationships that have been established

1599
01:29:10,441 --> 01:29:12,477
to really help support each other

1600
01:29:12,477 --> 01:29:13,894
because if something happens here,

1601
01:29:13,894 --> 01:29:17,344
we need them just as much as they need us.

1602
01:29:17,344 --> 01:29:20,344
Moving to concessions, Elite Cafe

1603
01:29:21,301 --> 01:29:24,641
is now open at terminal two, that's part of the latest RFP

1604
01:29:24,641 --> 01:29:28,777
that you approved I guess it was last year.

1605
01:29:28,777 --> 01:29:31,771
The Italian coffee brand offers a full espresso

1606
01:29:31,771 --> 01:29:36,210
bar, breakfast items sandwiches and salads and is open 7 a.m.

1607
01:29:36,210 --> 01:29:36,682
To 8 p.m.

1608
01:29:36,682 --> 01:29:38,941
Daily and it's nice to have it.

1609
01:29:38,941 --> 01:29:42,100
It's pre-security so it's nice to have food and beverages

1610
01:29:42,100 --> 01:29:42,614
Pre-security.

1611
01:29:42,614 --> 01:29:48,343
There's some upcoming events as we finish off the year.

1612
01:29:48,343 --> 01:29:51,313
That I just want to report on.

1613
01:29:51,313 --> 01:29:55,107
Earlier this month the E Experimental Aircraft

1614
01:29:55,107 --> 01:29:59,410
Association hosted their popular pancake breakfast at Lake Elmo

1615
01:29:59,410 --> 01:30:03,234
Airport, the Mac will be back at the Minnesota State Fair this

1616
01:30:03,234 --> 01:30:06,275
year on September 4th as part of MPR day.

1617
01:30:06,275 --> 01:30:09,321
So it gives us an opportunity to really promote what we do

1618
01:30:09,321 --> 01:30:12,529
as an organization and all the airports that we own

1619
01:30:12,529 --> 01:30:16,361
and operate, Girls in Aviation Day will be back at Flying Cloud

1620
01:30:16,361 --> 01:30:19,921
Airport on September 19th, a very popular event as well.

1621
01:30:19,921 --> 01:30:22,974
And then, we are working closely with the airport Foundation

1622
01:30:22,974 --> 01:30:25,982
on the annual state of the airport address,

1623
01:30:25,982 --> 01:30:30,973
and that will be October 1st, and our keynote will be

1624
01:30:30,973 --> 01:30:35,761
Allegiant CEO Greg Anderson, so I'll be able to ask him some

1625
01:30:35,761 --> 01:30:39,900
pointed questions about what Allegiant's plans are here

1626
01:30:39,900 --> 01:30:39,961
in the future.

1627
01:30:39,961 --> 01:30:42,961
Can we hope he answers those questions right?

1628
01:30:42,961 --> 01:30:44,141
But I'm sure he will.

1629
01:30:44,141 --> 01:30:46,511
So we are looking forward to having --

1630
01:30:46,511 --> 01:30:48,761
>> I don't think he'll be showing up if he's not ready

1631
01:30:48,761 --> 01:30:51,940
to answer those questions.

1632
01:30:51,940 --> 01:30:51,703
>> Yeah.

1633
01:30:51,703 --> 01:30:55,100
So anyhow, also we received some great news

1634
01:30:55,100 --> 01:30:56,953
that Tim Simon just reported this morning

1635
01:30:56,953 --> 01:30:58,441
at our staff meeting.

1636
01:30:58,441 --> 01:31:03,841
We had a call with the rating agency standard

1637
01:31:05,865 --> 01:31:09,821
and Fitch a couple of weeks ago I guess it was.

1638
01:31:09,821 --> 01:31:15,221
Relative to our refinancing of bonds coming up here

1639
01:31:15,241 --> 01:31:16,901
towards the end of the year.

1640
01:31:16,901 --> 01:31:24,701
And, the great news is they our bond rating didn't drop at all.

1641
01:31:27,704 --> 01:31:31,625
It remained the same, and that's great news

1642
01:31:31,625 --> 01:31:34,100
especially at a time when it's a little bit more

1643
01:31:34,100 --> 01:31:35,937
of a challenging year.

1644
01:31:35,937 --> 01:31:38,921
And, the other thing that they mention in here

1645
01:31:38,921 --> 01:31:43,281
is under their section title Enterprise Risk profile,

1646
01:31:43,281 --> 01:31:46,467
they've got a few words that I want to read here.

1647
01:31:46,467 --> 01:31:50,761
It says despite lowering plane mints revenue has experienced

1648
01:31:50,761 --> 01:31:53,469
more than total rebound in fiscal 2025

1649
01:31:53,469 --> 01:31:57,669
net revenue was 4.5% above the fiscal 2019 levels

1650
01:31:57,801 --> 01:31:59,761
which was a record year for US.

1651
01:31:59,761 --> 01:32:03,341
They say we believe that prudent financial management practices

1652
01:32:03,341 --> 01:32:05,321
and policies have supported the airport's

1653
01:32:05,321 --> 01:32:07,666
overall healthy financial performance,

1654
01:32:07,666 --> 01:32:10,360
and we consider the management team

1655
01:32:10,360 --> 01:32:11,857
very experienced and effective at running

1656
01:32:11,857 --> 01:32:13,534
all aspects of the airport.

1657
01:32:13,534 --> 01:32:16,670
Management invests heavily in employee development,

1658
01:32:16,670 --> 01:32:18,941
and leadership has been stable over the past several years,

1659
01:32:18,941 --> 01:32:21,641
most senior leaders have prior experience

1660
01:32:21,641 --> 01:32:23,897
in state and local government or aviation,

1661
01:32:23,897 --> 01:32:27,501
and several have worked for the Mac for a decade or more.

1662
01:32:27,501 --> 01:32:29,961
So congratulations to Tim and his team,

1663
01:32:29,961 --> 01:32:31,961
along with the entire senior management

1664
01:32:31,961 --> 01:32:34,141
team for the great work that they do.

1665
01:32:34,141 --> 01:32:36,697
It does get recognized, and this is very important,

1666
01:32:36,697 --> 01:32:40,681
because it saves us a lot of money as we issue bonds.

1667
01:32:40,681 --> 01:32:44,867
And then, the final thing that I have is a shout out

1668
01:32:44,867 --> 01:32:47,641
to one of our longtime concession partners

1669
01:32:47,641 --> 01:32:53,410
here at the airport, you all know Frederick Estes,

1670
01:32:54,177 --> 01:32:59,413
who is in the second generation owner of Estes Enterprises.

1671
01:32:59,413 --> 01:33:04,161
He was one of nine local leaders inducted into the inaugural

1672
01:33:04,161 --> 01:33:08,165
Minnesota Black Business Hall of Fame and that happened on August

1673
01:33:08,165 --> 01:33:08,665
8th.

1674
01:33:08,665 --> 01:33:11,187
Hall of Fame recognizes entrepreneurs

1675
01:33:11,187 --> 01:33:14,361
come executives and innovators whose vision and leadership

1676
01:33:14,361 --> 01:33:16,241
have transformed Minnesota's economy.

1677
01:33:16,241 --> 01:33:22,940
Estes is a very familiar face here at MSP and after starting

1678
01:33:22,940 --> 01:33:25,981
as a group of street side gift shops back in Minneapolis,

1679
01:33:25,981 --> 01:33:31,777
53 years ago the first SSP opened in the late 1980s

1680
01:33:31,777 --> 01:33:36,521
and today they operate multiple retail locations across MSP

1681
01:33:36,521 --> 01:33:40,497
and Tampa International Airport offering travelers grab and go

1682
01:33:40,497 --> 01:33:42,454
snacks gum electronics home souvenirs,

1683
01:33:42,454 --> 01:33:48,100
specialty retail products, and I know Fred was I think the first

1684
01:33:48,100 --> 01:33:52,694
one to offer that digital experience where you know,

1685
01:33:52,694 --> 01:33:57,251
he does have someone standing as you enter into the terminal two

1686
01:33:57,251 --> 01:33:57,816
location.

1687
01:33:57,816 --> 01:34:02,107
But, it's all basically a self-serve credit card operation

1688
01:34:02,107 --> 01:34:06,967
yep so congratulations to Frederick and the full Estes

1689
01:34:06,967 --> 01:34:07,634
Enterprise team.

1690
01:34:07,634 --> 01:34:11,797
I think I see Frederick sitting in the back.

1691
01:34:11,797 --> 01:34:16,597
So Frederick thank you and congratulations to you.

1692
01:34:19,694 --> 01:34:21,694
[Applause]

1693
01:34:23,305 --> 01:34:24,180
>> That is my report.

1694
01:34:24,180 --> 01:34:24,189
A lot of items in there today but there

1695
01:34:24,189 --> 01:34:25,761
was a lot to report on.

1696
01:34:25,761 --> 01:34:27,761
>> Questions for Brian?

1697
01:34:28,681 --> 01:34:32,166
Okay next up on the agenda, thank you Brian.

1698
01:34:32,166 --> 01:34:33,587
Is my remarks.

1699
01:34:33,587 --> 01:34:35,774
I don't have any.

1700
01:34:35,774 --> 01:34:39,267
But if anybody has a remark for me, now's the time.

1701
01:34:39,267 --> 01:34:41,725
Because we are going to go into a closed session.

1702
01:34:41,725 --> 01:34:45,310
Then we will come out of it.

1703
01:34:45,310 --> 01:34:50,431
But, I think anything we should be doing now.

1704
01:34:50,743 --> 01:34:53,601
So, I need to read from the script.

1705
01:34:53,601 --> 01:34:57,461
We will now close the meeting to discuss items related

1706
01:34:57,461 --> 01:34:59,861
to Mac's cybersecurity systems.

1707
01:35:00,361 --> 01:35:05,250
The open meeting law in Minnesota statute section 13.057

1708
01:35:05,250 --> 01:35:09,225
D three Parenthese D permits this meeting

1709
01:35:11,770 --> 01:35:13,581
to be closed to the public because the disclosure

1710
01:35:13,581 --> 01:35:15,921
of the information discussed would

1711
01:35:15,921 --> 01:35:19,801
pose a danger to public safety or compromise security

1712
01:35:19,801 --> 01:35:21,601
procedures or responses.

1713
01:35:21,601 --> 01:35:24,961
During the closed session, the live video and its recording

1714
01:35:24,961 --> 01:35:26,873
will be suspended with a note indicating

1715
01:35:26,873 --> 01:35:28,905
that we are in closed session.

1716
01:35:28,905 --> 01:35:32,121
The speaker is outside of the commission room

1717
01:35:32,121 --> 01:35:33,961
will be turned off.

1718
01:35:33,961 --> 01:35:35,905
And anyone not necessary for the discussion

1719
01:35:35,905 --> 01:35:37,147
will be asked to leave.

1720
01:35:37,147 --> 01:35:39,761
When we return from the closed session,

1721
01:35:39,761 --> 01:35:42,654
we will reopen the meeting during that time

1722
01:35:42,654 --> 01:35:44,847
we would take any necessary votes which we will not

1723
01:35:44,847 --> 01:35:46,865
do during the closed session.

1724
01:35:46,865 --> 01:35:53,227
So I call now for a motion to close the meeting.

1725
01:35:53,227 --> 01:35:54,721
>> So moved.

1726
01:35:54,721 --> 01:35:56,721
>> Second?

1727
01:35:56,801 --> 01:35:58,801
>> All in favor?

1728
01:35:59,467 --> 01:36:00,134
Okay.

1729
01:36:00,134 --> 01:36:02,253
The meeting is closed.

1730
01:36:02,253 --> 01:36:06,453
We are going to pause the feed.

1731
01:36:41,594 --> 01:36:45,794
[Board is in Closed Session] And then \