Why Business Travel By Seaplane?

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June 20 (Bloomberg) -- Tailwind Air Service President Melissa Tomkiel discusses the company’s seaplane business travel service on “Market Makers.” (Source: Bloomberg)

Alive -- the -- live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle.

I am erik schatzker in new york city.

For the moment, i have to look at stephanie long distance.

I have wrapped up a week at the cannes lions festival.

You like music as much as i do.

We have to talk about streaming.

It's is getting all the attention these days.

What about good old-fashioned radio?

This is just as popular as ever.

There are a lot of radio listeners out there.

I talked to the clear channel ceo bob pitman.

He runs the biggest radio network in the country.

His stations have 250 million monthly listeners.

We talked about how traditional radio is competing with those digital places like spotify and pandora.

Here's what he had to say.

I thought i heart radio had all the buzz.

We are faster than all of those services.

We were second-fastest to 30 million and 40 million.

I am sure we will be equally as impressive there.

When you get into that game, and we are bigger than spotify, that is our digital.

All of the guys added up.

Broadcast radio is still 90% of listening.

Don't think the shiny new thing is everything.

We are so excited about i heard radio.

Most of the listening is done on broadcast radio.

Does it concern you that i heart radio could take advertising dollars from traditional radio?

We don't care.

We have a station like z 100 in new york or k fim los angeles.

These great franchises.

We don't think they are broadcast.

We think they are franchise.

If someone was to get this through satellite or nam or fm band, we don't care.

It is the same to us.

We are looking to serve the listeners wherever they are.

We have no problem at monetizing it if we have the relationship with the listeners.

We hear from artists who granted they don't make enough money.

Do they not realize that there are more people listening to music today than ever?

They are concerned about when you disrupt the model of the music industry, how they make money?

20 years ago, they did not make much money and concerts.

They mated in record sales.

That is the opposite now.

Our job is to connect the audience to the fans.

We connected so they can sell records.

We do it so they can sell concert tickets and merchandise.

We view we have a responsibility to the artist.

A healthy music business is good for us.

We are very interested in the health of that industry.

At a time when seat 100 can put on a jingle ball and sellout, is that the future of the business?

Everybody wants to go to concerts.

When we do the i heart music festival, for us it is a celebration of live performance.

Nobody does the cool concert.

They do a set.

Having all of them do a set is like a preview for the whole thing.

We find it does wonders for their record sales.

It does wonders for their concert ticket sales.

We are careful that we don't step on their toes.

We want to push the business and we are another way to connect the fans.

We let them see an artist.

One of the artist told me that she was nervous.

She said at my shows everybody came to see me.

At this show some people came to see somebody else and i have to win them over.

This is a great opportunity to win over new fans.

I am always amazed that we have the top artists from all genres that the country artists are so hard-working.

They go out and say i am going to win these people over.

It is amazing to see the audience.

They go, wow.

He is really really good.

If you have 110 million listeners, if you have the super bowl of concerts, why aren't you killing that more?

We have 240 million broadcast listeners.

I make we are doing a great job.

We have proven that people can revisit the fact that the consumer loves radio.

We are america's companion.

The media business to curse for granted and forgot about us.

We are pushing the image backup.

We are pushing the profile up.

We have data.

It is one thing to say that everybody loves us, prove it to me.

Nielsen came out with this study.

It stunned everyone.

At age said it was higher than tv and digital.

It is getting there.

I am pleased with the progress.

We are excited about the possibilities.

What do you think the ownership future is with clear channel?

I think our private equity investors are excited about the trajectory we are on.

They are excited about the possibilities.

We have excitement going on with outdoor now.

Some people are calling it an ipad on a stick.

The possibilities that are going on are one of the highlights of the festival.

The kid walks up on the billboard and a flight is coming overhead.

He tracks the airplane and it comes up with british air lines.

How do they do that?

That is what you always wanted here.

Our owners are excited about the possibilities and the opportunity that we have.

I think i'm going to need to go to that i heart radio festival.

I need to understand it a bit more.

We come back from the cannes lions festival, there are going to be some revolutionary changes as a immediate company.

I think we thought of ourselves as a magazine industry.

You put yourself in a paper box.

Welcome back to "market makers." i am stephanie ruhle and i am coming live from london.

I have more for my week at the "market makers lions festival.

This is one of the world's newest public companies after being spun off from time warner just last week.

Joe is very focused on the business part of a company.

Told me he still believes content is king.

You just have to keep those lips tight.

I am a content industry.

I think we thought of ourselves as a magazine industry.

The moment you define yourself that way, you put yourself in a paper box.

I have content that can be produced and delivered in other formats.

You can see more video and digital from us.

There will be more experimental offense must.

We will engage the audiences around the concept that we have.

Where is the challenge for you running time ain't and -- time inc.

And the editors that are not looking at the bottom line.

I have said that before many times.

I come back as a private equity investor understanding the value of what i have got.

I have got things that are underinvested in over the years.

I am free for a week and half.

We have a lot of cash to invest.

We have a lot of ways to think of what else can we do.

I love the creative community that i have.

We want to ask the hard questions about what else can we do?

How can we take the connection with our consumers and work with advertisers in more exciting ways?

Like what?

A lot of people are talking about that there is something going on there.

There is something different going on there.

That is helping us attract great talent.

People want to come work with us.

So many companies come up to me and say now that you are open for business, i would like to talk to about what we can do with time inc.. i know there are five or six or ideas that i have looked at and thought we would do well with it.

Now that you are open for business and in the building, is it hard for you to unlock the value and get your head around the digital aspects?

Get your head around native content?

Leadership can change anything.

I watched a very experienced leaders turn organizations around.

My second-in-command has taught me all the things that he has done.

The reality is if you go at it from and take this wonderful organization and say here is where we are going, people will follow and you'll get crazy creative things happening.

Will editors need to lose their religion and open their minds?

We took that away.

The editors are going to be working for the business side of the equation.

I think they are happier.

They are more excited about it.

We are not violating church and state.

We are not asking ourselves the question of violating the trust with consumers and my editors have much more freedom to think about how they can delay the consumers and work with advertisers and think through the product.

They are running a business.

We can do more of that or we can do something different.

We can try harder and do more things.

We were afraid of trying new things.

If it does not work then we will do the other thing.

It is very simple.

There is an excitement in the organization about trying new things.

We have the resources and the management team to do it.

I think we have a process that allows our creative people to think about how we can come up with new ideas and services for our advertisers and consumers.

The people who follow you love to panic when they see panic -- budget cuts or layoffs.

Are there obvious ways you can streamline that business and cut budgets?

When the creators are in charge they have a different idea.

Hockey talk about investing when you talk about layoffs?

They go hand-in-hand.

We need to invest in the things that go to the future.

Sometimes he will spend money on things we don't need.

I have multiple kitchens.

I don't need that.

We have multiple organizations developing recipes for us.

We can save money on the things we are saving on so he can generate the resources to go forward with.

You want to take the company forward.

You want to ask yourself the questions.

Ask yourself the question is what you are doing everyday taking us forward?

If it is not, then don't do it.

I highlight all of the things that i want to buy.

I go to retail stores to buy it.

What am i going to buy it from you?

We sell things a little bit here and a little bit there.

Many of our titles sell products.

In style on average has eight products recommended in every issue.

They get mad because the product sardis sold out in the store.

There is a lot of opportunity for product sales.

We are going to figure that out.

We want to do it in a way that does not violate the consumer trust.

Consumers are smarter.

They are looking for experts and people who have real credentials and say this is a good product.

Where can i buy it?

Let me do that.

You need to get an acquisition to get time to a place where you can sell product?

We have some technology in house.

You may be some small acquisitions.

The the opportunity is to build those platforms that will cut across the place.

We are talking about buying or building.

The opportunity is to make smaller acquisitions that did not fit into the products.

You will see smaller acquisitions for us.

We will have a lot more ahead from the cannes lions festival.

You will see my interview with hip-hop mogul kanye west.

If you are richard leffler, you are kind of winning.

If you're kanye, you are saying kanye is king.

He is the king.

He is steve jobs.

Only he could think that way.

Off-line without all the hassle of going through airports.

You are going to hear from the president of a brand-new airline.

? this is "market makers." business travelers, listen up.

If you want to avoid crowded gates, a new airline is going to skip the lines altogether.

They will have flights between new york and boston by seaplane.

Melissa, let's talk about this a business idea that you have.

Why is there a market for this service?

The need for efficiency in business travel.

Travelers need to get from point a to point b as quickly as possible.

They want to avoid overnight stays.

Airport congestion and security lines can lead to three times the amount of travel as the flight.

By skipping that altogether, seaplanes have the most efficient way to get someplace.

They can take four hours to get from manhattan to downtown washington.

Travel to the airport, security lines, how fast can you do it?

90 minutes.

You're cutting it down by more than half.

Most people are not aware that you are in the airline business.

Tell us about the experience the you have had it with fly the whale.

Fly the whale is a seaplane operator.

We have been fine since 2010 out of new york providing weekend shuttles to east hampton.

Because of fly the whale we realize how important people's time is and how they are willing to pay a premium for that time.

A lot of our current customers have expressed interest to me that they would travel during the week to boston or d.c. they wish somebody could do it faster?


They know how efficient it is.

We are provided during the week to them.

What do you charge?

It's going to be $550 each way.

It is competitive.

Especially for business travelers.

The rate can go up on delta to about $850. you are flying out of the east river here in new york city.

Where are you landing?

The private terminals on the tarmac.

The planes are amphibious.

It is different.

It is different than flying to the commercial terminals.

The only need to arrive 20 minutes prior to take off.

There is no need to check in one hour ahead of time.

It enables the business traveler to leave in the morning and go to boston and have their meeting and return at night for dinner.

Had you get people over the fact that they are unfamiliar with seaplanes and might find them scary?

People have that trepidation.

The reality is aviation is the safest way to travel.

With a seaplane, it is just as safe as any other plane.

You are equipped to land where other -- wherever.

The plane to have our small.

I have seen larger seaplanes.

The ones that fly out of huge it sound in seattle.

Right now, new york is only equipped to have these nine passenger planes.

We are working with the city to build a new seaplane infrastructure that will be similar to what they have in vancouver.

How are you marketing the service?

How are you making people aware?

What about everybody else?

We have various corporate sponsorships.

We are opera -- offering corporate rates to large companies.

They may have clients in need to travel back and forth regularly.

I have no problem flying in a seaplane.

I am looking forward to trying it.

Think of are spending some time with me.

They are going to be flying between the east river here in manhattan and boston and washington.

"market makers" will be back up in just a minute.


This text has been automatically generated. It may not be 100% accurate.


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