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Quest Means Business

British Prime Minister Lays Out June Retail Reopening; Cummings Rejects Calls To Resign Over Travel Controversy; Lufthansa Secures $9.8 Billion Rescue From German Government; Japan Expanding Travel Ban to Stop Coronavirus Spread; WHO Pauses Hydroxychloroquine Drug Study; Hertz Files for Bankruptcy as Demand for Rental Cars Craters. Aired 3-4p ET

Aired May 25, 2020 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:00:14]

RICHARD QUEST, CNN INTERNATIONAL HOST: I was just about to say 60 minutes before the closing bell, but there is no closing bell today. It's Memorial

Day in the United States, and so no trading.

In Europe, however, there's some very good markets. You can see except for London which was also off for the day. The Xetra DAX is up nearly three

percent.

Those are the markets and what was behind it all. Boris Johnson, the U.K. Prime Minister laying out his plans to reopen shops, as his top adviser

defends his travels during the lockdown.

Lufthansa gets a bailout from the German government totaling $9 billion.

And airlines have become the latest political football in the tensions between the U.S. and China.

We are live in New York. I am Richard Quest. It is Monday, May the 25th and of course, in the living room, I mean business.

And a very good afternoon, good evening to you. Boris Johnson has been setting out the timetable by which U.K. retailers will start to open. It

will be a slow process going throughout the month of June assuming they all meet certain safety criteria that is that they are low risk, their spatial

stores can be open by the first of the month, all others by the 15th.

The Prime Minister is urging caution even as the stores reopen.

(BEGIN VIDEO CLIP)

BORIS JOHNSON, BRITISH PRIME MINISTER: These are capital that deliberate steps on the road to rebuilding our country, and we can only take these

steps, thanks to what we have so far achieved together.

We will only be successful -- we will only be successful if we all remember the basics. So, wash your hands, keep social distance and isolate if you

have symptoms and get a test.

(END VIDEO CLIP)

QUEST: The Prime Minister's press conference was delayed by an hour because of another press conference this time by his chief adviser, Dominic

Cummings, who was defending his decision to travel with his family during the lockdown at a time when he was exhibiting symptoms.

Dominic Cummings has been heavily criticized for going the 250 miles from London to Darby in the north of England. He gave his reasons at a press

conference and said he doesn't regret it.

(BEGIN VIDEO CLIP)

DOMINIC CUMMINGS, CHIEF AIDE TO BRITISH PRIME MINISTER BORIS JOHNSON: No, I don't -- I don't regrets What I did as I as I said, I think, you know,

reasonable people may well disagree about how I thought about what to do in these circumstances, but I think that I what I did was actually reasonable

in these circumstances.

(END VIDEO CLIP)

QUEST: Bianca Nobilo is with me from outside London. Now, the interesting thing I thought when I listened to it was this continued repeated,

reasonable people can disagree.

This was very different Dominic Cummings, who would normally have stuck two fingers up and hurled a pile of abuse. He is basically saying, I did what I

did. Others may not like it, but I acted in the best interest. Will it wash -- Bianca.

BIANCA NOBILO, CNN CORRESPONDENT: Well, he was contrite enough for some, but nowhere near contrite and apologetic enough for others.

It was a completely different side of the man who you describe accurately as somebody who has been criticized for holding the media in contempt. He

is very rude when he approached in the street. He doesn't really care what people think about him. He's said that on numerous occasions.

But today, it was different. He was trying to show a more humble side of himself, exposing himself to journalists for about an hour in an

unprecedented format.

We just showed you, as he was in the garden behind Downing Street, that's usually a space that's reserved for the Prime Minister, or visiting world

leaders.

And we have here a chief aide, the chief adviser to the Prime Minister who's never supposed to give a statement or wade into the political fray

himself doing all those things.

Now, the question is, did he break the rules? And many journalists and indeed politicians, even members of the Prime Minister's own party will

argue, yes, he did. And it's not fair to ask the country to do one thing and yourself, do something completely different.

Now, the reasons that Dominic Cummings gave for this trip that he made up the country 260 miles and then stopping off at Barnard Castle and having a

walk around supposedly because he needed to test his eyesight was the fact that he said his circumstances were exceptional.

[15:05:11]

NOBILO: And he cites the fact that obviously his job as adviser to an increasingly ailing Prime Minister at that point, and the fact that his

family home, he said had become a target of public anger as reasons why he needed to leave.

He also said the fact that he was looking after his four-year-old son, and he believed that the regulations allowed parents to make allowances for

sort of bending the rules if they needed to, if they had a child to look after.

And he said those are the reasons that he needed to take the trip, but he said that he couldn't reasonably find any type of childcare in London.

Now, all of those things, Richard, I mean, some people might accept them as arguments. I've spoken to one or two people who feel like he is unelected

and they might have done the same thing for their own child, but for other people, the parents of children who have been suffering from coronavirus in

hospital, people who've had loved ones die of coronavirus in hospital with no one by their side.

I know an anesthetist at the local hospital here who moved out of his family home and into a caravan so that he could continue working. I just

don't know if those arguments are going to wash.

QUEST: All right, so what would it take now for him to be pushed out? The Prime Minister has nailed his colors firmly to the mast, some would say

irresponsibly, with his legally responsibly et cetera et cetera statement. So, what would it take for Boris Johnson to shift?

NOBILO: Well, he said today in the press conference that his support for Cummings was not unconditional when he was pushed. Cummings himself said

that he hadn't offered to resign he hadn't considered it.

So, obviously it will take the Prime Minister to fire Dominic Cummings to shift this. Now what would be the circumstances to make that happen?

Well, he said that if he believed that the actions of Dominic Cummings and his response to them were causing a significant dip in public confidence

and people's public trust and ability to follow the guidelines. If that was really impacted by these events, then he may have to reconsider.

Now, how would he judge that? Probably how long the story continues. You and I both know the adage, you may have even told it to me originally about

how if you become the story, as the adviser, you don't have very long in the job.

Now, this has been about four days that Cummings has dominated the papers here in the United Kingdom. Now, in some ways that might help the

government because the broader context of this has been a mishandling of the pandemic.

There are many criticisms of the flip flopping on initial strategy. The fact that there's the excess deaths in the U.K. is so much higher than so

many other countries. But it will really take sustained media pressure, which is really high at the moment and mounting and examples from the

public of the fact that they're not going to listen to the government anymore, if it's one rule for them and another rule for us.

QUEST: Bianca, thank you. Bianca is in London. Now, we go to Germany where one of, if not Europe's largest airline group, has been given about worth

nine billion euros.

The Lufthansa Group, it will be about $10 billion. Lufthansa Group is to get from the government, which will take a 20 percent stake. It's also

going to have a shareholder equity injection, shareholder loan, along with a variety of other things.

Now, of course there are the plans to restructure. Fred Pleitgen is in Berlin. So Fred, first of all, the tranches and the different ways in which

the LH Group is getting the money is very complicated, but it's an extraordinarily large amount of money.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, it certainly is a huge amount of money, these nine billion euros that have

been agreed to and I think it's 5.7 billion euros of that is a direct injection from the German government and there's more than three billion

euros in loans from the German Kreditanstalt fur Wiederaufbau, which is essentially a German government lending bank that was put into service

after German unification.

So it is a lot of money, and it is quite complicated, Richard. And I think one of the things that we're seeing shine through here, and I've been

following the negotiations about this very, very closely is on the one hand, the German government obviously wants to make sure that the company

will operate in a way that it would like to see it operate, which means not paying too much in the way of dividends, which means operating in a way

that's environmentally friendly in the future.

But you can also very much see Carsten Spohr, who is of course the CEO of the Lufthansa Group, and you can see his apprehension towards any sort of

government influence in the day-to-day operations.

And you were already mentioning, I think, that there are going to be two representatives from the German government who are going to be sitting on

the supervisory board, but those are not going to be government officials. Those are going to be independent experts as they call them, which I think

is sort of a concession that the airline has one that says look, there is going to be this restructuring. This restructuring is going to cost a lot

of money.

[15:10:10]

PLEITGEN: And of course, the airline isn't going to be making very much money in the next couple of years. But they want to also give management

which means Carsten Spohr at this point in time, enough leeway to do that the way that he sees fit.

And I've been looking at this, what the German government is doing, Richard and with the French, for instance, done with Air France and KLM, it

certainly seems as though the Germans are taking a bit more of a hands off approach as far as the day-to-day operations are going to be concerned and

getting this airline back out of the crisis -- Richard.

QUEST: Right. Okay, but two points here. Firstly, IAG, owners of British Airways, Iberia and others have pretty much said they're not going to go

for a bailout by the by the government.

And Michael O'Leary of Ryanair has described the Lufthansa Group as like an addicted or an addict, addicted to government cash and bailout cash.

I mean, these large sums of money, arguably will unbalance the European aviation field even more and put off painful restructuring in some

airlines.

PLEITGEN: I think one of the other things that Michael O'Leary also said is that Lufthansa was addicted to buying other airlines. I think that's one of

the things that he also said, that's certainly something that I think other airlines in Europe certainly see as a threat, especially right now, as you

can see, some of the smaller airlines on the continent certainly are teetering on the brink of being in a lot of trouble, at least.

And there certainly is that threat that is out there. But I think if we look at the structuring of what the Germans have put out today, what the

German government has put out and what Lufthansa has put out, they seem to be saying that they want to create an airline that is going to be smaller

than it was before at least in the medium term, and certainly one, that they say is going to be more efficient than it was before.

And I think that's where the government really wants to have a bit of a say in all this. How is that we restructuring going to happen? Of course, the

Germans would like to see as many jobs as possible saved in Germany.

But on the whole, it certainly seems as though in the medium term, this is going to be a much smaller construct than it was before.

Of course, all of that Richard, taking place in this very volatile environment right now that is the sort of European airline market that's

out there.

So, you never know what exactly is going to happen in the not too distant future. But it is certainly seen as though right now for the German

government, for the heads of Lufthansa. They're saying, look, we had an operation, we had an airline that was doing well, that was profitable and

that got into a lot of trouble because of this crisis that happened and we're trying to help it out in the short term.

And certainly, the Germans are saying, once the airline starts making profit again, they are going to sell their shares and let Lufthansa do

whatever it wants.

But of course, that criticism that you're talking about that is very, very much out there, and one of the things of course, that still has to happen

is that Lufthansa is going to have to get permission from the European Commission to go through with all this well -- Richard.

QUEST: All right. Thank you, Fred Pleitgen who joins us from Berlin.

Now European stock markets, and you have, except for London, they were all open. It was Germany that saw the best of the session. Lufthansa's bailout.

Bayer's lawsuits is driving gains.

There was a better sentiment in German business, which was stronger and the U.K. market was shut for the spring bank holiday.

After a break, Hertz has filed for Chapter 11 protective bankruptcy. If you look at the number of cars they've got just sitting in vast parking lots

and stadiums around America. Can they survive? Will they come back?

It's protected bankruptcy. Will they come back to fight another day?

(COMMERCIAL BREAK)

[15:16:20]

QUEST: QUEST MEANS BUSINESS at the start of a new week. Airlines between the United States and China are once again facing some extreme turbulence

in the air.

The Chinese government is refusing or at least dragging its heels in approving U.S. carriers like Delta and United to return service between the

U.S. and China.

The question, of course, is whether this is a geopolitical play, because of the way the United States is treating China at the moment.

Clare Sebastian is with us in New York. Is this politics or is there more behind it?

CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Well, Richard, the U.S. government is certainly involved in this. The reason they got involved they

say is because the U.S. carriers Delta and United who have announced plans to resume flights to China in June, bear in mind, they've been suspended

since February, they applied to the Chinese regulators to do so.

But they, apparently according to the U.S. Department of Transport, have not heard back and this is when the Department of Transport weighed in and

accused the Chinese government basically, of treating the U.S. carriers unfairly of violating an existing Air Transport Agreement between the two

countries and in return issued an order that now requires Chinese airlines operating in the United States -- by the way, they are still operating --

to file schedules with the U.S. government.

China has denounced this, so whichever way you look at it, Richard, this is now political.

QUEST: Okay, United wanted to restart its flights to Beijing and Delta wanted to fly out of Seattle over to Shanghai.

But at some point, these things will obviously have to be reestablished. I guess it comes down to just whether or not this is because the U.S.,

President Trump in particular, is pushing so hard for the way he believes the Chinese dealt with the transparency over COVID.

SEBASTIAN: I think at the moment, Richard, there's probably two factors at play here beyond the fact that China has a rule in place that prohibits

airlines from increasing their schedule beyond what it was in the middle of March when Chinese airlines were still flying to the U.S. The U.S. airlines

were not flying to China.

The first is, of course, that the pressure on China has significantly ramped up from the U.S. side, not just over COVID, but now over Hong Kong,

as well, but also China has concerns about imported cases of the coronavirus.

It says it has managed to get its domestic spread under control that the majority of cases and are coming from outside and of course, the U.S. still

has its numbers nationally going up. So, I think there are nerves within China around that.

So, I think there are several factors at play here. But certainly, geopolitics within this is unavoidable at the moment because we've seen

such a ratcheting up of tensions.

QUEST: Clare Sebastian in New York. Clare, thank you.

To the markets in Asia and how Hong Kong performed on the first day. Remember, last week the market fell five percent after the Chinese new

proposed law and the violence that followed in Hong Kong, and the way the markets today or Monday, the first day of trading.

The Hong Kong Hang Seng was up just a tad. But if you take what Australia was doing, and you look at what the others did, you still see the weakness

in the Hong Kong market.

There were further protests against the new law on Sunday. Police fired teargas, 180 people were arrested. Now China says the new law is meant to

combat terrorism. It bypasses the Hong Kong legislature. It will go directly into Hong Kong law.

The critics say it spells the end and the death of one country two systems. I spoke to Joshua Wong who is a pro-democracy activist. He is accusing

Beijing of using not so much the letter, but the spirit and the way these laws would be introduced and enforced to silence dissidents.

(BEGIN VIDEO CLIP)

JOSHUA WONG, SECRETARY GENERAL, DEMOSISTO: In the previous day, China just use the anti-subversion law to arrest Liu Xiaobo or other prominent

political dissidents in China.

And when they bypassed the Hong Kong legislature and arrested people with such National Security Law, we might be jailed for five, 10 or even 20

years just because of criticizing the government.

The problem is not about anti-subversion. It's about how the regime, how Beijing define what is meant by subversion, and of course, in some of the

eyes of the global community, at least it still estimates and recognizes the importance of freedom of speech.

But in Hong Kong or under the hard line rule of Beijing, it would just be to silence the voice of Hong Kong.

QUEST: But haven't you got a big problem here and that is the rest of the world like China, where the rest of the world is only now recovering from

coronavirus.

The last thing many countries will really want, whatever they say publicly, is a full throttle battle with China, which could lead to more economic

harm. The United States could certainly be in that position.

So, isn't your biggest problem while other countries might make noises in your support, they won't do anything active towards it.

WONG: I think how you already point out the fact of how Beijing take advantage during the outbreak of COVID-19 and during the pandemic was

global and -- such a global health crisis, but all you realize is laws of world leaders and also, MPs or congressmen around the world have shown

their concern in the previous few days, especially the joint statement by the Foreign Ministers from UK, Australia and Canada.

At the same time, how Secretary Pompeo also raised the concern and criticized the implementation of National Security Law that just eroded the

high degree of autonomy in Hong Kong.

QUEST: But Mr. Wong, you need more than strong words and one assumes that the protesters will be back on the streets in Hong Kong. But where are you

going to get real action from other governments?

WONG: Yes, I think that's the point and actions speak louder than words. In local community, of course, we will mobilize as many people as we can, more

than hundred thousand Hong Kongers might take back to the street again soon.

But in the global community, we urge the U.S. government to implement and execute the Hong Kong Human Rights and Democracy Act signed by President

Trump last November.

At the same time, how to enhance the censure mechanism in U.S. and several European countries will really matter to let Beijing realize that we have

international allies to stand with fellow Hong Kongers to safeguard freedom and free flow of information in such a global city.

(END VIDEO CLIP)

QUEST: Staying with aviation and India is to reopen some aircraft and airways two months after shutting down the network.

Now, it's going to start allowing some domestic flights. CNN's Vedika Sud reports.

(BEGIN VIDEOTAPE)

VEDIKA SUD, CNN FIELD PRODUCER (voice over): Most airports in India have reopened after two months in lockdown. While domestic air services resumed

one-third of its operations, new standard operating procedures are being strictly implemented to encourage contactless travel.

On arrival at the Delhi Airport terminal, self-service kiosks will have print boarding passes and bag tags. Passengers will undergo a quick

temperature check while their luggage goes through ultraviolet disinfection tunnels.

These measures have been introduced to prevent COVID-19 infections.

(BEGIN VIDEO CLIP)

VIDEH JAIPURIAR, CHIEF EXECUTIVE OFFICER, DELHI INTERNATIONAL AIRPORT: Overall, about 45,000-50,000 passengers in terms of departure and arrival

is the level that we're looking at.

(END VIDEO CLIP)

SUD (voice over): Only security personnel would check documents handed over by passengers. Now, they stand behind glass shields to verify

identification papers.

Thermal scanners have been placed at the entrance of the Delhi Airport to detect any active cases of coronavirus.

Efforts are also on to avoid any contact with airline staff behind counters, check-in bags are to be dropped off at designated areas.

After clearing security where self-distancing will be given priority, travelers will be guided to the waiting lounge, where a distance between

seats will be maintained.

[15:25:03]

SUD (voice over): Strict guidelines have also been issued over ticket pricing and cabin crew.

(BEGIN VIDEO CLIP)

HARDEEP SINGH PURI, MINISTER OF CIVIL AVIATION, INDIA: The cabin crew will be required to be in full protective gear, full protective suit.

(END VIDEO CLIP)

SUD (voice over): While also safety precautions have been announced, keeping the middle seats of flights vacant isn't one of them. Full flights

are still allowed to operate.

(BEGIN VIDEO CLIP)

DR. NARESH TREHAN, CHAIRMAN AND MANAGING DIRECTOR, MEDANTA HOSPITAL: Wherever possible and that's my preference. Middle seats should be kept

vacant, it only helps to distance, it doesn't harm.

(END VIDEO CLIP)

SUD (on camera): At a time when India is witnessing a consistent rise in the number of COVID-19 cases, the government of India has taken a bold step

with its decision to reopen the skies for domestic travel. Is this a risk worth taking? We'll be watching.

Vedika Sud, CNN, New Delhi.

(END VIDEOTAPE)

QUEST: As the number of cases of coronavirus rises sharply in Brazil, it's now the second worst country in the world. So, the United States is now

banning travel between the two for foreign nationals. We'll talk about that after the break.

Also Trivago, we will have the CEO of that on the future of accommodation and travel. In a moment.

(COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest, there is more QUEST MEANS BUSINESS in just a moment. We're joined by the CEO of Ethiopian Airlines as the passenger

traffic is just about nonexistent, so the airline is looking to cargo to make up some of the difference, but it does beg the question of what's the

future for the East African airline.

And getting back to business in Paris. Officine Generale, the Founder of Fashion House of Officine Generale will be with me. How do you sell fashion

in shops in an era of COVID in the winter? We'll talk about that.

Before any of it. Well, you know how we're going here. This is CNN and on this network, we will always have news first.

[15:30:10]

Japan has announced an expansion to its travel ban list, 111 countries in total, and that now includes the U.S., India and South Africa. The goal is

to protect against coronavirus spread. Japan is shifting its state of emergency. Citizens of Japan can still enter the country. They have to

quarantine for 14 days. The WHO has paused study of the hydroxychloroquine safety concerns as coronavirus treatment.

Now, it's usually dispensed for autoimmune disorders and an antimalaria drug. President Trump has touted the drug and says he is taking it.

Meanwhile, the U.S. President is threatening to take away major business from North Carolina. He says you'll find another venue for the Republican

National Convention in August, if the state's democratic governor won't guarantee, his words, the arena can be filled to capacity.

The rental car company Hertz has filed for protective bankruptcy. It did so at the end of last week. And now everybody wondering who is next. Now,

Hertz, while it restructures, is planning to stay in business, of course, but it will lay off 50 percent of its global workforce. It said it asked

the U.S. government for help but did not receive it. Hertz is a bellwether in the car rental business and a car rental pioneer.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Just let Hertz put you in the driver's seat, today.

(END VIDEO CLIP)

QUEST: That (INAUDIBLE) Hertz rental car started in Chicago in 1980. It has a fleet of 12 Ford Model T's in those days. Now, it has 12,000 locations on

six continents. Axel Hefer is with me, Trivago CEO, he joins me from Dusseldorf. It is good to see you. The, I mean, we're not flying. We're not

traveling. We're not renting cars. So, you can see how it all comes together.

You, through Trivago, you very much have your fingers on the pulse of the accommodations industry. Are you seeing any uptick in bookings yet?

AXEL HEFER, CEO, TRIVAGO: Indeed, we do. I mean, the in regions where the healthcare situation is improving in the U.S., to a little extent, but then

in Germany and Europe in particular, you do say an interest and in new bookings, and you do see an increase in searches and particularly for the

summer months.

QUEST: But it's off -- I mean, it's off a zero base and it's going to be very low. What do you expect this summer taking us -- take us all the way

from now through till October say, is going to look like for traveler?

HEFER: So, the first travel that we do see that is coming back is, domestic travel and they are in particular, travelers, going from the metropolitan

areas to more remote areas, to the coastal areas and to the mountains. That is a common trend that we see across the markets where there is a stable

health situation. We do expect the radius of operandi to expand.

So, starting with apartments and vacation rentals, going to hotels with highest safety standards and health standards. And then at the -- at the

late summer, some international travel, both in Europe and in the U.S.

QUEST: If we look at the plight of organizations like yours, of course, your largest shareholders, Expedia, which is doing its own restructuring as

a result, where are you going to get your business from, because a best business travel for the next for the -- until the end of the year is likely

to be spotty. And leisure travel is not going to be that robust, either, at the luxury or the hotel end.

HEFER: This here will not be about making money and it will obviously be about losing as less as possible. But the key thing this year will be to

step-by-step rebuild the confidence of travelers into traveling, as I said, first, domestically, and then in bigger, bigger steps, as travelers

becoming safer and then to have some kind of recovery of the overall activity for next year. This year, the activity will be very low, almost in

any possible scenario.

QUEST: Right. Now, I -- you know, we've done numerous looks at how hotels can rebuild that trust. Everything from, you know, letting -- I mean,

guests will say we don't want room service or we don't want our room serviced.

[15:35:13]

But what do you think will be the touchstone for rebuilding travel? There'll be lots of hotels, it'll make lots of pretty noises. But what will

be the evidence that will make people feel better?

HEFER: It might sound simple, but I do think that, that that's trips where everybody's coming back healthy, will help to rebuild the confidence.

That's why we do think that, really, step-by-step, getting more and more out of your comfort zone will be important. apartments are considered by a

lot of people as the safest accommodation type.

Then the next one, smaller hotels, was not full occupancy and big distance, no common areas. And then you will really go step-by-step back to something

that will be not normal but will be closer to normal.

QUEST: Do you think the concept, you know, for hotels, for travel companies, for yourself, selling what you do? You know, it's not about

campaigning at the moment, is it? It's about building confidence, as you said, building trust, but do -- but how do you also then still tap into the

wanderlust for travel, where many people are saying wanderlust? Now, I don't want to get, you know, I don't want to take the risk.

HEFER: Yes, the -- I don't think that that's the right focus for this year. I mean, the first thing that we did is, we stopped our marketing activities

when COVID -- the COVID outbreak became bigger and bigger in Europe and the U.S. and send a letter to our custom -- our travelers, discouraging them

from traveling. It is really about building their trust and that is our primary objective in our marketing activities. So, we are currently

planning to start some campaigns around local travel.

So -- and only in regions where we do believe that it will be safe. So, it is much more supportive marketing rather than revenue-generating marketing,

and that will be key to rebuild that trust, to generate significant revenues for next year.

QUEST: A quick one, it just occurred to me, cancellations, cancelable refunds, our viewers of this program know I'm sitting on several thousand

dollars' worth of refunds from airlines which have not come back to me yet. What about cancel, the ability to get a refund? The industry has taken a

bloody nose and a black eye over this.

HEFER: That is correct. I mean, thankfully, we as a -- as a website that offers transparency and doesn't handle the booking as such, we did not have

to deal with cancellations. But the cancellations have been very painful to a lot of travel companies. What we have done is, we have -- we have worked

hard to increase the number of rates that are cancelable on our side, significantly, which is what travelers need right now.

QUEST: Yes, absolutely, couldn't agree with you more. Axel, very good to have you on QUEST MEANS BUSINESS. Please, let's make sure we have you back

again, as this thing unfolds, so we can get the strategy of how the markets and the accommodation industry is moving. Thank you, sir. I appreciate your

time.

Now, the travel and tourism industry which as you all well know, is absolutely crucial to this program. We spend a lot of time talking about

airlines, hotels, the industry, just then, as you heard. Well, tomorrow, we're going to have a special program on this. Join me. I'll be speaking to

top airline CEOs, and tourism ministers, how they hope to navigate the way forward. We'll talk to the countries that rely on visitors the most. Usual

time for QUEST MEANS BUSINESS, "TOURISM AND CRISIS," how it recovers.

Ethiopian Airlines says it's committed to stopping the spread of COVID-19 across the continent, as today marks Africa Day and the branding of Africa

research. Tewolde GebreMariam is the chief executive of Ethiopian Airlines. Tewolde, is with me now. It is always good to have you. As, Tewolde, as

there's no -- how are you planning to restart your major services, what others are calling meaningful service? When do you hope that to begin?

TEWOLDE GEBREMARIAM, CEO, ETHIOPIAN AIRLINES (via Skype): Hi, Richard, it's a pleasure to see you again. And thank you for having me in your program

and thanks for the opportunity. Do you know the current global crisis is unprecedented? And Ethiopian Airlines has been highly affected, and more

than 90 percent of our passenger flights have been suspended.

[15:40:10]

And by the end of the fiscal year, our fiscal year which ends in June, by June 30, we are expecting to lose around a billion U.S. dollars' worth of

gross revenue. And back in March, early March, we have shifted our strategy from growth mode to survival mode. And since then, we have been focusing on

cargo and as you know, the cargo business has been booming.

And as the largest cargo carrier in the continent with 10 777 freighters and 2 737 freighters. We have also increased our capacity and we have been

taking advantage of the booming cargo business. And --

QUEST: Tewolde --

GEBREMARIAM: -- of course, it's very difficult --

QUEST: Can I just -- can I just jump? Can I just jump in there? I know that you had doubts about the 737 Maxes that you'd ordered. You're expected to

reach a final agreement with Boeing on compensation for the one, of course, the tragic accident or crash. Will you take those other 737 Maxes, which

frankly, you don't need now and probably won't need for the foreseeable future?

GEBREMARIAM: Well, we may need those airplanes. But as you know, the Maxes, the Max has still a lot of problems and we don't know when it's going to

come back to fly. So, we have not made that decision because we need to know more about the exact date of coming back to service.

So, we have not made that decision. But as far as requiring those narrow body aircraft, we still have them in our business model.

QUEST: Do you think -- and, you know, I will say this, you don't say it, and this is from me, but if you look at the way South African Airways has

been bailed out again, having gone into emergency administration, and now looks like it will come back in another guise, I mean, you're also stay

tuned, but you run on much more commercial principles. Is it going to be very much more difficult for airlines like yours to compete with those

other airlines that have also been bailed out, but were never efficient to start with?

GEBREMARIAM: Yes, Sir Richard, you have touched a very important point. You know, bail out should not be used to put bad businesses on life support. I

mean, bad businesses have to be managed the way it should. But unfortunately, that's what we are seeing all over the world. And therefore,

we have decided to manage this unprecedented crisis with our own internal resources.

We have not taken out -- taken any bail out from any external sources. But unfortunately, we will have to deal with airlines being bailed out by their

governments.

QUEST: Towalde, it is good to have you with us. I'm very grateful. Thank you, as always. Keep well, friend, keep well. Now, the "VOICE OF THE

CRISIS" when we return, fashion is very important as an industry we all know that. But how do you sell clothes when people can't try them on?

Online can only go so far. The "VOICE OF THE CRISIS" is the spring fashion and what happens next.

(COMMERCIAL BREAK)

[15:45:00]

(COMMERCIAL BREAK)

QUEST: And so, our "VOICES OF THE CRISIS" are now getting back into business. And we're better to go in the springtime but to Paris and

fashion. The clothing brand, Officine Generale was gearing up for the severing summer season when the lockdown began, nearly a week since

reopening up the stores with new safety rules.

Pierre Maheo is the founder and designer of Officine Generale from Paris via Skype. So, how -- do you do it? How do you manage to open the stores

with the phenomenally complicated but important steam cleaning and everything of every item that has to be -- that's been tried on?

PIERRE MAHEO, FOUNDER AND DESIGNER, OFFICINE GENERALE (via Skype): Good evening, Richard. Well, listen, you know, complicated, after two months of

being closed is nothing really complicated that much. We were so full of joy to be able to reopen, that we manage the material very easily. The

staff has been fantastic. We are very strict, you know, depend on the size of the stores, there is a limited number of people that could be in the

store at the same time.

All our customer wearing masks. There is gel, they need to wash their hand before they enter in the store. It's very basic, and of course, it's a

social decision we are all talking about.

QUEST: So, the ability for you to keep your staff on and some of them just dealing with online shopping was because of the government's plan or the

government's scheme for wages. Did that save your company, the ability to rely on the state aid help? Did that save you?

MAHEO: That was super important. What the French government did is totally amazing, you know? As unemployment benefit that we all -- we have -- that's

huge support today. We -- you have the fellow in USA, fellow is like people are getting -- losing their job and they may have it or not back. We --

that's not the case at all with us.

I mean, people are on hold, they are paid by the company and the French government reimburse us on monthly basis. I didn't hire anyone. I'm not

going to fire anyone. I have 45 persons in my company and they still have a job today and they will have a job in September, so yes.

QUEST: Do people want to go shopping in shops? Do they actually, I mean, can you build -- you know, we just heard from the CEO of Trivago about the

hotels and the travel industry, building trust and confidence. It's even more so in a case where it's an everyday thing like going into the shop and

trying on a pair of trousers.

MAHEO: Listen, today, there is no restaurants, there is no coffee, you know? You just have stores, you have the food, you have the fashion store,

you have the pharmacy, so what else you can do, you know?

People have been -- people have been locked down for like two months. We had some guys that were waiting at the door on Tuesday, 12, when we

reopened at 11. They were waiting for the store to open.

And what you see right now and what my staff is telling me, they want to talk, I mean, we have less people than before. The traffic is, of course,

lower than when it used to be prior to March 15. But with much more time. People want to speak. They want to interact. They want to delete the advice

of the staff of the store director. That's super important and they really want

More time people want to speak, they want to interact. They want to delete the advice of the store director, that's super important, and they really

want it.

[15:50:12]

QUEST: And here's the promise, coming. The promise is, before the end of the year, I'll have presented QUEST MEANS BUSINESS, in a jacket and shirt

that you have chosen. How about that? You have to choose it yourself, a jacket and shirt from -- that -- go on.

MAHEO: I'm losing you. Sorry.

QUEST: We've lost the line there. That's all right. Now, what were you going to say, sir? You're going to say? I've given the promise, and you are

going to tell me what?

MAHEO: Of course, of course, I'll do it for you.

QUEST: Excellent. There we go. That simple. More after the break. We know there's a meat shortage in the United States and that's having an effect on

the barbecue, the summer barbecue, which is just getting underway now, in a moment.

(COMMERCIAL BREAK)

QUEST: is a ritual as American as apple pie, the barbecue in the summer. This year, of course, though, even though summer may have begun or just

about to begin. The barbecues are finding themselves relatively meatless. There's been a crisis, a lack of meat because of what's been happening with

coronavirus. CNN's Dianne Gallagher reports.

(BEGIN VIDEOTAPE)

DIANNE GALLAGHER, CNN CORRESPONDENT: It's a tradition.

UNIDENTIFIED MALE: It's been here since 1961.

GALLAGHER: An art form, really.

UNIDENTIFIED MALE: Texas style, pet smoked barbecue.

GALLAGHER: Brisket is king at Pit's from Colorado --

UNIDENTIFIED MALE: Just hardwood, smoked Pit barbecue.

GALLAGHER: -- to Georgia --

WADE MCSWAIN, OWNER, PIT BOSS BBQ: We're known for our black angus beef brisket.

GALLAGHER: -- where people drive from hours away just to get a taste of what Wade McSwain's been serving up for a dozen years now at Pit Boss, just

outside of Atlanta.

MCSWAIN: This tender juicy slice, got a nice smoke ring on it, it is beautiful hungry.

GALLAGHER: You're making me hungry.

MCSWAIN: Yes. Well, that's my job, you know?

GALLAGHER: But since the coronavirus outbreak began, it hasn't been easy.

MCSWAIN: You're struggling to pay your bills and then -- and then finally, on April 3rd, we shut down for 10 days.

GALLAGHER: Around that same time, thousands of meatpacking plant employees who had been working shoulder to shoulder in grueling conditions, started

getting sick at alarming rates.

[15:55:03]

At least 30 meat plant workers have died, more than 10,000 have tested positive for or been exposed to COVID-19 according to the country's top

union, dozens of plants shut down, creating a backlog in making certain cuts of meat, like brisket, harder to find everywhere --

DAVID ANDERSON, AGRICULTURE ECONOMIST, TEXAS A&M UNIVERSITY: There's only two of them per animal. And so, when fewer animals are able to go through

the packing plant, we get fewer briskets.

GALLAGHER: -- at higher prices.

MCSWAIN: The price of brisket is now just really skyrocketed. It doubled from last week.

GALLAGHER: According to Department of Agriculture data, the wholesale price of select brisket is up 81 percent from what it was this time last year.

With much of that increase coming in just the past few weeks.

PATRICK KLAIBER, GENERAL MANAGER, AJ'S PIT BBQ: The margins for barbecue restaurants are already very slim with food costs. You know, you get in a

brisket, that's 12 pounds, you end up trimming a pound to two pounds of fat off of that brisket, and then from when the time you start smoking it to

the end, you lose another four or five pounds.

GALLAGHER: AJ's Pit BBQ in Denver never stopped slicing up brisket for takeout.

KLAIBER: Without our briskets and our pastramis, we can't do it.

GALLAGHER: What is the state thinks about reopening restaurants, the smoky numbers on AJ's menus are changing, the timing couldn't be worse.

KLAIBER: We're trying to hold off as long as possible for to not raise our prices because, I mean, that it sucks for everyone.

GALLAGHER: Economists warn the higher wholesale prices and tough defined cuts will likely last at least through June.

ANDERSON: There's not much relief there. However, I will say that we are starting to see that log jam and packing plants loosen. We're starting to

see some more supplies. I think there is some hope out there.

GALLAGHER: Wade says he's going to keep smoking whatever kind of meat he can afford. He doesn't think his customers, many of whom are struggling

themselves now, can handle a price hike in the middle of a global crisis.

MCSWAIN: We want them to know that we're still open. We're still here. And we're going to be here.

GALLAGHER: Dianne Gallagher, CNN, Atlanta.

(END VIDEOTAPE)

QUEST: I do like a piece of brisket. We'll have a profitable moment after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's profitable moment, perhaps one shouldn't be surprised that Hertz has bitten the dust and gone into chapter 11 bankruptcy. It also in

several other brands that lost (INAUDIBLE) withered, of course, the problem is that we're just not renting cars like we used to, even before this

crisis, a combination of car sharing and Uber, Lyft, et cetera, et cetera.

I mean, I can't remember the last time I would have rented a car at an airport, rather than just a rideshare instead. The difficulty for Hertz now

is to restructure, find a mission, find a goal, but one hopes it does because it is one of the grand names of tourism and travel. And don't

forget tomorrow, we have a tourism and travel special. We'll be looking at all aspects of this industry, as we look tomorrow.

That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York, no closing bell, whatever you're up to in the hours ahead, I hope it's

profitable. See you tomorrow.

END