The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: So my first question is on the refunds. So the customer deposit liability was down in Q2, obviously, which is kind of seasonal, but I think it was
slightly more than what we have seen in the last 2 years. Can you talk about the cash refund trends you would have seen for March, April and May,
perhaps?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. So just to be clear, Denis, was there any cash refund at all since mid-March? Or everything you refunded was 100% in the form of credits?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay, perfect. And on the fixed cost, I just want to follow-up on Kevin's question. So I think you mentioned the fixed cost is now down -- during
the shutdown phase, it's down to like $10 million to $15 million. Can you break it down in terms of what's salaries, what's rent and what's the other
portion of that?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. And is that net of the CEWS subsidy payments as well?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Yes, okay. That makes sense. Okay, and then last one for me before I get back in queue. So considering that there are no flights until July 22, and
you are planning to resume operations with less than 20% of the capacity you had last year in the summer, is it fair to expect that the operating
cash flows could be negative in the third quarter? And if that is the case, when do you expect the cash flows to turn positive again?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: I just wanted to follow-up on the -- Tim's question there about the travel restrictions. I mean you mentioned that you're expecting some decision
from Canada at some point, I guess this is probably key, but is it your expectation that Canada will eliminate the 14-day quarantine for returning
passengers? Because it would seem to me that would be pretty much a nonstarter for most of these flights that people had to quarantine for 14
days once they came back from their trip.
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. That's helpful. And maybe just a couple of questions for Denis. Just looking at your presentation, just when you're talking about some relaunch
costs and you refer to a number there of 2.75% to 3%. And I'm just wondering what that is referring to as far as relaunch costs?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: So it's -- what's the 2.75% to 3%? Of what?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. No, that's helpful. And then just maybe a final thing, just on the lease deferrals; obviously, most airlines are doing this. I'm just wondering
what -- and maybe you don't have to give specifics, but what is sort of typical repayment term, so you -- let's say you defer your lease payments
for 3 months. I mean over what period of time do you have to start repaying those deferred -- the lease cash costs?
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