How Obamacare is affecting Delta

[NoJoy]

I am sure all other airlines will be affected as well, besides UPS, Delta,ect. Big increase in healthcare costs:

http://www.foxnews.com/politics/201...drive-100-million-spike-in-health-care-costs/

 

[Andrew_VT]

That $100,000,000 figure is obviously bull******************** just by using the numbers in the [Fox News] article.

$63/yr fee per insured employee = $10mil

Adding children on parents plan until age 26 = $14mil (already went into effect)

Additional employees being 'driven' to health plans = $14mil

Am I missing something? Please don't say health care inflation... it's been lower percentage-wise recently than it's been in a long time.

 

[General Lee]

Yeah, that isn't great. But, rumor has it that DL made a $500 million profit for July alone, will get extra 717s this year, (more than previously thought) and DL may hire hundreds more than previously stated next year. That on top of a supposed WB order soon along with 30 or so extra NBs, and things don't look so bad. We'll see.....


Bye Bye---General Lee

 

[SIG600]

Yeah, that isn't great. But, rumor has it that DL made a $500 million profit for July alone, will get extra 717s this year, (more than previously thought) and DL may hire hundreds more than previously stated next year. That on top of a supposed WB order soon along with 30 or so extra NBs, and things don't look so bad. We'll see.....


Bye Bye---General Lee

The number I saw was $535 million profit in July. Nice job guys.

 

[Mach 80]

Yeah....nice job. Nice job screwing your investors, screwing your employees by shredding promised contracts/retirements and people you owed money to. A lot easier to be profitable when you are able to just offload a huge part of your debt that you would otherwise be paying on. Oh yeah..."nice job". Good work. That's the way to run a business. Congratulations.

 

[jonjuan]

Yeah, that isn't great. But, rumor has it that DL made a $500 million profit for July alone

Good for management. Didn't you vote yes to give up part of your profit sharing? I'll bet alpa's not too happy with you cutting off part of their gravy train.

 

[Mach 80]

Scoped out a bunch of flying too.

 

[bri5150]

And drove Endeavor through bankruptcy which caused massive paycuts for ALPA brethren, lost houses, and I am sure there was a divorce or two over it. Good work Delta!!

 

[General Lee]

Good for management. Didn't you vote yes to give up part of your profit sharing? I'll bet alpa's not too happy with you cutting off part of their gravy train.

Ummm, that's not correct. If pre tax profits exceed $2.5 billion in one year, the pilots receive 20% of what is in the profit sharing pie, up from 15%. If DL doesn't make $2.5 billion, then yes, yes it does fall to 10%. How are we looking so far? Q1 had the first profit in 5 years for that quarter. Q2 was huge too. Gas prices were expected to be higher. If July alone had $500 or so million, how about June and August? I'd say there is a good chance DL makes the $2.5 billion pre tax profit, with lower gas prices helping out.

Any more things you are confused about Jonny? Say hi to your Mom and Sis for me!


Bye Bye---General Lee

 

[General Lee]

Scoped out a bunch of flying too.

Wrong. Tightened scope. Fewer RJs after the contract is over (only 3 years and 140 fewer RJs than before). The ratio between mainline and DCI flying domestically was also tightened and raised in mainline's favor. Alaska scope was tightened, and since Alitalia joined the Joint Venture with AF and KLM, our slice of that flying did go up. Now, we are still a bit behind on the total Transatlantic flying, but they have until May of next year to show the results. Throw in Virgin Atlantic, and ALPA has not agreed to that JV until they fix the other one, which shows ALPA isn't just giving in.

So, regional scope has been tightened (getting 88 717s too to recapture DCI flying), domestic scope tightened (AK), and INTL scope being worked on and tightened. What you say isn't correct.


Bye Bye---General Lee

 

[maxblast72]

The number I saw was $535 million profit in July.

July is the most profitable month of the year for every airline. Nothing new there. For the month of July, Delta reported unit revenues up 3% while USAirways reported unit revenues up 5% and Southwest reported unit revenues up 4-5%.

Don't forget September is the weakest month of the year for airlines (that is why most airlines significantly reduce their blockhours between July and September). Currently, the big 5 are expected to report strong financial numbers for Q3 (I believe record territory for all 5).

 

[General Lee]

July is the most profitable month of the year for every airline. Nothing new there. For the month of July, Delta reported unit revenues up 3% while USAirways reported unit revenues up 5% and Southwest reported unit revenues up 4-5%.

Don't forget September is the weakest month of the year for airlines (that is why most airlines significantly reduce their blockhours between July and September). Currently, the big 5 are expected to report strong financial numbers for Q3 (I believe record territory for all 5).

Max, sounds great. How's your Mother airline done so far compared to the legacies? Do you think they will add bag fees before or after they go for concessions? Have a great day Max, future SWA System Chief Pilot.....


Bye Bye---General Lee

 

[General Lee]

And drove Endeavor through bankruptcy which caused massive paycuts for ALPA brethren, lost houses, and I am sure there was a divorce or two over it. Good work Delta!!

Each Regional at all of the legacy feed will be pared to the bone. If you want to make more, you might want to apply or wait for a flow up or preferential interview offer. We have all been watching that trainwreck for awhile, no big surprises here. Stay there, make less. You'd think they would have raised the pay to attract future pilots with 1500 hours or more, but so far they have not. Not doing that may be a big mistake coming up. Maybe you will get your raise after all, and you can stay a lifer if you want....


Bye Bye---General Lee

 

[EngineThunder]

Yeah....nice job. Nice job screwing your investors, screwing your employees by shredding promised contracts/retirements and people you owed money to. A lot easier to be profitable when you are able to just offload a huge part of your debt that you would otherwise be paying on. Oh yeah..."nice job". Good work. That's the way to run a business. Congratulations.

Well said. Seems to be page 1 in the management playbook. Profits via a trip through BK.

 

[General Lee]

Yeah....nice job. Nice job screwing your investors, screwing your employees by shredding promised contracts/retirements and people you owed money to. A lot easier to be profitable when you are able to just offload a huge part of your debt that you would otherwise be paying on. Oh yeah..."nice job". Good work. That's the way to run a business. Congratulations.

Hey, BK is allowed for everyone in this country, personal and company. If you don't like that and favor decapitation due to BK, then go to Cambodia. This country allows second and maybe even third chances. Since you don't like that, enjoy your coach seat to Phnom Penh.


Bye Bye---General Lee

 

[maxblast72]

Max, sounds great. How's your Mother airline done so far compared to the legacies? Do you think they will add bag fees before or after they go for concessions?

For the first 6 months of 2013, Southwest's pre-tax margin was 5.7% while Delta's pre-tax margin was 5.1% (excluding special items for both). And don't forget General, full network connectivity between Southwest and AirTran just came online in April. You must be excited about all the international itineraries now available to our Lubbock customers.

Have a great day Max, future SWA System Chief Pilot.....

Why would I ever want to quit my day job? I have flown 4 legs so far this month on short call reserve (and spent every night at home).

 

[BILL LUMBERG]

For the first 6 months of 2013, Southwest's pre-tax margin was 5.7% while Delta's pre-tax margin was 5.1% (excluding special items for both). And don't forget General, full network connectivity between Southwest and AirTran just came online in April. You must be excited about all the international itineraries now available to our Lubbock customers.

Why would I ever want to quit my day job? I have flown 4 legs so far this month on short call reserve (and spent every night at home).

Based on how much revenue max?

That's like comparing a twin 225 hp mercruiser to an aircraft carrier....they both have 2 engines butttttttttttt.......

 

[General Lee]

For the first 6 months of 2013, Southwest's pre-tax margin was 5.7% while Delta's pre-tax margin was 5.1% (excluding special items for both). And don't forget General, full network connectivity between Southwest and AirTran just came online in April. You must be excited about all the international itineraries now available to our Lubbock customers.

Why would I ever want to quit my day job? I have flown 4 legs so far this month on short call reserve (and spent every night at home).

Bill's right Max, trying to compare the revenue potential between the two is useless. Big difference, and I don't see any change in yours until they add bag fees to your Mother Airline, and since you are losing your LCC status due to higher longevity of employees, it could be after you probably make concessions in the next contract.

Btw, I heard you guys are giving up more 717s faster, up to 6 per month instead of 3 per month until the end of this year, and then back to 3 a month next Jan. Thanks for that. Enjoy your right seat Corndog transformation. You're gonna LUV it there, just ask Bubba and Red. Your layovers with them in Midland and Islip will no doubt be FANTASTIC.


Bye Bye---General Lee

 

[Flyer1015]

Ummm, that's not correct. If pre tax profits exceed $2.5 billion in one year, the pilots receive 20% of what is in the profit sharing pie, up from 15%. If DL doesn't make $2.5 billion, then yes, yes it does fall to 10%. How are we looking so far? Q1 had the first profit in 5 years for that quarter. Q2 was huge too. Gas prices were expected to be higher. If July alone had $500 or so million, how about June and August? I'd say there is a good chance DL makes the $2.5 billion pre tax profit, with lower gas prices helping out.

Any more things you are confused about Jonny? Say hi to your Mom and Sis for me!


Bye Bye---General Lee

Curious, how underfunded is the pilot pension fund?

 

[B-J-J Fighter]

How many total 50 seaters are being parked and what is the breakdown per airline other than pinnacle?

 

[dalad]

Ummm, that's not correct. If pre tax profits exceed $2.5 billion in one year, the pilots receive 20% of what is in the profit sharing pie, up from 15%. If DL doesn't make $2.5 billion, then yes, yes it does fall to 10%. How are we looking so far? Q1 had the first profit in 5 years for that quarter. Q2 was huge too. Gas prices were expected to be higher. If July alone had $500 or so million, how about June and August? I'd say there is a good chance DL makes the $2.5 billion pre tax profit, with lower gas prices helping out.

Any more things you are confused about Jonny? Say hi to your Mom and Sis for me!


Bye Bye---General Lee

You are incorrect as well. We get the standard profit sharing up to $2.5 billion. THEN 20% for anything OVER $2.5 billion.

 

[General Lee]

Curious, how underfunded is the pilot pension fund?

Well, as the stock market gets better, so does the fund. Also, it appears DL is making enough to start paying down that pension fund in fairly large chunks, I think they paid $558 million in accelerated payments in 2010, and higher profits and a better market ensure more of that.

How's your pension at VA going? I bet my 401K and DC fund contributions were more than your total pay last year. If not, it was close.


Bye Bye---General Lee

 

[General Lee]

You are incorrect as well. We get the standard profit sharing up to $2.5 billion. THEN 20% for anything OVER $2.5 billion.

It still all comes from the profit pie. Over $2.5 billion, the pilots get more. There is a chance this year to get that due to lower than expected gas prices.


Bye Bye---General Lee

 

[redflyer65]

Based on how much revenue max?

That's like comparing a twin 225 hp mercruiser to an aircraft carrier....they both have 2 engines butttttttttttt.......

What I find interesting looking through Delta financials is that...

20% of their total revenue comes from Connection carriers. 20% of revenue from outsourcing, and that number is NOT going down. So maybe a loss of some 50 seaters, but larger 90 seaters and the income is the same? RA knows how to play the outsourcing game, and dumped those re-engine cost with the help of DALPA. Kudos to RA on that move.

The refinery section was interesting too. Another quarter loss. The cost for the renewable energy credits (RINs) went from .02-.05 cents to 80 cents. That's and increase in cost of 1600%. Could be interesting going forward.

They gloss over the high pension requirements. I couldn't find the actual number. Maybe required to report yearly?

I have no idea why DALPA would give up ANY profit sharing percentage, but they did. Probably not a wise move, except for RA.

 

[redflyer65]

You're gonna LUV it there, just ask Bubba and Red. Your layovers with them in Midland and Islip will no doubt be FANTASTIC.


Bye Bye---General Lee

I pretty confident he will love it here. And I'm glad Delta is taking the 717s. Frees us up for more 737s on the open market and saves Southwest over 300 million....every year. Thanks Gen. Should we talk about the cost synergies of still operating ONE fleet type instead of 11?

 

[jonjuan]

Ummm, that's not correct. If pre tax profits exceed $2.5 billion in one year, the pilots receive 20% of what is in the profit sharing pie, up from 15%. If DL doesn't make $2.5 billion, then yes, yes it does fall to 10%. How are we looking so far? Q1 had the first profit in 5 years for that quarter. Q2 was huge too. Gas prices were expected to be higher. If July alone had $500 or so million, how about June and August? I'd say there is a good chance DL makes the $2.5 billion pre tax profit, with lower gas prices helping out.

Any more things you are confused about Jonny? Say hi to your Mom and Sis for me!


Bye Bye---General Lee

Whoops again, 18,000 Lee. Someone gets called out for making misstatements (you) about profitsharing and she starts craw fishing. Looser.

 

[General Lee]

I pretty confident he will love it here. And I'm glad Delta is taking the 717s. Frees us up for more 737s on the open market and saves Southwest over 300 million....every year. Thanks Gen. Should we talk about the cost synergies of still operating ONE fleet type instead of 11?

Red,

11 fleets gives a $500 million profit for July. That might be more than you make in 3 quarters. Any more questions?


Bye Bye---General Lee

 

[General Lee]

Whoops again, 18,000 Lee. Someone gets called out for making misstatements (you) about profitsharing and she starts craw fishing. Looser.

Ahahahaha! But I was correct Jonny. You didn't know the part about if DL makes MORE than $2.5 billion, then pilots get MORE than before. You didn't know that, and you now know. ALPA may have hit a home run thanks to lower gas prices during the first half of the Summer. So, you are the loser. (Not "looser" like you stated----wow, you're also an idiot)


Bye Bye---General Lee

 

[K-Mart]

I pretty confident he will love it here. And I'm glad Delta is taking the 717s. Frees us up for more 737s on the open market and saves Southwest over 300 million....every year. Thanks Gen. Should we talk about the cost synergies of still operating ONE fleet type instead of 11?

Here's one I heard. Delta plans on no replacement of the 717 when the leases are up. Only replacement will be more 90 seaters.

 

[PBRstreetgang]

You guys,
Stop kicking sand into the Genny's shorts, he gets sand into his mangina, then his mom has to bring him a Popsicle to soothe his chapped manthighs.