Equity Stake for DAL/NWA pilots...pls define

[chase]

First of all thanks to the pilots of DAL/NWA who have given me rides in the past while commuting.

As for my questions, it pertains to the "equity stake" given to the pilots of NWA/DAL.

1. What were the percentages and any explanation as to why the differences in "equity stakes"?

2. What precisely was given to the pilots of both groups? Stock (current price), stock otions, any restrictions associated with liquidiating it or was it hard cash?

3. When was it distributed (after SLI, before or at some other point) and was it taxable (I assume it was)?

4. Could it have been applied to one's retirement's if one was so inclined or was that negotiable?

5. If stock, what was an approximate total value for each pilot group separately valued at? If distributed as cash, what was the total amount distributed?

Any other lessons or observations you would care to share with SWA and AAI pilots would be greatly appreciated. Thanks in advance for the answers.

 

[dicko]

First of all thanks to the pilots of DAL/NWA who have given me rides in the past while commuting.

As for my questions, it pertains to the "equity stake" given to the pilots of NWA/DAL.

1. What were the percentages and any explanation as to why the differences in "equity stakes"?

2. What precisely was given to the pilots of both groups? Stock (current price), stock otions, any restrictions associated with liquidiating it or was it hard cash?

3. When was it distributed (after SLI, before or at some other point) and was it taxable (I assume it was)?

4. Could it have been applied to one's retirement's if one was so inclined or was that negotiable?

5. If stock, what was an approximate total value for each pilot group separately valued at? If distributed as cash, what was the total amount distributed?

Any other lessons or observations you would care to share with SWA and AAI pilots would be greatly appreciated. Thanks in advance for the answers.

Who would have thought that there was a better use of our time than bitching over a SLI .... ?

You sir, are a class act.

 

[General Lee]

First of all thanks to the pilots of DAL/NWA who have given me rides in the past while commuting.

As for my questions, it pertains to the "equity stake" given to the pilots of NWA/DAL.

1. What were the percentages and any explanation as to why the differences in "equity stakes"?

2. What precisely was given to the pilots of both groups? Stock (current price), stock otions, any restrictions associated with liquidiating it or was it hard cash?

3. When was it distributed (after SLI, before or at some other point) and was it taxable (I assume it was)?

4. Could it have been applied to one's retirement's if one was so inclined or was that negotiable?

5. If stock, what was an approximate total value for each pilot group separately valued at? If distributed as cash, what was the total amount distributed?

Any other lessons or observations you would care to share with SWA and AAI pilots would be greatly appreciated. Thanks in advance for the answers.

FDJ2 knows a lot about this, and his answers would be more precise, so you may want to PM him. We all were given between 3300 and 3700 shares each I believe (very close to those numbers), according to longevity. It didn't matter if you were FDAL or FNWA. It was in a Fedelity account, and it isn't taxed until you sell it for cash. I am pretty sure it was done after the joint contract, because it was agreed upon during the joint contract. If you wanted to cash it out, I am sure you could have done that immediately. I saw several DL buddies cash their's out at about $6 because they never have trusted Delta stock. Since then it went up to about $15, and now is just a bit lower than $12. That was about the gist of it.


Bye Bye--General Lee

 

[nwaf16dude]

Agree with the numbers and price, but it wasn't available to cash out. The merger equity was placed in our 401k accounts. I still have mine, and it's worth around 40,000 right now. If I sell it, the money stays in the 401k and isn't subject to any taxes until withdrawn. I don't have the exact number, but they gave the pilots something like 5% of the company.

 

[GuppyWN]

Chase,

Why don't you let the NC handle that.

Gup

 

[redflyer65]

Maybe because they are working hard on a new employee number set up.

Just sayin'

 

[nwaf16dude]

Any other lessons or observations you would care to share with SWA and AAI pilots would be greatly appreciated. Thanks in advance for the answers.

Nothing to do with the equity stake, but here's a lesson for you. Be prepared to do things differently, and don't get wrapped up in the little things. Delta does things a lot differently than NWA did. Some of the guys I fly with want to fight over every little difference when, in the end, it just doesn't matter. The jet still gets from point A to point B. As the smaller group, you can expect that you will basically throw your procedures out the window and do things the SWA way, because that is the most expeditious, economical way to get the group on a single operating certificate. After SOC, some of the Air Tran best practices may make their way into your procedures, but that will take time. I say just go with it... don't fight it, it'll only make you miserable. Those guys are no fun to fly with.

 

[chase]

NWAf16 and GL

Thanks for the info, very interesting. I suspected it would be part of the retirement package and tough to touch. SWAPA pilots has history with stock options but not direct stock awards at the asking price.

Hopeful and optimistic things will work out fine knowing there will be some on both sides upseat with the final SLI and settlement agreements. It is inevitable but that doesn't mean things won't be in the long run much better for SWA's profitability and growth IMHO.

I have faith in our NC and support their efforts publicly.

Guppy,

Thanks for the counsel. I continue to gather information from all sources, including FI, to make myself better informed at to the options available to SWAPA members. Trust but verify is a term used by our NC, it is the method I choose to use also. Feel free to PM me if you have other advice or counsel or share with all if you so choose.

cheers,

 

[ACL65PILOT]

First of all thanks to the pilots of DAL/NWA who have given me rides in the past while commuting.

As for my questions, it pertains to the "equity stake" given to the pilots of NWA/DAL.

1. What were the percentages and any explanation as to why the differences in "equity stakes"?

The entire equity stake that the DAL pilot got was equal to about 5% of the company. What was done with this pot was this:
It was divided in to two, and then one was paid out on a linear or equal ratio to all pilots. The second was paid out on a graduated ratio so that more senior pilots got about 300 more shares. The most junior pilots got about 3300 shares and the most senior pilot got about 3700 shares. The NWA and DAL payouts equated to the same amount per pilot of equal seniority but the percentages were different due to pilot group size.

2. What precisely was given to the pilots of both groups? Stock (current price), stock otions, any restrictions associated with liquidiating it or was it hard cash?

We were given stock, which was then to be sold on the open market. The revenue from the stock sale was then to be deposited in to our retirement accounts. Due to the timing of this, they could not sell it and the stock was deposited in to these account. The valuation that was given for the IRS 415 limits was that of the value of the stock on the day it was deposited.

3. When was it distributed (after SLI, before or at some other point) and was it taxable (I assume it was)?

As I recall it was given to DALPA to sell at the DCC, but we did not receive it until Mid-February. About five or so months later after it was determined that selling it would dilute the market too much.

4. Could it have been applied to one's retirement's if one was so inclined or was that negotiable?

It can be done one way or the other for the group. Per IRS laws it is a group decision and not an individual one. DALPA opted to have it deposited in our retirement accounts. (Where most of the pilots would have put it) You could sell it as soon as it was deposited. )

5. If stock, what was an approximate total value for each pilot group separately valued at? If distributed as cash, what was the total amount distributed?

About 12,000 dollars since the stock was worth about 4.10 at the time of sale. Remember total value was about 9% of the company. That is key

Any other lessons or observations you would care to share with SWA and AAI pilots would be greatly appreciated. Thanks in advance for the answers.

It was called an equity stake. The rest of the employee groups got stock as well. It was about the same percentage, but their numbers are higher so the amount of stock per employee was less.

 

[DTW320]

Not sure how it was done but FWIW I got a little over 3700 shares and I am NOT in the most senior group by a long shot. My records show the issue price was $4.26. Looking back, I should have sold it last April at just under $15, but it's still been a good deal for what it is.