LCCs Retirement Plans???

[SNIZ]

LCCs Ret/ESOP/401K Plans???

I've been looking at Air Inc.'s Pilot Salary documentation and I was wondering if anyone had additional information on B-Fund, 401K plans, profit sharing, and ESOP at Airtran, SWA, JetBlue and ATA. For instance, Air Inc shows that JetBlue does not have ESOP or Profit Sharing...from what I'm reading in other Threads..that ain't right.

Couple of other questions, is Airtran's and ATA's B fund a recent development? Do folks at other LCCs see that as something that they will try to get in future contracts at other carriers, like SWA?

Anyone done the math on a 15-18 career at some of the LCCs??

 

[chase]

SWA plans

This is a thread I provided sometime ago on the profit sharing plans for SWA
Profit Sharing info on SWA

Thread on SWA stock options:

SWA Stock Options

401K info is pretty straight forward.

SWA matches up to 7.3% of the monthly salary as a maximum allowable under IRS rules. 2004 will be $13K for those under 50, those under will get $14K. The company matches 7.3% of that.

'03 I contributed $12K, company matched it with $8674.25. There are 11 mutual funds to choose from with several more funds coming soon. The choice is yours on what to invest in.

Employee Stock Purchase Plan is another program that is not necessarily for retirement. LUV shares can be purchased for 10% off the listed price. You must keep the shares for a minimum of 2 years not to be hit with a penalty for selling them before the 2 yr limit.

Hope that helps.

 

[jetblue320]

Re: LCCs Ret/ESOP/401K Plans???

I've been looking at Air Inc.'s Pilot Salary documentation and I was wondering if anyone had additional information on B-Fund, 401K plans, profit sharing, and ESOP at Airtran, SWA, JetBlue and ATA. For instance, Air Inc shows that JetBlue does not have ESOP or Profit Sharing...from what I'm reading in other Threads..that ain't right.

Sniz,

You are correct, that ain't right. JB does have an ESOP (we call it CSPP but it is the same thing) and Profit Sharing. The CSPP is NOT the same thing that the pilots get when hired. Those are JBLU Stock Options (currently issues 6000 at date of hire) and are separate from the CSPP. The CSPP is available to all JB employees and in a nutshell, allows you to purchase JBLU Stock every 6 months. You payroll deduct up to 10% of your earnings and at the end of each 6 month period, purchase the stock at a set price which is the lower of "your" established period price, or 15% off the current price that day. "Your" period price resets itself every 2 years at whatever the price is that day and then is established at 15% less than that. I know it sounds semi-complex, but it's really not, and it is a great deal. The bottom line is it is yours to keep and you can rat hole it, or sell it the same day and never make less than 15% on your money, less taxes of course.

The Profit Sharing was established two years ago and that money is paid out in February. Last year it paid 15.5% of your gross income (W2 income) and the year before I think I recall it was 11% =/-. That money is tax deferred and placed in an account where you choose from a variety of mutual funds and even JBLU stock if you want. You are 100% vested upon deposit.

We also have a good 401K Plan that JB matches 100% up to 3% of you annual income. It is a standard 401K with all the standard government limitations and rules.

No, we don't have a B Fund. But the cool thing is that all 4 things we do have (401K, CSPP, PS, and Stock Options for pilots) are managed by YOU, not some union board. No flame intended. Just the facts.

See ya and Merry Christmas.

 

[SNIZ]

Great info fellas!!

Great info on SWA/JB..thanking you. Just trying to sort things out.

I saw a thread on Airtran benefits a few weeks ago and can't find it. Any Airtran brethren out there?

 

[luvfan]

SWA question

Chase or someone who knows. Can you confirm/elaborate?

Profit sharing. For new-hires in 2004. First full year of employment will be 2005. First profit sharing (assuming there is profit sharing) will be in 2006 in September. Is that correct?

Stock option. Understand your explanation for your situation. Will 2004 new hires receive any options/when is the vested point?

Thanks!
-luvfan

 

[canyonblue]

Anyone hired after 01 January (which will be everyone) will not be participating in profit sharing until 2005. You must be employed the entire year to participate.

 

[FLB717]

AAI:

no A-Fund (why have it if they can take it)

B-Fund on 4-1-4 is 10.5% of your W2 into a fund you choose from a group.

401k no match.

 

[FDJ2]

AAI:

no A-Fund (why have it if they can take it)

Because they can't just take it, and many times, they don't.

 

[Eagleflip]

Hey FLB717--do you guys get profit sharing too or just the B-fund?

Honest question-not flamebait...

 

[Ty Webb]

Because they can't just take it, and many times, they don't.

Tell that to the folks at UAL and USAirways . . . and Eastern, and TWA . . . and many others.

Sounds to me like what you are really trying to say is, "That won't happen to us here at Delta".

History will prove you right or wrong, but right now, you're just "whistling past the graveyard".

 

[FDJ2]

Tell that to the folks at UAL and USAirways . . . and Eastern, and TWA . . . and many others.

Sounds to me like what you are really trying to say is, "That won't happen to us here at Delta".

History will prove you right or wrong, but right now, you're just "whistling past the graveyard".

Ty, the fact is that management can not just take it. Thousands of pilots have and still enjoy an A fund. Thousands of them worked at UAL, AAA and EAL, thousands more still work at majors with A funds. Now I know that Airtran pilots don't and probably never will, it goes against the low wage carrier model, but others will continue to advance this profession, despite the drag on it by those who are so eager to sell it short.

 

[46Driver]

Didn't US Air's pension go from $96k a year to $28K a year? I'm asking, not baiting.

 

[Fly-By-Cable]

here we go again...

 

[SNIZ]

Pile On

FLB 717,

I have the same question as EagleFlip, thx.

 

[pilotyip]

Pension?

I never saw the word pension in any of the responses. But the UAW is telling the USA Jet pilots to vote us in to represent you and we will get you a pension. Any comment from anyone on how the pension plans worked out at EAL, Braniff, etc.? Any comment from anyone who had a pension at a Bankrupt company and how much they got? Must be pensions are a thing of the past, but then again the UAW can draw upon its great knowledge of the Aviation Business to build a blockbuster package for the USA Jet pilots, and thereby setting a precedent to reestablish pension for everyone. Merry Christmas

 

[Frac Daddy]

pilotyip,

I think A Fund=Pension.


Also, I have to agree with Ty. Management just can't "take" your pension but they can go bankrupt and hand the penison over to the government. I think that is where the US Air folks went from 90k to 30k. (I could be off with the numbers). Think of it this way:
Pretend I am hired at Delta or AA etc. when I am 40, work till I am 60 then die at 80. That is 40 years from hire to death and I will be counting on that pension till I die. The big question is: Will my company be around for next 40 years? To me it is like putting all your retirement into one stock. Of course, unions run some pensions which may prevent this, but, in reality, unions are really businesses, too. Now, with a generous B-fund it is different. Ty will enjoy a 10.5% match on a six-figure salary for, I presume, a couple of decades. He retires at 60 and the day after he does, Airtran goes under. No worries. He is vested so the money is his so he can do with it what he wants. I, for one, prefer a this.

 

[FLB717]

Frac,
You said it better than I would have.

Eagle,
No just the BFund for now now profit sharing or stock given. We start CBA talks next year. I assume we would increase the B Fund rate. I would rather have that then an A Fund.

 

[General Lee]

Everytime TY sees a 777, a 767-300, a 767-400, or 757 at ATL he likes to say to himself, "There they are, whistling past the graveyard...." Big time Envy. But, the 717 is bigger than a Westwind 1.......(The pension problem gets better with the stockmarket rise)


Bye Bye--General Lee

 

[AlbieF15]

As opposed to Albie, who looks up and says:

"Look--a Delta jet! I wonder if that cheap SOB General Lee could somehow cough up 25 or 50 bucks to help the webmaster...or perhaps he thinks 1500 plus posts don't make him a "real" user of the boards".

Ty...while we are at it...you need to pony up too. Nobody rides for free, and those of us WITH jobs we like ought to be paying as much or more than those guys still trying to move up in the ranks.

I'll bet you guys hate non-union guys at your company for "riding for free". I know its "different", but those of us who spend a lot of time here don't have an excuse for not ponying up.

 

[Ty Webb]

No, I don't. The "whistling past the graveyard" remark was in regards to FDJ2's bone-headed assertion that A-funds are secure.

Actually, I see so many DAL planes at ATL, that what I usually think is, "My God, taxi like you have somewhere to be . . . . at least pick it up to a crawl!".


Big time Envy.

No, General. If I was a Delta guy, I'd be furloughed right now, instead of studying for upgrade, and trying to decide between the 717 and the 737.

But, the 717 is bigger than a Westwind 1.......

Yup. But the Westwind was a little more fun to fly . . . . no security hassles, no real schedule to maintain, couple of paid ski trips each season, not to mention the fishing trips, caribbean trips, etc . . . . . Don't knock it 'til you try it.

Ever had a chance to take your kid on a ski trip where the only thing you had to pay for was his lift ticket and skiis? Ever had your kid sit on the leather couch and watch you shoot a landing?

Don't knock it 'til you try it, General.