New Delta TA 06/2015

[FDJ2]

DAL will make north of 10B by 2017. 10% of the first 2.5 B pays average pilot about 10k. The next 7.5 B pays 20% to employees. About 1.4B. Pilots share of that is 500-600m. That pays Capts about 75k per year and FO 40k per year. Vote that away and get your 5 cent increase in per-diem and have a third party monitor your sick time.

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Hmmmm. profit sharing, let's review the numbers. The first 2.5B is 10% for all employees= $250M, that's unchanged.

The only change is between $2.5B and $6B in PTIX. IOW $3.5B ($6B trigger) pays employees 10%= $350M, which is half of what it would be absent this agreement. Pilots comprise about 1/3rd of the pay roll, so $350M/3= $117m in lost profit sharing for the pilots.
Anything above $6B remains the same.

OTOH, the new contract adds about $1.1-$1.4 billion in solid gains above all the concessions on the books, including profit sharing. Last time I looked there were more zeros in a billion, than a million. But let's look at the cost of delaying ratification over time.

What is the impact of delay on monthly pilot salary?

Initial estimated impact is:

Approximately $500k per day (first 6 months)

Approximately $23.6M per month (first 18 months)

Longer term

$1.3 Billion by end of 2018

But not to worry, airlines don't typically spend 2-3 years in mediation, right?

Just ask a pilot at SWA, FDX, UPS, UAL, or AA.

 

[PCL_128]

Good to see someone is still able to do basic math.

 

[johnsonrod]

I haven't talked to one Delta pilot who is in favor of the TA....

 

[SpauldingSmails]

DAL will make north of 10B by 2017.

Oh, really? What leads you to believe that we will nearly double our profit in two short years? I'd have less concern over the changes to profit sharing if I believed that a sustained profit over $6B was realistic - I'd be shocked if that were in the case. No increments percentage wise from 2.5B - 6B!? I hate to be the party pooper, but we may be in the sweet spot for profitability right now.

We're getting a lot of mixed messages here.

DAL has stated that they're drawing down international capacity toward the end of the year, and possibly reduce domestic capacity. Yet, The Company is dangling Embraers and 739's as carrots (737's are obvious replacements), and TA supporters are claiming that we'll be increasing international capacity (I suppose easily proven correct if you start with a reduction.)

Obviously, DAL is not presently in compliance with the existing EASK language - yet, some are claiming the new JV language will be better for pilots because we then lack a "ceiling." Immediately though, if the TA passes, the "floor" moves to accommodate the present level of flying, and given the dearth of widebody orders - let's say I'm skeptical. 60 total A330/350's arriving, 16 747's departing, plus the gradual retirement of 58 threadbare 767-300ER.

I'm neither a cheerleader, nor a fervent detractor. Pay rates we're largely in line with my expectations. I'd be willing to swallow the changes to PS for the raise. Changes to the JV language, sick policy, FO bidding, and green slips all give me pause. This seems like an awful lot of quid, on what will likely become permanent concessions, for a bit of coin.

Further, where's the fire? I'd like my 60 days to digest and evaluate the TA language. I'd rather risk a pithy 8% raise for one month to be confident in a vote, than stuff $800 and decade worth of regret in my pocket.

 

[Mooneymite]

Profit sharing? More profit sharing? Still more profit sharing?

Oh, no!

When will labor learn?

Profit sharing is for management, not labor! Labor has no ability to control the course of the business. It is out of our control. Pilots do what they do and should be paid just like any other overhead expense.

To tie labor compensation to profits is a huge mistake and will "encentivize" low/no profits. Pilots suffer for dumb management decisions.

No profit sharing for labor....just wages!

Alpa leadership must have started thinking like management. Time for fresh meat.

 

[redflyer65]

Looks like too many losses for the increased payrates you should be getting anyway.

Be interesting to see if people can see thru the concessionary haze to vote no.

 

[jonjuan]

This seems like an awful lot of quid, on what will likely become permanent concessions, for a bit of coin.

Further, where's the fire? I'd like my 60 days to digest and evaluate the TA language. I'd rather risk a pithy 8% raise for one month to be confident in a vote, than stuff $800 and decade worth of regret in my pocket.

Never forget the bold here. The raises are actually 8/0/3/3 when not touching PS from what I've read. funny, they just decided to move the vote deadline from 60 days to 30. Why? 5 days after the new 30 day window, earnings are announced. dalpa claims that it's to get its pilots the $$$ a month quicker. yahoo finance shows that the 737 order is predicated on the TA being approved, yet they claim replacement jets. Right. :roll eyes:

 

[BILL LUMBERG]

Wow Jon....

Where's the black helicopters now? can you see em??

Try calling your rep like I did.....They did this because the contract is structured to start the pay raises July 1 and to avoid the reprogramming issues for the pay computers. There will still be the same amount of roadshows and Family awareness type stuff, according to the reps.

If you need sixty days to decide whether or not you like this thing.....you are illiterate. 30 is just plenty.

 

[jonjuan]

Wow Jon....

Where's the black helicopters now? can you see em??

Try calling your rep like I did.....They did this because the contract is structured to start the pay raises July 1 and to avoid the reprogramming issues for the pay computers.

Lmfao. Gullible lumberg. What's new.

Looks like the poll on and shows 421/56 against (88/12). Yikes! Someone's in the minorty billy.

 

[jonjuan]

SWA guys will laugh at this one:

9. Except as approved by the Delta MEC Chairman, or as otherwise provided by Section 1 E., a carrier engaged in international partner flying will maintain a separate operating and corporate identity from the Company including, but not limited to, name, trade name, logo, livery, trademarks or service marks. The Delta MEC Chairman may, at his option, approve the use by a carrier engaged in international partner flying of a trade name, brand, logo, trademarks, service marks, aircraft livery or aircraft paint scheme currently or in the future utilized by the Company or any Company affiliate.