rube

From JP Morgan: Profit sharing for pilots stays the same: "Pilot terms appear heavily skewed towards aviators – We generally believe sell-side analysts should tread cautiously when assessing the merits of tentative agreements, given that widespread dissemination of research could, in theory, influence the ratification process. But we see little risk in opining when contract terms are uniquely skewed in labor’s favour (as is our interpretation of the Southwest agreement-in-principle) and therefore highly likely to be approved by the rank and file. Such is the case with Delta, in our view. Details are still emerging, but it appears management has proposed an 18% snap-up upon ratification, followed by a near-immediate 3% raise next January, and further 3-4% annual steps thereafter. Additionally, management appears to have capitulated on its earlier goal to align pilot profit sharing with that of other employees, where levels are predicated not simply on absolute earnings but also earnings growth (a formula we view as much more aligned with shareholder interests)."

JamesBond

Stand by for the 'but we don't care about the money' crowd reaction.

gloopy

Of course we care about the money. The real issue is should we sell jobs for more money?

This TA is better than the last one in almost every area, but will it be enough? I don't know, I'm still on the fence. I'm not for DPA and I'm not an automatic NO voter on this and I am fully prepared to vote yes and support the MEC and thank the NC if I can come to the conclusion that this TA is acceptable. But my patience is wearing thin for allowing more relief in any area relative to scope. 48.5% is incredibly generous on our part. Incredibly generous. Especially considering the company views that "window" as meaningless and the "floor" as a permanent goal...and then goes below that.

It was leaked that SEA will be a hub, but then we find out not for Section 1, which is the ONLY concern WRT that in the first place. WTH?

This TA might MEMRAT. But if it doesn't, it will be because of Scope, particularly JV. What's next for Contract 2019, 44.5%?

GogglesPisano

If Wall Street is disappointed with our contract, I am overjoyed.

Xray678

Much like many pilots, Wall Street is looking at the pay rates and ignoring the work rule concessions.

rube

What about the mess that is the transatlantic market? AF, KLM and AZ are being forced to push their capacity to the limits because they can't make money flying around Europe. It puts immense downward pressure on yields, and is the reason that we aren't flying 50%.

Our international block hours actually grew, our international fleet actually grew during the noncompliance, but none of that growth involved the TAJV. The block hour floor is a novel form of downside protection, but no contract can move the market.

JamesBond

which are minor overall.

GogglesPisano

Do you think those work-rule concessions, whatever they are, equate to anything close to 30% over the next 3 years?

Tanker1497

I think that about 30 percent over a 4 year deal equates to industry standard pay. That is to be expected, and was achieved. The concessions granted were not worth us rising up to the bar that has been set in the last year or so...

vilcas

I like the people saying 30% is a minor raise. I guess if you think 100% is coming then maybe, but get realistic the company would never agree to something that the investors would object too as much as 100% pay increase for a labor ground that numbers 13,600. Every dollar they give us costs about 12.5 million a year. Delta is owned by the shareholders. There respresentatives in the board would fire management that capitulates to the extent necessary to produce a contract the no voters on this board would be happy with.