nwa757

Source: APA

There has been much debate over the company's December 23, proposed pay rates. With the exception of Group I, we believe the proposed hourly rates are in the ballpark, however, when comparing the total pay compensation between pilots at American and Delta, we believe it may fall a bit short.

It's certainly no big secret that unlike Delta CEO Richard Anderson, Doug Parker does not see the value in having everyone pulling in the same direction via profit sharing. Nonetheless, in order to truly get an apples to apples pay comparison, we must also take into account other pay compensation such as profit sharing.

In 2014, pilots at Delta are scheduled to receive an additional 15% in compensation in the form of profit sharing. In looking ahead to 2015, airline analyst are predicting profits at Delta that will result in an additional 20% of pay in the form of profit sharing. For some lineholder captains, this additional pay will be in excess of $55,000 for 2015. Not too shabby.

While it is important to compare the payrates in the current proposal with those in the MTA, we also believe it's just as important to compare total pay compensation between pilots at American and our closest competitor, Delta. Below are several charts to compare total pay compensation between Pilots at American and our peers at Delta.

The first 3 charts represent total annual pay compensation (pay and profit sharing) at both American and Delta. In determining the annual compensation we used the current Delta rates as well as the proposed American rates. We also assumed pilots at both airlines receives 1020 annual pay hours (same number negotiating committee and company use) and we assumed pilots at Delta will receive 15% profit sharing (actual) in 2014 and 20% profit sharing (current estimate based on analysts) in 2015. As you will see, with the additional profit sharing compensation there is still a considerable pay gap between pilots at American and Delta. Of course, this annual pay compensation gap will likely become even greater when Delta pilots negotiate a new CBA sometime this year as expected.

The following 9 charts compare hourly rates by converting the total annual pay compensation into an hourly rate. This is accomplished by adding annual salary + profit sharing and then dividing that number by 1020 hours. Using the Delta B777 above as an example: ($270.55*1020) + ($55,139(profit sharing))/1020 produces a comparable annual hourly rate of about $324 an hour. In other words, if B777 pilots at Delta earned $324 an hour they would earn the same if they did making $270 an hour plus projected 2015 profit sharing. Looked at it yet another way, the following charts depict the hourly pay rate American pilots would have to attain to be compensated equally with pilots at Delta.

We fully understand profit sharing is not an absolute with respect to pay, however, even with the proposed pay rates we are still well below our peers at Delta. Furthermore, we have also heard rumblings that Delta pilots may modify their profit sharing in return for a higher payrate, this of course would increase their guaranteed pay as well as have a positive impact on next year's mid-contract adjustment.

nwa757

Analysts predict that Delta pilots will earn profit sharing at 20% rate for 2015.

PurpleTurtle

Good graphs.. Only problem is that pilots are stupid at math...

I could pass out $5 coupons to LaLa Land and pilots would buy a $30 ticket to LaLa Land, even before they knew what LaLa Land is, just so they wouldn't lose the $5 I gave them.

cactiboss

Why don't they have a dal +20% compared with the rates you get in arbitration up?

nwa757

If this gets voted down, I believe we will go back to the table because management needs HBT/int/dom and vacancy bid leeway. If we go to arbitration our 2016 pay looks like:

Industry comparable Pay Rate adjustment (Delta and United ASM/fleet weighted average) provides for a Jan. 1, 2016, pay rate adjustment.

On a weighted average, using today’s Delta and United contracts, the Jan 1, 2016 increase would be 14.3%.
The following are the pay rate increases that would have to be achieved by Delta pilots no later than Jan. 1, 2016, in order to match American Airlines' proposed pay rates and do not include Delta or United profit-sharing.

Delta's profit-sharing history: 2013 = 8%, 2014 = 15%.
"In 2016 For Group '___,' for MTA pay rates to equal the JCBA pay rates, Delta would have to achieve a ___% increase no later than Jan. 1, 2016:
Group 4: +17% (widebodies)
Group 3: +23% (B757/767)
Group 2: +19% (A320/B737)
Group 1: +9% (E190/B717)

cactiboss

Dal has to lock in at least 20% raise by July for the mou to even be even with this offer.

PurpleTurtle

The $10 Billion that Parker is scooping up from last year and this year.... He can afford to pay off his promises.

He doesn't have to wait any longer to keep his promises! He can do it now!

cactiboss

He can also you pay you less, can't he? You aren't in section 6 bub, you got a cost neutral arb staring you down if this fails.

Hueypilot

Yep, let's see those MTA rates compared to DL.

PurpleTurtle

You are slipping. You eat Parker's useless crew news propaganda about Sec 6 and make excuses for Parker reneging on his promise to pay us Delta Pay. He is negotiating with us. He has made an offer. We can accept his pathetic POS offer or we can tell him to stuff it and come back with a reasonable offer when he is ready to buy the 7 concessions he wants...

And don't forget that this POS offer has many more concessions that he never told us about... Just for one he is taking away all crew meals for domestic flights... that is just spiteful. He can afford to keep his promise to pay us Delta Pay, and he will get a lot closer to that if we demand he keep his promise... If we prostrate ourselves and sell cheep he will that too.

When are we gonna see some of the "boss" s!ht out of you? Grow a pair.