Originally Posted by
Bill Lumberg
Did the C2K contract have a pension? Do we have one now for the majority of the pilots? If we are lacking that, then I think the company could afford more than if the pension was still around for the majority (the Southies and newbies). Were there bag fees back then? That has to be taken into consideration too. Everything that we have and do not have compared to the C2K contract should be looked at. How about the $2 billion a year in extra profit due to synergies? That wasn't a part of the C2K contract most likely. Please remind those mid level guys that when they start talking contract stuff. Bag fees, less pension, synergies.
Bill, our DC plan costs DAL more money on an annual basis than the DB ever did. Because the DB took advantage of market returns which ultimately resulted in minimal required contributions. Once those market returns dried up, they terminated the pension. It was destined to fail, but few realized it. The lump sum provision and run on the bank by the senior guys just guaranteed it.