Originally Posted by
alfaromeo
I know that the C20 chairman must have missed something, but there is no way this is a cost neutral contract for Delta. There are some cost savings from not doing engine maintenance on RJ-200's and that money is ending up in our pockets. There are significant added costs, and costs that have a run rate over time rather than one time costs. I have the final costing summary open on my computer right now and it was not cost neutral for Delta, that is a fact.
Even if you do assume it is cost neutral for Delta, it is not cost neutral for pilots. The total value of money in our pockets is about $1 billion over the life of the contract. Some of that money would have been spent on RJ costs. So would you rather have that money in your pocket or would you rather send it to engine maintenance? If Delta has to send it to engine maintenance they are not going to give it back to you.
Alfa - where do you get the $1 Billion number from - it's hard to see how 4/8.5/3/3 with 5% (33% reduction) lower profit sharing costs the company $1 Billion/year (I'm assuming you mean per year) Because if it's $1 Billion over 3.5 years then if we're only getting an increase of $285 million per year for a company making $1 Billion Net Profit /year (and the don't forget the billions of free cash flow generated to pay down debt the last few years that doesn't show up as profit) then we did even worse than I thought (and I don't think we did very well at all.