Originally Posted by
finis72
The 4% initial raise is every year for 31/2 years, the 6.5% is every year for 3 years etc. The 2% profit sharing reduction is every year but not compounded and that's only if DL makes 2 bil from 2013 to 2015, if they make less then our reduction will be less than 2%.
I have an accounting degree and so I had to jump on what appears to me to be not factual cost analysis. Sorry about the math comment, I did what I complain about and that's attacking the poster.
The only difference is the baseline that you use to measure from. Elvis is accounting for each year's raise on a dollar basis. You're accounting for each year's raise and adding it cummulatively from the basis of date of signing. Your method double and triple counts the raises IMO. Elvis' method is what most folks use to cost account a contract.
But it misses the point IMO. ANY cost increases to Delta from the TA are FULLY FUNDED by concessions in other parts of the contract. That's why sleepy ED, RA and the beaver are all on the record stating that this TA is COST NEUTRAL to Delta.
Carl