Originally Posted by Carl Spackler

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