Originally Posted by
newKnow
Ok. THings are winding down and voting is right around the corner. But, this is one question I would like to see a straight-forward answer, without the artful dodge.
Q1 Is this TA a "zero cost" TA?
A1 Not for the pilot group! The end-run pay increases alone are valued at over $400M/year (each one percent increase in compensation equates to about $20M).
Can someone in the know tell me if this is a "zero cost" TA for the company? Thanks.
Here is Mike Campbell's quote, where the misinformation of "zero cost" originated:
"This tentative agreement represents an investment in our pilots and our company as it gives Delta significant fleet flexibility, the ability to continue running a reliable operation for our customers, and a profitable enterprise for shareholders and for all Delta people. The fleet changes provided by this agreement, coupled with the productivity and profit sharing changes, cover the investments in our employees."
It is not zero cost to the company. Management is counting on revenue produced by the fleet change (B717 and additional 76 seaters with 3 classes) in addition to DCI cost savings, CRJ-200 maintenance cost avoidance, and a small improvement in pilot productivity in order to cover the additional cost of the pilot contract.