Originally Posted by
Seaslap8
Thank you New...good points made. But you are correct, this has been asked and answered in a lot of different ways in different places. The point for me is RA has many different audiences and many different messages to deliver. I don't care if he is factoring in the cost savings on crack spreads from the refinery deal amortized out over the decrease in 50 seat airframes in the system, I just care about what it means to me and I see gains in virtually every section.
The truth is RA could be telling Wall Street types that overall it is cost neutral, and then walk into the adjoining room and tell someone else that as a segment of the balance sheet "pilot costs" have increased $450 million...for Carl and others to insist that he is "lying" to one group is disingenuous at best, an outright prevarication at worst...and btw, I did not call Carl any names as I hate gophers and I respect his work in that area...(I did however infer that the bacon bits gent is somewhat obtuse and I shall stand by that pending further evidence)
You're missing the point. RA is not lying, or being inconsistent in any way depending on his audience. Neither is Campbell. They are being very consistent, and that is to state that the new fleet changes and other items in this TA fully fund the investment in our
employees. Not just the
pilots of Delta, but the
employees of Delta.
Admittedly, proper costing of contract items is often a place where both sides love to lie to each other. This was most evident in BK where management was claiming much lower costing for the same items negotiated just a few years earlier. From my own personal past experience, our very large work rule concessions nearly completely fund our pay rate increases. Now if we use the 717's and 739's as replacements of higher paying aircraft, that would make our TA totally
gain neutral to pilots and
cost neutral to management. If you add in the gains for not doing 50 seat RJ maintenance, that continues to make it gain neutral to pilots and actually cost POSITIVE to management. This is specifically why management is claiming our TA funds the investment in Delta employees. He doesn't just mean it funds the pilot's pay rate gain, it funds the gains given to the other employees as well.
Carl