Originally Posted by
Check Essential
Interesting that he made that comment considering the discussion we've had over the last couple days.
The reporter asked them directly "How are you going to afford that new pilot sontract?".
They start talking about the scope relief, increased productivity, etc. etc.
All the givebacks they got from the pilots.
Ed pipes in and says flat out we can afford it because we reduced the profit sharing.
Just curious, how much does the profit sharing reduction
for pilots save Delta?
Considering that profit sharing above $2.5 billion is unchanged, the max profit sharing pool is currently 15% of that $2.5 billion ($375 million). At 10% the total pool becomes $250 million. That's $125 million max total savings. Pilots are about 1/3 of the payroll and profit sharing pool. That means
the max savings is $42 million if the company made $2.5 billion.
Currently 1% of direct pilot pay is about $17 million, rolled up with benefits it's about $20 million (not including frozen pension funding). How does that math work out?
So the "big bucks" you have commented on are a maximum of $42 million. If Delta were to make a profit equivalent to last year it's about $30 million. Instead you're getting pay (whether we make a profit or not) that'll be over $220 million more than the previous year.
Even if Ed rolled all the profit sharing savings from the non-contract personnel into our pay, it doesn't cover the increase.