According to the Barons Article, Wall Street sees and increase cost to the company of $552 million for pilot pay rates but sees a savings of$600 million in profit sharing for the company in 2016 alone based on the agreed to reduction of profit sharing in this deal.
Both numbers are wildly inaccurate. Pay raise for 16 is about 315 million. Potential loss of PS is about 126 million.
Not only Risk just the $600 million in 2016 but for years beyond.
Again total BS. Max potential loss is 126 million per year.
Scope and the Atlantic Joint Venture:
DAL ALPA has allowed the company to “carveout” a joint venture from their scope section (a concession by itself) to allow them to “bundle” three partner airlines as one: Air France, KLM and Alitalia.This was done in April 2010. The terms of this agreement required DAL to fly a minimum of 48.5% of EASKs (Equivalent Available Seat Kilometers) equivalent to 9 daily A330 DTW-AMS round trips:
The company came in 1.5% under the required number. Impossible for that to be even close to 9 flights.
Scope and the 76 seat outsourcing:
First it’s important to understand that manufacturers are building a 90-100 seat jet (Mitsubishi, Embraer, CRJ) and airline managements will be putting these into service because there is a gap in this market of aircraft between 76 and 100 seats that they are anxious to fill.There is no provision from any of the three major airlines to allow out sourcing of these jets (with the exception of AA that has grandfathered some 90 seat aircraft which USAirways had allowed). This TA allows the outsourcing of an additional 25 76-seat aircraft tied to delivery of 100 seat aircraft that are coming anyway
He implies we have allowed the bigger aircraft. We have not. How does he know the E190's are coming anyway? UAL was rumored to want the airframes also.
Sick Leave:
this TA brings the entire sick leave section to 10 pages vs 3 pages in the United Pilot Agreement. There is a very onerous sick leave verification process currently after a pilot uses 100 hours per year of sick time that must be completed through the CPO. This deal brings down the verification threshold from 100 hours to 15 days missed and then shifts the verification process to an even more onerous process and a third party contractor!
A third party contractor is not allowed and a simple note is not that onerous.
LOA 15-01 Excise Tax on Employer-Sponsored Health Coverage:
this is a significant give-away but not talked about much. In short DAL ALPA has agreed to lower the pilot’s health care benefit to an amount equal to the company’s excise tax exposure on health care plans which hasn’t been determined yet. In return management has agreed to reimburse the tax savings to the pilots elsewhere in the contract. Example: you currently pay$500/month for a family health plan, but now could be paying $1,000/month for the same plan to help the company with their tax situation however this will be returned to you in other areas of the contract like longer downtown layovers and an extra bottle of water.
This applies to only one health plan. DPMP which is contractual. If the Cadillac tax goes into effect and if this one contractual plan used by a very small percentage of the pilots exceeds the threshold then we have agreed to discuss easing the tax burden. Any increase caused on the pilot side must be returned to us. If no agreement then nothing changes. The medical plans used by the vast majority of the pilots are unaffected.