Originally Posted by
FL370esq
No one said to set PS at zero but it is clearly a variable out of our control. If we turn a profit, great, if not, well...we should still have industry leading pay after these negotiations. Why (and how) do we have to place value on a variable? It should be a disbursement over and above to compensate and motivate for windfalls.
This is a cyclic industry with huge variables. Oil, weather, IT meltdowns, stupid management decisions...any and all of which can affect the profit margin. Hopefully we had our one and only "Black Swan" event on 9/11 but I still believe in the business cycle and it isn't always going to be upward. Not sure when it comes down but it will correct itself. It always does.
The last paragraph proves the value of profit sharing. Through all of these "variables" we have continued to make record breaking profits. The business is diversified and de-levered. This is not your fathers airline. The bankruptcy reset was more than just pilots. The business was reset to be a true business that is positioned to weather cyclicality. The entire industry is moving in this direction and Delta is years ahead of the competition.
The "black swan" will come and Delta is best positioned to grab it by the neck. We already have. $4 billion lost on fuel and posted never before seen profits. Pension fund is projected to be a net gainer. Debt levels are at record lows, and bond ratings are investment grade only 9 years removed from bankruptcy. United and American are vulnerable with debt and little diversification. We don't need to out run the bear, just the other runners.
https://www.sec.gov/Archives/edgar/d..._8k-ex9901.htm