Thread: Scope
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Old 07-03-2018 | 05:47 AM
  #174  
pilotpayne
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From: 190 captain and “Pro-pilot”
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Originally Posted by DontCallMeCindy
My position is neither fear nor emotion-based in any way shape or form. My position as a "yes" voter is based on a purely objective risk assessment of historical mediated re-negotiation timelines (in highly favorable environments), historical airline business cycle timelines, and US economic history.

Given a comprehensive assessment of the risk matrix, the value of the deal on the table, and the absolute lack of scope/rules in the existing PEA/FSM, my position is that only an emotional person would vote no on this.

Feel free to show me your math. Here's a gross generalization of mine:

Tn(xi) = Re-negotiation period length in months (x), for x = 1 to 120

Pn(xi) = Probability of re-negotiation length (x), for x = 1 to 120

Pr(xi) = Probability of recession condition in month (x), for x = 1 to 120

Po(xi) = Probability of oil price requiring capacity reduction in month (x), for x = 1 to 120

Pa(xi) = Probability of age 67 passage in month (x), for x = 1 to 120

Pm(xi) = Probability of merger or acquisition during month (x) for x = 1 to 120

For each value of x between 1 and 120 months, plot a cumulative distribution of the sum of Tn(xi) * P(xi) for each of the above probability classes, attempting to use probability values based on historical data points.

Overlaid on the same cumulative probability distribution chart, plot the cumulative running loss of post-tax compensation resulting from a "no" vote.

If you had truly simulated the consequences of a "no" vote from a purely unemotional financial risk management perspective/model (as I obviously have), you wouldn't be accusing others of being "emotional" for voting "yes." Because a "yes" vote is the only rational result I can see, even if you assume extremely generous re-negotiation times and risk probabilities.

I have not heard any compelling arguments from you (or any no voting evangelist) that is backed up with any math, historical facts, or really any data other than "leverage, blah blah--fleet plan, blah blah."

Show me your math--prove to me how a "no" vote will recover me even a penny more of net compensation, after accounting for all of the very REAL probabilities I have listed above.


So that’s what the math portion of the Delta interview looks like.
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