Scoop

Dude,

Not sure what you are getting at. Plenty of things suck at the Big D. PS is not one of them.

For those interested in out PS history the following is what I could determine from talking to reps and reviewing old contracts and LOAs:

Delta Pilots Profit Sharing History Lesson

I have heard a lot of supposed reasons for why we achieved a PS payout. We have all heard it was due to our pensions being cancelled but according to my research we first achieved the current iteration of PS when we took the voluntary compensation cuts to avoid BK (LOA -46) OBTW – How did that work out?

DAL Pilots took over $1 Billion/year in cuts and subsequently agreed not to contest the DB termination in order to help the company survive. As insurance against the company becoming profitable while we were taking over $1B/year in concessions we achieved a PS payout. As far as I can tell PS was not originally about pensions being cancelled – the current iteration started 9 months prior to BK.

Here is a history of our PS
LOA 46 Effective 01 December 2004 Signed by John Malone/Gerald Grinstein
% of PTIX Paid under Program
$0 to $500 million 0.0%
Over $500 million to $1.5 billion 10%
Over $1.5 billion 20.0%

Original PTIX definition from LOA 46
PTIX will be calculated under U.S. Generally Accepted Accounting
Principals and will exclude: (i) any extraordinary, non-recurring or
other special non-cash charges; (ii) charges with respect to the
grant or exercise of employee equity or options; (iii) charges with
respect to preferred stock dividends so that profit sharing does not
drive a preference for debt versus equity issuance and (iv) charges
with respect to payments under the Profit Sharing Plan.

DAL Files Bankruptcy September 14, 2005.

LOA 51 Effective 01 June 2006 Lee Moak/Gerald Grinstein
% of PTIX Paid under Program
$0 to $1.5 b billion 15.0%
Over $1.5 billion 20.0%
In the merger the 20% trigger was raised to 2.5 Billion.

In C2012 we made the following change:
$0 to $2.5 billion 10.0%
Over $2.5 billion 20.0%

TA-1 C-15 proposed this:
$0 to $6.0 billion 10.0%
Over $6.0 billion 20.0%

The TA-2 company proposal:
$0 to $2.5 billion 10.0%
Over $2.5 billion 20.0%
Eliminating 401 K contributions to PS
Detrimental changes to PTIX

During the 2015 Section 6 negotiations the PS was changed for all non-contract employees to the C-15 TA-1 proposal above. This was clearly done in anticipation of the Pilot group signing off on TA-1 which was fortunately soundly rejected. After running two separate PS formulas for a short time in the 2016-2017 timeframe, one for the Pilots and one for non-contract employees the company reluctantly matched the Pilots formula for all non-contract employees.

Our PS is currently determined by the formula agreed to in C-2012.