Originally Posted by
Happyflyer
How did United, Delta and Southwest end up with their PS? Honest question, I've only kept up with major carriers contract cycles since Delta's 2012 agreement.
NW 2004 bridge contract, PS based on pretax margin above 1% for the years 2004-2006.
Delta started PS during their 2004 Interim contract, known as LOA#46
NWA 2006: profit sharting was 10% for all profits up to 1-% pretax margin, and 15% for all profits above 10% margin
Delta bankrucpy restructuring in 2006 LOA#51: PS increased to 15% payout at first dollar of pretax income and 20% payout on pretax income over $1.5B
Delta 2008 JCBA: PS PTIX level to trigger 20% was increased from $1.5 B to $2.5B
Delta C2012: Profit sharing reduced to 10% payout of pretax income up to $2.5B to offset the first year pay raise.