Originally Posted by
fishforfun
No I was not here for that, but my understanding the current PS is from the bankruptcy period, and from what have read and was told it was basically a joke because to that point no airline had made any significant profits so it would likely never pay out.
So you are saying in 2012 we monetized and currently have PS? Sounds like it worked out well.
The PS calculation has changed a bit over the years since bankruptcy. (Changed from 15% on first 1.5 billion to 15% of first 2.5 billion with the DAL/NWA merger). Suffice to say we monetized 5% of the 15% below 2.5 billion. So now we get 10% of the first 2.5 billion. IIRC that worked out to be a maximum of $500 million. This was baked into the pay rate increase for that contract. Guess what......the other carriers got our rates negating any advantage.
The thing with our PS is there is no maximum payout. If our profit increases, so does our PS. If we try to monetize it what do we use as the top end figure to base that monetization on? IMO monetizing would be HUGE mistake.
Denny