Originally Posted by
Race Bannon
It would be interesting if ALPA(or some accounting idiot savant) would do a before and after profit sharing calculation.
I would like to see what the old UAL PS % would equal(based on margin) compared to our new PS(Delta formula) based on $$.
That will be an easy enough calculation once the full year numbers are in. My current guess is that the 6.7% margin (the old calculation) is likely to be about 800 million more profit that would have been contributed at 10% vs now being contributed at 20%, a difference of about 80M in the profit sharing pool for our calculation purposes. That will be a good amount of additional money.
When we originally agreed to 6.7%, the costs were so much lower the 6.7% was basically equivalent to the 2.5B$ of profit that Delta had, unfortunately we didn't have the foresight to see that as both cost and revenue went up our 6.7% would be a higher and higher threshold while Delta's would remain at 2.5B. That was an expensive math lesson that we finally corrected!