Originally Posted by
shiznit
Page 3-16 (PWA Sect. 3.I.)shows that we will see profit sharing based from dollar zero and up. If there is a PTIX profit, we get paid. See page 3-2 (PWA Sect. 3. A. 10.)lines 13 through 22 to see what constitutes PTIX for the pilots....Spoiler alert: it doen't include writedowns for "one-time/special items"!!
Knowing your contract is fun!
Less debt expense paid to banks increases DAL revenue/profit.
Less debt allows DAL to act more freely to increase its business and withstand downturns.
More cash in the bank gives us something to "point at" in negotiations.
This will only strengthen our position to ask for more, A LOT MORE come 2012.
Right. But I don't know if aircraft qalify as "one-time/special" expenses. That's basic "CAPEX", for an airline, isn't it?
I wonder if your post needs to be "unscrambled" and read like this:
More CAPEX reduces Delta profit (not revenue),
There is not net effect on debt, because we don't know how lenders view this cash payout.
Less cash in the bank results, leaving us less to "point at" in negotiations.
This will only weaken our position to ask for more in 2012, if we don't see throught it.
I don't claim I understand everything at play here, but your read of this cash payment doesn't completely make sense t me.