Originally Posted by
DAL 88 Driver
So exactly how much does a 65% raise impact Delta's profitability now and in the long run? How big of a piece of the puzzle are we? I think it's quite a bit less than you think... but if you can show that the difference between our current pilot costs and restored pilot costs would break the company, I'd like to see your math.
If DAL makes 1.3 billion in profit this year, our pay restoration takes all of that and turns DAL in to a company that is barely in the black. If you look at the valuation of the C2K concessions and extrapolate them out (minus the DB plan) and then multiply it by the new pilot group you are at about 2.2 billion in year to reach total restoration.
Adding every profitable quarter together over the last decade and forgetting the ones where we lost billions still does not equate to 2.2 billion in profit.
Now to save you from the next question of whether or not DAL needs to be profitable to get a pay raise I will state this. Our costs like every other costs that hits a balance sheet need to be inline with the rest of the industry or the "cost cutters" in management will look at ways to cut them to make them more in line with the competitors.
Find a way to get pilot pay equal industry wide and you make pilot costs, a fix cost and not a variable cost. Given every pilot association's action in the 1113C era we all agreed that we were in fact a variable cost.
No one argues that work needs to be done, it is just "how" we want the work done.