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Old 01-08-2011 | 12:12 PM
  #4018  
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shiznit
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DAL wants debt to be at or under 10bill by 2012...when we actually are amendable (Jan. 2013) the debt will likely be in the 7.5-8 Billion range. That will represent roughly debt service savings of roughly $900 million per year.

With a stable industry and profits in the 1.5-2.5 billion per year range, that would mean about 2.4-3.4 billion per year in available funds.

IF the restoration of C2K rates will cost roughly 18-19mil per percentage point...63% (for restoration + COLA):
Cost $1.20 Billion roughly

Get DC to 18%: (4% more) ADD 80 mil

Roughly $1.28 billion per year rates/ret. ONLY

Using the corporate tan math from above, the "true cost" of this increase is
1.280bn x 65% = $832,000,000 per year.

Still leaving billions in profit.

That money can still provide for 2-3 billion "worth" of other PWA improvements, other emp. pay increases, new planes, profit sharing, more debt pay down, etc.

The company COULD afford most of this now, but "a contract is a contract".
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