Lots of good details.

https://www.sec.gov/cgi-bin/browse-e...clude&count=40

 

According to the 10k all 16 A350s to be delivered are the -900 variants.

Also it appears that Delta now owns 51% of Aeromexico. Does that not trigger anything in our scope clause? The 10k mentions that due to Mexican law they’re only limited to 49% voting interest.

 

1.A.19.a. 1+2 affiliate control

 

According to last years 10K the MIP threshold for 2019 is $6.521B PTIX. DAL reported $6.2B pre-tax income. I’m guessing management MIP awards will be forthcoming. This would lead me to inquire about the PTIX calculation. I know DALPA contract compliance verifies (or has in the past per the PWA) the PTIX and profit sharing in late January but we haven’t seen any communication of the result and I can’t find any other PTIX numbers to reconcile the differences. I may have missed it but the usual PTIX affirmation isn’t anywhere on the DALPA site. Anyone have any info or source numbers for PTIX? Oh and BTW I know ALPA employs attorneys and professionals in many disciplines, do they have accountants on staff to help us evaluate this? I don’t want the profit sharing calculation to be a rubber stamp for a line pilot. Still reading the docs...

 

Yes ALPA uses accountants familiar with our profit sharing language and history and they pre-verify the numbers.

I’m surprised with our selection of MEC officers you would think anything dealing with the company is ever rubber-stamped.

 

Ok, accepting the premises that this is correct what was the 2019 PTIX number?


“Pre-tax income” (PTIX) means, for any calendar year, the Company’s consolidated pre-tax income calculated in accordance with Generally Accepted Accounting Principles in the United States and as reported in the Company’s public securities filings but excluding:
a. all asset write downs related to long term assets,
b. gains or losses with respect to employee equity securities,
c. gains or losses with respect to extraordinary, one-time or non-recurring
events, and
d. expense accrued with respect to the profit sharing plan.

 

”Delta Air Lines announced a pre-tax income of $6.2 billion for 2019, excluding special items, which equates to a total profit sharing income of $8.2 billion and $1.6 billion dollars in employee profit sharing...”

Contract Awareness 20-01 Feb 13, 2020

 

I guess I’m too impatient. Just showed up in the inbox. Trust but verify. Thanks CA committee.

 

1.B.19.a.1+2 actually now that I looked it up. Thanks for pointing me in the right direction.

1.E is probably more applicable though as anything over 25% defaults into the “look back” formula for shared levels of intl flying.

In addition, I believe that with Delta’s 49% ownership in Virgin plus the stake in AF/KLM (which owns shares of Virgin) then Delta in a round about way actually owns much more than 49% of Virgin as well.

I trust ALPA lawyers to audit these things, but I wouldn’t be shocked if Delta were trying to sneak one by on that.

 

Whoops, 1.B... Sorry for the mistype.

We have some really really good scope guys both on the committee and in other positions at the union. This is all on the radar, particularly regarding negotiations that surround blue skies JV.