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Quote:

Originally Posted by Gunfighter (Post 3218256)

Principle payments do not lower taxable income according to GAAP. https://i.imgflip.com/54q3o0.jpg

Principle payments might lower income merely because they are based on principle but principal payments don't. 😁

I think the flaw in sailings thoughts is time and patten bargaining. At first blush what he said is true. But, after we monitized PS...the other carriers came along and demanded Delta or better rates....so they capitalized on our monitization. So, now fast forward a coupla contracts with pattern bargaining and Delta pay will equal AA and UAL. IOW...other carriers reap the rewards of us monetizing the PS. If your time frame is 1 possibly 2contracts....you are prolly money ahead on the switch....if you have multiple contracts I'd stall with the current PS. The bigger negotiating gambit is who( which carrier) settles first...in an improving economy..I would rather not be first

Additionally...straight line pay rates shine like a beacon and even the most inept Wall Street guy can parse the cost.....PS is much harder to cost out consequently less damaging to stock price.....we may not care....but the exes do

Profit sharing is about the only tool I’ve seen have any influence on a disgruntled pilot...and make him or her watch the fuel burn (if it’s not a go-home leg) and go say goodbye to our HVCs to make em’ feel special. I look forward to a rapid return of profits.

Quote:

Originally Posted by FL370esq (Post 3218448)

Principle payments might lower income merely because they are based on principle but principal payments don't. 😁

F... (not iller or ixed). Thanks for the correction.

https://i.imgflip.com/54rska.jpg

Quote:

Originally Posted by Gunfighter (Post 3218485)

F... (not iller or ixed). Thanks for the correction.

https://i.imgflip.com/54rska.jpg

Ahhhhh....ain't it beautiful. 😊

Quote:

Originally Posted by GucciBoy (Post 3218407)

That’s a lot of words to say that you don’t think hourly rates will be industry standard with or without P.S. There’s no way we accept lower-than-standard pay rates in section 6, so why bolster them with a P.S. trade?

The industry standard was set by those rates and our subsequent contact.

Quote:

Originally Posted by Buck Rogers (Post 3218449)

I would agree all carriers reaped the rewards. I really don’t care as it set our rates higher and since 2009 our contracts have set the standard. Even the last contract TA1 basically established the industry rates. The UAL CEO announced after the Tentative agreement that it forced his hand and they would come back with a much improved offer to the UAL pilots.

Quote:

Originally Posted by sailingfun (Post 3218390)

The reduction in profit sharing that was monetized in the 2012 contract was about 1.9% in return for an additional 2% in pay rates. Those rates became the cornerstone of almost every contract at the major airlines moving forward and that 2% has compounded with subsequent raises to about 3%. I guess the question becomes would we have the exact same rates today or would they be 3% lower had we not monetized that money. The one thing I do know for sure is I got paid that 3% last year and profit sharing was zero. I suspect our current rates would in fact be lower had we not done that as raising rates across the industry is always a stepping stone approach across the major airlines. Our 2012 contract broke open a long term stagnation airline managements managed to hold onto far longer than they should have been able to maintain.

The monetizing of PS was a mistake back then and will always be a mistake. Pay rates quickly normalize - you even said it above "Those rates became the cornerstone of almost every contract at the major airlines moving forward and that 2% has compounded with subsequent raises to about 3%."

Your point seems to imply that only DALPA can raise the bar for industry rates. Are you implying that no other Pilot group can set higher rates that can, let me be sure I use your exact phrase here " become the cornerstone of almost every contract at the major airlines moving forward."

Maybe since UAL opened a year ahead of us we can snap up to their rates this time around.

Trading PS for a temporary pay bump that will quickly get normalized into industry standard rates is a fools game.

Scoop

Quote:

Originally Posted by Hawaii50 (Post 3217310)

While we're comparing strategies during the pandemic not sure I'd want to trade places with United pilots. United flies about 250 more RJ's than we do (DL 344, UAL 599, AAL 560) while we brought the 717 and A220s into the mainline fleet. That's quite a few mainline jobs. When I look around at the "partnerships" at AAL with JetBlue and Alaska, I think we're in a pretty good spot as a pilot group. We also instantly add near 30% capacity when the middle seat block goes away. We'll be fine IMO.

They may have more RJs, but UAL has far greater opportunities for intl WB flying than we do.

Trip and Gunfighter, my mistake, you are correct on principal payments not on income statement