Pineapple is right on this one.

However, the money could have been used to pay down debt or invest in Delta (airplanes, technology, real estate, employees, etc.) which would have been better for all of us rather than owning 50% of an airline that can do widebody flying for us.

 

Earnings statements and consolidated balance sheets are two different things.

Carl

 

How to keep the fan on in your hotel room. On Honeywell hold the DISPLAY button down and press off let go of off then press UP arrow then release Display button you are in override mode your fan stays on and it will disable the motion sensors. Most Hilton's and Hyatt

 

Very true -- but that has nothing to do with the topic at hand. It's OK, Carl, to admit you were wrong. We've all been there.

 

That is most likely the most useful thing I've gotten out of this thread the last 7 years. Awesome. I hate those dang things.

 

Well Carl here is section 1.E.3 you quote.
If the Company's ownership level (i.e., the percentage of ownership referred to in Section 23 1 B. 16. a.) in a foreign air carrier exceeds 25%, the Company flying block hours scheduled in any month between the United States and any country to or from which the foreign air carrier operates from or to the United States, will not be less than the Company flying block hours scheduled between the two countries in the same month of the twelve-month period prior to the month in which the Company's ownership level first exceeds 25%.

As you can see Carl we have a block hour floor and not a percentage of flying. That is a huge difference. The union has also put out several communications explaining this.

 

In broad strokes, what's the advantage to doing so (bidding reserve in a training/vacation month? Does it generally result in more days off, or more pay, or both? How/why?

I've tried playing with the calculator, but I'm not sure I'm using realistic numbers (I have yet to hit a training month)....

 

Carl, I'm not convinced (yet) that what you are stating is correct. The PTIX definition sounds like it would exclude a one time event like the purchase of 49% of VA. I could be wrong though as accounting is certainly not my forte. PTIX is defined as (bold is my emphasis):

“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 (including without limitation one-time transition or integration costs incurred in connection with the merger of the Company and Northwest Airlines Corporation during the two year period following the merger), and d) expense accrued with respect to the profit sharing plan.

There seems to be a difference of opinion regarding the correct answer to the question. I just want to know the accurate answer and right now I do not.

 

Just to add to your point ... the beauty of a Global Production Balance is that it codifies a minimum we must GROW with growth within the JV and in a worst case scenario it forces them to pull down the JV flying. Further, if someone really wants to do a deep dive they will learn that in a downturn the ratio ratchets up forcing them to pull down the JV faster.

I really like that we must be participants when the Company grows (even if it is some opportunity management has not dreamed up yet ... growth is ours at a roughly 3 to 1 ratio).

 

Delta's acquisition of 49% of VS was mostly to secure slots at Heathrow for our network while preventing a Middle East competitor from getting them. Having those slots helps our other hubs catch and flow traffic. Having access to Heathrow helps us capture a premium for our tickets.