The answer to that is no, but we didn't gain anything either. That 5% profit sharing had a maximum worth and it was the 2% increase it was sold for... The 10% we get on profit up to $2.5 billion has a maximum worth. The 20% on profit over $2.5 billion does not have a maximum worth....

At least that's my understanding...

Denny

 

Boy they LOVE talking about Capacity Reduction!

Domestic, Latin America, Japan, Africa, Middle East, Russia, all being reduced...

Not one word about growth!

 

AF/KLM = $$$$ for us.

Labor drama. Here we go.... DAL + Pilots? Early contract before amendable date? What about keeping cost control? RA: No change in our great relationship committed to getting contract early or on time. Confident to remain cost structure.

What was his question about profit sharing? They all said correct.

More on pilots. We own this day! And every day. The pilot staffing constraint has WS talking. They've built the flow of pilots in and out into the costs already.

Okay now time for the reporters, who don't listen, to ask questions.

*1. I have a question. Can you guys repeat the thing you said about money?

Today's conversation is about oil and pilots.

I could do this job. No we're not going to talk about that, our policy is not to talk about that, that was already covered. Thank you. I think we covered it, thanks. Did you say "My bad", okay, bye! We already covered that. Can you repeat your question sir, you sounded drunk when you said we talked too fast.

 

We gained slightly. We gave up a fixed portion of the profit sharing worth a maximum of 1.9% for 2% in pay rates. With the growth in pilot headcount that 2% from profit sharing is down to about 1.8% and the raise has compounded to about 2.1%

 

The question was, "So there will be no changes to profit sharing in 2015?"


And the answer was, "Correct." Didn't say squat about 2016 or going forward though!


Completely side-stepped the pilot contract issue, which is to be expected. Completely dodged the Profit Sharing question, so I guess we will keep what we have, and get a small (2%) raise....to keep costs from increasing more than 2% YOY.

That is of course...unless we are stupid enough to pizz it away in exchange for another 4, 8, 3 ,3 type C2015!

 

HA? Do you mean buy Hawaiian Airlines?

 

The pilots get about 1/3 of that amount. .33 x $640M = $211.2M.

 

Dude, we could totally have a 20% increase in pay, maybe 25%. Not a doubt in my mind after hearing them talk today. The only question is...










... we need to figure out how to pay for it.

 

I loved all the questions about the 'windfall' of money from reduced fuel costs... "What are you going to do with all that money?"

"Return it to the Investors, of course!"

Wonder who some of the largest private stock holders are (the Investors)?

Richard, Ed, Paul, and the rest of senior management.

They are getting paid very well with Delta's stock price runup, as they should.

So, can we finally talk about RESTORING the Pilot's pay and pension contributions over the past 10 years, that helped make all these profits possible?

 

Hmmmmm.

2013 was 2.7, so only .2 above the 2.5/20% mark

2014 was 4.5, 2.0 above the 2.5/20% mark.

My rough math I came up with 18.51%. Not 16.4. We will see I guess.