Might want to check that math after the .55% increase from 3.B.4. Its about 17.4(5)% across the board.

Does this number include, DPSP, etc? I do not think so and the number is higher.

Not to mention all the over head associated with running separate companies. Just think of all the bonuses that have to paid out to all of those executives for keeping pilot costs low. I can't imagine how fielding not one, but several companies full of managers, vice presidents, board of directors, ETC... saves us money!

A+b=c
 

Part C

Profit sharing is worth 10% of 2.5B + 20% of 2.5B+

2014 was 4.5B

250M + 400M based on 2014 payout. = 650M

If monetized dollar for dollar: 650M

That's a 28.8% pay increase day 1. If you keep profit sharing at 20% above 4.5 billion this is a cost neutral deal.

The original Question was:

Is this to much to ask?

NO!, its too Little!

Cost neutral is a 28.8% raise if we reset profit sharing to 4.5B

Ed Bastian could still say "cost neutral" and we would still participate in the upside.


Disclaimer:

That's just pay. We need to make gains. For every dollar value we give up we are a cost savings to management. Notice I said gains not the c word. I can't even use that word in this, the best negotiating environment in our history.

I remember those tables. :D

You might want to check your math. The pilots are now about 37% of the profit sharing pool.

The scrutiny is welcome. Please show me the data and I will adjust it.

Payout Calculation PTIX Levels
% of PTIX Paid under Program $0 to $2.5 billion 15.0% in 2012 10.0% in 2013 and each year thereafter Over $2.5 billion 20.0%

This is from section 3 compensation I. profit sharing of the current PWA

So just how are you going to get management to publish competitively sensitive data (CPA costs)?:confused:

Btw, the analysis was done. The MEC was briefed. With the actual numbers, not speculation and assumption. It didn't work out as you wish it did. Ask the current and former code-share guys if you want another source.

Management disagrees with your assumptions, and they have the data to back it up. Since C2012 the cost differences have grown more stark, as our costs are up 20% and DCI costs are down substantially (PCL bankruptcy reset, contract renegotiations). DCI is down about 150 jets, mainline is up a bunch. And that's with fuel dropping 40%, which makes the RJ's more competitive.

Oh, and before you trot out your 3 year old spreadsheets (how do those look now anyway ;)) UAL is just beginning their RJ reductions this year. Other than upgauging, AMR hasn't really gotten started in a meaningful way except for transferring Envoy assets. So for something that was "going to happen anyway" it took our competitors 3 years to begin. We're already back in negotiations for a new deal. FDX, SWA, and UPS "wound the clock." UAL won't negotiate for another year and still lags us by a year. APA traded the guts of their contract (scope, sick leave, disability, work rules) for pay, but is now stuck until 2020 (new amendable date).

And you're flying in a shiny "new" jet, and DCI has about 30% fewer pilots.:D

In 2012, our economic analysis folks did not predict the billions in profits. So we accepted paltry pay raises and concessions. Now we know the truth moving forward. The company wants a fast contract because it will be difficult to negotiate in this climate of ridiculous profits, including stock buy backs, dividends, etc. I would predict they go on another buying spree, i.e. Virgin Atlantic, refineries, GOL and RJ purchases. They did it post C2102.

"Those who can not remember the past are condemned to repeat it".

GREAT post Ed.

Carl