Well this is very interesting. Perhaps we should think a little outside the box then in terms of compensation. How about stock options that can be exercised immediately if needed similar to management type options? I would take my upcoming PS completely in options of similar value in a NY heartbeat if that were available. In the vertically integrated corporation, we are becoming less wage earners and more stake holders/investors. Also as high wage earners, we max out 401k contributions relatively quickly in the year so we need another method of compensation that shields that from regular income taxation. How about having the contributions front loaded earlier in the year so that money is working sooner for us? I am sure there are myriad other ways to do this kind of thing.

Oh, and I highly doubt they will take the debt to zero. That doesn't make good business sense as it makes Delta vulnerable to hostile takeovers even with the high valuation. So even more to the point is that we are probably nearing a point where writeoffs will start disappearing. Interesting times ahead no doubt. I just hope we can start to think strategically rather than reactively to what has/is happening but I don't see it happening.

 

The current net debt target is $4B revised down from $6B. The revision was necessary because we paid it down so quickly. The $4B number seems adequate for a $40B revenue company, less and you could become a target. That debt is likely going to be short term low interest debt and capital obligation on airplanes.

The investor grade rating will allow them to finance acquisitions because they are buying more equity stakes. They intend to continue the "growth strategy " with at least 1 more airline this year. (Jet?)

Stock option are an even more taboo compensation model than profit sharing. The industrial compensation model is what Parker at AA has done. Pay your labor for the work they do. Reward the management with stock like the owners, to align their interests. As the size of the company grows our percentage of that profit, 20%, is a huge reward. The reward is not something they can allow at their other carriers. We are becoming less of the dominant employee group and need to be marginalized.

Eventually the $2.5B trigger point will be low enough relative to the total profit that we will essentially be paid nearly 20% of the profit and we are paid first. The share holders are paid in dividends and stock price appreciation. This is also a great inflation hedge on pay. As prices inflate profits will too. We need to retain profit sharing at the current levels to be relevant in the future.

Our current contract has more future value than anyone at ALPA has so far communicated.

 

I'm talking of 2016 profits paid in Feb 2017.

Our PWA states 20% of PTIX above 2.5B will be paid in Profit Sharing. The new non con formula states 20% above previous years PTIX. That means the company will pay approx 650M less to the non cons next year than the PWA prescribes. Who gets the additional 650Mish that's not paid to the non cons but is in our PWAs Profit Sharing pool. I say we should.

 

RA stated awhile ago debt was approaching the desired level. And stock options, you can have them. Profit sharing was attained when profits were a dream. Funny that now they want it back. We should be looking for the highest pay rate in the industry plus. Training, vacation, medical and DC contributions are nice place to fix too.

Our profit sharing has netted us a lot of money in 2 years, more than I'm willing to bet on stock options. Wind the clock and write your reps if you want answers to your first post on this thread. The temperature is hot here, no one is willing to settle for TA2015.

 

DL changed the PS model for non contract. DL will run 2 profit sharing models if they have to. I'd guess we have zero chance of getting the non cons lost PS. As to the recent posts re: options. I like the Pro Shar set up like it is. I can 401K it, or take cash. I can go buy options/stock if I want to. JMO, OFG

 

As a 717 FO, I am curious about your 15 years experience at DAL.

fish

 

This is based on the time between C2K and now. I didn't have to be employed here to make that statement and its not a knock on you for losing your retirement or losing your work rules, its an objective statement made in regards to the Delta pilots strength in obtaining C2K, and the no vote on last years TA. 717 is my 2nd airplane by the way, started on the 88. And yes I support the cause, because I came from a place with no work rules and I'm not going to watch you give up any more than what you already had to, I'm all in for protecting our profesion.

 

I've been here 15 years and everything you have been saying is spot on. I'm really encouraged by the new blood here.

 

Well, I was you one strike and one merger ago. What you are going to find is you left a world that was run by and for pilots (to a large extent). Now you're in a world run by lawyers for investors and you are just another cost item, no different than the tires.

After that........we still fly airplanes, drink beers in exotic locations and give each other a hard time over just about anything. It's the world best job but the world's shi**iest career.

Welcome abord!!

Ferd