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- - Profit Sharing? (https://www.airlinepilotforums.com/united/141173-profit-sharing.html)

Quote:

Originally Posted by UALinIAH (Post 3574998)

So you think our expenses are going down? Despite adding a net 1500 pilots per year and net growth a/c? I’m expecting a contract in 2023 so add in those billions to the expense line. I don’t have your sort of optimism that costs will be reigned in while we execute United Next. I think expenses go up over time as history has shown they do. Cost of everything has gone up with inflation. I don’t think looking back at expenses is realistic. If we don’t shrink costs only go up.

I honestly believe that with the economies of scale of actually competing with narrow body fleets, getting rid of regional jets, and having the largest training center in the world that doesn't have a square inch more of buildable space... maybe? Getting out of Willis tower was a big step. We can cap our profit sharing % like Delta but I don't see that as our major pressing issue. We have phenomenal instruction from line pilots for more of our training than any other airline in the world... how much profit sharing is that worth to you? There are give and takes everywhere.

Looking at these numbers, one thing is obvious: Profit is quarterly. Why is profit sharing yearly?

Quote:

Originally Posted by Aquaticus (Post 3575116)

We have phenomenal instruction from line pilots for more of our training than any other airline in the world...

What does that mean? Seriously

Quote:

Originally Posted by fadec (Post 3575120)

Looking at these numbers, one thing is obvious: Profit is quarterly. Why is profit sharing yearly?

So in losing quarters should we pay the company?

Quote:

Originally Posted by fadec (Post 3575120)

Looking at these numbers, one thing is obvious: Profit is quarterly. Why is profit sharing yearly?

Simply, the profit sharing program is based on annual profits, not quarterly. Wanna change the plan payout criteria, write a resolution and take it to an LEC meeting.

Quote:

Originally Posted by LJ Driver (Post 3575172)

So in losing quarters should we pay the company?

Hence the name profit sharing and not loss sharing.

Quote:

Originally Posted by drywhitetoast (Post 3575236)

Hence the name profit sharing and not loss sharing.

Ahh, so negative profit sharing.

Quote:

Originally Posted by dailyops (Post 3574391)

It's amazing how many people on here and other United forums constantly advocate for worse benefits and QOL for the fellow pilots they work with just because "that's the way it's always been". They are truly of a different generational mindset and there's no point in trying to debate them or change their point of view. Luckily they will be outnumbered soon enough.

What's your position on age 67? Or on adding a funded defined benefit plan in the contract that would pay $100k/yr at DOS?

Quote:

Originally Posted by UALinIAH (Post 3574998)

As you know I like to think I have a pretty healthy understanding of the mechanisms behind profit sharing, and I do agree with you that the percentage threshold in our language versus the fixed amount in the Delta language will definitely play more of a role going forward, but the purpose of this post is to make a minor side note relative to expenses. I have shown in the past that the single biggest factor affecting PS for us historically is the price of oil and not payroll.

This from a post I made in 2019:

Understanding and Predicting PS

Quote:

So first 6.9% of $43 million = $2.967 billion and that is the amount of profit of which we get 10% then $3.8 - $2.967 = $833 million and that is the amount of profit of which we get 20%.

So $2.967 x .1 = $297 million / $7774 oayroll = 3.8%
and $833 x .2 = $166 million / $7774 payroll = 2.1%

Finally 3.8 +2.1 = 5.9%

If payroll goes up 5% the percentage falls to 5.6%.

If we save a $1 billion dollars in fuel the percentage goes up to 8.5% or said another way - every $100 million in fuel savings adds about 0.3% to PS.

Quote:

Originally Posted by AxlF16 (Post 3575280)

What's your position on age 67? Or on adding a funded defined benefit plan in the contract that would pay $100k/yr at DOS?

Boomer! 🤣😎