Please break down this $1B for me. I'm tired of seeing it and the hard # that sticks out in my head is that even after this "magical" $1B (of which no details are ever provided)
There's nothing magical about it, and you're the only person that seems to be disputing the number, including Delta management! Since the giveback was quite a while back and anything information that is older than 6 months old nowadays is ancient history, I'll break it down for you....
roughly as I don't remember the details anymore.
Guys like me have to use rough "back of the envelope" numbers to keep things simple for my mind
Using numbers from DAL's 2004 annual report, DAL spent 6.4B on labor expenses. Pilot expenses back then probably were about 40% of total labor costs if they followed the same ratio as they did for UAL and other legacy airlines. Well, 40% of 6.4B is about 2.6B, which one could estimate is about what DAL spent on those greedy, overpaid pilots, right? My buddy at DAL told me he took about a 35% pay cut for the first time around, so that equates to about .896B per year. There's most of your 1B. The rest (100M) probably came from cuts in other areas that I'm not 100% certain of (increase in medical costs? layoffs? outsoucing?). Certainly a rounding error could account for that 100M too!
the AVERAGE...yes AVERAGE salary comes to $169k. There is no class envy...
Actually, there probably is a little envy or you wouldn't have even brought that number up. Further, if there wasn't a little bit of envy, you wouldn't have made the statement below. And I dispute that number because at DAL, you'd have to be a 737/MD88 Captain to pull in that kind of dough. Is the average pilot at DAL a 737/MD88 Captain? Don't know, but that seems a little high. Maybe that number (169K) is the TOTAL benefit package (salary, retirement, medical, vacation, etc.) for an average pilot at DAL? That makes more sense.
I can see that unlike any other industry, non-inflation-adjusted prices have actually gone down over the past 20 years. I can see that due to the extreme elasticity of airline tickets, there is almost no pricing power to correct this. I can see that wages have gone up substantially over the same period in which I mention that prices have gone down. I can see that there is no shared sacrafice.
I agree with the first part. The second part? No shared sacrifice? Well.....If you fall into the pilot-hater category, I'm sure you'll be happy to know that by the time all of this is over, they will have given up, in total, far more than any other employee group on the property. Especially if their pensions go to the great graveyard in the sky.
What is most disturbing to me is that you can still average nearly 170k per year (on a much more limited work schedule than all other full time professions) despite this magical $1B. It doesn't add up and is just a fluff number. We all know this.
I don't know "this," nor do I think it is a fluff number. More limited work schedule than other full time professionals? Really? My neighborhood is full of other "full time" professionals. Rather than discuss a typical pilots' schedule which has been discussed ad nauseum on threads all over usaviation, let's just say that you couldn't be more wrong when comparing average professional to average professional. Maybe your perception of a pilot's "limited work schedule" is just fluff on your end?