Current Book Cost = 145 million (wages and fringe)
TA1 (wages and fringe)
– Annual average 5 year cost* $17.3 m over current book
– 2.5 months retro approx $1.6 m (one time realization)
Co Savings of TA1 failure approx. $18m
TA2 (wages and fringe)
– Annual average 5 year cost* $12.7m in addition to cost of TA1
– $2,000 signing bonus $ 8m (one time realization)
*total cost of 5 year deal divided by 5
The above amounts are confirmed by Dan Akins our airline economist
- TA2 was a 73% increased cost over TA1 costs (not counting signing bonus – another $8m)
- TA2 represents a $30 million (annual average 5 year cost) over current book costs.
- The rates in TA2 are higher than the 2015 rates for the AA/US Airways TA and Delta increased rates at every pay-step. They continue to be higher in every pay step in the out years for the 5 year deal.
- Per diem increases to $2.50, the highest domestic per diem in the industry and beats most international per diem rates.