Both Airlines In The Black For 2010
In what appears to be some good news for the airline industry,
two legacy carriers have made profit sharing disbursements to their
employees, indicating that ... well ... they made a profit.
In a memo Monday to employees, Delta CEO Richard Anderson said
"It is a good time to be at Delta." The memo reads, in part:
"Congratulations and thank you! Today Delta is paying out $313
million in profit sharing – a direct result of your hard work
and dedication that enabled Delta to record a $1.4 billion profit
for 2010. We continue to deliver on our commitment to share Delta's
successes with those who make it possible.
"Profit sharing is not a one-time payout. Instead, it is part of
your total compensation that includes a competitive package of pay,
benefits and work rules along with additional opportunities to earn
more when the company performs well. This year's profit sharing
continues the momentum that we've gained during the last four
years, enabling continued investments in our people:
- Coming out of bankruptcy in 2007, Delta employees received $1
billion in incentives and improved compensation and benefit
programs.
- For our strong financial performance in 2007, employees earned
$158 million in profit sharing.
- As a testament to the airline we would build together, Delta
employees were granted 15% equity in the combined company following
the close of the merger in 2008, valued at approximately $900
million at the time of distribution.
- For solid operational performance in 2009, Delta people earned
approximately $66 million through monthly operational performance
bonuses.
- For three consecutive years, Delta increased base pay for
frontline people, making good on a pre-merger promise to bring
Delta base pay rates to industry-standard by the end of 2010.
- And today, as a direct reflection of your hard work and our
merger's success, we are sharing the largest profit sharing payout
in our airline's history.
"During the toughest of economic times this industry has faced,
we kept our deals. When other major airlines were announcing
involuntary furloughs, outsourcing and hiring freezes – Delta
kept its commitment to no frontline involuntary furloughs as a
result of the merger; we were bringing Reservations jobs back to
the U.S.; we were insourcing in TechOps, Cargo and Airport Customer
Service; and, in the last year alone, we added more than 4,000 new
frontline jobs.
"It's a good time to be at Delta Air Lines. Our plan is working
and while we have a great deal of work ahead of us, our
opportunities are tremendous. With the dedication and determination
of Delta people, I have no doubt we'll successfully face the
challenges of 2011."
United Continental Holding's disbursement was a little smaller,
but still amounted to $224 million shared back with employees. In a
news release, company president Jeff Smisek said "The United and
Continental teams did a great job in 2010. Profit-sharing shows
that when we work together, we win together."
Smisek handed out profit-sharing checks Monday at the airline's
hubs at George Bush Intercontinental Airport in Houston and Chicago
O'Hare International Airport. Other United officers will
travel to many other locations throughout the new United's system
to distribute profit-sharing checks to co-workers.
In addition to profit-sharing, the new United's employees
receive cash payments for reaching on-time performance goals. The
on-time incentive program pays co-workers up to $100 monthly when
the combined airline hits targets for domestic and international
on-time arrivals. The program reinforces the new United's
commitment to working together to deliver outstanding performance
for its customers.
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