Delta airlines

Question

At the end of December 2005, about 6,000 pilots of financially troubled delta airlines accepted a 14% pay cut. Delta announced that this would save them approximately $143 million annually. Based on this information, what is the average annual pay of a Delta pilot before the cut? What is the average annual pay after the cut?

Answer 1

Hi Lynn,

If the pay cut from 6,000 pilots saved $143,000,000, then the average amount of money each pilot forfeited was $143,000,000/6,000= $23,833.33

 

This amount represents 14% of their salary.

So, if S is the original salary, then

.14S = $23,833.33

S = 170,238.07

 

The salary after the pay cut is then

170,238.07-23,833.33 = 146,404.74

 

Hope this helps.