Exhibits Vol 2 - Independent Pilots Association

February 11, 2013
FINAL IPA BENEFIT-COST ANALYSIS
BASE CASE *
Benefits Summary—Base Case with
Rough Order-of-Magnitude Estimate
Benefits Summary—Base Case
(Dollars In Millions)
for Qualitative and Tangible Benefits
(Dollars In Millions)
Range Nominal 7% 3% Range Nominal 7% 3%
Lower Bound $19.6 $12.9 $16.3 Lower Bound $81.6 $53.6 $67.6
Mid-point $253.2 $166.2 $209.7 Mid-point $346.2 $227.2 $286.7
Upper Bound $486.8 $319.5 $403.1 Upper Bound $610.8 $400.9 $505.8
IPA Cost $320.0 $212.2 $266.2 IPA Cost $320.0 $212.2 $266.2
Net Benefit
Net Benefit
Lower Bound -$300.4 -$199.4 -$249.9 Lower Bound -$238.4 -$158.7 -$198.6
Mid-point -$66.8 -$46. -$56.5 Mid-point $26.2 $15.0 $20.6
Upper Bound $166.7 $107.3 $137.0 Upper Bound $290.7 $188.7 $239.7
*
Lack of sufficient information precluded developing discrete estimate for certain qualitative and tangible benefits. Using best
judgment, these have been conservatively monetized to the extent practicable by applying per annum during the 10-year benefit
period, a rough-order-of-magnitude estimate equal to the value of a statistical life ($6.2 million) for the lower bound, and twice this
value ($12.4 million) per annum for the upper bound. Qualitative and tangible impacts captured using this approach include, but are
not limited to, avoidance of pilot fatigue-related accidents on the tarmac during taxiing, the presence of more alert pilots in the cockpit
who are better able to deal with (1) in-flight anomalies before they become serious and (2) in flight emergencies; the premium value
attributed to expedited and perishable cargo, such as pharmaceutical supplies, medical equipment, donor transplant organs and timesensitive
legal and governmental documents; general health improvements of pilots who do not suffer from chronic fatigue, and postaccident
delayed health costs from toxic and other chemical substances released as a result of the accident.