AMR Corp Reportedly Behind On Pension Payments | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 01.16.17

Airborne 01.17.17

Airborne 01.18.17

Airborne 01.19.17

Airborne 01.20.17

Airborne Hi-Def On YouTube

Airborne 01.16.17

Airborne 01.17.17

Airborne 01.18.17

Airborne 01.19.17

Airborne 01.20.17

Fri, Jan 20, 2012

AMR Corp Reportedly Behind On Pension Payments

Airline Management Says It Was The 'Appropriate Course Of Action'

The Pension Benefit Guaranty Corporation, an agency of the federal government, said Thursday that AMR corp is over $90 million behind in payments to its employee pension plans.

The payment due by January 15th was some $100 million, but PBGC says that the company had contributed just $6.5 million by the deadline. The Wall Street Journal reports that an AMR spokeswoman said that the company saw the move as "the appropriate course of action" to "preserve cash."

AMR has hinted since it filed for Chapter 11 bankruptcy protection that it might have to reduce payments to the pension system, which the agency calculate to have total obligations of $18.5 billion. In a statement made prior to the pension contribution deadline, Pension Benefit Guaranty Corporation Director Josh Gotbaum released statement criticizing AMR for its actions. "Counsel for American claims that it needs to kill its employees' pensions in order to be competitive with other major carriers," he said. "The numbers tell a different story: Delta Airlines, which reorganized in bankruptcy, pays an average of $13,210 per employee in pension costs - almost 2/3 more than American's pre-bankruptcy cost of $8,102.
 
"American has more than $4 billion in cash; some of that money should already have been paid into its pension plans.  However, Congress, hoping to preserve plans, allowed American to defer the payments.  It would be a tragedy if American repaid Congress's generosity by turning around and killing the plans anyway," Gotbaum said.

FMI: www.pbgc.gov, www.aa.com

Advertisement

More News

Airborne 01.20.17: Astro-NIMBY!, Airbus Flying Car, JetSuiteX v KSMO

Also: Daher Delivers, Aviation Progress, Tecnam P2012, D.B. Cooper, MH370 Search, T-45C Accident, Piper We previously reported that studies indicate many complaints about airport n>[...]

Airborne 01.20.17: Astro-NIMBY!, Airbus Flying Car, JetSuiteX v KSMO

Also: Daher Delivers, Aviation Progress, Tecnam P2012, D.B. Cooper, MH370 Search, T-45C Accident, Piper We previously reported that studies indicate many complaints about airport n>[...]

Airborne 01.19.17: $200K Drone Fine, Sandia IVSI TSO, 'Can't Close' KSMO

Also: MH370 Search Suspended, Supporting AUVSI, Sikorsky S-92, Challenger Astronaut, Stressed Pilots, JBA Aviation, Embraer E2 A settlement agreement has been reached between the F>[...]

ANN's Daily Aero-Linx (01.21.17)

The Lindbergh Foundation The concept of balance is an integral part of what the Lindbergh Foundation Board looks for in a project requesting a grant. Charles and Anne Morrow Lindbe>[...]

ANN's Daily Aero-Term (01.21.17): Jump Zone

The airspace directly associated with a Drop Zone. Vertical and horizontal limits may be locally defined.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC