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 02.23.15

Airborne 02.24.15

Airborne 02.25.15

Airborne 02.26.15

Airborne 02.27.15

Airborne Hi-Def On YouTube

Airborne 02.23.15

Airborne 02.24.15

Airborne 02.25.15

Airborne 02.26.15

Airborne 02.27.15

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 02.27.15: CS300 Flies, Nimoy Goes West, NTSB's Hart OK'd, PBOR II

Also: Bell 505 Update, Mooney Update, UAV Hysteria, AAR Sells Telair, True Blue Power, More UAV Waivers, Flyers Rights The Bombardier CSeries CS300 airliner made its first flight t>[...]

Aero-News: Quote Of The Day (03.01.15)

“Sentinel 2 is the next important milestone to deploy Europe´s Copernicus program for which Airbus Defence and Space is a key contributor. In particular, we are prime c>[...]

ANN's Daily Aero-Term (03.01.15): Advancing Blade

Advancing Blade That half of the rotor disc in which the rotation of the blade is moving in the same direction as the movement of the helicopter. If the helicopter is moving forwar>[...]

ANN's Daily Aero-Linx (03.01.15)

Aero Linx: The New England Helicopter Council The New England Helicopter Council is committed to promoting rotorcraft aviation through and for the benefit of our membership. If you>[...]

CASA Grants Extension On Small Aircraft Licensing Transition

Australian Agency Lengthens Training Period For Maintenance Candidates The Civil Aviation Safety Authority of Australia has extended the training period for individuals seeking a s>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC