737 Pylt
Um....Floats anyone??
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- Jul 8, 2003
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Independence Air seeks to pay $3.2 mln in bonuses
Wed Jan 4, 2006 06:34 PM ET
WASHINGTON, Jan 4 (Reuters) - Independence Air, which will stop flying on Thursday, is proposing $3.2 million in estimated bonuses to keep key employees on the job as it winds down its corporate operations, bankruptcy records showed.
The judge overseeing the airline's bankruptcy in Delaware would have to approve the plan, which proposes $5.1 million salaries and bonuses for 180 people. Most of those covered by the retention plan would be out of a job within eight weeks.
But most of the money -- including $2.1 million in bonuses -- would go to roughly 22 executives and other workers who remain in salaried positions for at least six months.
The bonuses would equal one year's base pay and would be in lieu of severance. Fewer than 10 officers are expected to remain with the company for more than 12 weeks, the airline said.
Independence said in a filing this week it hopes the plan would encourage employees to complete the job of closing down the carrier's operations and bankruptcy case "properly, prudently and as efficiently as possible."
Retention payments have been used in bankruptcy to keep executives and other employees in vital positions during restructuring or liquidation. Companies argue that executives who stay on will miss out on other job opportunities and should be compensated.
Independence's parent, FLYi Inc. (FLYIQ.PK: Quote, Profile, Research) , said on Monday the last flight of the discount carrier would be on Thursday. The company, whose operations are based at Washington's Dulles airport, has limited cash and failed to attract a bidder to lift it out of Chapter 11. Independence sought court protection in November.
Flight attendants said the bonus plan was not justified and filed a formal objection.
"It does not make sense that this bankrupt company has an extra several million dollars lying around to divvy up among a select group while the rest of the workforce is suddenly out of a job," said Kenneth Kindred, the union's president.
Independence estimates it will pay $5.2 million in severance, health care and other benefits for laid-off union workers, including pilots, flight attendants and mechanics.
Union workers represent slightly more than half the 2,500 employees who will lose their jobs on Thursday. Nonunion employees would receive roughly $6 million in severance and other benefits.
Wed Jan 4, 2006 06:34 PM ET
WASHINGTON, Jan 4 (Reuters) - Independence Air, which will stop flying on Thursday, is proposing $3.2 million in estimated bonuses to keep key employees on the job as it winds down its corporate operations, bankruptcy records showed.
The judge overseeing the airline's bankruptcy in Delaware would have to approve the plan, which proposes $5.1 million salaries and bonuses for 180 people. Most of those covered by the retention plan would be out of a job within eight weeks.
But most of the money -- including $2.1 million in bonuses -- would go to roughly 22 executives and other workers who remain in salaried positions for at least six months.
The bonuses would equal one year's base pay and would be in lieu of severance. Fewer than 10 officers are expected to remain with the company for more than 12 weeks, the airline said.
Independence said in a filing this week it hopes the plan would encourage employees to complete the job of closing down the carrier's operations and bankruptcy case "properly, prudently and as efficiently as possible."
Retention payments have been used in bankruptcy to keep executives and other employees in vital positions during restructuring or liquidation. Companies argue that executives who stay on will miss out on other job opportunities and should be compensated.
Independence's parent, FLYi Inc. (FLYIQ.PK: Quote, Profile, Research) , said on Monday the last flight of the discount carrier would be on Thursday. The company, whose operations are based at Washington's Dulles airport, has limited cash and failed to attract a bidder to lift it out of Chapter 11. Independence sought court protection in November.
Flight attendants said the bonus plan was not justified and filed a formal objection.
"It does not make sense that this bankrupt company has an extra several million dollars lying around to divvy up among a select group while the rest of the workforce is suddenly out of a job," said Kenneth Kindred, the union's president.
Independence estimates it will pay $5.2 million in severance, health care and other benefits for laid-off union workers, including pilots, flight attendants and mechanics.
Union workers represent slightly more than half the 2,500 employees who will lose their jobs on Thursday. Nonunion employees would receive roughly $6 million in severance and other benefits.
