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Reuters
UAL says pension plan terminations likely required
Thursday August 19, 12:27 pm ET
CHICAGO, Aug 19 (Reuters) - United Airlines, which has said it plans to miss nearly $500 million in pension contributions this fall, said in bankruptcy court papers it likely will be necessary to cancel and replace all of its pension plans.
The No. 2 U.S. airline, a unit of UAL Corp. (OTC BB:UALAQ.OB - News), said in court documents filed Wednesday it was no secret to any of its stakeholders that the company is considering whether termination and replacement of all its pension plans will be necessary.
"As United has told its board of directors, the creditors' committee, and its labor unions, given the magnitude of the further cost reductions needed to create a viable business plan and attract exit financing, the termination and replacement of all of United's defined benefit pension plans likely will be required," the company said.
No final decisions on the pension plans have been made, United said.
UAL says pension plan terminations likely required
Thursday August 19, 12:27 pm ET
CHICAGO, Aug 19 (Reuters) - United Airlines, which has said it plans to miss nearly $500 million in pension contributions this fall, said in bankruptcy court papers it likely will be necessary to cancel and replace all of its pension plans.
The No. 2 U.S. airline, a unit of UAL Corp. (OTC BB:UALAQ.OB - News), said in court documents filed Wednesday it was no secret to any of its stakeholders that the company is considering whether termination and replacement of all its pension plans will be necessary.
"As United has told its board of directors, the creditors' committee, and its labor unions, given the magnitude of the further cost reductions needed to create a viable business plan and attract exit financing, the termination and replacement of all of United's defined benefit pension plans likely will be required," the company said.
No final decisions on the pension plans have been made, United said.
