US Airway news - not good

[SWA/FO]

Reuters
Judge: US Air Can Terminate Pension Plan
Saturday March 1, 8:54 pm ET


AKEXANDRIA, Va. (Reuters) - A federal judge ruled on Saturday that US Airways Group Inc. (OTC BB:UAWGQ.OB - News) could terminate its pilots pension plan, saying it was a disheartening option to help save the bankrupt carrier.
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The decision by Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia clears the way for the company to seek federal government approval of its proposal to terminate the pension plan and replace it with a cheaper one.

Mitchell said the airline must still resolve questions about whether the proposal violates the pilots contract. US Airways called for immediate negotiations with the Air Line Pilots Association (News - Websites) to resolve the matter.

A union spokesman had no immediate comment other than to say it would explore its options.

The pension plan covers 3,600 active and 1,100 retired pilots, some of whom could lose up to 75 percent of their benefits under the proposal.

US Airways says it can no longer afford to maintain that fund, which has liabilities of $1.6 billion. The company says there are no other options to terminating the plan.

The company has said resolving the pension question is necessary to receive $200 million in emergency financing and a $1 billion government-backed loan.

US Airways hopes to emerge from bankruptcy by the end of this month

 

[Boeingman]

If anyone out there thinks their pensions are safe they are hiding their heads in the sand. With the current grossly underfunded plans at all the airlines, these CEO's are wetting their pants over this decision. Some of the plans are behind by several billion dollars. I thought I read DAL was the most underfunded at 4.2 billion.

Siegel has stated they MUST resolve the issue by 3/31 to emerge from BK. I personally can not see this getting resolved in 29 days.

Any comments now from those who wish to force mandatory retirement at 60? With these plans going up in smoke in truly puts a new perspective on things.

To save server space don't anyone bother flaming me about "senior pilots keeping age 60" yada yada yada. My retirement funds wouldn't even cover my personal and business taxes. I learned a long time ago to NEVER count on your employer (especially an airline) to see you financially through the retirement years.

 

[CoopDog]

Coming soon: "Airline CEO Survivor"

Super Dave must be dance'n the Macarena this evening.

And Carty, Mullin, and Bethune must all be grin'n like a jackass eat'n briars tonight.

Sorry, I didn't mention the UAL guy. Sounds like he may not be around long enough to join the party, but I'm sure whoever ends up in charge there will be pounding on the judge's door fairly soon as well.

Very few of these cats ever have an original idea, and they love to play follow the leader.....except in this case, it's more like a bad episode of Survivor.

 

[spinup]

Where is ALPA national????

Disgusting! I for one will stand with any AAA pilot on this. This is truly a call to all pilots. AAA folks, tell us how we can help.

Fraternally,

Spinup

 

[Networ-King]

Anyone know of a really good sniper for hire? With this news don't be surprised if 30 year professional pilot with USAir and no retirement ends up going over the edge. Man things just getting better and better. I hope you guys really get this bastard........ somehow!!!!!!! .

God speed

 

[Networ-King]

Anyone know of a really good sniper for hire? With this news don't be surprised if 30 year professional pilot with USAir and no retirement ends up going over the edge. Man things just keep getting better and better. I hope you guys really get this bastard........ somehow!!!!!!! .

God speed

 

[DIAMONDDD]

Anyone know of a really good sniper for hire? With this news don't be surprised if 30 year professional pilot with USAir and no retirement ends up going over the edge.

Hey look, if Frank Lorenzo never got "Whacked", nobody is going to get it.

 

[WhiteCloud]

Hey look, if Frank Lorenzo never got "Whacked", nobody is going to get it.

Be careful what you post guys. It's a sensitive issue and one that could cause many to go over the edge. Ziggy1

 

[CitationLover]

get a clue

Couple of notes.

1) ALPA could care less about retirees. They only care about active members who pay their dues on time. Any union uses retirement plans as bargaining concessions (ie they throw it out as a want knowing it will be cut, when it is it is viewed as a concession from the union).

2) Age 60 mandatory retirement is written into FEDERAL LAW. IRC Section 401. It will take an act of congress to change this. Blame the congress in 1974 who wrote this into ERISA.

3) If you make over $100k for over 15 yrs you should have your own nest egg saved up, especially considering the instability of the airline industry (do you remember Eastern, TWA, PanAm, etc)?

4) USAirways execs, whose unfunded executive pensions will probably all be paid, need to run quickly before they are "tarred and feathered". These idiots should someway be held accountable for the mess USAirways is in.

 

[rican]

When is enough enough? I thinks it's about time for a mass ALPA exodus.