Originally Posted by rickair7777

Absolutely! To my knowledge this is not any sort of formal retirement plan which would even be covered a little by PBGC.

It's a win/win for AA. If everything works out, they save some cash now, and the payments won't hurt too much after the recovery.

If it doesn't work out, looks like unsecured creditors to me. Worst case for AA, judge makes them recall the old guys (to a gutted contract) and then furlough juniors.

That said, I'd take the deal and take the chance (I don't have any alimony though).