AA Early Retirement Offer
05-25-2020 | 08:21 PM
#11
Line Holder
Joined: Oct 2013
Posts: 1,208
Likes: 87
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).
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).
I think if this deal gets wiped out they could just come back and fly the line assuming they have a medical. Speculation only.
05-25-2020 | 09:42 PM
#12
Gets Weekends Off
Joined: Feb 2012
Posts: 3,599
Likes: 206
From: 787
so then it’s not an early out retirement offer?
05-26-2020 | 05:41 AM
#14
Gets Weekends Off
Joined: May 2020
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No it’s early out they can’t be called back and they can’t come back. They don’t exit the seniority list so I guess the assumption is by many that if a BK judge tossed the deal they could come back and fly. That said a lot of the guys had one to two years left when they took and I guess they figured by the time they get to that item in bankruptcy they be pretty much out the door before it got wiped out.
05-26-2020 | 10:32 AM
#18
Banned
Joined: May 2017
Posts: 2,012
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somebody with 9 months left can probably work the system for way better than 55 hours
05-26-2020 | 10:33 AM
#19
Gets Weekends Off
Joined: Dec 2019
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No it’s early out they can’t be called back and they can’t come back. They don’t exit the seniority list so I guess the assumption is by many that if a BK judge tossed the deal they could come back and fly. That said a lot of the guys had one to two years left when they took and I guess they figured by the time they get to that item in bankruptcy they be pretty much out the door before it got wiped out.
05-26-2020 | 10:43 AM
#20
Gets Weekends Off
Joined: May 2020
Posts: 484
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My explanation was what a lot of people have thought would be the outcome if this got tossed in BK court. I tend to agree with you but BK can be screwy.
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