Following the path laid out by United and USAirways wrt pensions. Ugly times ahead.
http://www.ajc.com/business/content/...taretiree.html

 

It's as simple as this.

1. In chapter 11, pensions are viewed as secured creditors.
2. The debt must be settled before a company can leave bankruptcy.
3. No commercial lender in the world is going to loan a company money to fund an underfunded pension. They mandate working captial work for the shareholders, not the employees.

Unless the feds agree to extend the ERISA funding period for the pensions....their gone.

Ugly times indeed.

 

It’s as simple as THIS . . Chapter 11. .you’re hosed. Can you say, “Do you want fries with this?” OR . . “Welcome to WalMart” . .practicing for your after-60 job.

Forwarded from a Delta buddy:

Can't say I've worked for a bankrupt company before but it's not like we didn't know it was coming.

I just read a bunch of the opening court docs and it looks like the pension is just about the first thing to go. That makes sense from their point of view.

They don't want to pay billions for a bunch of retired farts that aren't contributing anymore. Also, now that United, USAir, and all the LCCs don't pay that stuff it just makes sense. Hell, that's what the PBGC is for. BOOM! Instant cost reduction.

Recently a 30 year guy would get about $1.2 mil lump and about $8k/mo. Now they are saying: "Hey, all those guys got the lump. Isn't that enough?" The judge already agreed.

I don't think there are very many guys left here over 53. I'd be gone if I was one. Those guys got whatever they could from the lump and got the hell out. I've moved up almost 1500 numbers in the last year. I'm now no. 529 and I'm 48 years old! The only hope we've got is if the company can get it together and we can jam on the 401k for the next 10 or 12 years. If the demoralization sinks the ship then we're all toast. I know a lot of the junior copilots aren't looking forward to being at the bottom of a non moving seniority list. The next year will be really interesting.

 

Drew,

Who would have thought this would be happening to this once glorious profession? My heart goes out to all those that will be affected by these twin Chapter 11 filings. It will be a bunch of em.