Originally Posted by venk
Union rhetoric aside, there is not much more certainty of AA making its pension obligations any more than the explicit decision from UA (during the BK period). They were both so deeply in the hole for such a long time towards pension obligations that anyone still counting on it (regardless of their generation) was surely deluded.
Isn't there a federal pension guarantee that picks up the tab in such situations?
AA is current, having already made this year's required contributions of about $461 million, with an expected minimum contribution next year of about $450 million.
UA has now deferred $570 million due this year (and has over $4 billion of minimum contributions due by 2008).
The federal pension agency (PBGC) will have to step in, but its maximum pension payout is less than most mechanics are expecting, and much less than any of the pilots are owed.
This is a sad time for UAL employees.
I see employee morale dropping very quickly.