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Bmi pensions to be cut after sale to BA

Bmi pensions to be cut after sale to BA

Old Apr 19, 12, 9:51 am
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Bmi pensions to be cut after sale to BA

http://www.telegraph.co.uk/finance/n...ale-to-BA.html

Lufthansa, which is offloading the loss-making carrier to British Airways, on Wednesday told existing bmi pensioners and employees that changes were being made to the final salary scheme ahead of the takeover, which closes on Thursday.

The final salary pension scheme is being entered into the Pension Protection Fund (PPF) - an option normally used for companies that go bust.
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Old Apr 19, 12, 10:11 am
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Yesterday....

http://www.flyertalk.com/forum/bmi-d...ompletion.html
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Old Apr 19, 12, 10:33 am
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Originally Posted by FlyingOnceMore View Post
Helps if you link to the right bit of the thread
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Old Apr 19, 12, 10:35 am
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You want me to do all the work?
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Old Apr 19, 12, 10:48 am
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Originally Posted by FlyingOnceMore View Post
You want me to do all the work?
To be fair to the OP stuff does get buried very quickly in that thread. Especially at the moment!
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Old Apr 19, 12, 11:04 am
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Originally Posted by FlyingOnceMore View Post
You want me to do all the work?
It is buried in there
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Old Apr 19, 12, 11:26 am
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Originally Posted by FlyingOnceMore View Post
Do we have anymore details rather than the unions (understandable) angry reaction?
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Old Apr 19, 12, 11:50 am
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that's funny.... IIRC some of the early reports included that whilst BD was being sold to IAG, LH would keep the pension liabilities.

That didn't last long, did it?
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Old Apr 19, 12, 12:06 pm
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Originally Posted by lizban View Post
Do we have anymore details rather than the unions (understandable) angry reaction?
What can the unions reasonably expect? They should be glad that bmi did not file for bancrupcy during the last couple of month. They cannot expect LH to fund a loss making entity for ever. The problems in bmi are not anyhow new problems.
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Old Apr 19, 12, 1:16 pm
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Originally Posted by h15t0r1an View Post
that's funny.... IIRC some of the early reports included that whilst BD was being sold to IAG, LH would keep the pension liabilities.

That didn't last long, did it?
That's very sad for all these people
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Old Apr 19, 12, 1:29 pm
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Originally Posted by Flying Lawyer
Originally Posted by lizban View Post
Do we have anymore details rather than the unions (understandable) angry reaction?
What can the unions reasonably expect? They should be glad that bmi did not file for bancrupcy during the last couple of month. They cannot expect LH to fund a loss making entity for ever. The problems in bmi are not anyhow new problems.
I presume they'd settle for funding the pension scheme adequately up to the period they ceased control....
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Old Apr 19, 12, 2:51 pm
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It is a disgrace.

Pure and simple.

A massive company finds the cash to fulfill its obligations to Sir MB to buy out his remaining stake in BMI and then years later cannot make sure the staff get the full pensions they have worked for and been promised.

And it lets the UK - pensioners and taxpayers. that is US, who fund the pension protection fund - pick up the tab.

As my old Dad used to say when he heard news like this from Germany: I got this RAF tie for bombing Nazi b*st*rds, and I obviously missed a few.

(I was going to say just: bombing the b*'s, but he used the word Nazi to mean bad Germans.)

There are many many good Germans. They obviously just don't run LH.
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Old Apr 19, 12, 3:12 pm
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Originally Posted by flygod View Post
It is a disgrace.

Pure and simple.

A massive company finds the cash to fulfill its obligations to Sir MB to buy out his remaining stake in BMI and then years later cannot make sure the staff get the full pensions they have worked for and been promised.

And it lets the UK - pensioners and taxpayers. that is US, who fund the pension protection fund - pick up the tab.

As my old Dad used to say when he heard news like this from Germany: I got this RAF tie for bombing Nazi b*st*rds, and I obviously missed a few.

(I was going to say just: bombing the b*'s, but he used the word Nazi to mean bad Germans.)

There are many many good Germans. They obviously just don't run LH.
Nice rant before I comment do we actually know what they are suggesting?

What I've read implies an cessation of benefits on completion - managed by the PPF funded by LH.
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Old Apr 19, 12, 3:15 pm
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Originally Posted by flygod View Post
There are many many good Germans. They obviously just don't run LH.
Whilst I perhaps might have used different wording to the rest of flygod's post, I couldn't agree more with the sentiment. This is simply the ultimate final insult, and puts so many of our personal concerns into sharp perspective. Taking away someone's immediate future plans is bad enough; robbing them of their expected pension is utterly despicable and without morals.

Unfortunately it's quite difficult to avoid flying LH group airlines within Europe, but in light of their final treatment of BD, and particularly the staff, I shall try and avoid them whenever possible. Whenever I have no choice but to get on one of their aircraft, I shall maximise every *G benefit I have ...
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Old Apr 19, 12, 3:37 pm
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Originally Posted by NWIFlyer View Post
Whilst I perhaps might have used different wording to the rest of flygod's post, I couldn't agree more with the sentiment. This is simply the ultimate final insult, and puts so many of our personal concerns into sharp perspective. Taking away someone's immediate future plans is bad enough; robbing them of their expected pension is utterly despicable and without morals.

Unfortunately it's quite difficult to avoid flying LH group airlines within Europe, but in light of their final treatment of BD, and particularly the staff, I shall try and avoid them whenever possible. Whenever I have no choice but to get on one of their aircraft, I shall maximise every *G benefit I have ...
Do we have details yet? (other than the union's view?)
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