How long until US AIR liquidates?
Join Date: Dec 2001
Location: Great Southern Land
Age: 57
Posts: 434
Likes: 0
Received 0 Likes
on
0 Posts
Threat to pensions?
PPRuNers,
Ignition Override mentioned the threat to employees' pensions in Chapter 11 (and presumably in companies that are liquidated?).
Do I understand it, then, that your company's 401K contributions are considered part of its assets? I can't believe employee contributions could be fair game to liquidators or corporate raiders..... but the contributions made by the company? Aren't these funds off limits?
How does that leave a 65+ year old ex employee in the case of a company going belly up?
Good luck to all you USAir folks.
Ignition Override mentioned the threat to employees' pensions in Chapter 11 (and presumably in companies that are liquidated?).
Do I understand it, then, that your company's 401K contributions are considered part of its assets? I can't believe employee contributions could be fair game to liquidators or corporate raiders..... but the contributions made by the company? Aren't these funds off limits?
How does that leave a 65+ year old ex employee in the case of a company going belly up?
Good luck to all you USAir folks.
Join Date: Feb 2003
Location: USA
Age: 68
Posts: 8
Likes: 0
Received 0 Likes
on
0 Posts
Unfortunately, the US Airways pilots' 401k has always been non matching; ie: no company contributions. When the defined benefit plan terminated with the emergence from bankruptcy it was replaced with a defined contribution plan. The tax qualified portion goes with the pilot if the company liquidates, but quite a few of the pilots' accounts contain a large non tax qualified "notional" portion which is nothing more than entry on a ledger. If the company goes under this portion is gone. Worse yet, the latest request from the company allegedly wants to replace the defined contribution plan with a 401k with a 10% matching company contribution. Not good.. If an agreement with management is negotiated it will be subject to ratification by the pilot group here. BTW, our furlough list extends into 1988. Strange days indeed....(John Lennon - circa 1980)
Join Date: Dec 1999
Location: Over the horizon
Posts: 230
Likes: 0
Received 0 Likes
on
0 Posts
The big winners, if you can call them that, if U were to cease to be, is neither SWA or jetblue. Neither of them has capacity to spare, airplanes in the desert or furloughed pilots.
The winner would be those airlines, that can afford, or borrow their way to, aquiring U assets and have excess capacity to service their system.
The winner would be those airlines, that can afford, or borrow their way to, aquiring U assets and have excess capacity to service their system.
Join Date: Oct 2003
Location: USA
Age: 53
Posts: 65
Likes: 0
Received 0 Likes
on
0 Posts
As a person who has flown for a competitor of USAir most of my career, I can say that I really, really hope USAir makes it. I hate to see my fellow aviation employees going through a liquidation. And as to the hope of a purchase like the AA purchase of TWA - that would be a fate worse than death itself. I wouldn't wish that on my worst enemies.
I sure hope the good people at USAir can hang in there. And shame on those sick people who would speculate on another person's loss of career/livelyhood.
I sure hope the good people at USAir can hang in there. And shame on those sick people who would speculate on another person's loss of career/livelyhood.
