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roz · 09-10-2004, 09:18 PM

No, Kristie.

They emerged from Chapter 11 prior to the March 31, 2003 deadline of having their credit card contracts cancelled. The Alabama Retirement loan is fully secured with gates at DCA and LGA and other tangible assets. All the other debts are secured by their various creditors.

The pilots already gave concessions--twice--including their pension which was turned over to the PBGC. The problem is that their pension was limited by law to:
Here are the maximum benefits that PBGC would pay:
If you retire at 60, the annual maximum benefit is $28,500.

If you retire at 65, it rises to $43,977.

If you retire at 70, the annual guarantee reaches $73,000.

So they lost their pension beyond $28,500 (which, frankly most of us in the rest of the working world don't have at all--they are a dying concept!).

What happened is that in Philly and Pitt, they overthrew their negotiating committee with very senior pilots. The senior pilots who are now in charge don't care about anything but protecting what they have. The current proposal calls for a reduction in contributions to the defined contribution plan put into place to replace the defined benefit plan. They current negotiating committee (which is dominated due to representational size by Philly and Pitt) is against that. We will see. The IAM and F/A's are also not coming to agreements. This weekend will tell all. A $100+ million pension payment is due 9/15 for the F/A's and IAM. That would bring the company close to default on the federal loan guarantee loan covenants.

Bronner has said he's willing to give it all up and bring it to Chapter 7. He doesn't care because his investment is secured. Chapter 7 means liquidation.

What would that do to MESA, CHQ, and all the other contracted carriers?

09-10-2004, 09:18 PM	#4 (permalink)
roz Jetgirls Ol' School Member Join Date: Oct 2003 Location: Philly Posts: 2,312 Recipes: Thanks: 0 Thanked 6 Times in 6 Posts	Re: USAirways No, Kristie. They emerged from Chapter 11 prior to the March 31, 2003 deadline of having their credit card contracts cancelled. The Alabama Retirement loan is fully secured with gates at DCA and LGA and other tangible assets. All the other debts are secured by their various creditors. The pilots already gave concessions--twice--including their pension which was turned over to the PBGC. The problem is that their pension was limited by law to: Here are the maximum benefits that PBGC would pay: If you retire at 60, the annual maximum benefit is $28,500. If you retire at 65, it rises to $43,977. If you retire at 70, the annual guarantee reaches $73,000. So they lost their pension beyond $28,500 (which, frankly most of us in the rest of the working world don't have at all--they are a dying concept!). What happened is that in Philly and Pitt, they overthrew their negotiating committee with very senior pilots. The senior pilots who are now in charge don't care about anything but protecting what they have. The current proposal calls for a reduction in contributions to the defined contribution plan put into place to replace the defined benefit plan. They current negotiating committee (which is dominated due to representational size by Philly and Pitt) is against that. We will see. The IAM and F/A's are also not coming to agreements. This weekend will tell all. A $100+ million pension payment is due 9/15 for the F/A's and IAM. That would bring the company close to default on the federal loan guarantee loan covenants. Bronner has said he's willing to give it all up and bring it to Chapter 7. He doesn't care because his investment is secured. Chapter 7 means liquidation. What would that do to MESA, CHQ, and all the other contracted carriers?