Brief but accurate assessment of AMR BK
- Thread starter Hopeful
- Start date
Can't stand the guy .... but boy he's dead on with that one.
The only way approval of a US/AA merger should be considered by DOT, DOJ is if the new company provides all of it's workers with a decent retirement package. Now that UA/CO ... DL/NW and now maybe US/AA, have combined the PBGC should use its power to make the airlines take the pensions off the PBGC's back. Now that the government is starting to undone the regulatory mess they have made over the past 20 years by finally allowing meaningful consolidation .... and with ticket pricing power returning to the airlines they should be able to factor that cost into a ticket. The tax payer should not be trying to guarantee every pension in this industry.
The only way approval of a US/AA merger should be considered by DOT, DOJ is if the new company provides all of it's workers with a decent retirement package. Now that UA/CO ... DL/NW and now maybe US/AA, have combined the PBGC should use its power to make the airlines take the pensions off the PBGC's back. Now that the government is starting to undone the regulatory mess they have made over the past 20 years by finally allowing meaningful consolidation .... and with ticket pricing power returning to the airlines they should be able to factor that cost into a ticket. The tax payer should not be trying to guarantee every pension in this industry.
Unfortunately that is not how the law or bankruptcy works. UA/CO, DL/NW and US all dumped their pensions on PBGC and it's done. No going back now. AA will probably do the same. Best move on to fight another day, because that one is LOST.
WorldTraveler
Corn Field
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except that DL/NW only terminated their pilot pension... the PMNW pilot pension and all other PMDL and PMNW pensions are frozen, not terminated. DL has more pension liabilities still on its books than AA does.
CO terminated its pensions in its earlier BKs but has pensions from that point forward... which means UA inherited alot of employees w/ pension benefits from CO.
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It doesn't change that the DOT or DOJ cannot insert language requiring a pension benefit should a merger occur.
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As has been discussed elsewhere, there are actually good reasons why AA will freeze rather than terminate if it can.
