Continental Contributes $84 Million To Pensions

[FWAAA]

Lots of speculation that CO would file Ch 11 to terminate its pension plans. With this latest contribution, there's almost zero chance CO is thinking of filing Ch 11. Companies thinking of filing Ch 11 don't throw away $84 million so soon before the bankruptcy. Good for CO!

Continental Airlines Contributes an Additional $84 Million to Its Pension Plans

Monday October 10, 2:00 pm ET
Year-to-Date Pension Contributions Total $304 Million

HOUSTON, Oct. 10 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE: CAL - News) today announced that it has contributed an additional $84 million cash to its defined benefit pension plans. These contributions bring Continental's year-to-date pension contributions to $304 million and meet its minimum required contribution for 2005.

"Continental's recent $84 million pension contribution demonstrates that we are working hard to fulfill our obligations and keep our promises to employees," said Larry Kellner, Continental's chairman and chief executive officer.

Since 2002, Continental Airlines has contributed $826 million to its pension plans.

http://biz.yahoo.com/prnews/051010/dam041.html?.v=27

 

[B.O.B.]

They need to burn as much $$$ as possible to file BK. If they're planning on doing it, they only have 3 days left before the new laws take effect.

 

[FWAAA]

They need to burn as much $$$ as possible to file BK. If they're planning on doing it, they only have 3 days left before the new laws take effect.

Your post is quite possibly the least informed post of the month, and the month isn't even half over.

If CO were thinking of filing for Ch 11 and terminating its pensions, it would not have thrown away the $84 million. It would have kept the money, just like DL and NW did. You don't spend money that you don't have to spend on the eve of a bankruptcy filing.

 

[goodgirl37]

Your post is quite possibly the least informed post of the month, and the month isn't even half over.

If CO were thinking of filing for Ch 11 and terminating its pensions, it would not have thrown away the $84 million. It would have kept the money, just like DL and NW did. You don't spend money that you don't have to spend on the eve of a bankruptcy filing.

So sadly misinformed - It is better for all the other airlines of they don't file now b/c it will be much harder for them to emerge when they file after the law changes, not that I wish that on anyone but AA and CAL almost assuredly will file. They simply can't keep up with all the other airlines having much less cost structures than CAL. Especially now that you have UAL USAIR AWA DELTA AND NWA at a very low cost structure due to pension dumps and labor cuts - outsourcing - and pay cuts... It's just a matter of time unfortunately - But now the globe is covered with "LCC'S" offering the same product, airport clubs and alliances...ALL the best and hopefully you get to keep your pensions and never have to file but the chances are slim.

 

[featheroleather]

CAL employees took huge paycuts in 83 and 91 and have been running lean ever since. We were making $20 bucks/hr in 88,89 when the other legacies were making much more than that.Only in the last 6 years have we been near the top in pay and some benefits.I dont believe they will file BK before the 17th, one of the main reasons is that mgmts pensions are locked into the CARP, and God forbid they lose one dime!By Monday we shall find out!