WorldTraveler
Corn Field
- Joined
- Dec 5, 2003
- Messages
- 21,709
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DL has been paying between $600-750 million per year towards its frozen pension plans since it emerged from BK and merged w/ NW - of which DL has assumed responsibility for some of NW's plans.
AA will have pension obligations comparable to DL's, meaning they will spend $600-700M on pensions per year, on top of the 401K benefits for active employees. Like DL, AA will be spending far more on pension benefits than any other airline since they are funding frozen pensions as well as funding defined contribution benefits for current employees.
Pay raises just for US pilots that would bring them up to AA pilot salary levels would swallow up every dollar of profit that US is now making
Yes, Bob, AA is betting the proverbial farm on reducing costs via reduced maintenance expense by taking on $10B in debt more than other US airlines. It is doubtful that AA's maintenance cost reductions from the fleet restructuring will save it close to $1B per year which is what that level of additional debt will cost.
AA will have pension obligations comparable to DL's, meaning they will spend $600-700M on pensions per year, on top of the 401K benefits for active employees. Like DL, AA will be spending far more on pension benefits than any other airline since they are funding frozen pensions as well as funding defined contribution benefits for current employees.
Pay raises just for US pilots that would bring them up to AA pilot salary levels would swallow up every dollar of profit that US is now making
Yes, Bob, AA is betting the proverbial farm on reducing costs via reduced maintenance expense by taking on $10B in debt more than other US airlines. It is doubtful that AA's maintenance cost reductions from the fleet restructuring will save it close to $1B per year which is what that level of additional debt will cost.