PRINCESS KIDAGAKASH said:
It's still almost $3,000,000,000 underfunded! :down: Spin,Spin,Spin! :wacko:
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On an ABO basis (the commonly accepted measure), the plans are 80% funded as of 12/31, and the underfunding equals $1.823 billion.
On a PBO basis (full of fantasy projections), the plans are underfunded by $2.687 billion.
http://www.shareholder.com/aa/EdgarDetail....-3726&SID=05-00 (page 69)
Compare to UAL's plans which are only 55% funded as of 12/31; their ABO underfunding equals $5.955 billion. On a PBO basis, UAL's underfunding equals $6.425 billion.
http://ccbn.tenkwizard.com/filing.php?repo...00000&VL=0066FF
AMR has contributed hundreds of millions to its pension plans in the last few years; it's doing the best it can to catch up. But of course, not fast enough for you. Like Veruca Salt in Willy Wonka, you scream "I want it now."
As of Jan 19, 2005, AMR had already contributed $42 million of 2005's projected contribution of about $310 milion. With rising interest rates, it is very likely that the plans will be nearly 90% funded by 12/31. No doubt, that will not be enough for you. "I want it now," you will scream. Well, Veruca, we can't always get what we want, when we want it.
And it's not just the pilots who will get hosed by UAL's pension defaults - the other day, I read where some mechanics won't get their full pension, either (although the shortfall is, of course, much smaller than the hosing the pilots are taking).