Wow!! AMR Could Record Pension-Liability Charge in Excess of $1 Billion

Status
Not open for further replies.
C

chipmunn

Guest
[P][A href=http://biz.yahoo.com/djus/021018/2004000819_1.html][FONT face=Times New Roman size=3]http://biz.yahoo.com/djus/021018/2004000819_1.html[/FONT][/A][/P]
[P][FONT face=Times New Roman size=3]AMR may go bankrupt too![/FONT][/P]
 
Oct 14, 2002
85
0
If this goes like I think it will,AMRs stock in Dust in the wind...I stand by my statement.AMR Enron And Bush
What a team
 

exjetgurl

Member
Aug 31, 2002
77
0
[P]Chip,[/P]
[P]This isn't just AMR or the airline sector it's a big problem all over.[/P]
[P]In the last week, heavyweights like International Business Machines Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=ibm&d=t]IBM[/A] - [A href=http://biz.yahoo.com/n/i/ibm.html]News[/A]), Motorola Inc. (NYSE:[A href=http://finance.yahoo.com/q?s=mot&d=t]MOT[/A] - [A href=http://biz.yahoo.com/n/m/mot.html]News[/A]), General Motors Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=gm&d=t]GM[/A] - [A href=http://biz.yahoo.com/n/g/gm.html]News[/A]), Ford Motor Co. (NYSE:[A href=http://finance.yahoo.com/q?s=f&d=t]F[/A] - [A href=http://biz.yahoo.com/n/f/f.html]News[/A]), Ingersoll-Rand Co. Ltd. (NYSE:[A href=http://finance.yahoo.com/q?s=ir&d=t]IR[/A] - [A href=http://biz.yahoo.com/n/i/ir.html]News[/A]), Whirlpool Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=whr&d=t]WHR[/A] - [A href=http://biz.yahoo.com/n/w/whr.html]News[/A]), Continental Airlines Inc. (NYSE:[A href=http://finance.yahoo.com/q?s=cal&d=t]CAL[/A] - [A href=http://biz.yahoo.com/n/c/cal.html]News[/A]) and United Technologies Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=utx&d=t]UTX[/A] - [A href=http://biz.yahoo.com/n/u/utx.html]News[/A]) all reported their pension funds, which provide guaranteed benefits to retired workers, were underfunded. [/P]
[P]Read more [/P]
[P][SPAN class=t]Pension fund shortfalls add to U.S. company woes[/SPAN][/P]
[P][SPAN class=t][A href=http://biz.yahoo.com/rf/021018/ba_financial_pension_2.html]http://biz.yahoo.com/rf/021018/ba_financial_pension_2.html[/A][/SPAN][/P]
 
Aug 19, 2002
1,062
737
The JFK
www.usaviation.com
[P][BR][BR][A href=http://biz.yahoo.com/djus/021017/1408000776_1.html]http://biz.yahoo.com/djus/021017/1408000776_1.html[/A][BR][BR][BR]GM would kill for a $1 Billion dollar shortfall.[BR][BR]GM disclosed Tuesday that a 10% decline in the company's portfolio valuation this year has raised the U.S. portion of its underfunded pension to around $21 billion to $23 billion from $9 billion. [/P]
[P]Are they going bankrupt too?[/P]
 

diogenes

Veteran
Aug 22, 2002
2,515
0
Gosh, then I guess to save U, ALPA needs to pony up some pension adjustments, sorta along the lines of what fleet and customer service did in the mid 90's.
 

Skyhungry

Member
Aug 20, 2002
65
0
MIAMI
www.usaviation.com
Oh, now I remember why I do not pay any attention to Chipmunn.
 
OP
C

chipmunn

Guest
Pension plans can be changed with options such as changing the distribution or changing the multiplier to maintain a defined benefit plan. Another option is to change the defined benefit plan to a defined contribution plan, although I believe this is less desirable.

The problem for all of the retirement plans is that they are underfunded and by law may require company contribution(s). But with the company experiencing a cash outflow, further pension contributions could cause the company to run out of capital to run the airline during its reorganization.

I suspect the company knows exactly what its cash balance is; however, with lease agreements in flux a clear cost picture is likely unavailable because it changes every day that a new lease agreement is obtained.

Chip
 

diogenes

Veteran
Aug 22, 2002
2,515
0
Chip,

Please lay out, on a group-by-group basis, U's pension liability.

Let me help you with fleet and customer service.

$0.00

Wherein lies the problem?
 
Status
Not open for further replies.