-American Airlines, Allied Pilots Association and PBGC closer to resolution.
The U.S. Department of the Treasury has published a Proposed Regulation that could move American Airlines (OTCQB: AAMRQ) closer to being able to freeze and retain the Pilot "A" Plan -- a pension plan -- instead of terminating the plan. Since March, American Airlines, the Allied Pilots Association, the Pension Benefit Guaranty Corp. and Unsecured Creditors Committee have been working toward that goal.
The Proposed Regulation, if finalised, could allow companies to remove lump sum benefit payouts in some circumstances, making a freeze a possibility for American. The airline said that the lump sum benefit could drive pilot retirements that could pose significant operational risk.
There will be a 60-day comment period on the Proposed Regulation. Following that process, the U.S. Department of Treasury typically issues its Final Regulation.
American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,500 daily flights. The combined network fleet numbers more than 900 aircraft.
Founded in 1963, the Allied Pilots Association--the largest independent pilot union in the United States--is headquartered in Fort Worth, Texas. APA represents the 10,000 pilots of American Airlines, including 649 pilots not yet offered recall from furlough.
PBGC protects the pension benefits of 44 million Americans in private-sector pension plans. The agency is directly responsible for paying the benefits of more than 1.5 million people in failed pension plans. Current AMR Corp. news releases can be accessed athttp://www.aa.com.
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|Publication:||Airline Industry Information|
|Date:||Jun 22, 2012|
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