Another goddam $10B bailout - American Airlines wants to hand its pensions over to the PBGC

on december 1, i predicted this...

American Airlines will use its bankruptcy as a $10B bailout by kicking its pensions to taxpayers

based on this...

Taxpayers May Have To Pay AMR Pension Bill

based on the precedent set by united airlines in 2005 when i posted this...

United defaults on pension plans; CEO buys $4.5M condo

so now we have this...

AMR To Seek End To Worker Pensions - PBGC

The US Pension Benefit Guaranty Corporation, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a USD$92 million lien against American parent AMR for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

[...]

The US Pension Benefit Guaranty Corporation, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a USD$92 million lien against American parent AMR for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

make no mistake... what american airlines is asking for is a $10B bailout... bankruptcy is a very convenient way for companies to void their labor contracts, neuter their unions and hand off their pension liabilities to the government taxpayers hapless citizens us suckers to pick up the tab... privatizing profits, socializing losses... it's the american way...

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