....."We have sacrificed a lot", Well, just let them sacifice their jobs then, I am sick and tired of this whining......They act like they are the only people in the world who are suffering the present economic setback... It's their own fault all the mega bucks they have been earning were not placed into realistic investments. Bryant Petitt Cumming, GA --- Roger James <ejames@escape.ca> wrote: > Airline says it must drop pension plan to avoid > liquidation > > ALEXANDRIA, Va. (AP) =97 US Airways told a > bankruptcy judge Friday that the= > =20 > company faces almost imminent liquidation if it is > not permitted to=20 > terminate the pension plan for its 6,000 pilots. The > bankrupt airline faces= > =20 > a $1.6 billion gap over the next seven years between > its pension assets and= > =20 > its liabilities, the company said Friday. Resolution > of the issue is the=20 > last major hurdle it faces to meet its goal of > emerging from bankruptcy by= > =20 > the end of March. But the pilots, who have suffered > 1,800 furloughs and=20 > have already agreed to $565 million in annual wage > concessions to try to=20 > keep the company afloat, say termination of their > pension is too much to=20 > bear. Nearly 100 pilots attended Friday's hearing to > show their=20 > displeasure. "We have already sacrificed a lot," > said Bob Lamborn of=20 > Kennett Square, Pa., a US Airways pilot for 17 > years. "To have them come=20 > after our pension now, it's a personal affront." US > Airways has its largest= > =20 > hub in Charlotte, N.C., where it employs more than > 7,000. If US Airways=20 > gets what it wants, the federal Pension Benefit > Guaranty Corp. will take=20 > over the plan. In that case, most pilots would > receive a pension no greater= > =20 > than $28,500 a year. > > That would be supplemented with a new, replacement > pension plan implemented= > =20 > by the airline. But the new pension plan would > provide defined=20 > contributions instead of defined benefits. That > means an older pilot would= > =20 > have little time to accumulate savings, while > younger pilots would have to= > =20 > a hope for a strong stock market to build a > significant nest egg. If the=20 > old plan were to remain intact, most pilots would > receive an annual pension= > =20 > of $50,000 to $70,000. Some are in line to receive > $100,000 or more. Pilot= > =20 > Dave Ciabattoni of Wallingford, Pa., estimated that > his overall pension=20 > will at best be cut in half under US Airways' > proposal. He said he did not= > =20 > believe the company's assertion that resolving the > pension issue is the=20 > airline's final hurdle to financial stability. > "If the difference between solvency and liquidation > is this issue, then the= > =20 > company is going to liquidate," he said. "The pilots > alone can't save this= > =20 > company." Many pilots said they also resent the fact > that none of the other= > =20 > unions are being asked to sacrifice their pensions. > The airline says the=20 > pilots' plan is the only one big enough to provide > the savings it needs. > US Airways lawyer John W. Butler Jr. said he > sympathizes with the pilots,=20 > but terminating the plan is necessary to the > airline's survival > . > "These pilot benefits will never be paid at those > (original) levels. They=20 > are gone and nobody will get them," Butler said. "If > we do not resolve this= > =20 > issue on a timely basis, there will be no airline." > The Retirement Systems= > =20 > of Alabama, a pension fund for public employees in > that state, is the=20 > airline's main financial sponsor and is in line to > take a controlling stake= > =20 > in the airline upon its emergence from bankruptcy. > The pension fund is=20 > withholding $200 million in financing until the > pension issue is resolved,= > =20 > and Butler said the airline recently missed debt > payments as a result. The= > =20 > airline won a small victory Friday when U.S. > Bankruptcy Judge Stephen=20 > Mitchell agreed to hear testimony on the issue. > Lawyers for several groups= > =20 > of retired pilots had contended that the judge did > not have authority to=20 > rule on the issue and that it should be submitted to > arbitration. Testimony= > =20 > is expected to continue next week, with witnesses > including US Airways=20 > chief executive David Siegel. > > > *************************************************** > The owner of Roger's Trinbago Site/TnTisland.com > Roj (Roger James) > > escape email mailto:ejames@escape.ca > Trinbago site: www.tntisland.com > Carib Brass Ctn site > www.tntisland.com/caribbeanbrassconnection/ > Steel Expressions www.mts.net/~ejames/se/ > Site of the Week: http://www.dbombo.net/muddyangels/ > TnT Webdirectory: http://search.co.tt > ********************************************************* __________________________________________________ Do you Yahoo!? Yahoo! Tax Center - forms, calculators, tips, more http://taxes.yahoo.com/