Ladybbird

American Airlines Parent Company, AMR, Filed for Chapter 11 Today


PBGC: Yes, American Airlines employees have reason to worry about their pensions



Photo By LUCAS JACKSON/Reuters

By

Terry Maxon/Reporter Dallas News
2:50 PM on Tue., 29 Nov, 2011


Pension Benefit Guaranty Corp. director Josh Gotbaum issued this statement on AMR's bankruptcy:

Quote:

"Today American Airlines' parent company filed for bankruptcy. When this happens employees and retirees worry -- and they should. In past bankruptcies, workers and retirees have lost their healthcare and seen their pensions cut. Based on our estimates American Airlines employees could lose a billion dollars in pension benefits if American terminates their plans. "This is true even if PBGC becomes responsible for those plans, because Congress has limited the size of the pensions we can pay. Unfortunately, when the agency assumed airline plans in the past, many people's pensions were cut, in some cases dramatically. That's why PBGC always tries first to preserve plans, even after companies enter bankruptcy. As we did with Visteon, and with some plans at Delta and Northwest Airlines, we will encourage American to fix its financial problems and still keep its pension plans."

The PBGC had these facts, which we are quoting pretty much verbatim:

* American Airlines has four traditional pension plans.
* They cover almost 130,000 participants.
*The plans collectively had about $8.3 billion in assets to cover about $18.5 billion in benefits.
* "If American Airlines were to end their plans, the agency would be responsible for paying about $17 billion in benefits; about $1 billion in benefits would be lost."
"A termination would also weaken the financial condition of PBGC, which has a record $26 billion deficit as a result of failed plans the agency has already assumed," the PBGC said.
"In cases where plans cannot be saved, PBGC steps in and pays benefits. Currently, the agency is responsible for about 1.5 million people in more than 4,300 failed plans. Each month, on average, PBGC pays about $460 million to more than 870,000 retirees and is responsible for future payments to 628,000 people who are haven't retired."
END


Previous Related Report;


S&P Lowers Debt Ratings for AMR, American Airlines

By TERRY MAXON

Standard & Poor’s Ratings Services lowered its ratings on AMR Corp. and American Airlines Inc. Thursday, citing American’s failure to work out a new contract with its pilots’ union.
S&P put the companies on its “CreditWatch” with negative implications.
“The CreditWatch placement reflects our growing concern that American will not survive"
END


As I have recently travelled with AlwaysAwful, I received this by email from them today;


Dear AAdvantage Member,

As you may know, on Tuesday, November 29, American Airlines filed for reorganization under Chapter 11. We took this action as part of our efforts to secure our long-term success in delivering the highest standards in air travel. We are committed to meeting your travel needs with outstanding customer service and safety, and it will be business as usual at American throughout our reorganization process. More than 80,000 people at American appreciate your loyalty and look forward to continuing to serve you.

We want to assure you that your AAdvantage® miles are secure. The AAdvantage miles that you've earned are yours and will stay yours, subject to usual policies, until you choose to redeem them for a great award with us. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million MilerSM program is secure and remains intact. You will continue to earn miles through all our existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards — flights, upgrades, car rentals and hotels just to name a few. And, throughout the coming year, we will be adding even more opportunities to earn miles, as well as new ways to redeem those miles.

American is honoring all tickets and reservations as usual, and making normal refunds and exchanges. And, we intend to maintain a strong presence in domestic and international markets. As we and all airlines routinely do, we will continue to evaluate our operations and service, assuring that our network is as efficient and productive as possible. Additionally, relationships with our oneworld Alliance and other codeshare partners are continuing to provide you with opportunities to earn and redeem miles for travel to hundreds of destinations worldwide, and we are honoring all tickets and reservations for travel on our partner airlines as usual. For information about American's reorganization process

Even more importantly, we remain committed to providing a superior customer experience with a focus on delivering what our customers value most — the newest fleet with our upcoming aircraft deliveries, network strength in the important cities of the world and world-class products, service and technology.

American Airlines has a proud history, and we will have a successful future. All of us on the American team thank you for your loyalty and we look forward to welcoming you aboard soon.

Sincerely,

Maya Leibman
President — AAdvantage Loyalty Program

END


They are an absolute joke! They are the worst airline I have ever travelled on and believe me I have travelled the world and flown on many.

Did you know that for years they have recycled and repaired broken parts to use in other aircraft when they need them?

That was very evident because on the recent flight I was on, 2 of the seats were broken and it was not discovered until the passengers sat on them, they were not heavy passengers either. The plane was delayed whilst we waited for a tech to repair them as the flight was full.

The plane was dirty and everything looked so old and worn. The rubbish had not been cleaned away from the previous time it was used and it was an international flight.

I recently wrote about this trip as I travelled with AA to Miami Airport and it was a nightmare. The queues were horrendous both to get in to the US and also to leave, in the terminal used by AA.

WHY? are they bankrupt, something smells here. Their flights are always full, they dont give you free food or drinks, they charge for excess baggage weight AND even if your bags are underweight, they have begun charging you for checking in any larger hand luggage, (now only 1 bag per person is allowed)

The cost for that 90 minute flight was $600 plus extras and tax.

A return flight from London to Miami which takes about 9/10 hours, by any BRITISH Airline, costs just $450, and that includes 2 meals, wine, spirits, newspapers, "Comfy Kit" which has tootbrush, toothpaste, ear plugs, blankets and soft slippers. AND they make a profit!!

So go figure, where is all the money going from AA? with them you get nothing and are packed in like sardines.

Some British Airlines fly from London to any city in Europe from $45 > $60.

Your poor Americans are being shafted, as I have been saying for a long time.

Next time we have to go to the US, we are flying with another airline through Panama, no delays or long queues, spacious comfortable aircraft, NO extra charges, and it costs HALF of what Always Awful charges.

So indeed, who is pocketing all the money AA was making. Once they have filed for Bankruptcy, they can just start all over again, with some of their debtors not being paid, hence they will probably go "under".

How crazy is that? .

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FreaknDavid

They are just another reason why things are so screwed up in America. They screwed the public, now they screw the government. You would think that they would take the extra money they get from the Chapter 11 & use it to make the planes & improve things for their costumers, but you know that won`t happen.

Thx Ladybbird.

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