Zeev's Turnips Patch-No Politics (ZEEV)

[Doesnt Add Up]

US Airways to end defined benefit pensions
By Caroline Daniel in Chicago
Published: September 13 2004 20:03 / Last updated: September 13 2004 20:03
US Airways, in its first move since filing for a second bankruptcy, intends to terminate its remaining defined-benefit pension plans and will not make $110m in payments due this week.

The announcement could trigger the transfer of a further $2.1bn in pension liabilities from the carrier's machinists' and flight attendants' plans onto the federal government. US Airways would be the first major airline in this downturn to abandon all of its defined benefit plans.

In the filing the airline said: "Given US Airways's intent to freeze, terminate or modify the pension plans, it provides no benefit to the estate and would be irrational to seek payment of the pre-petition Service Obligations under the Pension Plans at existing levels."...


http://news.ft.com/cms/s/7294c52a-05b5-11d9-bff2-00000e2511c8.html