Say Carriers Are 'Flush With Money' Following Economic Turnaround

Two pilots' unions are working to have the pensions restored for members flying for Delta and American Airlines, saying the carriers are now "flush with cash".

Bloomberg reports that the three major carriers in the U.S. have reported combined adjusted profits of about $47 billion over the past five years. And that has the unions looking at how to have the pensions restored for pilots who had them taken away during the wave of airline bankruptcies and mergers.

But getting those pensions restored will not be easy, as they would represent a major expense for the airlines.

Dan Carrey, president of the Allied Pilots Association, which represents American Airlines pilots, said that many pilots reaching retirement age do not have sufficient pension security. "This is an immediate problem," he told Bloomberg.

Meanwhile, a recent memo from the Atlanta chapter of Delta's pilot union discusses a "defined benefit plan" for its members. The FedEx pilots union is reportedly considering a variable plan that would rise and fall according to the performance of the pension fund's investments.

The FAA passed a rule in 2009 that raised the mandatory retirement age for airline pilots from 60 to 65, meaning they cannot simply continue to work until they are financially ready to retire.

(Image from file)

FMI: Original report