Fri, May 26, 2006
Another Challenge For Pay Deal
The US Pension Benefit
Guaranty Corp. -- which insures defined-benefit plans when
employers can no longer meet their financial obligations --
objected Thursday to the tentative pay agreement reached between
the Air Line Pilots Association (ALPA) and Delta Air Lines last
month.
Bloomberg reports the tentative agreement would give pilots $650
million in notes or cash, in exchange for not opposing the
cancellation of their pensions.
"The agreement... appears to pose a substantial abuse of the
federal pension plan termination insurance program," the agency
said in a filing Wednesday. "It dictates the terms of a plan of
reorganization, without the protections afforded to creditors in
the confirmation process."
That plan, the agency contends, amounts to an "end run" around
bankruptcy law provisions that give creditors -- which in this
case, includes the Pension Benefit Guaranty Corp. -- time to review
third-party pay agreements contained in such deals.
If that argument sounds familiar, it should -- earlier this
week, the group representing Delta's retired pilots filed a similar
motion with the bankruptcy court. The judge is expected to hear the Delta Pilots' Pension Preservation
Organization's argument on May 31 -- the same day
Delta's current pilots are expected to wrap up voting on their new
contract.
Delta's 6,000 pilots are now voting on the tentative 3 1/2-year
agreement, that if approved would cut pilot pay and benefits by
about $280 million annually. The new contract would also provide
pilots with a $2.1-billion bankruptcy claim.
More News
Hold Procedure A predetermined maneuver which keeps aircraft within a specified airspace while awaiting further clearance from air traffic control. Also used during ground operatio>[...]
Altitude Readout An aircraft’s altitude, transmitted via the Mode C transponder feature, that is visually displayed in 100-foot increments on a radar scope having readout cap>[...]
Aero Linx: European Hang Gliding and Paragliding Union (EHPU) The general aim of the EHPU is to promote and protect hang gliding and paragliding in Europe. In order to achieve this>[...]
Also: Skydio Chief, Uncle Sam Sues, Dash 7 magniX, OR UAS Accelerator US Secretary of the Air Force Frank Kendall was given a turn around the patch in the 'X-62A Variable In-flight>[...]
"The need for innovation at speed and scale is greater than ever. The X-62A VISTA is a crucial platform in our efforts to develop, test and integrate AI, as well as to establish AI>[...]