1114 Retiree Benefits Filing

[usa1]

http://dealbook.nyti...round-a-merger/

Scam Alert ..... He's after your money, your equity, your pension, your healthcare and anything else he can get his hands on?

Virtually everyone in the industry believes that American, the third-largest airline in the country, and US Airways, the fourth-largest, will eventually have to merge to stand a chance of competing against United (which is the biggest and has merged with Continental) and Delta (which merged with Northwest). The question is when, not if.​

“It’s not an option. It’s not an alternative. It’s inevitable,” Daniel Akins, a transportation analyst working for American’s flight attendant union, told a bankruptcy court in May. (What is less clear is whether a merger would be good for customers.)​

Yet Mr. Horton hasn’t budged, beyond nodding to the overture by saying it will be considered as part of the company’s fiduciary duty to its creditors. Instead, he has repeatedly argued that the airline’s best strategic choice is to emerge from bankruptcy independently, declaring that he plans to restore American to its previous industry-leading position despite all the evidence that its market share is fast eroding.​

But there potentially is another reason — one that would be a perverse incentive — that Mr. Horton may be shunning a deal with US Airways before emerging from bankruptcy: a giant payday.​

Mr. Horton and his management team stand to receive somewhere between $300 million and $600 million if he can make it through bankruptcy court without merging first with a rival like US Airways.​

In an odd twist of the bankruptcy process, airline management teams have typically managed to extract 5 percent to 10 percent of the company’s shares for themselves upon exiting Chapter 11, with the C.E.O. often getting 1 percent.​

 

[Kellerguy]

Seems like you're only reading what we want to read. If you read the whole article, specifically the very end it would seem like Parker is setting himself up for a huge payday too should AA exit BK first and from a superior negotiating position decide to merge.

On the other hand, if you follow the money, you can also see why Mr. Parker may want a deal. Surprise, surprise: there is a change-of-control provision in his employment contract that could kick-in if it is bought by another company and he is ultimately forced to leave. Depending on the structure of the deal, Mr. Parker could be paid more than $20 million.

 

[MCI transplant]

Nancy, it is also naive to expect a life without change.

Call me a heartless bastard, but anyone who watched the past 20 years of the airline industry and still thought there was going to be a safety net is a little like Charlie Brown and the football... after 40 years, Lucy still yanks it away, no?

There was plenty of time to plan for the storm if you bothered to watch the horizon.

That's easy to say from your position! But I've been trying to kick that football for over the last 40 years!!! And landing on your ass after all those years ain't no fun!!!!

 

[MCI transplant]

I have a question here!------ Would exTWA retirees quaify for HCTC, if AA terminates it's plan? They are already in the PBGC system through their TWA retirement!

 

[eolesen]

I'm sure with your ability to accurately predict the future that you made a killing over the last 20 years short selling airline stocks?
I didn't think so.

Never traded airline stocks, and held onto my AMR options until they were worth selling. But I did set up a 401K when I was still in my 20's, and decided that was going to be my main retirement vehicle.
Other folks (including a few here? were apparently more interested in spending that extra cash on a Harley, a couple of quads, a bass boat, and dually to pull it all with.

It didn't take much intelligence or even much effort to figure out that what happened to TWA, Braniff, and Pan Am could happen to any airline...


Bob, I'm glad WN is letting some of its workers cash out their sick bank. It's still a far cry from "a loaf of bread costs the same for everyone", since it only applies to those who didn't get sick or otherwise find a need to draw down on their sick time. Look at the newer carriers, and they don't even offer sick time --- paid time off, be it for sickness or vacation -- all comes out of the same bucket.

 

[usa1]

Seems like you're only reading what we want to read.

Yep, Parker as well. BK always seems more about them getting richer and you getting poorer .... All in the name of saving the company.... How is it that the leaders of a failing company walk away with millions and you walk way with no benefits?

 

[AA89]

Its a stretch to assume that just because workers recognize something as unethical and feel cheated by a management team that frittered away a goodwill gesture from the employees in 2003 as not being able to see the industry trend.
I too started contributing to my 401k in my 20s and investing in rental houses. No boat, no Harley, and vehicles that I keep over 10 years and 200,000+ miles.
Even though I and most of us will be fine no matter what the geniuses decide they want to do, we still have the right to call them out on this forum. We see the trend very clearly.

 

[BoeingBoy]

I have a question here!------ Would exTWA retirees quaify for HCTC, if AA terminates it's plan? They are already in the PBGC system through their TWA retirement!

It would depend of the specifics. Retired from TWA or retired after working at AMR? "In the PBGC system" = drawing a benefit currently or just have a benefit from TWA terminating the pension? Was the TWA pension terminated prior to the merger or was it merged with the AA pension? Etc.

The HCTC isn't new but I don't know if it existed when the AA/TWA merger occured. If it did, you should have gotten all that info when the TWA pension was terminated and turned over to the PBGC If that's in fact what happened.

In short, I just don't have the knowledge of that whole situation to give you a concrete answer. In my experience the HCTC people offer excellent service - just call them and ask away.

Jim

 

[nbmcg01]

The f/as are eligible for HCTC and some have used it during furloughs. With the cost of COBRA so high, it is a God-send. For the retirees sake (not only at AA) we had all better pray for a single payor insurance option. Equador, here I come.

 

[MCI transplant]

It would depend of the specifics. Retired from TWA or retired after working at AMR? "In the PBGC system" = drawing a benefit currently or just have a benefit from TWA terminating the pension? Was the TWA pension terminated prior to the merger or was it merged with the AA pension? Etc.

The HCTC isn't new but I don't know if it existed when the AA/TWA merger occured. If it did, you should have gotten all that info when the TWA pension was terminated and turned over to the PBGC If that's in fact what happened.

In short, I just don't have the knowledge of that whole situation to give you a concrete answer. In my experience the HCTC people offer excellent service - just call them and ask away.

Jim

Thanks for the reply Jim! The TWA retirement was turned over to the PBGC durring TWA's last bankrupcy just prior to the AA takeover. It's a stand alone retirement, seperate from AA's. As for any cutback, or cancelation of benifits, I believe this would just be speeding up the inevidable anyway. The retirees would lose it anyway when "Obamacare" kicks in in 2014. It would be cheaper for AA to pay the penalty for each retiree, and cut the coverage! -----We'll see if I'm wrong! ------That's "if" Obamacare is still arround!!!

 

[BoeingBoy]

As far as I know, there is no reactivity with the HCTC - you start getting it when you're approved (either monthly as a percentage of your premium or the annual tax credit and approval only comes after you've applied. So you should sign up for it if AA does eliminate retiree medical even if you get some period of COBRA coverage, assuming you're not already on Medicare. Private insurance can be pretty expensive, especially if you have any expensive medication or illnesses.

Jim

 

[john john]

or smoke