Wow!! AMR Could Record Pension-Liability Charge in Excess of $1 Billion

[chipmunn]

[P][A href=http://biz.yahoo.com/djus/021018/2004000819_1.html][FONT face=Times New Roman size=3]http://biz.yahoo.com/djus/021018/2004000819_1.html[/FONT][/A][/P]
[P][FONT face=Times New Roman size=3]AMR may go bankrupt too![/FONT][/P]

 

[grndproxwarning]

If this goes like I think it will,AMRs stock in Dust in the wind...I stand by my statement.AMR Enron And Bush
What a team

 

[exjetgurl]

[P]Chip,[/P]
[P]This isn't just AMR or the airline sector it's a big problem all over.[/P]
[P]In the last week, heavyweights like International Business Machines Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=ibm&d=t]IBM[/A] - [A href=http://biz.yahoo.com/n/i/ibm.html]News[/A]), Motorola Inc. (NYSE:[A href=http://finance.yahoo.com/q?s=mot&d=t]MOT[/A] - [A href=http://biz.yahoo.com/n/m/mot.html]News[/A]), General Motors Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=gm&d=t]GM[/A] - [A href=http://biz.yahoo.com/n/g/gm.html]News[/A]), Ford Motor Co. (NYSE:[A href=http://finance.yahoo.com/q?s=f&d=t]F[/A] - [A href=http://biz.yahoo.com/n/f/f.html]News[/A]), Ingersoll-Rand Co. Ltd. (NYSE:[A href=http://finance.yahoo.com/q?s=ir&d=t]IR[/A] - [A href=http://biz.yahoo.com/n/i/ir.html]News[/A]), Whirlpool Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=whr&d=t]WHR[/A] - [A href=http://biz.yahoo.com/n/w/whr.html]News[/A]), Continental Airlines Inc. (NYSE:[A href=http://finance.yahoo.com/q?s=cal&d=t]CAL[/A] - [A href=http://biz.yahoo.com/n/c/cal.html]News[/A]) and United Technologies Corp. (NYSE:[A href=http://finance.yahoo.com/q?s=utx&d=t]UTX[/A] - [A href=http://biz.yahoo.com/n/u/utx.html]News[/A]) all reported their pension funds, which provide guaranteed benefits to retired workers, were underfunded. [/P]
[P]Read more [/P]
[P][SPAN class=t]Pension fund shortfalls add to U.S. company woes[/SPAN][/P]
[P][SPAN class=t][A href=http://biz.yahoo.com/rf/021018/ba_financial_pension_2.html]http://biz.yahoo.com/rf/021018/ba_financial_pension_2.html[/A][/SPAN][/P]

 

[JFK Fleet Service]

[P][BR][BR][A href=http://biz.yahoo.com/djus/021017/1408000776_1.html]http://biz.yahoo.com/djus/021017/1408000776_1.html[/A][BR][BR][BR]GM would kill for a $1 Billion dollar shortfall.[BR][BR]GM disclosed Tuesday that a 10% decline in the company's portfolio valuation this year has raised the U.S. portion of its underfunded pension to around $21 billion to $23 billion from $9 billion. [/P]
[P]Are they going bankrupt too?[/P]

 

[diogenes]

Gosh, then I guess to save U, ALPA needs to pony up some pension adjustments, sorta along the lines of what fleet and customer service did in the mid 90's.

 

[Skyhungry]

Oh, now I remember why I do not pay any attention to Chipmunn.

 

[chipmunn]

Pension plans can be changed with options such as changing the distribution or changing the multiplier to maintain a defined benefit plan. Another option is to change the defined benefit plan to a defined contribution plan, although I believe this is less desirable.

The problem for all of the retirement plans is that they are underfunded and by law may require company contribution(s). But with the company experiencing a cash outflow, further pension contributions could cause the company to run out of capital to run the airline during its reorganization.

I suspect the company knows exactly what its cash balance is; however, with lease agreements in flux a clear cost picture is likely unavailable because it changes every day that a new lease agreement is obtained.

Chip

 

[diogenes]

Chip,

Please lay out, on a group-by-group basis, U's pension liability.

Let me help you with fleet and customer service.

$0.00

Wherein lies the problem?

 

[NewHampshire Black Bears]

JFK,
Did I miss something?
Did you get recalled to JFK?(therefore, hopefully, posting under your old handle) ??

NH/BB's

 

[JFK Fleet Service]

[FONT size=1]No such luck Bears, I am still going.On November 4th you'll see the change.[/FONT]