American Airlines, Allied Pilots Association And Pension Benefit Guaranty Corporation A Step Closer To Protecting Pilot Pensions
FORT WORTH, Texas, June 20, 2012 /PRNewswire/ -- Today, the U.S. Department of the Treasury published a Proposed Regulation that could move American closer to being able to freeze and retain the Pilot "A" Plan instead of terminating the plan.
Since March, American Airlines, the Allied Pilots Association (APA), the Pension Benefit Guaranty Corporation (PBGC) and Unsecured Creditors Committee (UCC) have been diligently working toward that goal.
"We committed to work collaboratively with the APA, PBGC and UCC to explore every option that would allow us to retain the Pilot "A" Plan. This news puts us in a position to make major progress in that effort," said Tom Horton, AMR Chairman and Chief Executive Officer.
"A top APA priority is preserving the benefits American's pilots deserve. I'm devoted to making that happen and pleased that we're moving one step closer to protecting a very important and valued benefit," said Captain Dave Bates, President – Allied Pilots Association.
The Proposed Regulation, if finalized, could allow companies to remove lump sum benefit payouts in some circumstances, making a freeze a possibility for American. As previously discussed, the lump sum benefit could drive pilot retirements that could pose significant operational risk.
Josh Gotbaum, Director – PBGC said: "It is great news that American is continuing to work to preserve its pilot pension plan. It's encouraging that American recognizes this benefit doesn't need to be sacrificed to ensure success."
There will be a 60-day comment period on the Proposed Regulation. Following that process, the U.S. Department of Treasury typically issues its Final Regulation.
About American Airlines
American Airlines, American Eagle and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,500 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning website, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 9,000 daily flights to 150 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc. AMR Corporation common stock trades under the symbol "AAMRQ" on the OTCQB marketplace, operated by OTC Markets Group.
About Allied Pilots Association
Founded in 1963, the Allied Pilots Association—the largest independent pilot union in the United States—is headquartered in Fort Worth, Texas. APA represents the 10,000 pilots of American Airlines, including 649 pilots not yet offered recall from furlough. The furloughs began shortly after the Sept. 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union's Web site address is www.alliedpilots.org. American Airlines is the nation's largest international passenger carrier and fifth-largest cargo carrier.
About Pension Benefit Guaranty Corporation
PBGC protects the pension benefits of 44 million Americans in private-sector pension plans. The agency is directly responsible for paying the benefits of more than 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars and never has. Its operations are financed by insurance premiums and with assets and recoveries from failed plans. For more information, visit PBGC.gov.
Current AMR Corp. news releases can be accessed at http://www.aa.com
SOURCE American Airlines