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Joined: Mon Apr 25, 2005 2:30 am

Good News For AA/CO: Pensions

Thu Oct 06, 2005 12:06 pm

Looks like American and Continental are happy with the new compromise on the pension bill now working its way through the U.S. Senate, that could get to a full floor vote by this week's end.

The previous bill, which was placed on a procedural "hold" by Texas Senator John Cornyn, would have given Delta and Northwest a competitive advantage by giving them 14 years to catch up on pension underfunding, but would have forced American and Continental -- both of whom have been faithfully paying into their pension plans -- to freeze their current plans in order to get the 14-year plan. American and Continental were obviously not happy with this provision, as both have made it clear that they would like to keep their employees' current plans, rather than having to freeze or dump them.