Delta Airlines' Lawyer Says Bankruptcy Judge Playing "Russian Roulette" With Company's Future if He Refuses to Allow Termination of Pilot Pension Plan
Delta Airlines has requested permission to terminate the traditional pension plan applicable to its retired pilots. Both the airline and its creditors have taken the position that termination of the plan is the only way to save the company and eventually move it out of bankruptcy. At least one group of retired pilots has opposed the move (though others do not) stating that the airline is exaggerating the risks of keeping the plan.
One of Delta’s consultants notes that more than 1,800 pilots are currently eligible to retire. Under a provision in the pension plan, more than 700 would be able to get lump sums of $250,000-$500,000 immediately upon retirement according to a court filing by Delta. Despite carrying a surplus through 2001, Delta's actuary has testified that the pilots' pension plan is currently under-funded by $2.5 billion.
Read the full story from the Atlanta Journal-Constitution here.