Judge Upholds Claim Against US Airways
From Reuters
A judge has upheld a $2.1-billion government claim against US Airways, rejecting the Arlington, Va.-based airline’s bid to reduce its huge liability for a pilots’ retirement plan terminated this year.
The decision by Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia does not mean that the underfunded plan will be made whole. But it could stem overall losses for the aviators. It also will narrow options for airlines and companies in other industries for reducing huge shortfalls in their employee retirement accounts.
US Airways said it would weigh its appeal options.
