US Airways Seeks End to Pilot Pension Plan
From Bloomberg News
US Airways Group Inc., which is seeking to emerge from Chapter 11 reorganization, told a federal judge it will have to liquidate unless it gets approval to terminate a pilot pension plan covering as many as 8,000 people.
The carrier has asked U.S. Bankruptcy Judge Stephen Mitchell for permission to end the plan as of March 31, saying that it couldn’t make $2 billion in pilot payments due over the next seven years.
US Airways, based in Arlington, Va., said the pension issue is preventing the company from accessing the final $200 million of a $500-million bankruptcy loan.
As a result, US Airways missed payments Thursday totaling $19.7 million on debt related to five Airbus jets.
