From 2005 March

President Bush's pension reform alternative is bad for all airlines with defined benefit plans, airline lobbyists said yesterday, and it could drive more carriers into bankruptcy and out of the defined-benefit system.

Delta and Northwest are looking to shift to 401K plans but under current rules they have to pay off their under-funded obligations in about three years, an option which several airline execs say is too fast and too expensive.

Airlines also oppose the President's yield curve proposal and plan to use a company's credit-worthiness to determine funding or Pension Benefit Guaranty Corporation (PBGC) premium obligations. "Four years ago, most airlines were investment grade," one industry source told The DAILY, noting the volatility of credit as a litmus test.

Delta and Northwest have met with the Administration on a strategy to freeze their defined-benefit plans to give them time to pay off the under-funded portions, but sources said the White House appears to favor neither legislation that carves out industry-specific rules nor changes to its current proposal, even if it forces airlines into bankruptcy.

Administration officials didn't return calls yesterday seeking comment, though early this week Treasury Assistant Secretary Mark Warshawsky said Bush's proposal more accurately reflects employers' health and eases the risks of masking economic realities.

Read Full Article at
View Table of Contents
© 2018 McGraw-Hill Companies, Inc. (The)

Products & Services
Information Technology (IT) Staffing Services
Information technology (IT) staffing services provide temporary or permanent workers who troubleshoot and repair computers, operate help desks, and support voice and data networks.
Legal Services
Legal services consist of lawyers, law firms, and providers of services related to intellectual property (e.g., patenting, licensing, and trademarking), incorporation, contract development, law suits, and other legal matters.
Human Resources Software
Human resources software is used to help recruit applicants, hire and train employees, administer employee benefits, and manage both part-time and full-time personnel.
Navigation Lights
Navigation lights are colored illumination devices used on aircraft, watercraft, and spacecraft. They are used to alert other crafts or vessels of the signaling craft's position, status, and/or heading.
Carrying Cases and Equipment Cases
Carrying cases and equipment cases protect contents from impact, shock, vibration, rain, and dust.

Product Announcements
DNV GL - Business Assurance North America - What is ISO 9001 and Should I Care?
The ISO 9001 standard provides a universally recognized, tried and tested framework for taking a systematic approach to managing the organization's processes, so that they consistently turn out... (read more)
Victrex plc. - VICTREX™ PEEK Polymer for Demanding Water Tank
Would you like an orange juice, a chilled cola or a hot cup of coffee? For most passengers, drinks at altitudes of 33,000 feet (10,000 meters) are part of the ‘flying experience’. However,... (read more)
ASF Components - What’s Missing in Your Components Quote?
Class “c” components and Vendor Managed Inventory aren’t the sexiest things around. After all, class “c” components such as nuts, bolts, washers, and fasteners are just... (read more)
American Gas Association - AGA Furnace Rule Comments Warn of Flawed Analysis
New standard would place undue burden on low-income customers and increase emissions... (read more)
Victrex plc. - VICTREX® PEEK Carbon Fiber Composite Brackets
Assuming that the composite brackets can remove 100 kilograms (220.5 pounds) of weight, an airline with 500 short-range aircraft could save up to $5 million per year in fuel costs by making the switch... (read more)
Setra Systems - Online Ordering for Pressure Transducers
Setra Systems has announced the availability for online ordering of some of its most popular pressure, humidity, current, barometric, and vacuum sensing product families for online purchase at... (read more)
KORE Telematics - KORE: Delivering Global M2M Data Services
KORE offers the largest breadth of digital technology on a global scale - GSM, CDMA and Satellite - and the diversity of multiple Tier 1 carrier relationships. Customers manage all aspects of their... (read more)
ARM Inc. - ARM Compiler Builds on Open Source LLVM Technology
Velocity of open source Clang and LLVM combined with the stability of commercial products improve code quality, performance and power efficiency on ARM processors... (read more)
ATS Automation - Product Introduction
Your product idea is innovative and has market potential, but is it ready for manufacturing in any significant volumes?... (read more)

Topics of Interest

Three of the largest U.S. airlines -- Delta, American and Northwest -- last week kicked off a Washington lobbying campaign to reform pension rules and give them more time to pay their obligations.

House Education and Workforce Chair Rep. John Boehner (R-Ohio) said yesterday that he expects bipartisan agreement on all the major issues of a pension reform bill that will have significant...

The Senate as early as next week could push through a pension package that would give airlines from seven to 20 years to amortize their liability in an effort to preserve their employee pension plans,...

Top executives from Delta and Northwest yesterday came to Washington to push lawmakers to provide more time to fund their respective pension plans, threatening that if nothing changes, both may follow...

The Bush Administration's recent proposal to overhaul the Pension Benefit Guaranty Corp. (PBGC) and the way it is funded will do little to help U.S. airlines and its unions and may even make it more...