Delta Bids To Shutter Pilots’ Pensions

Law360, New York (August 7, 2006, 12:00 AM EDT) -- In an unsurprising move, Delta Air Lines has asked the bankruptcy court to terminate its pilots’ pension plans, maintaining that the massive legacy obligations it is facing could cripple the struggling airline.

Delta filed the motion late Friday in U.S. Bankruptcy Court for the Southern District of New York, revealing that the woefully underfunded plan had assets that would cover a mere 39% of its liability.

The carrier said the pilots' pension plan had $4.1 billion in liabilities but assets with actuarial value of $1.6 billion,...
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