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,...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.