OUTRAGE: "Airlines go for broke while executives take the cash"

[Bluebear]

On May 10, following a lengthy bankruptcy hearing in a crowded Chicago courtroom, federal Judge Eugene R. Wedoff concluded that United Airlines could default on its pension plans. The airline could wash its hands of its $9.8 billion funding shortfall and walk away from the 134,000 people covered by the four plans. Payments to the retirees would plummet, in some cases by thousands of dollars per month, as their pensions became the obligation of a federal bailout agency.

United CEO Glenn Tilton's own $4.5 million retirement benefit, however, was safe and sound in an untouchable trust. Indeed, in recognition of his cunning leadership of the United, which has been operating in bankruptcy protection for more than two years, Tilton is the highest paid airline executive in the country at $1.1 million a year.

"In his time at United, which began shortly before the airline filed for Chapter 11 protection, Mr. Tilton has--wittingly or not--used bankruptcy protection as a competitive tool. And he has gained respect in the industry, however grudgingly, for doing so," the New York Times reported a few days later. "If nothing else, United has made itself an airline to be reckoned with--not in the traditional way, through strong operations, but in a completely new way, by leveraging its weaknesses."....

As for other airlines employees, the parachutes are far less golden. With the exception of its pilots, Northwest's rank-and-file employees aren't anticipating lavish pensions. Monthly pensions for mechanics and custodians are pegged to job classification and years of service. A cleaner on the job for 10 years stands to receive $510 a month; a repair technician with 30 years on the job will receive $2,550. And in either case, an employee must have been on the job for 26 years or more to receive health care.

http://www.citypages.com/databank/26/1284/article13495.asp

[SharonAnn]

1. Nearly all corporate executives and high-level managers have

"fully funded" pension plans that cannot be touched, even with the corporation's bankruptcy. They always take care of themselves. This is also true of Enron and others. Actually, I think that Ken Lay and his wife also each have annuities that pay $750,000 each per year for the rest of their lives. Untouchable annuities.

And remember, when United received billions from us after 9-11, they didn't put it into this part of their business, the common carrier business, they put it into their Executive Jet Time Share business. That way their losses still continued in their Common Carrier business, United Airlines, and the investmeents and related profits show up in their Executive Jet Time Share business. Of course, since they're separate corporations, the bankruptcy of one doesn't have any impact on the other.

Sweet, huh? And we thought we were paying United to tide things over so that they could keep their Common Carrier business going.

[Jose Diablo]

4. Maybe I am kind of naive

But wouldn't that constitute fraud, diverting money from one corporation to another during/preceding a bankruptcy pleading.

"And remember, when United received billions from us after 9-11, they didn't put it into this part of their business, the common carrier business, they put it into their Executive Jet Time Share business."

Edit: And would the Executive Jet Time Share business have as stockholders a 'special class' of United Airline stockholders. In other words, are the same set of 'special' stockholders of United also Executive Jet Time Share business stockholders thus creating a shield for a protected group within United. That sounds like a no no to me.

[blondeatlast]

2. $4.5 million--for RUNNING UAL INTO THE GROUND?!

Can someone explain this?

United CEO Glenn Tilton's own $4.5 million retirement benefit, however, was safe and sound in an untouchable trust. Indeed, in recognition of his cunning leadership of the United, which has been operating in bankruptcy protection for more than two years, Tilton is the highest paid airline executive in the country at $1.1 million a year.

Sink a major transportation provider, huge employer, and an enormous tax source, and feed at the golden trough. Ugh.

[Bluebear]

3. Ugh is right.

And if you mention the American "worker" people think you are a commie. WTF has happened to people?

[ck4829]

5. This is why I am hesitant about working these days

I had a job until recently. I don't want to work because I know my sweat along with the sweat of 1000's of other people will become cash for some person like this.