United Airlines needs to go out of business

Discussion in 'Economy' started by SmarterThanYou, May 11, 2005.

  1. SmarterThanYou
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    SmarterThanYou Guest

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    I could run this company better than these bozo's have been doing and it wouldn't cost us taxpayers another several billion with a bailout. Watch the rest of these big companies do the same and cost us all even more.

    United dumps pension plans

    United Airlines gained a significant financial victory with court approval to dump its four pension plans but faces a tough challenge to win back the support of angry employees.

    While smoothing the path toward a targeted exit from Chapter 11 bankruptcy later this year, Tuesday's ruling in U.S. Bankruptcy Court inflamed United's unions, with some hinting at the possibility of strikes or other disruptive actions.

    It also prompted a renewed warning from some members of Congress that taxpayers may someday have to bail out the deficit-riddled government pension agency, which now will assume an additional $5 billion in pension obligations from United.

    "Taxpayers had better buckle up because we will be in for a bumpy ride of bailout after bailout, as more and more corporations dump their pension plan obligations on the PBGC," said U.S. Rep. Jan Schakowsky, D-Ill., referring to the Pension Benefit Guaranty Corp. that already is operating at a more than $23 billion deficit.

    The pensions cover 120,000 current and retired United workers, including 62,000 active employees.

    The agreement approved by Judge Eugene Wedoff would give the PBGC $1.5 billion in notes and convertible stock in a reorganized UAL Corp., United's holding company. The agency, which called the agreement a "matter of last resort," must still formally sign off on the termination before it takes effect.
     
  2. Mr. P
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    Mr. P Senior Member

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    Delta is next.
     
  3. 5stringJeff
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    5stringJeff Senior Member

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    Holy crap. My dad flies for Continental, and he told me there were problems with all the airlines' finances, but nothing this big!

    But I agree... if United goes under, the rest of the industry will be able to take over their routes and become more competitive again.
     
  4. Merlin1047
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    Merlin1047 Senior Member

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    Exactly. No telling how many corporations are watching this one. You can bet your butt that not only other airlines, but GM, Chrysler, Sears, K Mart and any other corp that is teetering will be taking their cue from this case.

    What I'm puzzled about is how the hell does some dipshit judge get the authority to say that we taxpayers are now obliged to fund the pension plan of a corporation which is going into bankruptcy? If this is where we're headed, then private pensions controlled by corporations need to be outlawed and replaced by individual accounts such as the 401(k) plans.
     
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  5. dilloduck
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    dilloduck Diamond Member

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    Definately !!! :rock:
     
  6. Mr. P
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    Mr. P Senior Member

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    Yep...I'll bet most people have no clue this sort of thing is happening. Then again, most people have no clue how much tax they pay every year either. So there we are, stuck with dum-masses.
     
  7. JayW
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    JayW Member

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    WTF? I was wondering the same thing.
    Talk about a bailout...
     
  8. NATO AIR
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    NATO AIR Senior Member

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    Its utter bullshit. We already bailed these bastards out when they didn't deserve it after 9/11, so now the government helps these fat cats screw their employees over and the taxpayers.
     
  9. Annie
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    Annie Diamond Member

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    At this point, most in Chicago could care less if UAL goes out of business. The real problem will be if any company facing 'financial' crisis is able to offload their pensions onto the public through taxes. Social Security is enough of a bitch. Now, let's say a pilot with 30 years is supposed to be getting $150k retirement through UAL pension. Certainly this seems outrageous, considering 9/11 and all. So the feds take over. His pension is now worth only $55k per year. He's getting screwed and so are we all!
     
  10. NATO AIR
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    NATO AIR Senior Member

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    God bless corporate welfare!
     

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