AA pumps US$323m into pensions
US - American Airlines has made an additional US$100m contribution to its employees' defined benefit pension plan on top of the $223m minimum required pension funding obligations for 2006.
Gerard Arpeya, chairman and CEO of AMR Corp, which owns the airline, said the additional contribution reflected the progress made by the firm under its turnaround plan and was a prudent use of its cash resources to meet obligations. "By continuing to work together to improve our financial results, we can strengthen our defined benefit pension plans for the future," said Arpeya.
The firm has now contributed more than $1.5bn to the defined benefit pension plans since 2002.
Congress passed pension reform legislation affecting companies with defined benefit plans earlier this year, but Arpey said there was still a need to adjust the legislation's interest rate provision, "as was provided to airlines that, unlike American, chose to freeze their plans, and we remain heartened that more than 75 members of Congress have pledged to continue working on this issue," he said.
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