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[quote user="schlimm"] "A bankruptcy judge in Chicago ruled Tuesday that a federal agency can take over <A id=ORCRP017350 class=taxInlineTagLink title="United Air Lines" href="http://www.chicagotribune.com/topic/economy-business-finance/transportation-industry/air-transportation/united-air-lines-ORCRP017350.topic">United Airlines</A>' pension plans, allowing the carrier to walk away from nearly $10 billion in unfunded liabilities, the largest pension default in U.S. history. It helps United clear one of the biggest financial hurdles in its 29-month effort to exit bankruptcy protection. The airline's pension funds are short $9.8 billion, but the Pension Benefit <A id=ORCRP006963 class=taxInlineTagLink title="Guaranty Corporation" href="http://www.chicagotribune.com/topic/economy-business-finance/guaranty-corporation-ORCRP006963.topic">Guaranty Corp.</A> will pick up only $6.6 billion of that, meaning current and former employees will lose more than $3 billion in retirement benefits." [/quote] The Pension Benefit Guaranty Corporation (PBGC) is a government sponsored insurance plan designed to insure private pensions.  The participants, including United Airlines, pay premiums to cover their defined benefit pension plans. If the participating organization declares bankruptcy, the PBGC assumes responsibility for the pension.  Any participant, including a railroad, would be treated equally in case of default.  United Airlines received no more favorable treatment than any other company insured by the PBGC. Some of the folks who participate in these forums appear to think that the way to promote passenger rail in the U.S. is to neuter the airlines.  It is not going to happen anymore than American's are going to give up their cars in most instances to take a train or bus.  Air travel is the only practicable form of transport for business travelers, as well as many others, for distances greater than 250 miles.  I believe that there is a market for rapid, frequent passenger rail in high density corridors up to 250 miles, but beyond that most people who are time constrained - most of us are - will fly.
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