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[quote user="schlimm"] [quote user="Sam1"]Dumped their pensions onto the Pension Benefit Guaranty Corporation (PBGC) is not technically correct. Under the bankruptcy laws a litigant can transfer a qualified pension plan to the PBGC as part of its plan to exit bankruptcy. [/quote] The PBGC is a federal agency according  to its website.  What the airlines did is legal, but it did dump much of the net burden of paying the pensions they had provided to employees onto that agency, prior insurance premiums paid in notwithstanding. [/quote] I disagree with the term dump.  What the bankrupt carriers did was use a legal gate, implemented by the federal government, to relieve themselves of their pension obligations. For that exit strategy they had paid substantial premiums, just like I pay for a variety of insurance coverages.   If I am involved in an automobile accident, filing a claim to be reimbursed for my loss is not dumping.  It is simply collecting on a contract that I had with the insurance company. Numerous factors contributed to the bankruptcy of the legacy airlines. Amongst them were intransigent labor unions, especially at American Airlines, that refused to acknowledge that the airline business had changed dramatically with deregulation, and insisted that they be compensated as if nothing had changed since the days when the airlines were regulated and could pass their costs onto the flying public through government set rates.
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