DALLAS (AP) — American Airlines contributed only $6.5 million of the $100 million that it was supposed to pay into employee pension plans last week.
The underpayment raised tensions between the company, which filed for bankruptcy protection in November, and federal pension-protection officials.
"This is a disturbing development, as the airline has more than $4 billion in cash," said J. Jioni Palmer, a spokesman for the Pension Benefit Guaranty Corp., which insures certain types of retirement plans. "American's actions hurt the financial health of the pension plans, and undermine the retirement security of American's workers and retirees."
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