As the American Airlines bankruptcy saga continues, the federal pension agency's intimate connection with the case increased Thursday when its leader met with the airline pilots' union in a behind-closed-doors session.
The Dallas Morning News reports that PBGC director Josh Gotbaum and senior PBGC financial analyst Suzanne Kelly met with the Allied Pilots Association board of directors, filling them in on the latest in the American bankruptcy.
On Nov. 1, American's parent company, AMR Corp., was given approval to freeze the existing pilot pension plans, a compromise position as the company had initially tried to terminate its pensions and drop the responsibilities into the PBGC's hands.
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Gotbaum's vocal opposition to the carrier's early round of pension cuts has put him in the middle of the dispute; union officials refused to discuss the topic of Thursday's discussions but said that the issues were a wide-ranging look at subjects related to the bankruptcy.
The PBGC now sits as a member of the committee of American's unsecured creditors, along with existing employee unions, and will have a vote in upcoming decisions to reorganize the air carrier or to go forward with a proposal to merge with US Airways.
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