Judge terminates three US Airways pension plans

By Jeff Pines

Washington, Jan. 6 - Judge Stephen Mitchell ordered three US Airways Inc. pension plans terminated saying unless the plans are killed the airline will not be able to pay all its debts and will not be able to emerge from Chapter 11.

The order was filed with the U.S. Bankruptcy Court for the Eastern District of Virginia Thursday.

The pension plans affected are for the flight attendants, employees represented by the International Association of Machinists and Aerospace Workers and for certain employees of the airline.

Under a distress termination, the Pension Benefits Guaranty Corp. picks up responsibility for the pension plan.

In a separate order, Mitchell said the airline could reject its labor pact with the IAM. The order affects mechanical and related employees, fleet service employees and the maintenance training specialists represented by the machinists' union.

A hearing on modifying retiree benefits is scheduled for Jan. 10.

Arlington, Va.-based US Airways filed for bankruptcy on Sept. 12, 2004. Its Chapter 11 case number is 04-13819.

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