Coverage of the merger between American Airlines and US Airways

US Says American Airlines Underpaid on Pensions

AA pays only $6.5 million of the $100 million due

View Comments ()



    Getty Images
    Carrier still owes more than $90 million in pension payments.

    Federal officials say that American Airlines contributed only $6.5 million of the $100 million it was supposed to pay into employee pension plans this week.

    The Pension Benefit Guaranty Corp. called the underpayment "a disturbing development."

    "The company has determined this is the appropriate course of action for the quarterly contribution amount due by Jan. 15, 2012. This action allows the company to preserve cash," said Sean Collins, with American Airlines.

    American and its parent company filed for bankruptcy protection in November.

    The director of the pension-insurance agency has warned American not to terminate its pension plans.

    American Airlines Merger:
    Complete coverage of the merger between American Airlines and US Airways into the newly-formed Fort Worth-based company, American Airlines Group (AAL). Click here for more.