AMR Tells Employees of Plan to Dump Pensions

American Airlines parent AMR Corp. is planning to cut 13,000 jobs and terminate its four employee pension plans covering its workers and retirees.

In a memo to employees, the company said it’s necessary to dump its pension obligations for 130,000 workers and retirees in order to successfully restructure its business under bankruptcy protection.

The company has yet to ask the bankruptcy court for approval to walk away from it pensions.

“Pensions have not been discussed with the unions,” said AMR spokesman Scott Sayres in an email to Bankruptcy Beat. “When they have, it will be on the site.” The company is set to speak with its unions Wednesday.

The government’s pension insurer, which would assume responsibility for American’s obligations if the carrier obtains approval from a bankruptcy judge, says the plans have assets of $8.3 billion to cover $18.5 billion in benefits.

Read AMR’s statement on its pensions here.

Read AMR Chief Executive’s Thomas Horton’s letter to employees here.