Administration February 11, 2005

Court Rejects Appeal from United's Flight Attendants

November 2, 2005 (PLANSPONSOR.com) - The three judge panel of the US 7th Circuit Court of Appeals said it found no reason to reverse a bankruptcy court's approval of the transfer of United AirLine's pension plan for its flight attendants to the Pension Benefit Guaranty Corporation (PBGC).
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The Association of Flight Attendants (AFA) challenged in district court the bankruptcy court’s approval of the transfer, saying United modified the terms of its collective bargaining agreement by entering into the agreement with the PBGC.   In July, the District Court affirmed the bankruptcy court’s approval (See  Judge Affirms Ruling For United’s Pension Plan Termination ).

According to the Associated Press, the appellate court, in rejecting the union’s appeal of the district court decision, said the union “will have its day in court” because it is fighting the PBGC in court in Washington, D.C.

United’s five other unions also had their pension plans turned over to the PBGC as a result of the company’s bankruptcy.   United spokeswoman Jean Medina said AFA leaders should negotiate a replacement for its members like the other unions have done, the AP reports.

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