Airlines with Pensions Face Funding Shortfall

Here's some quick food for thought. Many US carriers were able to shed their pension obligations in bankruptcy. But some airlines, like Continental and American, didn't go through bankruptcy and are still actually responsible for funding them. But now those pension funds are struggling as stock prices have collapsed. These airlines may be facing some pretty ugly funding requirements, assuming that the pensions were invested in the stock market.

It's shocking to know that some airlines out there actually owned up to their responsibilities, but it's just awful to think that they'll end up being punished for it. I don't believe there is any contribution tidal wave that will hit immediately, but it's something that could cause a cash drain on those airlines further down the line. Watch for more pleas to the government if this becomes a big issue.

And on a completely unrelated note . . . don't forget to vote today!