Chapter 11 and pension laws: can the loopholes be fixed?

摘要

Recent developments at United, US Airways and Delta have highlighted some potentially serious deficiencies in US pension and Chapter 11 bankruptcy laws. If the loopholes are not fixed, the consequences could be dire for airline workers and taxpayers - and the US legacy carriers' post-September 11 restructuring process could end up in total disarray. Little surprise, therefore, that Chapter 11 and pension issues are again at the top of Congress' agenda and hotly debated at industry gatherings (for a detailed analysis of the background to the pension crisis, see Aviation Strategy, December 2003). In early October, a Senate commerce committee held a hearing on the effect of pension policy and bankruptcy law on the airline industry, as a result of which there are likely to be new legislative proposals. But can anything be done quickly enough to avert a crisis?