The U.S. Court of Appeals for the Seventh Circuit in Chicago today upheld the bankruptcy court's approval of an agreement between United Airlines and the PBGC and rejected an appeal by the airline's flight attendants' union, confirmed Sara Nelson Dela Cruz, a spokeswoman for the United Master Executive Council of the Association of Flight Attendants-CWA, AFL-CIO, and Jeffrey Speicher, a PBGC spokesman. The PBGC took over the United Airlines' Flight Attendants' Defined Benefit Pension Plan in June as part of an agreement approved by the U.S. Bankruptcy Court in Chicago that allowed the carrier to terminate its pension plans. At the time, the PBGC estimated the plan had $1.35 billion in assets and $3.39 billion in liabilities. Mr. Speicher said PBGC officials did not yet have a comment on the matter, as the decision was just issued.
The AFA continues its case against the PBGC, filed earlier this year in the U.S. District Court in Washington. Submissions in that case are scheduled through Nov. 18, according to a press release issued today by the AFA.
United spokeswoman Jean Medina was unavailable for comment by press time.