A merger of UAL Corp. and US Airways Group Inc. would create a company with a combined $6.52 billion in retirement assets, mostly all in defined contribution plans with one major overlap in managers.
Reports surfaced today that the two airlines were renewing discussions about a possible merger.
Retirement assets of UAL, parent of United Air Lines Inc., Chicago, consist of $5.4 billion in U.S. defined contribution plans and $156 million in non-U.S. defined benefit plans, according to filings with the SEC.
Retirement assets at Tempe, Ariz.-based US Airways total $960 million, according to Pensions & Investments' data. They include $438 million in defined contribution plans, according to SEC filings. Also, US Airways' retirement assets include $38 million in legacy defined benefit plans that were closed or frozen.
Both companies use Fidelity in their primary 401(k) plans. UAL also uses Vanguard, while US Airways also uses Capital Guardian and Artio.
A $2.4 billion UAL pilot defined contribution plan uses a more diverse mix of managers, including, among others, Russell Trust, PIMCO, WAMCO, Arrowstreet, and MFS.
Simha Sudarshan, UAL managing director-banking, insurance and investments, declined to comment about a potential merger of the companies and the impact of such a combination the company's retirement plans.
US Airways officials couldn't be reached for comment.