
On January 25, 1930, American Airways was incorporated as a single company, with routes from Boston, New York and Chicago, Illinois to Dallas, and a transcontinental route from Dallas to Los Angeles. American Airlines (AA) is the largest airline in the world in terms of total passengers transported and fleet size citation needed, and the second-largest airline in the world Air France-KLM in terms of total operating revenues.
As of October 2006, American serves 157 cities with a fleet of 672 aircraft. American carries more passengers between the US and Latin America (12.1 million in 2004) than any other airline, and is also strong in the transcontinental market.
PBGC took over the plan on October 26, 2005 and continued uninterrupted payment of benefits to retirees. The plan covers more than 14,000 workers and retirees and is underfunded by $2.8 billion. PBGC uses its assets to make up the shortfall and guarantees to pay benefits as promised by the plan up to the maximum allowed by law.

For the American Airlines Pilot Retirement Benefit Program Fixed Income Plan, we included the following factors:
A |
% Change - Is your plan growing or shrinking? |
B |
% Active - How many members in your pension plan are active contributors? |
C |
Assets divided by Liability - Perhaps the single best indicator of your plan's health. |
D |
Has your plan been given a funding waiver? Could be a Warning Sign. |
E |
How much of the value of your plan is coming in via contributions? |
F |
Expenses to Income ratio helps show how efficiently your plan is being managed. |
G |
The presence of related party transactions has been a warning sign in the past. |
H |
Potential red flag - minimum funding waiver used in the past |
I |
Potential red flag - Was the minimum fund contribution made? |
J |
Potential red flag - Has there been a change in the actuarial cost method? |

Data comes from the most recent American Airlines Pilot Retirement Benefit Program Fixed Income Plan Form 5500 (Year: 2005) found at www.freeERISA.com. If you have questions or concerns, the best person to ask is your Plan Administrator or your financial advisor.
# of Participants |
A |
B |
Beg.of Yr. |
End of Yr. |
% Change |
% Actives |
12,706 |
11,914 |
-6.23% |
88.3% |
Actuarial Value of Assets |
Current Liability |
C |
D |
Assets/ Liability |
Funding Waiver? |
Yes |
No |
|
$ 2.2 B |
84% |
|
X |
Total Contribution |
E |
Total Income |
Total Expenses |
F |
Contribution to Value % |
Expense to Income Ratio |
$ 117 M |
6.2% |
$ 312.9 M |
$ 340.6 M |
108.8% |
G |
H |
Related Party Trx? |
Min. Funding Waiver? |
Yes |
No |
Yes |
No |
| |
X |
|
|
I |
J |
> Min.Contribution? |
Change in Cost Method? |
Yes |
No |
Yes |
No |
X |
|
|
X |
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