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Allegheny Airlines Has the Last Laugh. “Thanks, Uncle Sam!”

Written by Gary North on February 13, 2013

Older Americans recall the jokes made at the expense of Allegheny Airlines in the 1960s and 1970s. Then it became U.S. Airways in 1979.

It went bankrupt in 2002.

It was able to stiff its 6,000 pilots by canceling its pension obligations in 2003. American taxpayers became responsible through ERISA.

It came out of bankruptcy in 2004.

It filed bankruptcy again in 2005.

This week, it may absorb American Airlines, which is in bankruptcy. The government will probably allow the merger.

What does this teach us? This: if you can get out of your corporate pension liabilities through bankruptcy, you can live long and prosper.

This strategy will work for municipal governments, too. Those retirees who think it won’t happen should take a flight on US Airways.

All’s well that ends well.

“If at first you don’t succeed, file, file again.”

Thanks, Uncle Sam!

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9 thoughts on “Allegheny Airlines Has the Last Laugh. “Thanks, Uncle Sam!”

  1. Must be approved???? No bad words. Only critical of the US…..this this site a true shrill for the U.S. Gov't????????

    Or what intelligence circles call White Propaganda?

  2. robert ackert says:

    It's the New normal.

  3. Yeah , I know some of those people that lost their pensions AFTER they were already retired . Catastrophic !

  4. it is bad enough that the Real American taxpayers have to pay all those overinflated government union pensions, but we get to pay all the pensions from companies that should have folded, not reorganized…….whistling past the graveyard on the way to a communist cesspool……..

  5. I remember all too well "Agony Airlines" from the 1960s & 1970s – had to fly them quite a bit and never enjoyed it. Now it looks like we taxpayers are in for more agony. Wonder whose name the combined mess will take (AA was my 2nd least favorite airline). They'll probably do like SBC did when they merged with AT&T and use the American Airlines name – it carries a lot less baggage (no pun intended).

  6. any bets on how they will pay for it? any odds on a government subsidy?

  7. Yep, good old "Agony Airlines", I remember them well; but, let me tell you, "Unglued Airlines" (employee owned, ha) isn't far behind them.

  8. By the way, does anyone remember the Eastern Airlines debacle?

  9. Have you ever thought about creating an ebook or guest authoring on other sites? I have a blog based upon on the same subjects you discuss and would really like to have you share some stories/information. I know my readers would appreciate your work. If you’re even remotely interested, feel free to send me an e mail.