With the announced acquisition of Airtran by Southwest and the merger of United and Continental, many pilots are sorting through retirement issues such as the merging of seniority lists, any change in pension plans, and work conditions.
Dallas, TX (PRWEB) October 1, 2010
The passage of the Fair Treatment for Experienced Pilots Act on December 13, 2007 allowed some of the United States’ most experienced pilots to continue flying past age 60 to age 65. The “Age 60 Rule” had been in effect since 1959. Over the past two years pilots entering retirement has declined significantly from pre 2007 levels. With the announced acquisition of AirTran by Southwest and the merger of United and Continental, many pilots are sorting through retirement issues such as the merging of seniority lists, any change in pension plans, and work conditions.
Taking the "Age 60 Rule" and acquisition into consideration, 2010 and 2011 may be slow retirement years but if labor negotiations get really contentious or there is a negative change in the financial condition of an airline, pilot retirements could significantly increase. “Pilot retirements are a small percentage of what they have been historically. While some firms have taken a somewhat self-serving approach and recommended that pilots go ahead and retire, we have encouraged many pilots not to retire in order to continue getting a paycheck and to give their pension plans and 401k plans an opportunity to further recover.” says Ken Mills, Senior Vice President of Sales and Marketing at Retirement Advisors of America.
About Retirement Advisors of America:
Retirement Advisors of America, A PHH Investments Company is a Registered Investment Advisor with national headquarters in Dallas, Texas. With assets of approximately, $1.6 billion, Retirement Advisors of America is dedicated to providing outstanding retirement planning, investment and wealth management to high net worth individuals. It is the oldest investment firm specifically focused on serving the retired airline market, and has a history that dates back more than 25 years. For more information about Retirement Advisors of America please visit, http://www.retirementadv.com.
The information in this commentary is for general purposes only. Each investor has specific circumstances unique to their investment situation and as such should consult with their personal financial advisor before making any investment decisions. Investments in securities are volatile, subject to change, and any past performance in securities does not guarantee future results.