Rube taxpayers may be expected to give billions to bail out American Airlines-another 'public-private partnership'

.
2/2/12, "Will Taxpayers Be On The Hook For American Airlines' Pensions?," NPR, C. Kenney

"American Airlines filed for bankruptcy in November. The company needs $18.5 billion to cover its pension promises to current and former employees, but it has only set aside $8.3 billion.

Taxpayers could wind up on the hook for billions. Here's why.

American Airlines is asking the bankruptcy court for permission to drop its pension plans. If the court allows that, the plans will be taken over by the Pension Benefit Guaranty Corp, a government agency that takes over pension plans for failed companies.

The PBGC works like an insurance company. Firms that are backed by the PBGC pay premiums to the agency. Those premiums are supposed to pay for the agency's costs, so taxpayers don't have to pay. But in recent years the premiums haven't been enough —

• the agency's funding shortfall is currently $26 billion.

President Obama has proposed raising the premiums companies pay to PBGC, to make up the shortfall."...via Free Republic

.