Washington, D.C. - U.S. Congressman Kevin Brady (R-Texas) who fought the past year for equal treatment for Continental and American airlines after a pension reform bill put them at a serious disadvantage against their competitors, welcomed passage this week of new legislation that corrects the discriminatory treatment.
“Continental and American, who played by the rules and who worked hard to keep their pension plans solvent, were treated unfairly in last year’s bill. Congress was picking winners and losers among airlines, and our Texas airline workers and the communities they serve would ultimately been the losers”, said Brady. “This new legislation levels the playing field again.”
The 2006 Pension Protection Act intended to make companies keep their promises to American workers by fully funding their pension obligations. But it ended up unfairly targeting two major airlines based in Texas – American Airlines and Continental Airlines. Continental Airlines, based in Houston, employs over 44,000 workers.
The new language – which saves the two Texas airlines hundreds of millions of dollars in cash flow each year - was included in the Iraq War funding bill passed by the House Thursday. It’s expected to be signed by the president.