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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: P.T.Burnem who wrote (30849)	10/8/1998 2:19:00 PM
From: P.T.Burnem	Respond to of 94695

The stock market economy... Market slump blamed in part for increase in pilot retirements 2.00 p.m. ET (1800 GMT) October 8, 1998 FORT WORTH, Texas (AP) — The stock market slump and a benefits quirk has pilots retiring from American Airlines at a higher than normal rate, forcing the nation's second-largest carrier to cancel a few flights. Company spokesman John Hotard said today that the frequency of flights to Latin American cities will be affected by the wave of retiring pilots. He said it was a small impact. "It's getting overblown,'' Hotard said. "We have 22,000 flights daily so taking 35 out is not going to cripple this airline.'' American pilots take most of their retirement money in a lump sum from a company mutual fund, and recent payments have been as much as $3 million. The pilots' contract allows a three-month window to retire at a set share price. That means pilots who leave now can count on retirement distributions based on stock prices in July, three months ago. Since July, the value of the mutual fund has dropped by about 10 percent, putting pressure on pilots to retire now to take advantage of the July stock prices. So they've been leaving before the window closes. Hotard said about 20 of American's 9,000 pilots retire each month. In September, 63 retired and the airline expects 65 more retirements in November.