I’ve been reading the series of filings that accompanied Friday’s AMR/American Airlines motion to do away for the lump-sum option in the defined-benefit A Plan, and finding interesting nuggets.

Here’s one from the declaration of David Ebenstein, a senior vice president at McKinsey Recovery & Transformation Services U.S., LLC, who estimated the impact of keeping the lump-sum option for retiring pilots:

“All estimates in this declaration relating to American’s business plan, American’s financial projections, and the impact of pilot retirements on American’s operations and performance are based on American’s business plan model as of September 2012 (‘Business Plan Model 4.0’ or ‘BPM 4.0’). It is assumed for the purposes of this declaration that, consistent with BPM 4.0, American expects to emerge from bankruptcy in March 2013.” (Emphasis added)

As for the actual financial impact of keeping the lump-sum option, we don’t know. That’s in the part of the document that’s blacked out – three entire pages and many lines on other pages. He did say in the non-redacted part: “I have calculated that the cancellation of flights and grounding of airplanes would cause a severe reduction in revenue and profitability relative to American’s business plan.”

Keep reading for other tidbits from other officials who filed declarations in support of killing the lump-sum option:

… [visit site to read more]

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