American Airlines, citing "good progress" in contract talks with its pilots union and hope for an agreement soon, said on Friday that it would make contributions to a 401(k) plan for pilots as their retirement plans are set to be frozen, Reuters reported yesterday. The AMR Corp unit, which filed for chapter 11 protection last year and is evaluating a potential merger with US Airways Group, is planning to freeze a defined-benefit plan and terminate a separate defined-contribution plan for pilots on Nov. 1. In negotiations with the Allied Pilots Association union, the carrier has proposed replacing both plans by contributing 14 percent of pay into a new 401(k) plan.
