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U.S. judge throws out contract of American Airlines’ pilots

Sept. 5, 2012, New York, N.Y. - U.S. Bankruptcy Judge Sean H. Lane on Tuesday threw out the union contract of American Airlines' pilots as part of the company's restructuring.


September 5, 2012
By Carey Fredericks

A key part of the bankruptcy proceedings, the ruling clears the way for the Fort Worth, Texas-based airline to dramatically cut
costs and quicken its emergence from Chapter 11 bankruptcy protection.

The airline has successfully renegotiated contracts with all its other labour unions.

"Judge Lane's ruling is very important because it will allow us to implement the changes that are necessary for our successful
restructuring,'' said American Airlines spokesman Bruce Hicks.

Hicks said, however, that there was "no sense of accomplishment'' in winning the ruling and the company still wants
to negotiate a new contract.

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Union spokesman Gregg Overman said something similar.

"Our energy, and that of American Airlines, now should be focused on reaching a consensual agreement,'' he said.

Overman said pilots were encouraged that Jack Butler, a lawyer for American's unsecured creditors, said in court that parent AMR
Corp. needs a deal with pilots before it exits bankruptcy. The creditors committee could decide whether American emerges from
bankruptcy on its own or is forced into a merger with US Airways.