September 4, 2012
A judge on Tuesday ruled that AMR, the bankrupt parent of American Airlines, could abrogate its collective bargaining agreement with its union pilots.
Judge Sean Lane issued his ruling at a hearing in US Bankruptcy Court in Manhattan, saying the company successfully corrected certain issues that had caused him to reject its earlier request.
AMR, which is seeking to save more than USD$1 billion a year in staff costs, can now unilaterally impose temporary work terms on its pilots as the sides continue to negotiate long-term deals.
