Judge throws out pilots' contract with American Airlines - 13 WTHR Indianapolis

Judge throws out pilots' contract with American Airlines

Posted: Updated:
NEW YORK -

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.

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 labor unions.

Company spokesman Bruce Hicks says the judge's ruling "is very important because it will allow us to implement the changes that are necessary for our successful restructuring."

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

 

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