Dec 19 The parent company of American Airlines
received court approval on Wednesday for a new collective
bargaining agreement with its pilots that will allow the
bankrupt company to cut costs as it tries to emerge from
AMR Corp also received approval from the U.S.
Bankruptcy Court in Manhattan to eliminate lump-sum payments of
benefits upon retirement for pilots, which the airline said
could trigger a run on the plan soon after the bankruptcy.
The new collective bargaining agreement was opposed by two
small groups of pilots, including former TWA pilots who believed
they were losing protections they had negotiated when American
Airlines bought part of their former airline out of bankruptcy.
"Bankruptcy brings with it many hardships. The sacrifices of
the pilots here along with the sacrifices of the other employees
are one of those hardships," said Judge Sean Lane on Wednesday
as he approved AMR's requests.
AMR is pushing to emerge from bankruptcy as a standalone
company, but its pilots' union favors a merger with US Airways
AMR filed for bankruptcy in November 2011 to cut the highest
labor costs in the industry.
The case is In Re: AMR Corp, U.S. Bankruptcy Court for the
Southern District of New York, No. 11-15463