Bloomberg News

American Airlines Pilots Appeal Contract Rejection Ruling

August 29, 2012

The union for pilots at AMR Corp. (AAMRQ:US)’s American Airlines is appealing a U.S. bankruptcy judge’s decision that denied the company’s request to reject a labor contract with the union and impose cost reductions.

The Allied Pilots Association filed a notice of appeal today in U.S. Bankruptcy Court in Manhattan. The union didn’t give a reason for the appeal in the filing.

On Aug. 15, U.S. Bankruptcy Judge Sean Lane denied American’s request to void its contract with the pilots, finding that two elements of American’s proposal for the pilots weren’t justified.

Lane invited Fort Worth, Texas-based American to revise its proposal and come back to court for approval. The judge said American had shown that “significant changes” to the collective bargaining agreement are necessary for the company’s bankruptcy reorganization.

The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at

To contact the editor responsible for this story: Stephen Farr at

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