AMR Bankruptcy Risk Rises as Lack of Pilot Deal Cuts Options
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AMR Corp.’s board may need to weigh a bankruptcy filing after a second round of stepped-up talks with American Airlines pilots failed to produce an agreement on a new, cost-saving contract.
Directors should consider alternatives now rather than watch cash reserves keep dwindling without a labor accord, said Jeff Kauffman, a Sterne Agee & Leach Inc. analyst in New York who cut his rating on AMR yesterday to “neutral” from “buy.”