American, TWU Contracts Approved as Labor Talks Continue

AMR Corp.’s American Airlines won court approval for new labor agreements with five groups represented by the Transport Workers Union as the airline works to reach deals with pilots and flight attendants.

U.S. Bankruptcy Judge Sean Lane in Manhattan said at a court hearing today that American, which is seeking to cut labor costs as part of its restructuring, can enter into the new agreements.

The approval comes as pilots at American are set to vote on new contract terms with the airline. Flight attendants and two other TWU groups that haven’t reached agreements with the carrier are planning to resume talks.

The TWU groups that settled include more than 10,500 baggage handlers and other aircraft ground workers, dispatchers and instructors.

Lane has agreed to hold off ruling on American’s request to reject labor agreements with the pilots, flight attendants, mechanics and stock clerks, according to the company. The judge was set to rule tomorrow.

The case is In re AMR Corp. (AAMRQ), 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 dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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