AMR Regional Airline Unit’s New Labor Contracts Win Approval

American Airlines parent AMR Corp. (AAMRQ) won approval for its regional airline, American Eagle, to enter into new labor contracts.

U.S. Bankruptcy Judge Sean H. Lane in New York filed orders today authorizing the AMR unit to enter agreements with unions representing pilots, flight attendants, maintenance workers, dispatchers and others.

The approval “paves the way for us to begin implementing the labor cost savings that are required for our successful restructuring,” American Eagle President and CEO Dan Garton said in a statement.

“While the past year for the Eagle team has been extraordinarily challenging, we believe what we have accomplished positions us well for a bright future,” he said.

In October, Garton said Fort Worth, Texas-based AMR was considering plans to spin off the regional carrier after emerging from bankruptcy protection. The regional carrier had 258 planes in operation as of Sept. 30, according to an AMR filing with the U.S. Securities and Exchange Commission.

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: Christie Smythe in New York at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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