AMR’s American Seeks Court Approval to Void Union Contracts

AMR Corp.’s American Airlines, the third-largest U.S. airline, asked a bankruptcy judge to let it void labor contracts with union workers after failing to reach agreements on $1.25 billion in annual cost reductions.

American began negotiations shortly after outlining plans for 13,000 job cuts and other concessions on Feb. 1. The airline says it needs the savings to help stem monthly losses, along with other contract changes that it says will add $1 billion a year in revenue.