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American seeks again to cancel pilots' contract

Associated Press Published: August 17, 2012

DALLAS (AP) — American Airlines is going back to court to throw out its contract with union pilots after making changes to satisfy the bankruptcy judge.

If it wins in court, American could cut annual spending on pilots by more than $300 million and do more revenue-sharing deals with other airlines.

American parent AMR Corp. filed a motion in U.S. bankruptcy court in New York on Friday, two days after a judge denied American's first attempt to cancel the pilots' contract. The judge rejected the company's demand for unlimited power to furlough pilots and make so-called code-sharing deals.

AMR now proposes to limit possible furloughs to about 1,750 or less than one-fourth of its pilots, a ceiling set in the pilots' current contract. It seeks to greatly expand code-sharing but not on all routes. Pilots view code-sharing as potential outsourcing of their jobs.

A hearing on AMR's new proposal is scheduled for Sept. 4.

Meanwhile flight attendants are scheduled to complete voting Sunday on their last contract offer from American. If they reject the offer, American will ask the court to throw out that contract too.

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