American Airlines Wins Small Victory In Bankruptcy Court

The American Airlines bankruptcy case has been anything but quiet. As controversial moves continue to spark outcries from both consumers and employees, many are anxiously awaiting the decision of the judge presiding over the case. Last week, American Airlines had their chance to plead their case in court and this week the employees and unions took the stand.

Request Denied

U.S. Bankruptcy Judge Sean Lane denied a request from non-union employees these week, marking a small victory for American Airlines. Passenger service agents attempted to block wage and benefit cuts as they considered unionizing. These efforts were defeated and Judge Lane denied their request, allowing AMR to move forward with the $990 million savings plan that includes the outsourcing of over 1,000 jobs, closing of several reservation centers and slashing vacation time benefits.

As for unionized workers, no approval has been gained for any changes to their wages or benefit plans. For now, pilots, flight attendants and mechanics have yet to see any cuts. However, American has made it very clear to the court that union contracts must undergo steep changes if they are to emerge from the bankruptcy independent. Meanwhile, talks of a merger with US Airways continues to strengthen.