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 Airlines’ flight attendants union doesn’t expect federal mediators to rule until early 2011 on its request to be freed from contract talks with the carrier, an action that would move it closer to a strike.
AMR Corp.’s American Airlines and its flight attendants’ union failed to agree on cost cuts, clearing the way for a judge to rule on whether the bankrupt carrier can void their contract to help reduce labor spending by $1.25 billion a year.
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