NEW YORK (Reuters) - The parent of American Airlines Inc was preparing to void union contracts through the bankruptcy process within one week unless there was a “profound change” in the unions’ labor proposals, a lawyer for the company said on Thursday.
Harvey Miller, who represents AMR Corp AAMRQ.PK, told a federal bankruptcy judge at a hearing in New York that there appeared to be no basis to expect “real forward movement” obtaining union concessions, and avoid the rejection of collective bargaining agreements. Talks were ongoing, he added.
AMR has been trying to cut labor costs, including thousands of jobs. The third-largest U.S. airline filed for Chapter 11 protection from creditors in November.
Reporting By Nick Brown; Additional reporting by Jonathan Stempel; Editing by Maureen Bavdek