Soaring Labor Costs Clip American’s Wings

Law360, New York (November 29, 2011, 9:55 AM EST) -- After allowing its labor costs to balloon over the past decade while its competitors streamlined in Chapter 11, American Airlines Inc. now faces the thankless task of tearing down those expensive employment agreements in hopes of emerging a more competitive carrier, attorneys say.

Before filing Chapter 11 along with parent company AMR Corp. on Tuesday, American Airlines had put off restructuring by negotiating with labor unions and winning enough concessions to remain afloat, according to attorneys.

But the airline's competitors — US Airways, United Airlines, Delta...
To view the full article, register now.