AMR Can't Justify Labor Deal Rejection, Pilots Union Says

Law360, New York (August 31, 2012, 2:45 PM EDT) -- The pilots union of bankrupt AMR Corp. asked a New York bankruptcy judge on Wednesday to deny the company's bid to reject its collective bargaining agreement, arguing that new proposed labor cost reductions were greater than necessary for a successful reorganization.

AMR's business plan and the labor concessions it finds necessary for a successful reorganization have changed significantly, and the company is now unable to justify rejecting the CBA under Section 1113 of the Bankruptcy Code, Allied Pilots Association said in a memorandum opposing the rejection...
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