American Airlines asked a federal bankruptcy judge Tuesday to break its labor contracts and impose cost-cutting terms on workers, a move aimed to pressure unions to accept concessions.
Thomas W. Horton, the CEO of American parent AMR Corp., said the company was trying to speed the bankruptcy-reorganization process and avoid the chance that American could be sold or broken up.
AMR’s mounting losses and rising oil prices are adding pressure to act quickly, Horton said.
American plans to cut 13,000 jobs and reduce wages to help itself emerge from bankruptcy with lower costs. The company said Tuesday that there are many reasons for its financial problems but “the greatest single challenge is its labor agreements.” American’s labor costs are higher than those at rivals such as United Airlines and Delta Air Lines.
Read the rest of the article at The Washington Post
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