Unions React to AMR’s Petition To Void Labor Deals
AMR and American Airlines CEO Thomas Horton oversees the companies’ reorganization efforts. (Photo: AMR)
AMR and American Airlines CEO Thomas Horton oversees the companies’ reorganization efforts. (Photo: AMR)

AMR Corp. petitioned the U.S. Bankruptcy Court for the Southern District of New York last week to void its labor contracts with the Allied Pilots Association (APA), the Transport Workers Union of America (TWU) and the Association of Professional Flight Attendants (APFA), laying the groundwork for an effort to cut labor costs among unionized employees at American Airlines by $990 million a year. All told, AMR seeks $1.5 billion in annual employee-related cost savings.