NEW YORK (AP) — Lawyers for American Airlines and its labor unions argued Monday in federal bankruptcy court over the best course for the financially troubled company.
American's lawyers said the company must make painful cuts in labor costs to survive in an increasingly competitive industry. Union lawyers suggested that there is a gentler alternative — a merger with US Airways.
American's parent, AMR Corp., has lost about $12 billion since 2001 and filed for bankruptcy protection in November. The company says it is saddled with higher labor costs than competitors and must eliminate 13,000 union jobs, freeze or terminate pension plans, curb health benefits, and change work rules.
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