DALLAS — A federal judge has rejected an attempt by
The airline wants retirees who wish to keep their benefits to pay all the cost. Now the dispute could go to negotiations or a trial.
On Friday, U.S. Bankruptcy Court Judge Sean Lane in New York rejected a request made by American's former parent,
The judge granted AMR's request for a group of nonunion workers, and American was left to ponder its next move.
"American will review his ruling and consider next steps related to the retiree health and life insurance benefits," American spokesman Casey Norton said in an emailed statement. "We always remain open to productive discussions to finally resolve this matter."
Chicago lawyers for a committee representing the retirees did not immediately return phone and email requests for comment.
American pays about $10 million a month in health and life insurance benefits for retirees. The financial effect of the judge's decision wasn't immediately clear, however, because of the mixed ruling and the fact that the eventual outcome is uncertain.
AMR argued that it could change health and life insurance benefits for retirees even though the company didn't reserve the right to do so in the language of the benefit plans.