AMR Corp.

American Airlines' bid to end benefits for many retirees is rejected

DALLAS — A federal judge has rejected an attempt by American Airlines to quickly cut off benefits for many of its retirees.

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, AMR Corp., for the right to immediately eliminate retiree benefits for former pilots, flight attendants and other union workers.

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...

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