Bankruptcy judge Sean H Lane has thrown out the Allied Pilots Association’s contract for American Airlines pilots, dismissing its claim that because American is operating well financially than when it entered bankruptcy protection, the court did not need to void the contract.
"Judge Lane's ruling is very important because it will allow us to implement the changes that are necessary for our successful restructuring," American Airlines spokesman Bruce Hicks said.
American now needs to decide whether to let the pilots work under the terms of the last offer or impose harsher conditions first suggested to the bankruptcy court in April.
Hicks said the airline will impose most of the more-severe contract terms established in April.
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