Judge says American can't end retiree benefits yet

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Associated Press

Posted on April 19, 2014 at 2:02 AM

Updated Saturday, Apr 19 at 2:02 AM

DALLAS (AP) — A federal judge is telling American Airlines that it can't yet act alone to cut off benefits for many retirees.

American 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, bankruptcy court Judge Sean Lane in New York rejected a request made by former parent AMR Corp. for summary judgment allowing it to immediately eliminate benefits for retired pilots, flight attendants and other union workers. He granted AMR's request for a group of nonunion workers.

American says it will review the ruling before deciding its next move, which could include negotiations with a committee representing the retirees.

AMR spent two years in bankruptcy protection until merging with US Airways last December.

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