AMR Corp., the parent company of American Airlines, received court approval yesterday on the agreement it reached in its ongoing labor dispute with pilots. The agreement will open the door for AMR, which is currently in bankruptcy, to take measures to cut costs.
The U.S. Bankruptcy Court in Manhattan also gave AMR approval to stop making lump sum payments of benefits to pilots when they retire. Two small groups including TWA pilots opposed the bargaining agreement. American bought part of TWA in 2001, and the pilots believed the new bargaining agreement means they will lose some of the benefits negotiated during that deal.