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Contracts For American Eagle Labor Unions Approved By Judge

All Collective Bargaining Agreements For American, American Eagle Now In Place

In bankruptcy court just before Christmas, Judge Sean Lane placed his stamp of approval on three labor contracts between American Eagle airline and its primary collective bargaining units, the last such agreements that needed approval before AMR Corp could emerge from bankruptcy.

The Dallas Morning News reports that the order applies to labor agreements with American Eagle Airlines and Executive Airlines, both owned by AMR Eagle, and ALPA, AFA-CWA, and the Transport Workers Union.

American Eagle CEO Dan Garton said in a message to employees that the ruling will allow the airline to "begin implementing the labor cost savings that are required for our successful restructuring."

It is still not known whether American will merge with US Airways, a move that the APA, which represents American's mainline pilots, has vocally supported. Talks are reportedly underway between the APA and the US Airline Pilots Association covering issues pertaining to a potential merger. American's management has said consistently that it hopes to emerge from Chapter 11 as a stand-alone airline.

The airlines and their parent company AMR Corp. entered bankruptcy in November of 2011.

FMI: www.nysb.uscourts.gov

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