NEW YORK (Reuters) - A judge on Wednesday denied a request by American Airlines parent AMR Corp to abandon collective bargaining agreements with its pilots' union, an unexpected decision and setback for bankrupt AMR in its quest to save more than $1 billion a year in labor costs.
In a written ruling in U.S. bankruptcy court in Manhattan, Judge Sean Lane, who is overseeing AMR's restructuring, turned down American's motion in part because it would give the carrier unfettered ability to furlough pilots and engage in codesharing.
AMR said it would alter its motion and resubmit the request to terminate its agreements with the Allied Pilots Association union by Friday.
"We will ask Judge Lane to consider our request expeditiously," American said in its statement.
AMR filed for bankruptcy protection in November.
The case is In re AMR Corp et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-15463.
(Reporting By Nick Brown and Karen Jacobs; Editing by Bernard Orr)
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