American Airlines is going back to court to throw out its contract with union pilots after making changes to satisfy the bankruptcy judge, the Associated Press reported on Friday. If it wins in court, American could cut annual spending on pilots by more than $300 million and do more revenue-sharing deals with other airlines. American parent AMR Corp. filed a motion in U.S. bankruptcy court in New York on Friday, two days after a judge denied American's first attempt to cancel the pilots' contract. The judge rejected the company's demand for unlimited power to furlough pilots and make so-called code-sharing deals. AMR now proposes to limit possible furloughs to about 1,750 or less than one-fourth of its pilots, a ceiling set in the pilots' current contract. The company also seeks to greatly expand code-sharing but not on all routes.
