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Bankruptcy Judge Urges American Unions to Negotiate Deal

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American Airlines told Bankruptcy Judge Sean Lane on Friday that its labor contracts must be terminated in order for the company to survive, the Fort Worth (Tex.) Star-Telegram reported on Saturday. Judge Lane finished the lengthy §1113 hearing, which included three weeks of testimony, on a surprising note by telling the courtroom that while he is prepared to rule by the June 22 deadline, he would prefer not to. "The only thing I have in front of me," he said, "is whether to reject a collective bargaining agreement. You're all still stuck with each other. You still have to negotiate new agreements."

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