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AMR Merger with US Airways Inevitable Union Expert Tells Court

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AMR Corp.'s American Airlines has to look to a merger with US Airways Group Inc. to turn around the bankrupt airline, an expert for one of the unions fighting planned labor cuts testified in court, Bloomberg News reported yesterday. American's business plan is not viable, and a merger would create a network allowing it to compete better with larger rivals, Daniel Akins, an expert for the flight attendants union, said in court. Akins, an airline industry economist, was testifying for the flight attendants as the union fights AMR's effort to cut labor costs as part of its bankruptcy restructuring. The Fort Worth, Texas-based airline is seeking court approval to void contracts with unions representing with pilots, flight attendants and mechanics.

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