Reuters: Bankruptcy News: UPDATE 1-AMR says still aims for negotiated labor deals

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UPDATE 1-AMR says still aims for negotiated labor deals Mar 30th 2012, 20:27 Fri Mar 30, 2012 4:27pm EDT March 30 (Reuters) - AMR Corp, the bankrupt parent of American Airlines, on Friday said it remains in talks with its labor unions and prefers negotiated deals even after asking its bankruptcy court for permission to void the workers' contracts. The company also has offered to outsource fewer jobs represented by the Transport Workers Union, AMR said in an update on labor negotiations. It did not give a figure. "American is ready to continue talks with all its unions to bring these important negotiations to a successful conclusion," the company said. American Airlines on Tuesday sought court approval to throw out labor contracts, a move that pressures pilots, flight attendants and other unionized workers to quickly agree to concessions. The company filed for Chapter 11 on Nov. 29, citing a need to cut its labor costs to better compete with profitable rivals. American has said it wants to slash overall costs by $2 billion annually. More than half of the savings would come from labor, including a plan to shed 13,000 jobs. About 9,000 of those workers are members of the TWU, which represents seven work groups. The union reaffirmed on Friday that it was committed to reaching deals with the airline. American has about 74,000 full- and part-time employees and its regional carrier American Eagle has about 14,000 full- and part-time employees. Also on Friday, AMR reported a net loss of $619 million for February, including $375 million related to its reorganization. AMR said its operating revenue amounted to $1.8 billion for the month and it spent $682 million on fuel. The company said it spent $584 million on wages, salaries and benefits. The company ended the month with $4.6 billion in cash and short-term investments. Link this Share this Digg this Email Reprints

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