American Airlines plans to ask a federal bankruptcy judge next week to throw out its union contracts, if it can't reach cost-cutting deals with labor unions, according to a person familiar with the situation.
The company would seek to void several collective-bargaining agreements that have been under intense negotiations since American and parent AMR Corp. filed for bankruptcy protection Nov. 29.
The company's plan was described Thursday by an official who declined to be identified because he was not authorized to comment publicly.
Unions for pilots, flight attendants and ground workers have been expecting just such a move.
James C. Little, president of the Transport Workers Union, says he expects the company to ask the judge to throw out its labor contracts within days.