AMR Flight Attendants: Court Ruling Proves Value of Contract Deal

"The linchpin of their arguments against the (abrogation) motion was that AMR should inevitably base its reorganization around a merger with US Airways," Starke wrote. "In the 105-page opinion, Judge Lane rejected this line of thinking." Lane wrote that while a merger is possible, the topic is not currently before the court.

Lane also wrote that other network carriers did not, in bankruptcy, achieve the cash flow goals they had targeted, and that American has lower targets. "This makes us suspect that Judge Lane could indeed allow AMR to put in place cost saving measures that exceed its competition on several counts," Starke wrote. "He also very clearly thinks that AMR must emerge competitive not only with the other network carriers, but with the low-cost carriers as well -- something the unions disputed heavily in the hearings."

-- Written by Ted Reed in Charlotte, N.C.

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