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May 29, 2017

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Bankruptcy judge gives approval for three American Air labor agreements

DALLAS--American Airlines will reduce retirement benefits and ease restrictions on outsourcing of flying to other airlines as it attempts a turnaround under bankruptcy protection. American announced the changes Wednesday night.

Earlier in the day, a federal bankruptcy judge approved labor contracts that were ratified by flight attendants and mechanics. The judge gave American permission last week to throw out the pilots' old contract and impose its own working terms after pilots rejected a company offer. American hopes to cut annual labor spending by about US$1 billion with the changes.

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