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Judge bars American from dropping pilots' contract

DALLAS – A federal bankruptcy judge has temporarily blocked American Airlines from throwing out its contract with union pilots and imposing measures that would lower its labor costs.

Judge Sean Lane ruled in New York that American failed to prove that two parts of its proposal — dealing with furloughs and the outsourcing of flying to other airlines — were necessary to rebuild the company. But he said American could fix those elements of its plan and try again to throw out the contract.

That's exactly what American plans to do.

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