American seeks to modify retiree benefits

Farnborough
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American Airlines has asked the court for permission to modify medical and life insurance benefits for its retirees, according to a chapter 11 bankruptcy court filing.

The airline claims that this is needed to lower costs to levels comparable with its competitors, many of whom have eliminated such benefits it says in the filing.

Liabilities totalled $1.3 billion for American retirees and $111.4 million for TWA retirees in 2010.