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AMR Sues Retired Workers Over Health Benefits

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DALLAS (AP) – American Airlines and its parent company are suing to win the right to stop providing health care and life insurance to retirees.

AMR Corp. and American filed the lawsuit Friday as part of their bankruptcy case in federal court in New York.

The airline wants the bankruptcy judge to rule that it can end the benefits as a way to cut costs in “sound business judgment.” American says it never promised benefits to last the retirees’ entire lives, and it reserved the right to change the benefits plan.

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