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Judge Delays Ruling on American Airlines Contracts

Tulsa International Airport

DALLAS (AP) — American Airlines says a federal bankruptcy judge has delayed a ruling scheduled for Friday on whether it can break its contracts with unions and impose cost-cutting steps including layoffs.

The judge set a new deadline of June 29.

The delay gives the company and unions more time to negotiate voluntary cost-cutting agreements that the unions have so far resisted.

Copyright 2012 The Associated Press.