Lawyers for American Airlines and its labor unions argued in federal bankruptcy court over the best course for the financially troubled company.

American Airlines heads to federal court Monday to convince a bankruptcy judge that to survive, it must break labor agreements that workers fought decades to win.

Unions at American Airlines plan to support a potential takeover offer by rival US Airways, according to two people familiar with the situation.

The company that makes Twinkies, Wonder bread and Ding Dongs says it's making a final offer to workers to accept cost-cutting before it asks a bankruptcy court to impose the cuts.

American Airlines is asking a bankruptcy judge to break its union contracts and impose cost-cutting terms on workers.

American Airlines plans to ask a federal bankruptcy judge next week to throw out its union contracts, if it can't reach cost-cutting deals with labor unions, according to a person familiar with the situation.

Flight attendants and ground workers marched in picket lines Tuesday to protest American's plans to kill its pension plans, reduce benefits and cut 13,000 jobs.

The company also wants union approval to drop its traditional pension plans, which cover 130,000 employees and retirees. It would replace them with 401(k)-type plans under which the company contributes to workers' retirement accounts.