United Airlines flight attendants lost a bid in court for an injunction to keep the carrier from going ahead with an agreement that would end their pension plans.
The Association of Flight Attendants, which represents 20,000 workers at United, said in a statement that it would appeal the ruling.
U.S. District Judge Ellen Huvelle denied the union's motion Wednesday in Washington, saying the labor group did not meet standards for granting the relief.
The union, in seeking the injunction, argued that the Pension Benefit Guaranty Corp., which insures U.S. retirement plans, violated federal law by agreeing with UAL Corp.'s United to end the plans.
Under the April agreement, the agency would take on $6.6 billion in pension liabilities from United's four plans and receive $1.5 billion in securities.
United wants to scrap the plans to help cut costs and exit bankruptcy protection.
The court found "no reason" to reverse a bankruptcy judge's approval for United to transfer its plans to the Pension Benefit Guaranty Corp.
A federal bankruptcy judge on Friday agreed to give United Airlines two more months to submit a reorganization plan without competition from outside investors, despite objections from some creditors.
United Airlines is facing a critical hurdle in its bid to emerge from bankruptcy, with three of its largest unions threatening strikes depending on the results of key court hearings next week.
NEW YORK_A judge on Tuesday approved a $1.38 billion (€1.07 billion) debt refinancing plan by Northwest Airlines, which is restructuring in an attempt to emerge from bankruptcy protection...