A federal district judge overturned a bankruptcy court decision allowing Frontier Airlines Inc. to reject a contract with unionized machinists represented by the International Brotherhood of Teamsters.
U.S. Bankruptcy Judge Robert Drain in New York ruled Oct. 31 that Denver-based Frontier could reject the contract as part of its restructuring in Chapter 11, after the company changed its proposal to make outsourcing aircraft maintenance less likely.
On Monday, U.S. District Judge P. Kevin Castel overturned that ruling, saying the discount carrier shouldn’t have made changes to its proposal to the union for new contract terms after seeking to reject the contract. He sent the case back to the bankruptcy court.
