As American Airlines made its final stand Friday in U.S. bankruptcy court, the judge finished the lengthy hearing on a surprising note by telling the courtroom that the airline and its unions need to work toward a deal.

In American Airlines� closing arguments after three weeks of testimony, the company said its labor contracts must be terminated for it to survive and dismissed its unions� calls for a merger with US Airways as �smoke and mirrors.�

But U.S. Bankruptcy Court Judge Sean Lane said that though he was prepared to rule by the June 22 deadline, he would prefer not to.

�The only thing I have in front of me,� he said of the so-called Section 1113 hearing, �is whether to reject a collective bargaining agreement. You�re all still stuck with each other. You still have to negotiate new agreements.�

Even if Lane abrogated agreements with the pilots, flight attendants and transport workers, American would still have to come to agreement with its unions.

�I urge, and I cannot urge this any more strongly, that the parties resolve this where they need to resolve this � the negotiating table,� said Lane. �Regardless of what I do, you�re going to have to do it anyway.�

Mediation is scheduled to start next week with the labor groups before another judge of the bankruptcy court, and Lane would like a resolution that does not require him to make a decision. �I�ll do it even if I�m reluctant to do it,� he said.

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