AMR Corp., the parent of American Airlines (AMR), has made “substantial progress” on pensions, lawyer Harvey Miller said in court today. American Airlines has no choice but to seek to reject union contracts, Miller also said in U.S. Bankruptcy Court in Manhattan. The company wants to reach a consensual deal with the unions but will seek to reject the contracts unless there is “profound change,” Miller said. AMR is seeking $1.25 billion in annual labor-cost reductions as part of its bankruptcy reorganization. Today’s hearing is intended to update the judge overseeing the case on the status of the labor negotiations. The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).