Check the following link.What is up? http://www.seacoastonline.com/news/09232004/news/39101.htm

Pan Am (the 3rd) is running heavy losses due to sky high unionised pilot wages.The owners want to shut down the airline and transfer the profitable routes to another airline they also have a large interest in.The unions, afraid to loose members (that other airline isn't controlled by them like Pan Am is) sued to prevent that shutdown from happening.They'd rather see the company go bankrupt and everyone out on the streets without severance than loosing some influence in the industry.