Wed, Aug 08, 2012
Figure Revealed In Bankruptcy Filings
The FAA may be looking at a record fine against American Airlines, according to documents filed in AMR Corp's bankruptcy proceedings. If it does so, it would be the largest fine levied against a carrier.
USA Today relays a report appearing in the Wall Street Journal which indicates that the potential fine is tied to previously unreported probes into alleged maintenance and safety violations by the main carrier and its affiliates. The FAA is apparently concerned about American's overall maintenance system and its management.
Bloomberg News reports that the FAA e-mailed a statement in which it said its goal was to be sure the government was paid along with the other creditors in the bankruptcy proceedings.
The Wall Street Journal article indicates that the fines include $156.5 million for maintenance issues dating back to 2007, and $24.2 million stemming from a 2008 problem with wiring around the airline's MD-80 fleet which the agency says were improperly repaired.
A spokesperson for American Airlines said the company would not comment other than to acknowledge the claims filed by the FAA. No official penalty has been announced. After such an announcement is made, the airline typically has 30 days to formally respond, and negotiations over the actual amount paid can take years.
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