FAA says it may fine AMR Corp. up to $162 million

Posted Wednesday, Aug. 08, 2012 0 comments  Print Reprints
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The Federal Aviation Administration has notified the Bankruptcy Court that it may fine AMR Corp. up to $162 million as part of several ongoing maintenance and safety-related investigations.

The claims, filed last month, detail proposed and possible civil penalties that the FAA may assess on the Fort Worth-based company.

The agency said it filed the claims against American Airlines, American Eagle and Executive Airlines to protect the interests of taxpayers.

"Because these cases remain open, the FAA cannot discuss the details of the individual investigations," the FAA said in a statement.

The safety investigations and possible fines, which had not been made public until The Wall Street Journal reported on the court filings, come as American's pilots, mechanics and store clerks are scheduled to announce the results of rank-and-file votes on concessionary contracts today.

The labor agreements are crucial to American's restructuring plan.

Spokesman Bruce Hicks said American was aware of the claims but pointed out that the dollar amounts listed in the filing do not reflect money currently owed to the FAA.

In one document, the FAA said its claim against American Airlines is for $156.5 million.

Part of that relates to American's MD-80 fleet, which the FAA grounded in 2008 after finding improper wiring around the landing gear.

About 3,000 flights were canceled during one week in April 2008.

The FAA proposed a $24.2 million fine in 2010, but a final settlement has not been reached.

The Associated Press reported that the largest single proposed fine spelled out in the documents is $39.3 million against American for allegedly failing to fix wiring work on its Boeing 757 aircraft in 2009.

Federal specifications are designed to prevent electrical arcing and fires.

The FAA said that before the jets were inspected and brought up to standards, American used 113 of them to make 1,480 passenger flights.

The FAA is seeking $28.8 million over allegations that American failed to follow the manufacturer's recommended procedure for overhauling the main landing gear on about 30 Boeing 777s, the AP said.

FAA officials in Texas suggested a $1.9 million fine, but officials in Washington increased the amount.

The FAA also suggests a $27.6 million fine over work on the engines of Boeing 767s.

"None of these claims are final settlements," Hicks said.

"Of this bankruptcy claim of $156 million, $125 million has never been proposed as a civil penalty by the FAA."

He added that the carrier has worked with the FAA to improve its maintenance and safety programs and continues to discuss the investigations with the FAA.

"Safety is fundamental to the success of American Airlines, and at no time did American operate an aircraft that was unsafe for flight," Hicks said.

Another filing by the FAA claimed $5.278 million against American Eagle.

In February 2010, the agency had proposed a $2.475 million fine against Eagle for conducting 154 passenger flights in 2008 where the baggage weight listed on the cargo load sheets was not the same as the data on the company's electronic weight-and-balance system.

This report includes material from The Associated Press.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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