http://overheadbin.nbcnews.com/_news/2012/08/07/13163750-faa-could-fine-american-airlines-162m-for-violations
I'm shocked! Shocked, I tell you. Round up the usual suspects.
I'm shocked! Shocked, I tell you. Round up the usual suspects.
The article says some of the fines have not been levied because the investigations are still ongong. The FAA simply put the court on notice that it MAY file fines that amount to more than $150M. Even if the typical "half is forgiven" procedure is used, it still amounts to more than $75M in fine - or about $25M per year in which the incidents were alleged to have occurred.I don't think this is new -- it's simply the combined total of all the fines issued over the years that AA hasn't paid yet because they're still in dispute between the FAA and AMR.
The article says some of the fines have not been levied because the investigations are still ongong. The FAA simply put the court on notice that it MAY file fines that amount to more than $150M. Even if the typical "half is forgiven" procedure is used, it still amounts to more than $75M in fine - or about $25M per year in which the incidents were alleged to have occurred.
No airline has been subject to fines that high and over so many years. NONE. These are unprecedented fines for a US airline - magnitudes higher than anything ever filed before.
And, Jim, no one for a minute believes this is due to actions by AA's frontline mechanics. The FAA is talking about multiple maintenance issues that occurred over several years and they all involve aircraft operated hundreds of times out of compliance. The article also indicates that the FAA might be desiring to file even larger than normal fines because of how testy AA was regarding some of the issues the FAA raised, including the M80 wiring issue.
Even at $75M, the cost will be comparable to $1000 for every AA and AE employee.
Yeah, they weren't really concerned about the SW airplanes with cracked crown skins until AA complained that they were being run through the ringer for wiring ties (not a safety problem) being less than 1/10 of an inch off in some places on MD80s. Maybe they have friends at Delta too. Do you really think that AA is the only airline with descrepancies? I am saying they aren't even looking at anyone else like they do us.Whether you or anyone else likes it, the FAA calls the shots about the way aviation is supposed to work in the US. I am sure your logic makes plenty of sense, but the FAA does not allow airlines to rewrite the rules or alter them based on their logic.
No, the FAA is not piling on AA because they do their work in-house. If that was the case, then DL with the next lowest percentage of maintenance outsourced should get some proportional fine.
While there needs to be better oversight of foreign repair stations, the FAA does inspect planes in the US. As long as those planes come back to the US after being serviced overseas, the FAA can and will find what is at fault - and the operating airline is responsible for ensuring they meet FAA requirements, regardless of whether repairs are done at DFW or on Mars.
I don't see anything in 11 USC § 507 that entitles FAA civil fines to priority over other unsecured claims.are you sure that FAA fines are not paid first like other government liens?
Remember also that these fines (or at least some of them) are not pre-petition because the FAA has not finished the investigations and assessed its fines.
I don't see anything in 11 USC § 507 that entitles FAA civil fines to priority over other unsecured claims.
They're all pre-petition. If the conduct out of which they arise occurred pre-petition, then they're pre-petition claims. If they weren't pre-petition, the FAA would not have perfected their claim by filing proofs of claim before the claims deadline.
Even at $75M, the cost will be comparable to $1000 for every AA and AE employee.