There goes next quarter's 25 dollar bonuses!
AMR To Pay $2.5 Million To Settle Federal Aviation Administration Cases
NEW YORK -(Dow Jones)- AMR Corp.'s (AMR) American Airlines agreed to pay $2.5 million to settle 50 pending flight operations and maintenance cases filed by the Federal Aviation Administration.
Also, Boeing Co. (BA) paid a civil penalty of $824,800 for not maintaining its quality control system on the 737, 747, 767 and 777 airplane programs, the administration said in a press release on its Web site.
The cases filed against American include actions against American, its American Eagle regional airline unit and Reno Air, a Nevada-based airline bought by American in 1998, the press release said. The FAA said it filed the cases between 1997 and 2003.
Among the 50 violations covered in the settlement agreement are maintenance, flight operations, training, safety and record-keeping irregularities. In many cases, they included operation of aircraft when they were allegedly not in compliance with regulations, the press release said.
Under terms of the agreement, the settlement and payment don't constitute admissions of wrongdoing by American, American Eagle or Reno Air, the administration said.
As for Boeing's penalty, the FAA said investigations between October 1998 and April 2002 showed that some production processes didn't comply with Boeing's quality assurance program.
Boeing has since worked with the FAA to identify areas to improve quality assurance, the administration said. The company will audit improvements through random sampling, establish procedures for evaluating design change work, measure actions, and report results to the FAA, the press release said.
AMR To Pay $2.5 Million To Settle Federal Aviation Administration Cases
NEW YORK -(Dow Jones)- AMR Corp.'s (AMR) American Airlines agreed to pay $2.5 million to settle 50 pending flight operations and maintenance cases filed by the Federal Aviation Administration.
Also, Boeing Co. (BA) paid a civil penalty of $824,800 for not maintaining its quality control system on the 737, 747, 767 and 777 airplane programs, the administration said in a press release on its Web site.
The cases filed against American include actions against American, its American Eagle regional airline unit and Reno Air, a Nevada-based airline bought by American in 1998, the press release said. The FAA said it filed the cases between 1997 and 2003.
Among the 50 violations covered in the settlement agreement are maintenance, flight operations, training, safety and record-keeping irregularities. In many cases, they included operation of aircraft when they were allegedly not in compliance with regulations, the press release said.
Under terms of the agreement, the settlement and payment don't constitute admissions of wrongdoing by American, American Eagle or Reno Air, the administration said.
As for Boeing's penalty, the FAA said investigations between October 1998 and April 2002 showed that some production processes didn't comply with Boeing's quality assurance program.
Boeing has since worked with the FAA to identify areas to improve quality assurance, the administration said. The company will audit improvements through random sampling, establish procedures for evaluating design change work, measure actions, and report results to the FAA, the press release said.
