AMR faces $162 million in FAA penalties - WSJ

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Dec 5, 2003
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The FAA has notified the BK court that it may fine AA and AE up to $162 for multiple violations for disclosed and non-yet-disclosed cases.

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The Federal Aviation Administration is seeking a record $162.4 million of proposed and potential civil penalties from American Airlines parent AMR Corp., AAMRQ 0.00%according to court documents in the company's bankruptcy case

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The FAA is seeking a total of $156.5 million from American Airlines alone for alleged maintenance problems going back to 2007. That sum includes one previously disclosed civil penalty, $24.2 million, proposed in 2010 for the company's alleged improper fixes of electrical wiring around landing gear on its MD-80 fleet in 2008. At the time, it was the largest penalty ever assessed by the FAA.

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Because the agency had to file its claims by the July 16 deadline in the AMR Chapter 11 case, a number of major probes are still under way and American hasn't received formal penalty letters about them. The largest potential penalties listed for individual enforcement cases are $39.3 million, $28.8 million and $27.6 million.

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