Tuesday, August 7, 2012

American Airlines Gets a $162.4 Million Debit Memo

American Airlines was fined a record penalty of $162.4 million for numerous violations of U.S. safety standards going back several years. The FAA filed documents describing a variety of violations against the carrier, and these came to light in the bankruptcy proceedings. A spokesperson for the airline said the carrier is cooperating with the FAA and seeking to reduce the penalty. The FAA said in a statement that it filed the claim to make sure that the government gets paid just like other creditors in the AMR bankruptcy case. It declined further comment, citing ongoing investigations. In some cases, the agency had not yet formally notified American of the proposed fines. www.premieretravel.com