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FAA hits American Airlines with biggest fine ever

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Ky.BrownBourbn

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FAA hits American Airlines with biggest fine ever

By Aaron Smith, CNNMoney.com staff writerAugust 26, 2010: 3:22 PM ET


NEW YORK (CNNMoney.com) -- Federal aviation regulators slapped American Airlines on Thursday with the largest fine in history, charging that the carrier made thousands of unsafe flights.
The Federal Aviation Administration said it has "proposed" a $24.2 million civil penalty for American Airlines' failure to properly inspect wire bundles in the wheel wells of its MD-80 aircraft. The incident snarled thousands of flights in 2008.


The airline, owned by AMR Corp., (AMR, Fortune 500) did not follow the guidelines in the so-called 2006 Airworthiness Directive, which was intended to prevent wires from shorting, which could cause a loss of power and possibly a fire,the FAA said.
The airline's stock price is down 1.7%.
The FAA inspections resulted in the grounding of about 1,000 American Airlines flights in early April, 2008, after the FAA found that the airline did not properly inspect two of its airplanes.
As part of that inspection, the FAA determined that the airline operated 286 of its MD-80s on a total of 14,278 flights "while the aircraft were not in compliance with federal regulations."
FAA spokesman Lynn Lunsford said the fine is considered a proposal as a legal formality, because the airline has 30 days to respond and has the option of negotiating a smaller fine.
"There was never a flight safety issue," American Airlines spokesman Tim Smith told CNNMoney.com in an email.
"These events happened more than two years ago and we believe this action is unwarranted," he said. "We will challenge any proposed civil penalty. We are confident we have a strong case and the facts will bear this out."

Southwest CEO still cautious
Lunsford said that Southwest Airlines (LUV, Fortune 500) had previously been the recipient of the biggest FAA fine -- of $10.2 million -- which it was able to negotiate down to $7.5 million.
 
So, if Southwest was able to knock off around 25% from the fine, then AMR should expect to pay around 18 mill? That's not so bad.............
 
$1 of fine should roll heads in management as it does on the line. Cost like these display total and complete apathy towards safety waiting for crashes until fixes occur.

The AMR spokesman says it was two years ago and should not matter. How much management bonuses have been paid during the last two years?

Heads should roll at AMR and SWA or any other carrier caught abusing the public trust.
 
This sounds like FAA entrepreneurism. Follow the money. Afterall we in the private sector apparently exist to fund the public sector. Nice job managing America's decline.

What would you have them do??? Let them off scott free because the are an almighty Corporation.....Please!

As far as Obamacare, it will do more good then bad to this country. Any skilled and learned Medical/CPA knows Doctors like to - "taxi slow". In other words they over prescribe test etc. this makes us all fell good with the added attention and we also think wow what great medical care. The only problem is that much of it is a waste, just so they can bring in additional income. My 93 year old grandma had a Pap smear performed unbeknown to the family. Not necessary. When we try to put a stop to this; the right wing crazys say we are trying to ration health care.

And let us not forget their claim on "Death panels". Over 40 percent of all Medicare money is spent in the last 30 days of someones life. This prolongs their suffering and makes dying that much harder. They should be educated on their choices if their health goes south. Its called a living will and has been around for over a century.

Like it or not Obama is a straight shooter and is trying to fix some very complex problems that will take years to fix. The sarah palins of the world know how to tell you what you want to hear and use fear to get you to vote for them. Don't fall for their trap.
 
What would you have them do??? Let them off scott free because the are an almighty Corporation.....Please!

As far as Obamacare, it will do more good then bad to this country. Any skilled and learned Medical/CPA knows Doctors like to - "taxi slow". In other words they over prescribe test etc. this makes us all fell good with the added attention and we also think wow what great medical care. The only problem is that much of it is a waste, just so they can bring in additional income. My 93 year old grandma had a Pap smear performed unbeknown to the family. Not necessary. When we try to put a stop to this; the right wing crazys say we are trying to ration health care.

And let us not forget their claim on "Death panels". Over 40 percent of all Medicare money is spent in the last 30 days of someones life. This prolongs their suffering and makes dying that much harder. They should be educated on their choices if their health goes south. Its called a living will and has been around for over a century.

Like it or not Obama is a straight shooter and is trying to fix some very complex problems that will take years to fix. The sarah palins of the world know how to tell you what you want to hear and use fear to get you to vote for them. Don't fall for their trap.

OMG, I never laughed so much. You are very clever to post something so hilariously written
 
What would you have them do??? Let them off scott free because the are an almighty Corporation.....Please!

As far as Obamacare, it will do more good then bad to this country. Any skilled and learned Medical/CPA knows Doctors like to - "taxi slow". In other words they over prescribe test etc. this makes us all fell good with the added attention and we also think wow what great medical care. The only problem is that much of it is a waste, just so they can bring in additional income. My 93 year old grandma had a Pap smear performed unbeknown to the family. Not necessary. When we try to put a stop to this; the right wing crazys say we are trying to ration health care.

And let us not forget their claim on "Death panels". Over 40 percent of all Medicare money is spent in the last 30 days of someones life. This prolongs their suffering and makes dying that much harder. They should be educated on their choices if their health goes south. Its called a living will and has been around for over a century.

Like it or not Obama is a straight shooter and is trying to fix some very complex problems that will take years to fix. The sarah palins of the world know how to tell you what you want to hear and use fear to get you to vote for them. Don't fall for their trap.

Good post. I agree completely
 

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