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FAA Tells Court It May Fine American Airlines Over Safety

AMR Corp.’s American Airlines may face the largest penalties ever pursued by the U.S. Federal Aviation Administration for safety violations, according to a bankruptcy court filing.

The agency’s cases, several of which have never been disclosed, may lead to as much as $162.4 million in fines against American and affiliated companies, according to documents filed by the agency with the U.S. Bankruptcy Court overseeing AMR’s reorganization.

“The documents detail both proposed and potential civil penalties in connection with ongoing enforcement cases involving both American Airlines and American Eagle,” the agency said in a statement. “Because these cases remain open, the FAA cannot discuss the details of the individual investigations.”

The agency said it had identified 36 separate instances in which Fort Worth, Texas-based American violated safety rules, including failure to perform repairs and mechanics mistakenly putting jets back into service with inoperable equipment. Sixteen of those hadn’t previously been made public.

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Source Bloomberg News.

By Alan Levin and Mary Schlangenstein August 07, 2012