FAA wants bankrupt American Airlines fined US$162 million over safety

THE US Federal Aviation Administration (FAA) is seeking up to an unprecedented US$162.4 million in fines against American Airlines for safety violations going back years, reports The Associated Press.

The biggest fine is $39.3 million against American for allegedly failing to fix wiring work on its Boeing 757 aircraft in 2009. Federal specifications are designed to prevent electrical arcing and fires. The FAA said that before the jets were inspected and repaired up to standard, American used 113 of them to make 1,480 flights.

The FAA's prosecutorial interested was revealed documents filed in the course of American Airlines and its parent, AMR Corp's bankruptcy hearings in federal court.

FAA wants to prosecute over failings of the maintenance programme at American, the third-largest airline in the US, allegations that have transpired as bankrupt airline moves to fix labour and financial problems and restructure itself after losing more than US$10 billion since 2001.

The pilots' union said some of the FAA's findings raised questions about flight safety, and it accused the company's management of missteps in dealing with safety rules. American said it has been working with federal officials for several years to improve training and oversight in its maintenance operations.

The FAA is seeking $28.8 million for American allegedly failing to follow the manufacturer's recommended procedure for overhauling the main landing gear on about 30 Boeing 777 jets. FAA officials in Texas suggested a $1.9 million fine, but officials in Washington increased the amount.

The FAA proposes a $27.6 million fine over work on the engines of Boeing 767 jets. American sought and received permission from Boeing for an alternative fix, but before getting that approval it used four planes on 2,118 flights in 2008, according to court documents.

Any of those three cases would break the record - already held by American - for the largest proposed penalty against any airline. In 2010, the FAA announced it would seek a $24.2 million fine for alleged improper repairs of wiring around the landing gear of American's MD-80 aircraft. That case has not been settled.

AMR, American and the American Eagle regional airline filed for bankruptcy protection November 29. In a deal worked out with its creditors, AMR is currently talking to other airlines about possible mergers. US Airways Group Inc has pushed for just such a merger. Europe's IAG has recently expressed interest in taking a stake.