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BY STEVEN SPARKMAN

 
“The FAA is proposing a $24.2 million dollar fine for American Airlines, stemming from alleged maintenance lapses in 2008 that caused thousands of cancellations.” (SmarTrend)

It’s the largest fine in airline history: More than $24 million. That’s twice as large as the previous record fine against an airline. 

We’re analyzing coverage from SmarTrend, CBS MoneyWatch, The Wall Street Journal, the Dallas Morning News, the Consumerist and the Dallas Business Journal.

First, CBS Moneywatch has more on the allegations against American Airlines, which the FAA says, are serious.

“FAA officials say electrical wiring problems could have led to fires and fuel tank explosions, however American maintains that passenger safety was never jeopardized.”


American Airlines disputes the allegations, and says it will fight the fine.  The Wall Street Journal has part of that statement...

“... we believe this action is unwarranted. ... We assure our customers there was never a safety of flight issue surrounding these circumstances more than two years ago."

Dallas Morning News blogger Terry Maxon says, it might sound impressive, but this fine is actually a sweet deal for American Airlines.  The fine could have been much larger than $25,000 per violation.

“The FAA is accusing American of operating 286 airplanes on 14,278 flights in which the aircraft ‘did not meet the requirements of an airworthiness directive.’ There was a second violation that alleges American operating those flights ‘when the aircraft were not in an airworthy condition.’  So that would be $713.9 million.”

David Morran from The Consumerist says American Airlines might be able to reduce the fine by a few million, but it would still be the largest in history. 

“The highest fine ever collected by the FAA was against Southwest Airlines in 2008. The airline ended up haggling down their original $10.2 million penalty to $7.5 million.”

That might not be the ultimate goal.  David Norton, an airline lawyer from Dallas, tells the Dallas Business Journal the fine could be a warning to the airline industry.

“The Federal Aviation Administration may be trying to send a message that airlines have to follow the regulatory agency's maintenance requirements in a timely manner.”

So what do you think?  Will this fine cause airlines to follow regulations more closely?

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