American Scarelines

[marmar]

Thursday, February 11, 2010
Report: American Airlines may face eight-figure fine

New Mexico Business Weekly


The Federal Aviation Administration’s two-year investigation of safety problems at American Airlines could result in an eight-figure fine for the airline, which is the ninth-busiest passenger airline at Portland International Airport.

Sources told the Associated Press that the FAA could hit Dallas, Texas-based American (NYSE: AMR) with a fine similar to the record $10.2 million penalty assessed in 2008 to Southwest Airlines, the second-busiest passenger airline at Portland International Airport.

Southwest (NYSE: LUV), which was accused of making 60,000 flights on planes that had missed inspection for structure damage, ended up paying a $7.5 million penalty in a settlement with the FAA in March 2009.

An FAA spokesman told the AP that the American Airlines investigation was not finished and that it was too early to speculate on how much the airline might be fined. .........(more)

The complete piece is at: http://www.bizjournals.com/albuquerque/stories/2010/02/08/daily33.html


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American Airlines faces $10 mln FAA fine: AP

NEW YORK (MarketWatch) -- American Airlines is facing a hefty fine from the Federal Aviation Administration in connection with two-year investigation over safety violations, the Associated Press reported Wednesday. Unnamed officials said the fine will likely be around $10 million, the news service said. That's the same fine amount proposed against Southwest Airlines in March, 2008, for missed examinations of structural cracks. The FAA has been investigating American for improperly securing wiring in 290 MD-80 jets, the AP said. Share of American parent company AMR Corp. rose a fraction to $8.36 a share.


http://www.marketwatch.com/story/american-airlines-faces-10-mln-faa-fine-ap-2010-02-10

[Beavker]

1. So, if the free market was allowed to do it's thing in the airline biz

Would we have several planes going down each day and people just risking it? Or would people just quit flying the 'bad' airlines that the market would weed out (oh, so sorry to those that have died by the way)? Oh, and ticket prices for those two remanining airlines would be about $10,000 to fly from NY to LA.