Record Fine in the Air

Alleged maintenance non-compliance could cost American Airlines $24.2 million in fines.

Image: File

The Federal Aviation Administration wants to zap American Airlines with a $24.2 million fine for failing to follow airworthiness directives related to its handling of maintenance issues on MD-80 aircraft. The alleged maintenance violations led to thousands of flight cancellations two years ago.

If the proposed fine is levied, it will be the largest in FAA history.

The FAA says American did not follow steps required in a 2006 airworthiness directive that required operators to inspect wire bundles located in the wheel wells of MD-80s. As a result, 3,000 flights affecting 300,000 travelers were canceled.

The purpose of the inspections was to prevent the shorting of wires or issues with the hydraulic pump, which are circumstances that the FAA says could result in loss of hydraulic power or fire.

"These events happened more than two years ago, and we believe this action is unwarranted," said an American Airlines spokeswoman in a statement on Thursday. "We plan to follow the FAA’s process and will challenge any proposed civil penalty. We are confident we have a strong case, and the facts will bear this out."

The previous biggest proposed fine was $10.2 million against Southwest Airlines for alleged inspection shortcomings on certain Boeing 737s in 2006 and 2007. Southwest appealed and eventually settled the case with the FAA by agreeing to pay $7.5 million, Reuters reports.

American has 30 days to respond to the agency.

Kerri Panchuk of the Dallas Business Journal contributed to this report.