AA To Pay $1.2million For Penalties

Thu Mar 14, 2002 1:53 pm

FORT WORTH, Texas (AP) -- Federal aviation regulators are seeking penalties of nearly $1.2 million against American Airlines and American Eagle for failing to check engine oil levels and other safety violations.

Both carriers are owned by Fort Worth-based AMR Corp (NYSE:AAR - news).

The Federal Aviation Administration proposed a $1 million civil penalty against commuter airline American Eagle for failing to check the oil level on planes on 514 flights in 1998.

The FAA said the company did not conduct daily engine-oil level checks for the nine Saab 340B aircraft. From May through August of 1998, 11 takeoffs were aborted because of low oil pressure in the engines caused by low oil levels, the FAA said.

The agency also proposed a $170,000 civil penalty against American Airlines for violating maintenance procedures on fuel-indicating systems.

The FAA said a contract fueler noted problems in the fuel tank gauges on an American MD-80 in July 2000. Crews at the Raleigh-Durham, N.C., airport filled each tank to required levels, but after takeoff the gauge for the right wing dropped and the crew returned to the airport.

The FAA said the indicator for one of the tanks was incorrect and American Airlines crews had failed to perform a required check after the emergency landing. The plane flew another 88 flights before the required check was done, the FAA said.

Sonja Whitemon, a spokeswoman for American Airlines, said late Wednesday once the carrier learned about the issue, it took several immediate steps to make sure the problem did not reoccur.

"We believe that because we took immediate and full response, a fine is not warranted," Whitemon said. "We will be having a conversation with the FAA."

The airlines have 30 days to appeal the proposed penalty.

Looks like it's not a good news to AMR Corp....