$2.9 million fine proposed against American Eagle

By Chavon Sutton, staff reporter


NEW YORK (CNNMoney.com) -- The Federal Aviation Administration proposed Wednesday that American Eagle Airlines, a division of AMR (AMR, Fortune 500), be given a $2.9 million civil penalty for alleged maintenance violations.

The FAA said the company operated 1,178 flights between February and May 2008 that had not undergone proper inspection of landing gear doors.

The FAA said that American Eagle found damage on four aircraft, but went against maintenance protocol by failing to remove the doors for repair. Instead, American Eagle fixed the doors while they were still attached to the planes.

According to the FAA, inspectors found that the airline operated at least 961 flights while unaware of the problem and continued to operate the faulty planes on 217 additional flights after the damage was discovered.

Andrea Huguely, an American Eagle spokeswoman, said the company conducted inspections as called for by FAA procedures and told the agency that repairs on certain aircraft were made while landing gear doors were still attached to the aircraft. She added that the FAA and aircraft manufacturer approved the repair process.

American Eagle is "disappointed" with the FAA's action, Huguely said. "We do not believe that this case involved a safety of flight issue."

The proposed civil penalty is just the first step in the process, as companies are given 30 days to respond to the allegations.

"Sometimes they get negotiated down, but it's on a case-by-case basis," said Lynn Lunsford, a spokesperson for the FAA.

This marks the second civil penalty proposed against the company this month. On Feb. 1, the FAA proposed a nearly $2.5 million penalty against American Eagle for operating flights with improper baggage weight calculations.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,126.12 -36.87 -0.20%
Nasdaq 5,097.98 -8.61 -0.17%
S&P 500 2,120.79 -2.69 -0.13%
Treasuries 2.13 -0.01 -0.23%
Data as of 6:46pm ET
Company Price Change % Change
Broadcom Corp 56.25 -0.91 -1.58%
Bank of America Corp... 16.67 -0.07 -0.42%
Apple Inc 131.78 -0.26 -0.20%
Intel Corp 34.01 0.30 0.89%
Boston Scientific Co... 18.27 0.28 1.56%
Data as of 4:04pm ET
Sponsors

Sections

A federal judge must decide between two starkly different portrayals of 31-year-old Ross Ulbricht, who is facing sentencing for his role in founding Silk Road. More

Karlos Dansby, a linebacker with the Cleveland Browns, is bringing his winning strategy from the football field into the startup arena. More