FAA Files against American Airlines in Bankruptcy Court for Safety Violations

New York, NY- The Federal Aviation Administration sent notice to the court overseeing American Airline’s bankruptcy that they may fine the company up to $162 million for safety violations.

The FAA announced the filing Tuesday, stating they were protecting taxpayers’ interests in connection with ongoing safety investigations involving American Airlines and America Eagle, a commuter subsidiary.

The FAA did not reveal any details about the safety violations citing the cases are still under investigation.

AMR, American’s parent company said the FAA claim is just one of the 8,000 they are trying to settle through bankruptcy. American owes roughly $9.5 billion to various creditors and labor groups.

American Airlines filed for Chapter 11 reorganization last November citing exorbitant labor costs and rising fuel prices.  They were recently given a deadline extension so that they can develop a plan to satisfy creditors and emerge from bankruptcy.

If American is unable to become solvent it is possible that they will merge with US Airways Group.

American Airlines is just one of the numerous airlines, which include Delta, Northwest, and Pinnacle, that have declared bankruptcy over the past decade. While some of these airlines have ceased operations, Delta is still operating and American hopes bankruptcy will keep them from going under.

During a recession owning and operating a business can be difficult. At the height of the economic crisis personal and business bankruptcies increased. When facing an uncertain financial future, individuals and businesses often look to bankruptcy attorneys to help them pay off their creditors and emerge in a better financial state.