=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/06/01/f= inancial1751EDT0308.DTL --------------------------------------------------------------------- Tuesday, June 1, 2004 (AP) AMR, Boeing settle FAA cases (06-01) 14:51 PDT (AP) -- NEW YORK (Dow Jones/AP) -- AMR Corp., the parent of American Airlines, agreed to pay $2.5 million to settle 50 pending flight-operations and maintenance cases filed by the Federal Aviation Administration. Also, Boeing Co. paid a civil penalty of $824,800 for not maintaining its quality control system on its 737, 747, 767 and 777 airplane programs, the FAA said Tuesday. The cases filed against Fort Worth, Texas-based AMR include actions against American, its American Eagle regional airline unit and Reno Air, a Nevada-based airline bought by American in 1998. The FAA said it filed the cases between 1997 and 2003. Among the 50 violations covered in the settlement agreement are irregularities in maintenance, flight operations, training, safety and record-keeping. In many cases, they included the operation of aircraft when they were allegedly not in compliance with regulations, the FAA said. Under terms of the agreement, the settlement and payment don't constitute admissions of wrongdoing by American, American Eagle or Reno Air, the FAA said. As for Boeing's penalty, the FAA said investigations between October 1998 and April 2002 showed some production processes didn't comply with Boeing's quality assurance program. Chicago-based Boeing has since worked with the FAA to identify areas to improve quality assurance, the FAA said. The company will audit improvements through random sampling, establish procedures for evaluating design changes and report results to the FAA. ---------------------------------------------------------------------- Copyright 2004 AP