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American Airlines to pay $22.1 million U.S. fine over mail delivery times

Christian Fernsby |
The Justice Department announced that American Airlines Inc. has agreed to pay approximately $22.1 million to resolve its alleged liability under the False Claims Act for falsely reporting the times it transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).

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Topics: AMERICAN AIRLINES   

American Airlines is an international airline headquartered in Fort Worth, Texas.

USPS contracted with American Airlines to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations.

To obtain payment under the contracts, American Airlines was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the specified destinations.

The contracts specified penalties for mail that was delivered late or to the wrong location.

This settlement resolves allegations that scans submitted by American Airlines falsely reported the time it transferred possession of the mail.


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