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American Airlines fined US$22.1m for false mail delivery reports

AMERICAN Airlines, based in Fort Worth, Texas, is to pay a US$22

American Airlines fined US$22.1m for false mail delivery reports

AMERICAN Airlines, based in Fort Worth, Texas, is to pay a US$22

26 August 2019 - 19:00

AMERICAN Airlines, based in Fort Worth, Texas, is to pay a US$22.1 million civil penalty to resolve allegations that it failed to accurately report the times it transferred US mail to foreign postal services in violation of the False Claims Act, according to the US Justice Department.

The US Postal Service (USPS) contracted the airline to pick up containers of mail from six locations around the country, as well as at various Defence and State department facilities overseas, and then deliver them to numerous international and domestic destinations, reported American Shipper.



Under the terms of the contracts, the carrier receives payment upon submitting electronic scans of the mail containers to USPS. These electronic scans report to USPS the actual time the mail was delivered to its destination. USPS contracts specify the penalties for mail that is delivered late or to the wrong location.



'The Office of Inspector General supports the Postal Service by aggressively investigating allegations of contractual noncompliance within the mail delivery process, including the falsification of delivery information,' said USPS Office of Inspector General's special agent Scott Pierce in a statement.



'American is pleased that a settlement agreement was reached in this civil matter concerning problems with how we reported delivery times to the US Postal Service,' the airline said in a statement provided to American Shipper.



'The allegations focused on conduct that was remedied years ago, and we have invested in new equipment and procedures to ensure that we are in full compliance with our commitments.'


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