American Airlines to pay US$22.1 million US fine over mail delivery times: Justice Department

WASHINGTON: American Airlines Group Inc , the largest U.S. airline, will pay US$22.1 million to settle claims it falsely reported the times it transferred possession of U.S. mail to foreign postal administrations or other intended recipients, the U.S. Justice Department said on Tuesday.

The United States Postal Service contracted with American to take possession of receptacles of U.S. mail at six locations and then deliver it to numerous international and domestic destinations. The settlement resolves claims American Airlines falsely reported the times it transferred possession of the mail. American did not immediately comment Tuesday.

American said in a securities filing the Justice Department in April 2015 notified the airline it was investigating American’s 2009 and 2011 contracts with the U.S. Postal Service for the international transportation of mail by air.The contract required American to take possession of mail at U.S. locations 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," the Justice Department said.

"The U.S. Postal Service contracts with commercial airlines for the safeguarding and timely delivery of U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Scott Pierce, special agent in Charge, USPS Office of Inspector General.

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