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WASHINGTON, D.C. -- American Airlines, the nation's second-largest air carrier, today pleaded guilty to a federal charge that it illegally stored hazardous waste at the Miami International Airport. In a joint factual statement filed with the court, American Airlines admitted that during a four-year period the company failed to follow safety regulations that strictly control the shipment of hazardous material on passenger planes.

Under the plea agreement filed in federal court in Miami, the airline will pay an $8 million dollar fine and undertake a court-supervised program at every airport in the United States and abroad where American Airlines accepts cargo for shipment.

"American Airlines put their passengers and employees at risk by handling hazardous materials in a dangerous way," said Lois Schiffer, Assistant Attorney General for the Environment and Natural Resources Division. "We take environmental crimes like this very seriously and will vigorously prosecute such crimes to protect the American people."

"Today's plea represents the first time a major air carrier has pled guilty and accepted responsibility in a hazardous waste case," said Tom Scott, U.S. Attorney for the Southern District of Florida. "We are committed to ensuring the safety and security of the American flying public."

The compliance program will require American Airlines to hire new personnel and create a new position for a vice-president, whose sole responsibility is to ensure compliance with federal safety requirements. The company also will be required to subject their operation to an outside auditor, approved by the governments. American Airlines will also make periodic reports to the federal court the Federal Aviation Administration, Department of Justice and other federal agencies. Along with expanded employee training, American Airlines will establish a toll-free hotline through which employees may anonymously reported suspected safety violations.

American pleaded guilty to a felony violation of the Resource Conservation and Recovery Act, following an incident where American illegally stored ignitible hazardous waste containing Dioxital - an oxidizer that can explode when exposed to heat and that accelerates the burning of other materials. On July 27, 1995, a shipper delivered the drum containing the Dioxital to American Airlines in Mexico City for air transportation to Miami. Shortly after arrival in Miami, while the drum was being moved, the drum was rolled on its side and the top blew off. Its contents caught on fire. After the fire was extinguished, American employees violated the law when they failed to properly dispose of the material and left it in the airport for more than three years until its illegal storage was discovered during the government's investigation.

In the fact statement accompanying the plea agreement, American Airlines admits that between 1995 and 1999, it violated federal regulations that strictly control the shipment of hazardous material on passenger aircraft and the storage of such material. American Airlines admitted that it had loaded flammable, corrosive and poisonous materials onto its planes in packaging and quantities that violated Federal Aviation Administration and Department of Transportation regulations. American Airlines operates more than 850 aircraft and owns no cargo-only planes, so it transports cargo solely on passenger aircraft.

American also admitted that it had placed hazardous materials on its passenger planes even though its employees had information from shippers that should have caused them to believe that the cargo should have been handled differently. Aware of the danger of transporting hazardous materials in airplanes, American Airlines failed to make sufficient inquiries or to simply reject these shipments.

Federal regulations require that hazardous materials be properly labeled and in condition for shipment before they are taken aboard aircraft for shipment. Regulations also limit the amount of these materials that can be transported in a passenger-carrying aircraft and require airlines to handle them in a safe manner.

"We hope that the plea agreement today sends a strong message to every link in the aviation safety chain - every aviation employee, every air carrier, and every shipper," said Department of Transportation Inspector General Kenneth M. Mead.

"The EPA will work closely with other federal agencies to ensure that the safety of air travel is not jeopardized by the illegal handling of hazardous materials and wastes by airlines and their contractors," said Steven A. Herman, EPA Assistant Administrator for Enforcement and Compliance Assurance. "This case should give notice to those who put the public at risk by violating hazardous waste laws and regulations at airports that they will face significant consequences."

Of the $8 million criminal fine, $2 million will be paid as court ordered community service to the Miami-Dade Fire Department to enhance the department's hazardous materials division. The company also will place a full-page advertisement in the Miami Herald apologizing to the public for its conduct.

The investigation of American Airlines was conducted by the Department of Transportation Inspector General's Office, the U.S. Customs Service, the Environmental Protection Agency's Criminal Investigation Division, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Richard D. Gregorie and Eloisa Delgado Fernandez handled the case on behalf of the U.S. Attorney's Office, and Trial Attorney Jennifer Whitfield and Section Chief Steve Solow handled the case on behalf of the Environmental Crimes Section of the Department of Justice.

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