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Los Angeles sues American Airlines

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The city of Los Angeles is seeking to file a lawsuit against American Airlines for $21.5 million reported the Los Angeles Times on January 9, 2014.

The city of Los Angeles has asked permission from the U.S. Bankruptcy Court in New York to file a $21.5 million lawsuit against American Airlines for failing to pay proper maintenance and operating fees at the Los Angeles International Airport.

The city of Los Angeles states that since December 31, 2010, American Airline has been underpaying their negotiated share to operate out of the Los Angeles International Airport. In a motion filed with the court, the city is requesting payment of $5.7 million covering 2006 until American Airlines filed for bankruptcy and $15.8 million since the airline’s November 29, 2011, bankruptcy filing.

“Since December 31, 2010, American has underpaid its rental invoices from LAWA by a total of $21,556,915.70,” lawyers for Los Angeles wrote in court documents.

“Of this amount, $5,710,738.65 accrued prior to American’s chapter 11 petition on November 29, 2011 and $15,846,177.05 has accrued since the filing of American’s chapter 11 petition.”

“The City is concerned that (American) will continue to attempt to underpay the rental invoices for the remaining term of the Terminal 4 Lease, which runs through 2024,” city attorneys wrote.

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