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Cargo Airline Pays $5 Million in Penalties

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<i> Associated Press</i>

Cargo carrier Arrow Air paid $5 million in penalties Tuesday for selling uninspected jet parts and covering it up.

At sentencing in federal court, lawyers for the Miami-based airline produced one check covering a $3-million fine and another check for $2 million that will go toward research and seminars on airline safety at Embry-Riddle Aeronautical University in Daytona Beach.

Arrow reached a plea bargain in April after the Federal Aviation Administration grounded the airline in 1995, alleging that it certified more than 3,000 parts from two jets as airworthy without inspecting them.

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Arrow also paid a $1.5-million civil fine to the FAA, which had accused Arrow of failing to follow maintenance requirements, falsifying records, skipping required safety audits and using undocumented parts.

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