American Airlines, the world’s biggest carrier, announced Monday that it would pay $9 billion to settle allegations of fraudulent hiring practices in the construction and maintenance of 737 aircraft and aircraft components.
The company said it would also pay $2 billion to resolve civil claims that arose from a separate investigation by the Justice Department.
In all, American has settled at least 13 lawsuits relating to the 737 program, which began in 2007.
“We are deeply disappointed by the outcome of this investigation, but we are committed to working cooperatively with the government to resolve these claims,” American said in a statement.
“At the end of the day, we believe that a company like American deserves to be held to the highest standards of integrity and honesty.
We will work to ensure that this never happens again.”
The deal with the Justice and Securities Departments resolves claims that were brought by the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC).
It also resolves claims by American employees that the company discriminated against them and other workers.
The investigation into the 737 manufacturing program started in 2010 when a former Boeing employee claimed the company falsely inflated its sales and profit projections to justify hiring fewer workers.
“While we believe there were errors made, and there are many that we have acknowledged as such, it was not intentional,” American CEO Oscar Munoz said in the statement.
Munoz has since admitted to hiring some employees for less-than-full-time positions.
A federal investigation has since determined that the 737 was a “highly competitive market,” leading to several delays and losses.
A company spokesperson told USA Today that American Airlines will not have to pay any penalties in connection with the investigation.
The deal was first reported by CNNMoney.
(Reporting by Michael Biesecker; Editing by Jonathan Oatis)