Federal aviation regulators proposed a record $24.2 million civil penalty against AMR Corp.’s American Airlines Thursday, alleging that the carrier flew 286 of its MD-80 jets over a two-year period without strictly complying with mandatory safety directives.

The penalty proposed by the Federal Aviation Administration, which American is expected to appeal, covers improper maintenance work on certain electrical wiring that resulted in massive flight cancellations two years ago. The clash between the FAA and American created a furor among passengers and lawmakers, and prompted a broad reassessment of how the agency oversees maintenance and safety mandates. Get the full story »