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Delta Air Lines Agrees to $10.5 Million Settlement Mail Accusations

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Photo: Getty Images Delta Air Lines IATA/OACIDL/DAL CodeAirline TypeFull-Service CarrierHub(s)Boston Logan International Airport, Metro Detroit Wayne County Airport, Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, Minneapolis-St. Paul International Airport, New York JFK Airport, LaGuardia Airport, Salt Lake City International Airport, Seattle-Tacoma International AirportFounded year1929AllianceSkyTeamCEO BastianCountryUnited States

Delta Air Lines has agreed to pay the US government $10.5 million to settle charges brought by the Department of Justice (DOJ) that the airline falsely reported US mail deliveries. The allegations revolved around claims that Delta changed stated delivery times for mail it was responsible for delivering with the United States Postal Service.

The airline becomes the latest to settle similar allegations of wrongdoing.

What has Delta Air Lines been accused of?

The DOJ says the allegations stem from a contract the airline entered into with the United States Postal Service to collect mail from six locations in the United States and various international Department of Defense and Department of Defense locations. ‘state and deliver it to different destinations. The airline was forced to electronically scan mail delivery times, with financial penalties for late delivery.

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The DOJ had accused Delta Air Lines of falsely reporting the times it delivered mail and transferring possession of the mail. The case received a lot of attention, in part because some of the mail was destined for US soldiers deployed overseas.

In a statement, Senior Assistant Deputy Attorney General Brian M. Boynton said:

“The United States expects air carriers with which the USPS contracts to accurately declare the services they provide. The resolution announced today reflects the department’s commitment to prosecute contractors who breach their contractual obligations to the United States and misrepresent their failure.

This is the third such agreement that airlines have reached with the government over allegations of mail delivery. In 2021, United Airlines agreed to pay $49 million over similar allegations. In 2019, American Airlines paid a $22 million settlement.

Delta Air Lines is not the only airline to have similar agreements. Photo: Getty Images

An effective deterrent?

Ongoing allegations of the airline’s fraudulent handling of mail have raised questions about whether USPS contracts are sufficiently scrutinized or enforced. The resolution achieved in this case is the result of a coordinated effort between the Fraud Section of the Commercial Litigation Division of the Civil Division, with substantial assistance from the USPS OIG and the USPS General Counsel’s Office. ‘USPS.

The settlement confirms any liability of Delta Air Lines. Photo: Getty Images

This is the sixth civil settlement involving air carrier liability for false delivery scans under USPS ICAIR contracts, and collectively the United States has recovered more than $80 million as a result of its investigation of such misconduct. However, the claims resolved by the settlement are only allegations and no liability has been determined. Critics said that means any potential cases have simply been swept under the rug.

Executive Special Agent in Charge Ken Cleevely of the USPS, Office of Inspector General said:

“The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance in the mail delivery process, including falsification of delivery information. Our Special Agents have worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution, and we commend the exceptional work done by the investigative and legal teams.

What do you think of this latest rule? Let us know in the comments below.

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