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September 21, 2017

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Chicago public transportation agency suing American Airlines over claims

CHICAGO--The agency that oversees public transportation in Chicago is suing American Airlines for falsely claiming to buy "vast amounts of jet fuel" from a small office in a rural community to avoid paying tens of millions of dollars in taxes in the nation's third-largest city, where the actual work is done.

The lawsuit comes a year after the same agency — the Regional Transportation Agency — accused United Airlines in a lawsuit of doing the same thing in the same small town. The RTA filed its lawsuit in Cook County Circuit Court late Tuesday afternoon.

The RTA oversees the Chicago Transportation Authority, the region's Metra commuter line and the Pace suburban bus service. The agency has been making the allegations against American for more than a year but said it was waiting for the airline to emerge from bankruptcy protection, something that happened in December.

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