Ill. Sues American Airlines Over Fuel Tax Scheme

Law360, New York (March 12, 2014, 1:26 PM EDT) -- Illinois’ public transportation system launched a sprawling lawsuit against American Airlines and a fuel subsidiary Tuesday, claiming the airline bilked the Chicago area out of more than $23 million in fuel sales taxes last year using a false reporting scheme.

According to the Regional Transportation Authority’s lawsuit, American Airlines falsely claims it purchases jet fuel from a fuel subsidiary located in a rural community more than 50 miles outside of Chicago’s O’Hare International Airport, allowing the airline to avoid sales tax that goes toward supporting airport...
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