United Airlines obtains US Justice Department civil inquiry about mail

By Staff Writer | Feb 20, 2016 03:39 AM EST

The U.S. Justice Department has sought the United Continental Holdings Inc. for documents and oral testimony. United Airlines revealed that these inquiries are allegedly related to its contract to carry mail for the U.S. Postal Service.  

According to Seeking Alpha, the United Continental said that the Justice Department has asked for documents and oral testimony for an investigation connected to its contract to carry mail for the U.S. Postal Service. The DOJ also looked into details which involve "delivery scan and other data purportedly required for payment for the carriage of mail."

Yahoo! Finance also reported that United Airlines, which obtained the civil inquiry on October 13 claimed that it is responding to the Justice Department (DOJ), but cannot foretell what action, if any, the regulator may take as a result of the investigation. In fact, the United spokeswoman Megan McCarthy added in a statement that the civil demand addressed international mail scanning requirements of its U.S. Postal Service contracts.

The representative stated, "We believe the DOJ inquiry is industry-wide." McCarthy also added, "We will continue to work with DOJ on its requests for information, and we are reviewing our mail scanning practices to ensure compliance."

On the other hand, American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co, as well as JetBlue Airways Corp. did not immediately acted in response to the requests for any comment regarding the issue. And in separate filings, the United Airlines claimed in the filing that it is working together in a previously undisclosed investigation by the U.S. Securities and Exchange Commission, as mentioned in Reuters.

This is related to another government probe surrounding the airline and the Port Authority of New York and New Jersey. Additionally, United's Chief Executive Jeff Smisek resigned in September because of the investigation.

Meanwhile, UAL claimed that it received the civil inquiry, which it believes that the investigation is industry-wide. The inquiry also addressed whether the company added flights to Columbia, South Carolina to be in favor with then-Port Authority Chairman David Samson.

More Sections