The Regional Transportation Authority, which 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. The RTA claims the airline has only done this to avoid paying tens of millions of dollars in taxes in Chicago where it says the actual work is done. The 1,000 square feet office in question with only one or two employees work is in City Hall in the town of Sycamore.
The RTA has also accused United Airlines of a similar tactic and has launched a lawsuit again that company.
“We’re saying whatever work is being done there is a sham,” Jordan Matyas, the RTA’s chief of staff, said ahead of the lawsuit being filed.
RTA alleges that under the arrangement between Sycamore and American, the city reimburses the airline for a portion of the sales tax it pays on the fuel.
American Airlines denies the claims in the lawsuit and a spokesperson has stated that the company believes it is “still paying the proper” tax amount and that it is “in compliance” with the law.