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The Nation : Crash Costs U.S. Millions

August 27, 1985

The federal government has paid millions of dollars in damages to relatives of the 154 persons killed in the crash of a Pan Am jetliner in New Orleans in 1982, the Federal Aviation Administration said. The FAA has denied fault in the storm-caused crash, saying air traffic controllers gave adequate warning of wind shear. But it agreed to split court-awarded damages with Pan Am because, had it been found liable in the deaths of 40 persons with overseas destinations, it would have had to pay all awards over the $75,000-per-person limit on airline liability in such cases. The total government payments have not been determined, the FAA said.

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