American Airlines may be hit by a civil penalty for serious maintenance lapses, the Wall Street Journal said, citing government and industry officials familiar with the details.

The Federal Aviation Administration officials are close to slapping a civil penalty on the company that is likely to be between USD$10 million and USD$20 million, the paper said.

The penalty is likely to be the largest the agency has levied against an airline, the daily said.

Separately, a report due to be released shortly by The Department of Transportation (DOT) is expected to outline the apparent failures by American Airlines to identify and promptly resolve aircraft-maintenance problems in 2008.

The alleged deficiencies range from multiple faulty repairs of engine-start systems to repeated deferrals of other repairs, as well as mechanics signing off on work without the necessary authority, the paper added.

The Journal quoted spokesman Tim Wagner as saying American "cooperated fully with the DOT's review, and our responses are included in the report," he said. He declined to discuss any possible FAA action.