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Airlines

UPDATE 1-US FAA proposes Continental, American Eagle fines

* Alleged violations occurred in 2008/2009

* Both carriers can challenge proposed fines (Airline comments)

WASHINGTON, Dec 22 (Reuters) - U.S. aviation regulators proposed fines on Wednesday of $275,000 against Continental Airlines and $330,000 against American Eagle for alleged maintenance violations.

The Federal Aviation Administration said Continental, now merged with United Airlines as United Continental Holdings Inc UAL.N, operated two Boeing Co BA.N 737 aircraft equipped with incorrect landing gear parts on 73 flights.

The FAA said American Eagle operated an Embraer EMBR3.SAERJ.N regional jet on 12 flights with broken seats and armrests. American Eagle is the regional affiliate of AMR Corp's AMR.N American Airlines.

American Eagle said it disagreed with the proposed penalty stemming from a 2008 inspection and believes the fine amount is excessive.

A spokesman said American Eagle would meet with the FAA to discuss the matter.

The Continental fine stemmed from the installation of incorrect main landing gear wheel-tire assemblies on two 737-900ERs in 2009, the FAA said.

Continental said it was reviewing the FAA notice.

Both carriers have 30 days to appeal. It is common for proposed fines to be reduced when challenged. (Reporting by John Crawley; Editing by Lisa Von Ahn and Gerald E. McCormick)

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