The airline then agreed to a plan to make weekly payments of $25,000, which would have paid off the debt in only 11 weeks.
The airlines agreed not to disclose the amount of the settlement, which was reached on Wednesday.
Major airlines serving Atlanta agreed to about 50 more changes in their proposed summer schedules.
In 1999, the airline agreed to pay a $250,000 fine for maintenance and record keeping violations.
The airlines do not agree when this small space became standard; most estimate four to five years ago.
If the airline does not agree with your claim, you may go to court.
This dispute was later settled after the airline agreed to increase the compensation.
It is the first time in history two airlines agree to a swap.
The nation's major airlines, with the support of the Bush administration, have agreed to create their own insurance company to cover themselves against terrorist attacks.
He was responsible for limiting the project's spending to $150 million until the airlines agreed to pay their share.