Reference no: EM132839105

Competitor's Safety Problem

Your maintenance chief has reported that a mechanic you hired from another regional airline told him that the other airline did a lot of "pencil maintenance." That is, they wrote a lot of things in the maintenance logs that did not actually get done-required inspections, repairs, and parts replacements. He said, "The outfit is just a big accident, waiting to happen." Your maintenance chief wanted to report it to the executive committee to see what, if anything should be done. He stated that the mechanic reported that he quit that airline because he did not like to be associated with such an activity. The other airline has competed against you in the past and is likely to compete in at least one market in the future. It has a reputation of being a very aggressive competitor.

1) Which of the following actions should you take?

a) Report the incident to the authorities. (The other airline will be able to ascertain who made the report.)

b) Phone the president of the other airline and tell him what you heard. You are on neutral terms with that person as he is your competitor.

c) Drop a tip to the local investigative reporter at the newspaper.

d) Report it to an official of the Airline Association. You cannot be sure the official or the association will take any action, but at least your conscience will be clear. It is somewhat possible your name might be leaked to the competitor.

e) You determine that either (a) the matter is none of your business or (b) that the report is just "sour grapes" from a disgruntled employee. So you decide to do nothing.

2) In reference to this upper Decision "Incident 3: Competitor's Safety Problem"

a) Which option did you select? Why?

b) What responsibility does your company have for overall safety in the airline industry?

c) What risk(s) might you face in withholding this information from the FAA? What do you think may be accomplished by reporting the information?

d) How is the competitive airline likely to treat your firm if you report the incident to the FAA?