Reference no: EM13217514

Airports throughout the United States found themselves in chaos after the Federal Aviation Administration (FAA) stepped up inspections of planes to ensure U.S. airline safety. The increased scrutiny of major carriers, including Delta, United, American, and U.S. Airways, was sparked by a record FAA fine levied against Southwest Airlines for "deliberate violations" of inspection procedures.

Southwest had been fined $10.2 million for allowing Boeing 737s to stay in operation although they were not in compliance with safety operations. Upon inspection, only six of the planes were found to have minor cracks and no accident had occurred. Perhaps the worse part of the situation was that Southwest had flown the uninspected planes for nine months, and another nine days after becoming aware of the problem, with an endorsement from the FAA. Not only did this tarnish Southwest's image, it caused a great deal of embarrassment for the FAA, accused of being too "cozy" with the airline company. Two weeks after Southwest's fine, an FAA audit uncovered concerns about a wiring issue with the McDonnell Douglas MD-80 planes flown by American Airlines. Though the airline's fleet had been inspected for this issue, concerns remained that not all checks had been completed properly. American voluntarily grounded the planes in question, initially canceling 300 flights. As the inspection of planes progressed, American continued canceling hundreds of flights - more than 1,000 in a single day - leaving thousands of passengers stranded and costing the airline millions of dollars.

While there is never a good time for safety concerns in the airline industry, these couldn't have come at a worse time for American and the other carriers that had been facing financial woes for years and were experiencing soaring fuel costs. While airlines have cut virtually every cost imaginable to survive, including maintenance costs, it is the FAA's job to make sure that safety is not compromised. Bad publicity, financial losses, and customer inconvenience were the unfortunate results of increased inspections, yet safety has to be more important than the bottom line.

The question remains: Is the FAA inspection system working to keep U.S. airlines safe? Testifying at a congressional hearing on FAA oversight, several FAA inspectors revealed that while planes remain safe, the inspection system does have flaws. "We are currently experiencing the safest period in aviation history," one FAA administrator said. "However, we have found ways to increase the accountability of all parties, the FAA included, and strengthen both the reporting role and the regulatory process."

Questions

1. How has the changing environment in the airline industry affected the cost of operating an airline?

2. Who are the major stakeholders concerned with safety inside and outside of an airline company?

3. What responsibility do airline companies and the FAA share to ensure the safety of passengers?