AA and FAA: Possible $25 Million Fine?

According to the Wall Street Journal (and other publications), American Airlines is about to receive notice of a record setting $25 Million fine related to MD-80 (as well as other, smaller issues) maintenance violations in 2008.  Those violations, related to wiring in the nosewheel area, resulted in the temporary grounding of American Airlines’ fleet as well as other airlines also either having to scramble and make repairs or even ground their fleets.

During the Bush Administration, government oversight investigations reported that maintenance enforcement by the FAA was inconsistent and irregular and found that FAA oversight of Southwest Airlines was dysfunctional at best.  The problems and controversies resultings from maintenance irregularities has caused many to question both the airlines and the FAA having a too close relationship and under the new administration, a much more “by the book” enforcement policy was instituted.

AA, at one point, described the wiring irregularities as not being a safety issue and I have to disagree with that position.  It’s not often I do disagree with airlines perspective on such things but when an airworthiness directive is issued by the FAA and the manufacturer has already issued a maintenance directive, it’s a safety issue. 

Regardless of whether the FAA was doing a proper job in its inspections or not, the airlines still have a duty to implement those directives in a safe and timely manner.  In this case, that wasn’t done and even spot checks on aircraft at AA after the grounding revealed that many still did not have the procedure done properly. 

Even though the FAA is working to establish the appropriate relationships with airlines and even though their enforcement is more by the book, airlines’ responsibility for these safety and maintenance problems remains their responsibility.  This wasn’t a case of inspectors telling the airlines to not bother with the work and it doesn’t absolve AA or any other airline from its responsibility to follow the rules, regulations and law when it comes to safety and maintenance. 

Just because a police officer hasn’t stopped you and told you that your tires are too worn to drive doesn’t absolve you from your duty to ensure your tires are appropriate for driving, right? 

I don’t know if a $25 Million fine is appropriate or not.  It strikes me a bit high at first glance and I”m sure it will be negotiated.  But fines should have an impact and for a $23 Billion airline, it might take as much as $25 Million to make a point that lasts.  I’ll point out that such a fine could well be the line between profitability and losses.  That seems to strike a good zone for appropriate. 

Do I think passengers were in imminent danger?  Probably not but who knows?  Out of a fleet of more than 200 aircraft at AA alone, it’s quite possible that a wiring harness was about to become a danger to the aircraft.  It certainly isn’t inconceivable. 

And the costs to do these maintenance and safety procedures is, in part, the price an airline pays for operating a relatively old and relatively obsolete fleet. 

It is heartening to see the FAA appear to be far more interested in doing its job in the airline industry rather than acting almost subservient to the airlines.  I’m sure the airlines are finding this a novel experience but it is what should have been happening all along.

One Response to “AA and FAA: Possible $25 Million Fine?”

  1. I don’t know if a $25 Million fine is appropriate or not.

    If it drive them into bankruptcy and out of business, it is…

    -R

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