WASHINGTON (Reuters) - U.S. aviation regulators on Thursday proposed to fine Southwest Airlines Co a record $10.2 million for allegedly failing to inspect planes for structural cracks.:scared
The Federal Aviation Administration (FAA) said Southwest continued to fly uninspected aircraft even after the carrier notified the agency that it had missed a mandatory deadline to complete the work.
"The FAA is taking action against Southwest Airlines for a failing to follow rules that are designed to protect passengers and crew," said Nicholas Sabatini, the agency's associate administrator for safety.
The FAA said there were no safety incidents related to the missed inspections of Boeing Co 737 aircraft but the allegations and the fine amounted to a startling mark against the airline that has been an industry model for efficient operation for nearly 40 years.
The airline said in a statement late on Wednesday the inspections were routine and redundant. Southwest said it acted promptly and responsibly and that flight safety was never compromised.
Southwest shares fell 49 cents, or nearly 3.8 percent, to $12.50 on the New York Stock Exchange. The stock rose slightly after hours before retreating to its closing price.
Southwest is the biggest U.S. carrier by market value at $9.5 billion.
UNINSPECTED PLANES
Southwest flies only 737 planes and the inspection program was part of an industry-wide FAA initiative to more closely examine structural fatigue in all types of older planes. Most big U.S. airlines are slowly modernizing their fleets.
While commercial jetliners are built to fly for decades, the repetitive fuselage inspections imposed in 2004 are aimed at finding any minor skin cracks or other structural issues that occur with heavy use and usually can be fixed easily.
But the FAA asserted that Southwest operated 46 planes on nearly 60,000 flights while "failing to comply" with the inspection requirement between June 2006 and March 2007.
The carrier continued for eight days to operate the same planes on more than 1,400 additional flights after discovering last March that it missed the inspection deadline, the FAA said. This breach, the FAA said, prompted the heavy fine.
Cracks were found on six planes after the inspections were completed, the FAA said.
Southwest said in a statement that it acted promptly once it discovered the lapse. The carrier also said it consulted Boeing about the missed inspections as well as the continued operation of those aircraft for up to 10-days while the work was completed.
Southwest said Boeing concluded the compliance plan was technically valid. "In Boeing's opinion, the safety of the Southwest fleet was not compromised."
A Boeing official confirmed the consultation.
Southwest said the FAA "approved our actions and considered the matter closed as of April 2007."
FAA ROLE QUESTIONED
Questions were also raised about the FAA's role and whether its oversight was insufficient. Congressional lawmakers want to know why it took so long for the FAA to act and why uninspected planes were not grounded immediately.
The House of Representatives Transportation Committee is investigating and the panel's chairman, Rep. James Oberstar, a Minnesota Democrat, has scheduled a news conference for Friday. A hearing is planned for April.
Sen. Patty Murray, a Washington state Democrat and chairman of the appropriations subcommittee that funds FAA operations, called the safety violations "grotesque" and an "inexcusable lapse."
Murray was critical of the airline but also promised to hold FAA officials responsible.
"We need to ask serious questions as to why it took the FAA so long to discover them," she said.
The FAA said is sending a team of inspectors -- those that do not normally work closely with Southwest at its base in Dallas -- to review the maintenance program. Airlines overall are complying with the timelines for completing structural inspections, the agency said.
Southwest can appeal the proposed fine, which would be the largest ever against an airline if enforced. The largest to date is a $9.5 million penalty against Eastern Airlines in the 1980s.
The Federal Aviation Administration (FAA) said Southwest continued to fly uninspected aircraft even after the carrier notified the agency that it had missed a mandatory deadline to complete the work.
"The FAA is taking action against Southwest Airlines for a failing to follow rules that are designed to protect passengers and crew," said Nicholas Sabatini, the agency's associate administrator for safety.
The FAA said there were no safety incidents related to the missed inspections of Boeing Co 737 aircraft but the allegations and the fine amounted to a startling mark against the airline that has been an industry model for efficient operation for nearly 40 years.
The airline said in a statement late on Wednesday the inspections were routine and redundant. Southwest said it acted promptly and responsibly and that flight safety was never compromised.
Southwest shares fell 49 cents, or nearly 3.8 percent, to $12.50 on the New York Stock Exchange. The stock rose slightly after hours before retreating to its closing price.
Southwest is the biggest U.S. carrier by market value at $9.5 billion.
UNINSPECTED PLANES
Southwest flies only 737 planes and the inspection program was part of an industry-wide FAA initiative to more closely examine structural fatigue in all types of older planes. Most big U.S. airlines are slowly modernizing their fleets.
While commercial jetliners are built to fly for decades, the repetitive fuselage inspections imposed in 2004 are aimed at finding any minor skin cracks or other structural issues that occur with heavy use and usually can be fixed easily.
But the FAA asserted that Southwest operated 46 planes on nearly 60,000 flights while "failing to comply" with the inspection requirement between June 2006 and March 2007.
The carrier continued for eight days to operate the same planes on more than 1,400 additional flights after discovering last March that it missed the inspection deadline, the FAA said. This breach, the FAA said, prompted the heavy fine.
Cracks were found on six planes after the inspections were completed, the FAA said.
Southwest said in a statement that it acted promptly once it discovered the lapse. The carrier also said it consulted Boeing about the missed inspections as well as the continued operation of those aircraft for up to 10-days while the work was completed.
Southwest said Boeing concluded the compliance plan was technically valid. "In Boeing's opinion, the safety of the Southwest fleet was not compromised."
A Boeing official confirmed the consultation.
Southwest said the FAA "approved our actions and considered the matter closed as of April 2007."
FAA ROLE QUESTIONED
Questions were also raised about the FAA's role and whether its oversight was insufficient. Congressional lawmakers want to know why it took so long for the FAA to act and why uninspected planes were not grounded immediately.
The House of Representatives Transportation Committee is investigating and the panel's chairman, Rep. James Oberstar, a Minnesota Democrat, has scheduled a news conference for Friday. A hearing is planned for April.
Sen. Patty Murray, a Washington state Democrat and chairman of the appropriations subcommittee that funds FAA operations, called the safety violations "grotesque" and an "inexcusable lapse."
Murray was critical of the airline but also promised to hold FAA officials responsible.
"We need to ask serious questions as to why it took the FAA so long to discover them," she said.
The FAA said is sending a team of inspectors -- those that do not normally work closely with Southwest at its base in Dallas -- to review the maintenance program. Airlines overall are complying with the timelines for completing structural inspections, the agency said.
Southwest can appeal the proposed fine, which would be the largest ever against an airline if enforced. The largest to date is a $9.5 million penalty against Eastern Airlines in the 1980s.
