Transportation Industry

Company Watch - Southwest Airlines

AirGuide Business, Sept 8, 2008

Sep 7, 2008

The FAA has been under pressure from Congress to tighten oversight of airlines after a whistleblower case earlier this year uncovered inspection and oversight lapses at Southwest Airlines, which was fined a record USD$10.2 million. Southwest has resisted FAA demands for payment. Sturgell and senior aides would not discuss individual cases under investigation but indicated the problems were not as serious as the Southwest matter, which involved flying planes that were overdue for inspections covering fuselage cracks. Nor are the shortcomings on par with lapses at American Airlines, Delta Air Lines and other carriers, which grounded hundreds of planes and canceled thousands of flights last spring for incomplete wiring work. Officials repeatedly mentioned record-keeping problems but said no airline, aircraft type or safety directive stood out as singularly problematic.

There is no evidence at this point that airlines willfully disregarded directives, officials said. The FAA examined more than 5,600 directives in the review. These advisories, most made in collaboration with the aircraft of systems manufacturer, typically range from matters as simple as floor lighting to complex and costly or engine inspections and related work. Nevertheless, the agency continues to investigate those that fell short and did not exclude the possibility of fines or other penalties. There is no timeline for completing the investigations. Sturgell said all compliance issues raised during the FAA review were resolved before specific aircraft were allowed to fly. Sep 6, 2008

Southwest Airlines will move to a cashless cabin on Sept. 9. Flight attendants will process drink orders and other transactions using hand-held credit card scanners from GuestLogix Inc. American Airlines and Alaska Airlines also offer credit card payments on at least some flights, although both carriers also continue to accept cash. Sep 3, 2008

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