"Airline Bankruptcies Straining FAA Inspections"

Saturday, March 15, 2003

Airline Bankruptcies Straining FAA Inspections
By Sylvia Adcock
Newsday


When an airline declares bankruptcy, the Federal Aviation Administration
quickly steps in to make sure no one's cutting corners on safety.

But with two airlines, US Airways and United, both operating under
bankruptcy protection, and a third, American, apparently headed in that
direction, some lawmakers are questioning whether the FAA has the staff to
keep a close eye on the airlines. Department of Transportation Inspector
General Kenneth Mead is expected to announce an audit on the FAA's oversight
of financially troubled airlines within days.

"We are understaffed during normal times," said Owen Dullaghan, of
Professional Airways Systems Specialists, the union representing the FAA's
safety inspectors. "We are short inspectors to just take care of the
airlines that are operating normally with no hiccups."

The FAA says its staff of more than 3,000 safety inspectors, who monitor
more than 125 airlines as well as thousands of mechanics and pilots, is
sufficient. The union says only about 1,500 of those are actively involved
in inspecting passenger airlines. Union officials say an additional 500
inspectors are needed.

The FAA continually monitors the financial health of airlines through
information provided by the Department of Transportation. A bankruptcy
filing, as well as labor unrest or high turnover in management, will trigger
increased surveillance. "There are two things that will bring no revenue:
training and maintenance. That's where you can start to see the first cuts,"
Dullaghan said. "When an airline goes into Chapter 11, suddenly the amount
of work increases exponentially."

After the 1991 Gulf War, Pan Am and Eastern both operated under bankruptcy
protection until they both liquidated. But if American also files for
bankruptcy, it will be the first time three major carriers have operated
under Chapter 11 protection at the same time. The FAA has already begun a
stepped-up inspection program at American, the nation's largest airline. The
Air Transport Association, an airline trade group, said this week that a
protracted war in Iraq could lead to more bankruptcies.

FAA spokeswoman Alison Duquette said the extra work at US Airways, United
and American is being performed by the inspectors already assigned to those
airlines. "We are not taking inspectors away from one airline to inspect
another," Duquette said. "We are doing it with existing resources."

But others say oversight of the industry is important. "They have a limited
budget, they've been stretched for years in terms of safety inspections and
the workload," said Jim McKenna, managing editor of Aviation Maintenance, a
trade magazine. "Something's got to give."

U.S. Rep. Peter DeFazio (D-Ore.) this week asked the Government Accounting
Office, the investigative arm of Congress, to look into several issues.
"We've been long concerned about the FAA's oversight and whether they have
sufficient staffing to do the job," said Kristi Greco, a spokeswoman for
DeFazio, the ranking member of the House aviation subcommittee. "The
problems now are multiplying."


 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************