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Thursday, August 26, 2010

Shoddy work, Shoddy Explanation- by American

AA is charged by FAA for not meeting standards. AA says that passengers were never in danger. Is that the benchmark- the Airline management determines the airplane safety, with no oversight? As long as the liability is capped why not avoid any expenses on repairs and maintenance and safety regulations?


Summary Box: American hit with $24.2M penalty - Yahoo! Finance: "The Federal Aviation Administration proposes a record $24.2 million penalty against American Airlines for flying more than 14,000 flights with planes that FAA says didn't meet standards to prevent dangerous electric arching near fuel tanks.

AIRLINE'S RESPONSE: American says passengers were never in danger and no penalty is warranted. It plans to appeal.

COSTLY DISPUTE: American has already paid dearly for the allegedly shoddy work of bundling electrical wires on its McDonnell-Douglas MD-80 series jets. The airline canceled more than 3,000 flights and inconvenienced 350,000 passengers to fix the work back in 2008. Now it faces a penalty that could top the record, which is $9.5 million. That penalty, in 1987, went mostly unpaid after Eastern Airlines went out of business."

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