Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

Airports throughout the United States found themselves in chaos after the Federal Aviation Administration (FAA) stepped up inspections of planes to ensure U.S. airline safety. The increased scrutiny of major carriers, including Delta, United, American, and U.S. Airways, was sparked by a record FAA fine levied against Southwest Airlines for "deliberate violations" of inspection procedures.

Southwest had been fined $10.2 million for allowing Boeing 737s to stay in operation although they were not in compliance with safety operations. Upon inspection, only six of the planes were found to have minor cracks and no accident had occurred. Perhaps the worse part of the situation was that Southwest had flown the uninspected planes for nine months, and another nine days after becoming aware of the problem, with an endorsement from the FAA. Not only did this tarnish Southwest's image, it caused a great deal of embarrassment for the FAA, accused of being too "cozy" with the airline company. Two weeks after Southwest's fine, an FAA audit uncovered concerns about a wiring issue with the McDonnell Douglas MD-80 planes flown by American Airlines. Though the airline's fleet had been inspected for this issue, concerns remained that not all checks had been completed properly. American voluntarily grounded the planes in question, initially canceling 300 flights. As the inspection of planes progressed, American continued canceling hundreds of flights - more than 1,000 in a single day - leaving thousands of passengers stranded and costing the airline millions of dollars.

While there is never a good time for safety concerns in the airline industry, these couldn't have come at a worse time for American and the other carriers that had been facing financial woes for years and were experiencing soaring fuel costs. While airlines have cut virtually every cost imaginable to survive, including maintenance costs, it is the FAA's job to make sure that safety is not compromised. Bad publicity, financial losses, and customer inconvenience were the unfortunate results of increased inspections, yet safety has to be more important than the bottom line.

The question remains: Is the FAA inspection system working to keep U.S. airlines safe? Testifying at a congressional hearing on FAA oversight, several FAA inspectors revealed that while planes remain safe, the inspection system does have flaws. "We are currently experiencing the safest period in aviation history," one FAA administrator said. "However, we have found ways to increase the accountability of all parties, the FAA included, and strengthen both the reporting role and the regulatory process."

Questions

1. How has the changing environment in the airline industry affected the cost of operating an airline?

2. Who are the major stakeholders concerned with safety inside and outside of an airline company?

3. What responsibility do airline companies and the FAA share to ensure the safety of passengers?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9683918

Have any Question?


Related Questions in Business Management

Why are some organizations deliberately putting millennials

Why are some organizations deliberately putting millennial's on teams with baby boomers?

Sheridan county hospital is a hospital the total costs of

Sheridan County Hospital is a hospital. The total costs of the hospital depends on the number of patient days (one patient staying for one day is one patient day) delivered by the hospital that month. The table below giv ...

What are some challenges that come with global branding and

What are some challenges that come with global branding and also what are the benefits. What makes global branding unique. What part of the world pose the bigger challenges explain why.

Any help will be appreciatedscenarionbspyou are a

Any help will be appreciated Scenario: You are a networking and communications consultant working for HoustonComm Services, Inc, further referred to as HCS. HCS is a company providing technology consulting services to st ...

Leadership theories can differ from one department to

Leadership theories can differ from one department to another, as well as from one specific team to another. How might this directly affect the staff within the department or team?

What value to your future career in business is supported

What value to your future career in business is supported by research, analysis and communication (writing and speaking)?

What is transformational leadership what are its

What is transformational leadership; what are its characteristics and are there cautions that should be aware of?

Suppose the production function for a firm is given

Suppose the production function for a firm is given by:  q=4L 0.75 K 0.25 . If the firm currently has  10  units of capital (K) and  10  units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRT ...

A professor claims that no more than 15 students dislike

A professor claims that no more than 15 students dislike his teaching. Write the hypotheses, noting which is the claim.

Why is it important to engage on sustainabilityis it

Why is it important to engage on sustainability? Is it possible for stakeholder relationship to be only one-way? Discuss What is meant by a ladder of stakeholder engagement?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As