Thu, Aug 28, 2008
Agency Continues To Explore Options
If the FAA fined you $10 million,
then sent a collection notice warning your case would be referred
to the Department of Justice... how would you respond?
Southwest Airlines faces a record $10.2 million fine over
missing scheduled fatigue-crack inspections.
As ANN reported, last week the FAA gave the
carrier just such a warning, saying the Department of Justice would
get the case if the airline didn't pay up by this coming
Friday.
Yesterday, Southwest responded coolly that a check is not
forthcoming.
Reuters says it was told by a Southwest spokeswoman, "We just
let them know that we would not be paying a fine by the 29th and
that we wanted to have additional discussions. It's just another
step in this process and we certainly hope to continue those
discussions to come up with a fair and reasonable conclusion."
Its bluff having been called, the FAA was asked by Reuters
whether it will now involve the DOJ. An unidentified FAA spokesman
reportedly replied, "I really can't speculate on whether that's the
course of action we would take. All I can say is that we are
continuing to discuss the issue with Southwest this week but really
I can't speculate on what the resolution might be."
It will be interesting to see how the FAA -- and DOJ --
proceeds. Fines against airlines are routinely appealed, and often
reduced... but in earlier comments, the FAA also implied the
possibility of further action.
If Southwest fails to pay on time, the FAA "will refer the case
to the United States Attorney's office for whatever action they
deem appropriate," FAA regional counsel Lynette Word said last
week.
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