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.

FMI: www.southwest.com