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Mon, Mar 02, 2009

FAA Settles With Southwest Airlines, Assesses $7.5M Penalty

Airline Must Also Comply With Strict Requirements

The Federal Aviation Administration announced Monday it has reached a settlement agreement with Southwest Airlines to resolve outstanding enforcement actions... taking the low-cost carrier to the woodshed on a number of safety-related matters, but for the moment sparing the airline from a still-larger penalty.

The agreement stems from a $10.2 million civil penalty proposed on March 6, 2008 against Southwest Airlines for operating 46 airplanes on 59,791 flights without performing mandatory inspections for fuselage fatigue cracking. As ANN reported, Southwest disputed the fine but admitted to some of those charges, maintaining it informed the FAA of its own oversights in 2007.

Under the agreement, Southwest Airlines will pay a $7.5 million civil penalty that could double to $15 million if the airline does not accomplish specific safety improvements outlined in the settlement agreement.

"This agreement furthers aviation safety by requiring important improvements to the airline's safety program. Some of those safety measures exceed FAA regulations," said FAA Acting Administrator Lynne A. Osmus.

The $7.5 million civil penalty will be paid in three installments of $2.5 million. The first payment is due within 10 business days of signing the agreement. Two additional payments will be made no later than January 15, 2010, and January 15, 2011.

According to the FAA, Southwest will pay an additional $7.5 million if it does not accomplish 13 additional safety-related requirements related to personnel; manuals and procedures; company organization; and training. FAA inspectors will monitor Southwest Airlines’ progress on a variety of improvements, for which the longest compliance time is one year.

Among those stipulations: within 30 days, Southwest Airlines will increase the number of on-site technical representatives for heavy maintenance vendors from 27 to 35 people; within 60 days, Southwest will allow FAA inspectors improved access to information used for tracking maintenance and engineering activities; and within 90 days, the airline will designate a management head of Quality Assurance who does not have air carrier certification responsibilities.

Within 180 days, the FAA requires Southwest review its Required Inspection Item (RII) procedures to ensure compliance with FAA rules related to maintenance and identify more clearly all RII items on its maintenance work instructions, engineering authorizations, and task cards. By this time next year, Southwest is also required to rewrite all FAA-approved manuals.

The FAA pointedly noted the agreement does not prevent the agency from taking action against Southwest on safety issues unrelated to this settlement agreement. It's also worth noting Southwest has an overall safety record almost second to none; the only fatality attributable to the airline came in December 2005, when a small boy died after the car he was riding in was struck by a 737 that careened off an icy runway at Chicago's Midway Airport.

FMI: www.southwest.com, www.faa.gov

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