FAA Indicts US Airways – Analyst Blog
Source: http://www.zacks.com/stock/news/25990/FAA+Indicts+US+Airways+-+Analyst+BlogPosted on Thursday, October 15th, 2009 | In Investing Lessons, Stocks to Watch
The Federal Aviation Administration (FAA) on Wednesday accused US Airways (LCC) for operating eight airplanes last year without conducting the mandatory safety checks.
The FAA has proposed a penalty of $5.4 million against US Airways. FAA documents allege that US Airways sanctioned 1,647 flights in violation of mandatory safety checks.
The flights were operated from Oct. 2008 to Jan. 2009 and were out of compliance of flouted airworthiness directives (ADs) and its maintenance program. After being charged, the management said that the specific regulations were broken when it was integrating new maintenance systems following its merger with America West and has since worked with the FAA to fix the problems.
The air carrier has been allowed a grace period of 30 days to justify itself. Though the management is trying to work out a resolution with the FAA, it is quite unusual for the fines to be reduced.
Peer United Airlines (UAUA) has also been charged a sum of $3.8 million by the FAA on the same day for maintenance violations on a single aircraft.
Last year, FAA had charged Southwest Airlines (LUV) with $10.2 million for flying planes without performing required safety inspections. Also, American Airlines (AMR) was charged $7.1 million for disregarding maintenance on two of its planes.
Read the full analyst report on “LCC”
Read the full analyst report on “UAUA”
Read the full analyst report on “LUV”
Read the full analyst report on “AMR”
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