GREAT LAKES Aviation has started to rebuild its route structure after its aircraft were grounded in a dispute with the US Federal Aviation Administration over maintenance procedures.
The regional airline, which feeds traffic to United Airlines and Midway Airlines, began offering limited services from 23 May to five US cities after being grounded for about a week. It plans gradually to expand flights to more cities.
Services resumed after Great Lakes reached a consent agreement with the FAA. Without admitting wrongdoing, Great Lakes agreed to pay a $1 million penalty, $700,000 of which will be suspended for a year if it complies with the terms and conditions set by the aviation agency.
The FAA says that the airline, based in Spencer, Iowa, allowed unqualified mechanics to work on its 53 twin-turboprops, including 41 Raytheon Beech 1900s and 12 Embraer EMB-120 Brasilias.
Great Lakes, meanwhile, reported a $5 million 1997 first-quarter net loss, and says that it will end services to Mexico. The results follow a $3 million loss in the fourth quarter of 1996.
Source: Flight International
