Besides becoming one of the most scrutinised tragedies in US aviation history, the May crash of ValuJet flight 592 has also become one of the most politicised. The low-cost carrier's survival depends on whether it can withstand an intense federal safety audit and re-launch its image while keeping its costs in check.
It will be a difficult task. Over a month after the DC-9 plunged into Florida's Everglades killing all 110 people aboard, more than 100 Federal Aviation Administration investigators were scrutinising every aspect of the carrier's operation.
'They want to shut us down, but just haven't found a reason to do it,' says a ValuJet executive, adding that two or three inspections of the same aircraft in one day has not been unusual and that 'nit-picking' has been common. 'No carrier out there could stand up to this.'
The frustration comes after a month in which 50 per cent of the carrier's aircraft were 'voluntarily' grounded, traffic fell 7.5 per cent and system load factor fell close to 19 per cent over May 1995. One airline official believes the carrier can still turn in a break-even performance for the second quarter, though analysts question ValuJet's viability.
There are two main issues to consider. The first is whether the airline, which expanded from four to 51 aircraft in two-and-a-half years, grew too fast. The answer appears to be yes. A week before the crash, Wall Street analyst Vivien Lee addressed this concern, albeit from a financial angle.
The second issue is the effectiveness of ValuJet's oversight of the many third party contractors it uses, following allegations that overhaul contractor SaberTech had shipped potentially 'live' oxygen generators on flight 592. The airline is reconsidering its reliance on third party work, a practice that has helped keep its unit costs the lowest of any airline in the US. 'We're looking into outsourcing with five different airlines instead of outsourcing companies,' says a ValuJet source.
It is hard to exaggerate the amount of negative press in the aftermath of the crash. Several factors came together to produce the exposure, but overriding all were charges of incompetence in safety oversight from Mary Schiavo, the Department of Transportation's independent investigator general. Schiavo said the FAA had been intentionally lenient on ValuJet's shaky safety record (allegedly to validate DOT's support for the carrier), and had tried to cover up efforts to keep concerned safety inspectors quiet.
Schiavo, in return, stands accused of using the case for political gain. Among her many detractors is Alaska senator Ted Stevens, a fellow republican. Investigator generals are political appointees, and Schiavo was appointed by former president George Bush. 'It has the potential for political mischief,' says a DOT official.
Mead Jennings
Source: Airline Business
