CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts

Turbulence looms for summer travelers

About 2,200 U.S. commercial flights have been scrapped since March in response to failed FAA inspections.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By David Goldman, CNNMoney.com staff writer

What would it take for you to drive less?
  • $4-a-gallon gas
  • $5-a-gallon gas
  • I’ve already cut back
  • I’ll drive at any cost

NEW YORK (CNNMoney.com) -- Attention airline passengers: Fasten your seatbelts. The spring flying season is experiencing turbulence - and may continue to be bumpy for awhile.

U.S. commercial airlines have grounded over 2,000 flights since late March - including 1,500 this week - in response to failed Federal Aviation Administration safety inspections, leaving hundreds of thousands of passengers delayed or stranded.

The cancellations mainly affected customers of American Airlines, which on Wednesday grounded more than 1,000 flights or 45% of its schedule. That translated into between 110,00 and 140,000 stranded passengers, according to company spokesman Roger Frizzell.

The airline expects 900 cancellations Thursday and fewer than that on Friday and Saturday. Frizzell added that the airline hopes to return to normal service late Saturday.

Frizzell said the company is working to accommodate customers on American and on other airlines, and is paying $500 in compensation to passengers who have to stay overnight because of inspection-related cancellations.

Delta also grounded flights in March, and Alaska Airlines grounded flights Tuesday and Wednesday. United Airlines has also cancelled flights due to separate safety concerns in the past month.

The FAA is conducting an industrywide round of inspections of all planes that won't be completed until June 30.

Testing lapses provoke inspections

The issue stems from the discovery that Southwest Airlines (LUV, Fortune 500) flew 46 planes last year that hadn't been subject to timely mandatory safety inspections. The FAA launched its inspection campaign in March. Those inspections found compliance problems with the wire bundling in the wheels of several American Airlines (AMR, Fortune 500) and Delta (DAL, Fortune 500) MD-80 airplanes.

The plane manufacturer's service bulletin says if the wires are not properly secured, they could chafe to the point that they could short circuit and start a fire, according to an FAA spokesman.

As a result of the failed inspections, Delta decided to cancel more than 240 flights on March 27, and American grounded over 450 planes between March 26 and March 27.

But after a second round of inspections, the FAA discovered that some of American's MD-80s still did not meet its air-worthiness directives. In response, American Airlines voluntarily cancelled 495 flights Tuesday and on Wednesday grounded an additional 1,000 planes.

Alaska Airlines (ALK), which passed the initial round of inspections, grounded three MD-80 flights Tuesday and 14 Wednesday in response to a failed inspection in the second round.

The cancellations are not limited to MD-80s. United (UAUA, Fortune 500) grounded 31 Boeing 777s - 11% of its fleet - to test its cargo fire suppression system last week, and it cancelled seven of its Boeing 747 flights in March, though it found no safety-related issues.

American working to help passengers

In total, U.S. air carriers have grounded more than 2,200 flights due to the inspections, 1,950 of which were by American Airlines, the world's largest airline based on miles flown by paying passengers.

American said in a statement that it is working to help grounded or delayed passengers.

"American will do whatever it takes to assist those affected by these flight changes," said American Airlines chief executive Gerard Arpey in a statement. "This includes compensating those inconvenienced customers who stayed overnight in a location away from their final destination."

American also said that it planned to make an announcement Thursday about how it will comply with FAA regulations in the future.

On Wednesday, some passengers found that American's automated toll-free numbers were overloaded when they called to find their flight status or to reschedule.

"We have had very heavy loads on our phones with these conditions," said Frizzell. "It's best if passengers go to aa.com before they call or go to the airport."

But those who booked with travel agents may have been more successful in getting some help.

"We have agents that work on the customers' behalf to rebook their tickets whenever possible," said spokesman Brian Hoyt for Orbitz Worldwide (OWW), parent company of online travel agents Orbitz.com and Cheaptickets.com. "As a partner to the airlines, we can help move passengers that are stuck from point A to point B."

American insisted that there was never a safety concern in the failed inspections, but the FAA said the code still needs to be followed.

"When we issue an air-worthiness directive, it's there for a reason," said FAA spokesman Les Dorr.

The MD-80 is the workhorse of the American fleet. American's Web site says the aircraft accounts for 300 of the airline's fleet of 655 jets. Only 30 MD-80s were in service Wednesday, and American expects about 60 to fly Thursday.

The jet, which debuted in 1980, was built by McDonnell-Douglas, which was purchased by rival Boeing in 1997. Boeing (BA, Fortune 500), which discontinued production of the aircraft in 1999, says American is the largest operator of the aircraft.

--CNNMoney.com's Catherine Clifford contributed to this report To top of page

Features
Markets Last Change
Dow Jones 10,394.26 28.11 / 0.27%
Nasdaq 2,193.45 20.31 / 0.93%
S&P 500 1,105.87 5.95 / 0.54%
10-year Bond 99 4/32 Yield: 3.47%
U.S.Dollar 1 euro = $1.485 -0.021
December 4, 2009 3:32 PM ET
CompanyPrice% Change
Big Lots Inc 27.60 17.25%
OfficeMax Inc 12.54 14.42%
BlueLinx Holdings Inc 2.98 12.03%
Kelly Services Inc 11.48 10.70%
Dec 4 3:23pm ET †
Holiday gifts for the yoga nut These 7 small brands are helping fuel a booming yoga industry. More
Best of the L.A. Auto Show Fuel economy is the name of the game in Southern California. More
Are things really getting better? Last quarter, the economy grew by the largest amount since the summer of 2007, but there are signs that things are still getting worse. More

Sponsors

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.