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FAA Needs To Improve Risk Assessment Processes For Its Air Transportation Oversight System

On December 16, 2010, we (the FAA) issued our report on the Federal Aviation Administration’s (FAA) Air Transportation Oversight System (ATOS). FAA uses ATOS to conduct surveillance of nearly 100 airlines that transport more than 90 percent of U.S. airline passenger and cargo traffic. While ATOS is conceptually sound, our prior reports have found that FAA needs to strengthen national oversight of the system. Following safety lapses at a major airline in 2008, the Senate Committee on Science, Commerce, and Transportation and the House Committee on Transportation and Infrastructure asked us to assess weaknesses systemwide. Accordingly, our audit objectives were to determine (1) whether FAA has completed timely ATOS inspections of air carriers’ policies and procedures for their most critical maintenance systems; (2) how effective ATOS performance inspections have been in testing and validating that these critical maintenance systems are working properly; and (3) how well FAA implemented ATOS for the remaining Part 121 air carriers and what, if any, oversight challenges FAA inspection offices face.

While FAA has worked to continuously improve ATOS, we found that FAA inspectors did not complete ATOS inspections of air carriers’ maintenance policies and procedures or systems performance on time. In addition, FAA transitioned all of its Part 121 inspection offices to ATOS at the end of 2007, but–due in part to training gaps–some inspectors for smaller air carriers had difficulty adapting ATOS to those carriers’ operations. We made seven recommendations to FAA to improve its data, training, and risk assessment processes for ATOS. FAA concurred with four of our seven recommendations and partially concurred with three.

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    • $91,000 against Boston Scientific Corporation of Natick, Mass, for allegedly offering a fiberboard box containing medical-grade silicone fluid, a flammable liquid, to DHL for transportation by air from Alajuela, Costa Rica, to Boston Scientific headquarters, Oct. 23, 2009. The shipment was undeclared. DHL employees at its Cincinnati sorting hub discovered the leaking package.
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    • $54,000 against Fragrance Resources, Inc., of Clifton, N.J., for allegedly offering a fiberboard box containing a flammable liquid for transportation by air from Clifton to Ft Lauderdale, Fla., Dec. 23, 2009. The shipment was undeclared. UPS workers at the Louisville sorting hub discovered the package.

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    • $65,000 against Flight Options, LLC of Cleveland, for allegedly offering a fiberboard box containing isopropyl alcohol, a flammable liquid, to UPS for transportation by air from Cleveland to Las Vegas, Sept. 9, 2009. The shipment was undeclared. UPS workers at the Louisville sorting hub discovered the leaking package.
    • $54,000 against the Hammelman Corporation, Dayton, Ohio, for allegedly offering a fiberboard box containing methanol, a flammable liquid, for transportation by air from Pompano Beach, Fla., to Dayton, March 23, 2010. The shipment was undeclared. UPS workers at the Louisville sorting hub discovered the leaking package.

    For further information on the following cases, please contact Kathleen Bergen at 404-305-5100.

    • $58,000 against Kemet Electronics Corporation of Simpsonville, S.C. for allegedly offering a fiberboard box containing silver paint, a flammable liquid, to UPS for transportation by air from Brownsville, Texas to Simpsonville, Aug. 20, 2009. The shipment was undeclared. UPS workers at the Louisville sorting hub discovered the leaking package.
    • $56,000 against MSI Aircraft MTC SVS International, GMBH of Ruesselsheim, Germany, for allegedly offering a fiberboard box containing a fuel control unit, to FedEx for transportation by air from Ruesselsheim to Miami, May 22, 2009. The shipment was undeclared. A fuel control unit containing jet fuel is considered a hazardous material. FedEx employees at Fort Lauderdale discovered the shipment was leaking.
    • $65,000 against Federal Express of Memphis, Tenn., for allegedly accepting a fiberboard box containing an unspecified toxic, corrosive liquid classified as a poison, for transportation by air from Oxford, Ala., to Chino Calif., April 1, 2010. An FAA hazardous materials special agent identified the mislabeled shipment before it could be loaded on an aircraft.
    • $54,000 against Vitacost.com of Lexington, N.C., for allegedly offering a fiberboard box containing a flammable liquid and non-hazardous material for transportation by air from Lexington to Boca Raton, Fla., Jan. 29, 2010. The shipment was undeclared. UPS workers at the Louisville sorting hub discovered the leaking package.
    • $91,000 against Cardinal Health of Madison, Miss., for allegedly offering a fiberboard box containing skin care products containing alcohol, a flammable liquid, to DHL for transportation by air from Madison to St. Thomas, U.S. Virgin Islands, Sept. 11, 2009. The shipment was undeclared. DHL workers at the Cincinnati sorting hub discovered the leaking package.

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    • $54,000 against PSS Medical of Lubbock, Texas for allegedly offering a fiberboard box containing ammonium nitrate, a corrosive material, to UPS for transportation by air from Lubbock to Las Cruces, N.M., Dec. 31, 2009. The shipment was undeclared. UPS workers at the Louisville sorting hub discovered the package while sorting packages for shipment and delivery.

    In all instances, the companies allegedly offered the hazardous material for transportation (or, in the case of Federal Express, accepted it) when it was not packaged, marked, classed, described, labeled or in condition for shipment as required by regulations.

    Companies have 30 days from receipt of the FAA’s notice of proposed civil penalty to respond to the agency.

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