FAA Oversight Under Scrutiny After United Airlines Mishaps

Zinger Key Points
  • Government watchdog to audit FAA oversight of United Airlines.
  • FAA restricts United's growth amid ongoing safety review.

U.S. Transportation Department's Office of Inspector General said it is set to audit the Federal Aviation Administration's (FAA) oversight of air carrier maintenance at United Airlines Holdings Inc. UAL.

The watchdog will evaluate the FAA's actions to address maintenance non-compliances and violations at the air carrier. 

This inspection by the inspector general marks the latest in a series of audits evaluating the FAA's oversight of maintenance operations at airlines, including Southwest Airlines Co. LUV and American Airlines Group Inc. AAL.

United Airlines experienced several incidents earlier this year, prompting an FAA review of its operations, reported Bloomberg

These included a wheel detaching after takeoff, a lost fuselage panel mid-flight, and an aircraft skidding off a runway upon landing.

The assistant inspector general for aviation audits, Nelda Smith, emphasized the significance of FAA's oversight of maintenance programs, citing the recent incidents.

Also ReadUnited Airlines To Get Compensation From Boeing Due To Grounding Of 737 MAX 9

The audit will primarily take place at the FAA's headquarters in Washington, DC, and its offices overseeing United Airlines. Additionally, the watchdog will visit maintenance hubs in Chicago, Houston, and San Francisco.

FAA has imposed restrictions on United, prohibiting the addition of new aircraft or service initiation to new cities during the safety review initiated in March.

As part of the evaluation, the FAA has intensified its presence at United's operations, scrutinizing processes, manuals, and facilities. 

Meanwhile, the airline has commenced its own review of the incidents and employee training.

United Airlines stock has gained over 14% in the last 12 months. Investors can gain access to the stock via U.S. Global Jets ETF JETS and IShares U.S. Transportation ETF IYT.

Price Action: UAL shares are trading lower by 0.34% at $52.84 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Photo Courtesy United Airlines

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