Southwest Grounds 44 of its Boeing-737 Fleet

GG Staff | 03/12/2008 - 16:28 | Add new comment

World's largest discount carrier cancels 4% of flights

Fast on the heels of Southwest's possible incestuous relationship with the FAA, 8% of the entire fleet was grounded today. And shares hit a record low in more than 4 years. Things aren't looking so good for the airline giant.

Southwest Flights GroundedSpokesperson for the airline, Ashley Rogers, said the twin engine Boeing 737s weren't taken out of service because of structural damage, but didn't elaborate.

Southwest is battling a $10.2 million fine by the FAA for using unsafe planes to fly commercial flights. It's not known whether any of the 44 planes grounded were part of that initial group of planes that operated for months without inspection. Yesterday the airline suspended 3 employees and hired an outside investigator to look into the FAA claims.

Whistleblowers say the planes weren't inspected properly because taking aircraft out of service for repairs would have interfered with Southwest's flight schedule. James Oberstar, committee chair for the investigation says this is "one of the worst safety violations" he has ever seen.

Southwest shares fell 84 cents, or 6.8% to $11.56 at 3:08 pm at the New York Stock Exchange composite trading. Beth Harbin, spokesperson, said the company is being "extra cautious" now.

It's a little late to be extra cautious, but we do appreciate the effort, Ms. Harbin.

Would you fly Southwest right now?

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Southwest Grounds 44 of its Boeing-737 Fleet