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(click to enlarge)
Gerard Arpey, American Airlines chairman and chief executive
Associated Press  (click to enlarge)
A passenger checks the flight status monitors Wednesday at a the Dallas-Fort Worth International Airport in Grapevine, Texas. American Airlines canceled 1,094 flights Wednesday, more than one-third of its schedule, as it spent a second straight day inspecting the wiring on its Boeing MD-80 jets.
 
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Mike Benbow, Business Editor
benbow@heraldnet.com
 
Published: Thursday, April 10, 2008

Cancellations hit American Airlines

The nation's largest airline could scratch another 900 flights today as it struggles to fix faulty wiring on its Boeing MD-80 jets.

DALLAS -- Business trips and vacations were disrupted for tens of thousands of travelers Wednesday as American Airlines canceled almost 1,100 flights -- nearly half its schedule -- to fix faulty wiring that could cause a short-circuit or even a fire and explosion.

The airline said it expected to cancel 900 more flights today.

It was the latest -- and largest -- in a wave of cancellations at major U.S. airlines that have caused long lines at ticket counters and made flying even more stressful than usual.

Executives at American said safety was never compromised, and they suggested the nation's biggest airline was the victim of suddenly stepped-up scrutiny by federal regulators.

American estimated that more than 100,000 travelers were booked on Wednesday's 1,094 canceled flights. Many had to scramble to book new flights and were stranded at hotels far from home.

The airline had already scrubbed 460 flights on Tuesday after federal inspectors found problems with wiring work done two weeks ago, during the first set of shutdowns.

A top executive said the cancellations would be a "significant" cost to American, and shares of parent AMR Corp. fell 11.1 percent, down $1.15 to $9.17.

The issue stems from an order that the Federal Aviation Administration gave airlines in September 2006 -- and gave airlines until last month to meet -- about the bundling of wires in the backup power system for the fuel pump of the Boeing MD-80 airplanes. The fear is that improperly bundled wires could rub, leading to an electrical short or even fire. However, no serious incidents have been blamed on the bundles, the FAA said.

American officials thought they had fixed the problem last month. But this week, FAA inspectors found problems with the work done on more than a dozen planes. American said it had no choice but to ground all 300 of its MD-80s to deal with the wiring bundles.

American operates about 2,200 daily flights, more than one-third with MD-80s. Nearly half the cancellations were concentrated at two airports, in Dallas and Chicago.

At New York's LaGuardia Airport on Wednesday, hundreds of passengers stood in check-in lines or milled about, using cell phones to get updates on their flights. The airline offered free doughnuts, coffee and orange juice, but there were few takers.

"They should be able to predict these kinds of things," said Laura Goodman, whose flight home to Dallas was canceled. She said would miss an important meeting because the airline couldn't rebook her until today.

New Yorker Michelle Soss had hoped to steal a few days in Albuquerque, N.M.

"I covered my kids' schedules, I covered my work schedule to get away for a few days," she said. "I don't know if I'm getting anywhere."

American's cancellations came after similar delays at Southwest, Delta and United. Last week, hundreds of travelers were marooned when Aloha Airlines and ATA Airlines shut down and filed for bankruptcy protection.

Alaska Airlines said Wednesday it canceled 14 flights to inspect the wiring on its nine MD-80s.

For travelers, the bad news might not end today either. Daniel Garton, American's executive vice president, said cancellations could extend into Friday.

A return to normal operations depends on how quickly mechanics can inspect and fix the wire bundles. Airline spokesman Tim Wagner said late Wednesday afternoon that 60 jets had been cleared to fly, 119 were being worked on, and 121 had not yet been inspected.

Garton acknowledged that the bundling of wires had not met FAA standards, but he said "these were not huge errors" and posed no threat to safety. He said the agency used to give airlines "latitude" in interpreting safety regulations, but no longer.

The FAA began looking more closely at airlines' compliance with safety directives in recent weeks, after it was criticized for letting Southwest operate planes that had missed inspections for cracked fuselages.

In the past few weeks, the FAA levied a $10.2 million penalty against Southwest and conducted new inspections at all U.S. airlines, leading to flight cancellations at Southwest, Delta and United.

FAA spokeswoman Diane Spitaliere said inspectors found problems with the wiring bundles at 15 of 19 American MD-80s that it checked this week.

The 2006 safety order from the FAA directs airlines in how to pack and stow wiring to a hydraulic pump in the wheel well to prevent the wires from rubbing together.


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