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AA Cancels 1,000+ Flights, Apologizes

 CBS News Interactive: Eye On Air Safety

DALLAS (CBS 11 News / AP) ― American Airlines canceled more than 1,000 flights Wednesday, more than one-third of its schedule, as it spent a second straight day inspecting the wiring on its entire fleet of MD-80 jets -- the same issue that caused it to scrub hundreds of flights two weeks ago.

The nation's biggest airline had already canceled 460 flights on Tuesday, stranding thousands of travelers. Federal inspectors found problems with wiring work done two weeks ago, although the airline says passenger safety was never jeopardized.  Despite American's denials, the work is being done following an airworthiness directive by the FAA, which says it issues those instructions when an "unsafe condition exists" or "is likely to exist."

At a news conference Wednesday, several reporters pressed a spokesman for the airline on the question of safety.  He said the airline is conducting the inspections because it did not fully comply with the airworthiness directive, but simultaneously stood by the assertion that the inspections are not a safety issue.

American owns approximately 300 MD-80 jets, all of which it is inspecting.

Airline officials say they hope to have 40% of the MD-80s back in service on Thursday, and 90% by Friday.  The company spokesman would not comment on the number of flights that might be canceled Thursday due to the inspections.

American operates about 2,300 daily flights.  More than one-third use MD-80s, most commonly for midrange flights from hub airports in Dallas and Chicago.

It was American's second bout with mass cancellations in less than two weeks for failing to meet the same wiring rules set by the Federal Aviation Administration, which is cracking down on airlines after admitting its inspectors were too lax last year with Southwest Airlines Co.

Since the FAA began looking more closely at airlines' compliance with safety directives, there have been cancellations at Southwest, Delta Air Lines and United Airlines. The agency levied a $10.2 million civil penalty against Southwest for using 737s that had missed inspections for cracks in the fuselage.

Tim Wagner, a spokesman for American, said an FAA inspector checked several MD-80s Monday and found some of the wiring work performed two weeks ago didn't meet FAA standards. At issue: the spacing and direction of cords used to secure bundles of wires in the planes' auxiliary hydraulic systems.

Beginning Tuesday afternoon, American began yanking planes out of service so that wiring bundles could be inspected and stowed properly in the wheel wells. Gerard Arpey, the chief executive of American and its parent, AMR Corp., apologized for the inconvenience and said the airline was working to comply with FAA orders.

The airline said flight safety was never compromised, but, in an interview with CBS 11 News, AA spokesman Charley Wilson walked off camera when questioned about safety. Click here to read about that interview.

The cancellations and resulting loss of revenue could hardly come at a worse time for American, which is facing high fuel prices and a weakening economy that could hurt demand for travel.

AMR is scheduled to report first-quarter earnings in two weeks, and analysts are forecasting a loss of more than $300 million, according to a survey by Thomson Financial.

Jamie Baker, an analyst with JPMorgan, said in a recent note to clients that he expects airline revenue to decline significantly beginning in the April-June second quarter due to the one-two punch of costly fuel and a possible recession.

At New York's LaGuardia Airport, hundreds of passengers stood in a check-in line. The airline offered free doughnuts, coffee and orange juice, but there were few takers.

Bishop Bernard Jordan, a Harlem minister, was in a first-class line trying to catch a flight to Atlanta, where he was scheduled to preach Wednesday night.

"IIt would have been good to know in advance," said Jordan, who said he has 4 million frequent-flier miles with American and flies to Atlanta every other week. "I would have booked with another airline."

The Fort Worth-based airline said it would put displaced travelers on other American flights or those operated by competitors. Wagner said that because the delays were "within our control" and not weather-related, American was offering meals, lodging and ground transportation to affected travelers.

(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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