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US proposes to fine Southwest Airlines $12M

By WTOP Staff

JOAN LOWY
Associated Press

WASHINGTON (AP) — The Federal Aviation Administration said Monday it is proposing a $12 million civil fine against Southwest Airlines for failing to comply with U.S. safety regulations related to repairs on Boeing 737 jetliners.

It is the second-largest fine the agency has proposed against an airline. The largest proposed fine was against American Airlines for $24.2 million in August 2010. That one was ultimately settled for $24.9 million as part of American’s bankruptcy proceedings, although the final settlement included other safety violations not part of the original proposal.

The FAA said that beginning in 2006 Southwest made “extreme makeover” alterations to eliminate potential cracking of the aluminum skin on 44 jetliners. An FAA investigation determined that Southwest’s contractor, Aviation Technical Services Inc. of Everett, Washington, failed to follow proper procedures for replacing the fuselage as well as other work on the planes, the agency said. All of the work was done under the supervision of Southwest, which was responsible for seeing that it was done properly, the FAA said.

Southwest, which is based in Dallas, then returned the planes to service in 2009 and began flying them even after the FAA “put the airline on notice that these aircraft were not in compliance” with safety regulations, the agency said.

During its investigation, the FAA also found that Aviation Technical Services’ workers applied sealant beneath the new skin panels but did not install fasteners in all of the rivet holes fast enough for the sealant to be effective.

“This could have resulted in gaps between the skin and the surface to which it was being mounted. Such gaps could allow moisture to penetrate the skin and lead to corrosion,” FAA said.

The contractor also failed to follow requirements to properly place the planes on jacks and shore them up while the work was being performed, the FAA said. If a plane is shored improperly during skin replacement, the airframe could shift and lead to subsequent problems with the new skin.

The FAA also said that Southwest failed to properly install a ground wire on water drain masts on two of its Boeing 737s in response to a safety order aimed at preventing lightning strikes. The planes were each operated on more than 20 passenger flights after Southwest Airlines became aware of the discrepancies but before the airline corrected the problem, the agency said.

“The FAA views maintenance very seriously, and it will not hesitate to take action against companies that fail to follow regulations,” said FAA Administrator Michael Huerta.

Southwest Airlines has 30 days to respond to the proposed fine. Usually FAA officials negotiate extensively with an airline in cases of large fines before settling upon an amount. However, regulators and airline officials sometimes are unable to reach an agreement and the airline contests the fine.

Brandi King, a spokeswoman for Southwest, said the airline will “respond to the FAA allegations” in accordance with the agency’s procedures.

“Having fully resolved the repair issues some time ago, none of the items raised in the FAA letter affect aircraft currently being operated by Southwest Airlines,” she said. “As always, Southwest is committed to continuously making enhancements to our internal procedures, as well as improvements related to oversight of our repair vendors.”

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Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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