Airline groundings end, but U.S. scrutiny tougher

By John Crawley

WASHINGTON (Reuters) - U.S. airlines can expect tougher safety scrutiny, but the worst disruptions from a government crackdown appear to be over, for now, following two weeks of aircraft groundings and mass flight cancellations.

With American Airlines running a normal schedule on Sunday after putting down 300 MD-80s and cancelling more than 3,000 flights last week to reinspect and resecure wiring, and rivals having sidelined planes for similar or other problems since mid-March, the immediate shakeout driven by the Federal Aviation Administration (FAA) appears to have run its course.

The FAA is still investigating a handful of airlines for possible lapses in maintenance as part of an unprecedented industrywide review of compliance with its safety orders. But preliminary results of the audit, a response to congressional and other assertions this spring of some industry indifference to compliance and ineffective agency oversight, show 99 percent adherence, the agency said.

"Based on the high compliance we saw, we're optimistic we're not going to see problems like this again," FAA spokeswoman Laura Brown said.

FAA officials expressed public concern about compliance with a 2006 MD-80 wiring order. The agency worried improperly safeguarded wheel-well wires could be damaged over time and trigger an electrical short, possibly igniting a fire. American twice failed to satisfy FAA requirements on this issue.

Delta Air Lines Inc and Alaska Air Group grounded planes and canceled flights to address MD-80 wiring, but they, too, have addressed FAA concerns, both said.

American and Delta, with 130 MD-series planes, comprise the bulk of MD-80 flying by U.S. carriers. Alaska is phasing out the planes and has just a handful in service.

Groundings, political pressure, and a proposed record FAA fine of $10.2 million against Southwest Airlines Co in March for missing structural inspections have jolted an industry already losing altitude due to financial pressures.