The remaining 134 had no accidents. Nevertheless, they theorized that new airlines may encounter more incidents because their fleets expanded faster than their organizational ability to absorb the growth, train their staff, and maintain their fleets. Long-Standing Problems Limit Effectiveness of FAA’s Inspection Program

To do its job effectively, and because its resources are limited, FAA must target its inspectors to the areas of greatest risk. Our analysis of new airlines over a 5-year period shows that, on average, they experienced higher rates of incidents and FAA-initiated enforcement actions than established airlines, particularly during their early years of operations. FAA’s policies that were in effect during the period of our review did not call for new airlines to be monitored any differently from established airlines, and actual inspection rates varied widely among new airlines—some airlines with high incident and enforcement action rates were being inspected less frequently than airlines with few or no such problems. We believe that these initiatives have the potential to significantly improve FAA’s inspection program, but only if they are effectively implemented. Recommendations

We recommend that the Secretary of Transportation instruct the Administrator of FAA to (1) closely monitor the performance of new airlines, particularly during the early years of operations, and conduct increased and/or comprehensive inspections of those new airlines that experience elevated rates of safety-related problems; (2) evaluate the impact of recent budget reductions on FAA’s critical safety-related functions, including—but not limited to—inspector training, and report the results to the Congress through the appropriations process; and (3) study the feasibility of developing measurable criteria for what constitutes aviation safety, including those airline-specific safety-related performance measures that could be published for use by the traveling public. To address this issue, we focused on three questions: Did new airlines perform differently from established airlines during the 5-year period between January 1, 1990, and December 31, 1994, with regard to accidents, incidents, and enforcement actions? At what frequency does FAA inspect new airlines compared with established airlines? We have long reported on problems with the data in FAA’s safety inspection management system. Aviation Safety: FAA’s Efforts to Improve Oversight of Foreign Carriers (GAO/T-RCED-95-33, Oct. 4, 1994). Aviation Safety: FAA Needs to More Aggressively Manage Its Inspection Program (GAO/T-RCED-92-25, Feb. 6, 1992).
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the safety performance of new airlines having 5 or fewer years of operating experience, focusing on: (1) the frequency with which the Federal Aviation Administration (FAA) inspects new airlines compared with its inspections of established airlines; and (2) FAA efforts to correct long-standing problems that limit the effectiveness of its safety inspection program.

What GAO Found

GAO found that: (1) although data regarding airline accidents and FAA incident and enforcement actions require cautious interpretation, it appeared that, for the review period of 1990 through 1994, new airlines had higher rates of accidents, incidents, and FAA enforcement actions than established airlines during their early years of operations; (2) FAA officials theorized that new airlines may experience more incidents because their fleets expand faster than their ability to absorb growth, train staff, and maintain fleets; (3) FAA national inspection guidelines that were in effect during the review period did not target new airlines for increased surveillance; (4) no clear pattern in the inspection rates distinguished airlines with relatively high rates of incidents and enforcement actions from those that had few or no problems; (5) FAA aviation safety inspection program shortcomings include insufficient inspector training, inadequate aviation safety databases, and the need to improve the oversight of aging aircraft; (6) FAA actions to better target its inspection resources to areas with the greatest safety risks remain incomplete; and (7) initiatives to accelerate the hiring of safety inspectors, strengthen FAA data collection and tracking systems, review FAA inspection operations, and conduct a safety review have the potential to significantly improve the efficiency and effectiveness of the FAA safety inspection program.