Analyzing Southwest case

4.  Relevant Stakeholder :
 1. The Federal Aviation Administration ( FAA )
 2. The U.S. Department of Transportation.
 3. The Project on Government Oversight
 4. U.S. House Committee
 5. Suppliers
 Non_Relevant Stakeholder :
 6. Whistle blowers ( Employees ) .
 7. Public
 8. Passengers

5.  1. The Federal Aviation Administration ( FAA )
 _ Pay fines ( several billion USD )
 _ Grounded 44 planes between its Love Field
Dallas and Chicago maintenance facilities.
 2. The U.S. Department of Transportation and
The Project on Government Oversight :
_ Corporate to the checking systems from
general office .

6. THE FEDERAL
AVIATION
ADMINISTRATION (
FAA )
SUPPLIERS
SOUTHWEST
AIRLINES

7. The Federal Aviation Administration ( FAA )
_ Being accused of falsifying a safety report
that provided assurances that the airline had
met compliance rules for safety inspections of
its jets
_ Some FAA supervisors, may have been
complicit in Southwest’s safety lapses.
_ The whistleblowers say the problems stem
from a cozy relationship that developed
between the FAA and Southwest ( Bribery )

8. Suppliers
_ Ineffective oversight : Engine failures occurred in
FY 2003 due to faulty speed sensors on fuel pumps ,
engine failures occurred on the ground and one
occurred in flight .
_ Substandard parts : supplier released
approximately 5,000 parts that were not
manufactured proper
_ Untrained employees to manufacture several
components.

9.  Corporate with inspector general’s office for the
U.S. Department of Transportation. The Project on
Government Oversight to recheck all systems .
 Pay fines to The Federal Aviation Administration (
FAA )
 Increasing by eight the number of on-site technical
representatives the airline has at companies that
perform major maintenance on its airplanes.
 Allowing FAA inspectors improved access to
information used for tracking maintenance and
engineering activities.

10. Seeking
Environmental
Intelligence
Customer
Environment
Competitor
Environment
Geographical
Environment
Technological
Environment
Legal
Environment
Political
Environment Social
Environment
Economic
Environment

11. Customer Environment : being boycotted
Competitor Environment : development of other aviation agency  other choices
to flight instead of Southwet Airlines
Economic Environment : threat of losing business due to falsifying a safety report
Technological Environment : couldn’t verify that their suppliers were providing
effective oversight of the sub-tier suppliers they used to produce parts .
Social Environment : danger to flight passengers .
Political Environment : take advantage of a cozy relationship with FAA to pass laws
Legal Environment : falsifying a safety report , violate compliance rules for safety
inspections , commit bribery .
Geophysical Environment : air crash ( fire ) ( 2009 )