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Business Strategy Colgan Airlines Flight 3407. McKenna Leadership Center Schwartz School, St. F. X. U Dr. Mahaffey. What Happened?. CO*3407, operated by Colgan Airlines (which is owned by Pinnacle Airlines) crashed on approach to BUF All 49 customers and crew members lost

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McKenna Leadership Center Schwartz School, St. F. X. U Dr. Mahaffey

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Business Strategy

Colgan Airlines Flight 3407

McKenna Leadership CenterSchwartz School, St. F. X. UDr. Mahaffey


What Happened?

  • CO*3407, operated by Colgan Airlines (which is owned by Pinnacle Airlines) crashed on approach to BUF

  • All 49 customers and crew members lost

  • Investigations conclude cause of accident is “pilot error”

  • Contributing factors

    • Fatigue

    • Training

    • Experience

    • Selection/screening


Who is responsible?

  • Pilots? (if yes, which one?)

  • Colgan Airlines Management

    • (if yes who:

      • Board

      • CEO

      • VPs of Safetyand/or Operations

      • VP of Flight?

      • Other pilots?

  • Pinnacle Airlines?

  • Continental Airlines?

  • FAA?


Who is responsible?...Pilots

  • Are they responsible for being “fit to fly?”

  • Is low pay an excuse for negligence?

  • Was it all the captains fault?

  • Did the First Officer help or hurt the situation?

  • Should other pilots have spoken up about this crew’s lack of preparedness?

  • Should the Captain have allowed the FO to fly when sick and exhausted?


Who is responsible?....Colgan

  • Is Colgan Airlines Management responsible for safety of its flights?

    • Does that include individual negligence on part of employees?

  • Was there a good safety culture?

  • Were the priorities right?

  • Did they have adequate safeguards in place?

  • Does the Board of Directors bare a portion of the blame?


Who is responsible? ….Pinnacle

  • Wholly owned subsidiary

  • Recently acquired …. In transition


Who is responsible? . . . Continental Airlines?

  • Owner of the Brand

  • Seller of the ticket

  • Contract customer of the capacity purchase agreement

  • If yes, who at Continental?


Corporate Governance

  • The Board of Directorsmetrics

  • The Chief Executivepriority/resource

  • The management teamenforcement

  • Employeesaccountability

    confrontation

  • Auditorsrisk recognition

  • Regulatorsresource, risk, enforcement

  • Congressresources, mandate


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