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

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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  1. Business Strategy Colgan Airlines Flight 3407 McKenna Leadership CenterSchwartz School, St. F. X. UDr. Mahaffey

  2. 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

  3. 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?

  4. 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?

  5. 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?

  6. Who is responsible? ….Pinnacle • Wholly owned subsidiary • Recently acquired …. In transition

  7. 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?

  8. Corporate Governance • The Board of Directors metrics • The Chief Executive priority/resource • The management team enforcement • Employees accountability confrontation • Auditors risk recognition • Regulators resource, risk, enforcement • Congress resources, mandate

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