Perspectives on Various Issues of Interest

This Job Stinks

Detonating Brand New Cars

About two years ago, a ship carrying 4,703 shiny new Mazdas nearly sank in the Pacific. The freighter, the Cougar Ace, spent weeks bobbing on the high seas, listing at a severe 60-degree angle, before finally being righted.

Although the cars remained safely strapped down throughout the ordeal the degree of damage could not be ascertained, especially given that the cars were dangling at a steep angle for a long period of time. Issues such as corrosive fluids seeping into chambers where they don't belong, air-bag failing to fire properly due to overexposure of salty sea air, were of major concern. Incidentally, there were several takers for these vehicles, given that the price would be much lesser.

However, given the safety issues and also the possibility of potential scammers (as happened in the so-called "Katrina cars" salvaged from New Orleans' flooding three years ago) Mazda decided to destroy  $100 million worth of factory-new automobiles. However, even destroying them was not a simple matter and it took almost a year to devise a plan that almost was akin to a disassembly operation. The city of Portland wanted assurance that nearly 5,000 cars' worth of antifreeze, brake fluid and other hazardous goop wasn't mishandled. Insurers covering Mazda's losses wanted to be sure the company wouldn't resell any cars or parts -- thereby profiting on the side. So every steel-alloy wheel has to be sliced, every battery rendered inoperable, and every tire damaged beyond repair. All CD players must get smashed.

Most of the cars have six airbags, and discharging them individually (forcing them to inflate so they can't be resold) takes about five minutes apiece -- or a total of a half-hour per car. So engineers back at Mazda's headquarters, in Hiroshima, fashioned a device that can discharge all six at once. Multiplied by 4,703 cars, that trick alone saved months of work.

The overall process of destroying the cars begins when longshoremen take the cars from the freighter and drive them to a nearby lot where the airbags get destroyed. A forklift next piles the cars onto trailers for a brief ride to Pacific Car Crushing. There it takes about 45 minutes to prepare each Mazda for flattening. Steel-alloy wheels are sliced with high-power saws to make sure they won't be resold. Holes are drilled into every tire. The cars get placed into a crusher that applies 25,000 pounds per square inch of pressure, flattening them into colorful slabs. Next, they were moved to Schnitzer Steel, a salvage yard down on the waterfront that's home to an immense metal grinder. "You turn 7,000-horsepower hammers loose on them, and they're eaten in 10 seconds," says Jamie Wilson, Schnitzer's manager. The freighter takes the scrap back to Asia where it will get recycled.

Source: Millman, J. "A Crushing Issue: How to Destroy Brand-New Cars." Wall Street Journal, April 29, 2008.

Airline Industry's Strategy to Reduce Wait Times

The U.S. Bureau of Transportation Statistics reports that 163 flights waited three hours or more to take off after they left a gate in January and February this year, down 37% from the same months in 2007. This data however does not include flights that had wait at airport after being diverted or after arriving an airport. Incidentally, according to FlightStats.com during this time period the flight cancellations rose 29% to 47,224.

The operations of airline industry are highly dependent on uncertainties caused by weather, air-traffic controllers, and the airline's own prowess and staffing. Given the tight economic condition that airline industry is going through (i.e. bare-bones staffs, tightly scheduled airplanes and crews, and full planes) the flexibility in terms of few extra planes, pilots, flight attendants, fuelers, lavatory service trucks, baggage handlers, catering or gate agents to skillfully, quickly handle delayed flights is largely unavailable. Accordingly, to cope with customer outrage associated with delays airlines find it much better to cancel a flight to avoid massive disruption rather than operate a flight in an unfavorable condition.

The problem of delays still exist. For instance, on Feb. 12, 46 planes waited more than three hours to take off after pushing back from gates. Almost all were stuck at New York and Philadelphia airports, where a snowstorm hit. Three flights leaving New York's Kennedy International Airport were stranded for more than five hours before taking off.

Airports decided they had to develop their own response plans. The Metropolitan Washington Airports Authority and Dallas-Fort Worth International Airport, among others, say they monitor flight status on their own and contact airlines about long-sitting flights to offer aid. Airports have buses and remote gates at the ready to evacuate passengers. In Dallas, for example, the airport now makes a six-gate satellite terminal abandoned by Delta Airlines Inc. available for airlines to get people off planes when all their own gates are occupied by aircraft. Airports say they provide cots, pillows and blankets to stranded customers, along with diapers, baby formula and other essentials. And several airports have struck deals with concession companies to keep restaurants and stores open all night when terminals are housing distressed travelers.

Airlines on their part are working on systems that can track flights left sitting on the tarmac and can give high priority to long-delayed aircraft. They also promise snacks and water to passengers left sitting for more than a couple of hours, and have procedures to more quickly clean and service aircraft toilets. Most airlines also say they will try to return flights to gates and let passengers off after three or four hours, depending on the carrier.

Passenger-rights advocates have been pushing for legislation that would require airlines to provide essential services to stranded aircraft and even force airlines to unload planes after prolonged sitting so travelers could make other plans and have access to food and shelter. A bill approved by the New York state legislature was overturned in court on grounds that air transportation is under the purview of the federal government, not individual states. A "Passengers Bill of Rights" is being pushed by some in Congress, but hasn't received broad support.

Airlines on their part seem to be working towards a better system. As an example, on March 18th due to severe thunderstorms in Dallas-Fort Worth area 134 American flights were diverted to other airports and thousands of passengers were stuck onboard planes waiting to take off or in American's terminals. Inside the airline, a conference call was left open for hours so anyone at American, its regional unit American Eagle or the various airports could raise a concern, said Mark Mitchell, American's managing director of customer experience. American moved to cancel flights early so customers were less likely to be put on aircraft that wouldn't take off. Canceling early also lessens the chance that airplanes and crews will be scattered out of position, making it easier for the airline to get back on schedule after storms pass.

Since some serious delay issues in 2006, American has built new software tools to better monitor taxi-out times for flights that have left the gate and are waiting to take off. The airline also gave its dispatchers and operations staff tools to better monitor aircraft that divert to unscheduled fueling stops. And it implemented a rule internally that it will try to get people off airplanes if they've been sitting for four hours.

Source: McCartney, S. "Airlines Address Long Wait - Sort Of" Wall Street Journal, April 29, 2008