Wednesday, August 31, 2011

Regulatory Capture Avoidance

On August 19, the FAA announced a new rule restricting the capacity in which carriers may employ former FAA safety inspectors for two years after those inspectors leave the agency (FAA press release available here). Creation of this rule was undoubtedly motivated by the 2008 scandal in which FAA inspectors were found to have allowed carriers to avoid aircraft inspection requirements. While less controversial than the passenger protection rules that went into effect the following week, this rule is aimed at a problem that is arguably more important. It is a welcome development that should benefit the agency, the industry and the public.

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