Emery fined $6M in cargo case

 

Pilots not told hazardous materials on board

 

By Wes Hills

Dayton Daily News

 

Saturday, December 20, 2003

 

DAYTON -- Emery Worldwide Airlines Inc. was ordered Friday to pay a $6

million fine for flying hazardous materials on its airplanes without properly

notifying pilots.

 

Chief U.S. District Judge Walter H. Rice also placed Emery on three years

probation during which it must remain in compliance with efforts to prevent

future violations.

 

"Today's sentencing sends a strong message that this administration is

focused on reducing the potentially severe consequences of a hazardous

materials incident," said Tom Sansonetti, Assistant Attorney General for the

U.S. Justice Department's Environment and Natural Resources Division.

 

Roger Makley, an attorney for Emery, declined comment after the sentencing.

 

Rice noted that Emery has no record of prior misconduct and that there's "no

question in anyone's mind this defendant will be vigilant from this time

forward."

 

Emery pleaded guilty Sept. 30 to 12 criminal charges that it violated

shipping laws. Rice ordered Emery pay a $500,000 fine on each charge.

 

At the time Emery entered its plea, U.S. Attorney General John Ashcroft said

it was part of a new initiative to crack down on illegal shipments of

hazardous cargo that could lead to accidents or be used by terrorists to

mount attacks.

 

"With the sheer amount of hazardous materials being shipped on our nation's

transportation infrastructure," Ashcroft said, "we must track down and bring

to justice those who violate our transportation laws."

 

The federal investigation followed Dayton Daily News reports in June 1999

that Emery supervisors had warned of dangerous practices with hazardous

materials and a pattern of violations spanning two years.

 

 

 

 

CNF Inc., Emery's parent, has said the plea came after Emery "had previously

remedied its faulty procedures that were of concern to the government."

 

Rice noted that after Emery changed its computer system in August 1999, the

number of hazmat shipments moved without pilot notification "became

negligible."

 

The violations involved Emery's North American freight hub at Dayton

International Airport and its Dayton-based cargo airline, which ceased

operations in August 2001. The hub and airline companies are units of Palo

Alto, Calif.-based CNF Inc., a global freight company with $4.8 billion in

revenues last year.

 

Rice noted Emery now has "just a handful of employees."

 

Among the hazardous materials listed in the violations were explosives,

flammable liquids and aerosols, sulfuric acid and automobile air bags. The

FAA said the violations occurred between October 1998 and July 1999.

 

Pilots wouldn't have been able to respond to an on-board fire or spill because they were not notified of the hazardous cargo.

 

The most serious allegations, detailed in memos by hazardous materials

Supervisor Debbra O. Bullock, described hundreds of shipments of hazardous

materials without documentation or pilot notification and shipping materials

not permitted in Emery's air cargo system.

 

"With this case, we have taken a great step forward in protecting the safety

of the people involved in the cargo transportation industry," said Gregory G.

Lockhart, U.S. Attorney for the Southern District of Ohio. "Other companies

in the industry are aware of these proceedings and should learn from the

mistakes of Emery."

 

In the late 1990s, Emery's Dayton hub processed about 2,500 tons of freight

daily, about 3 percent -- 75 tons a day -- involving hazardous materials or

what the air-freight industry calls dangerous goods. These included

explosives, flammable liquids, toxic substances, radioactive materials and

biomedical products.

 

 

 

 

The hub's freight volume today is about half of what it was then, CNF

spokesman Jim Allen said recently.

 

In September 2001, a month after it grounded its airline under pressure from

the FAA, Emery agreed to pay a $1 million fine in a consent agreement aimed

at resuming operations. Emery had grounded its fleet of DC-8 and DC-10 cargo

jets and furloughed about 800 employees after the FAA threatened to revoke

its operating certificate on allegations of more than 100 safety violations.

 

In December 2002, Emery reorganized its Emery operations under the current

Menlo Worldwide, a CNF unit.

 

Contact Wes Hills at 225-2261.