Story ID: 116
Alaska's Medallion Program To Shutter
By: Kerry Lynch
Caption: The foundation cited funding shortfalls and concerns that its programs are poised to create potential liability issues for participants.
Word Count: 478
The Medallion Foundation, which was established in 2001 to foster aviation safety in Alaska, closed its doors on September 15, citing funding shortfalls and concerns that its programs are poised to create potential liability issues for participants. Originally funded largely through government grants thanks to the late Alaskan Sen. Ted Stevens, the Medallion Foundation hosted a range of safety programs for Alaska fixed- and rotary-wing aircraft operators and cruise ships.

One of its key aviation programs had been its voluntary Shield Program designed to help incorporate safety management systems and focus on key cornerstones, including avoiding controlled-flight-into-terrain, operational control, maintenance and ground services, safety culture, and internal evaluation. Medallion also provided audits, an aviation safety action program (ASAP), crew-resource management training, and a range of other training courses, including with simulators and trainers stationed throughout Alaska.

Executive director Jerry Rock confirmed the plan to cease operations and sell or dispose of the simulators by the middle of last month, saying, “The FAA continues to make reductions to our budget and use Medallion as more of an enforcement tool. The [board of directors] made a hard decision in choosing not to allow that to happen.”

Rock specifically said it received $300,000 less than was originally committed to funding. The cruise ship industry, which uses Medallion for safety audits and passenger video safety briefings, isn’t “happy” with the decision.

Aside from funding, a key concern Rock cited was the FAA “for the first time ever is going to make Medallion report monthly any issues we find at our carriers. Thus, if they know of a problem, by law they must investigate.” Participating carriers hold themselves to higher standards, he said, adding, “If they are going to be accountable for issues during an audit that isn’t regulatory, it creates a liability.”

As far as safety issues, he pointed to the foundation’s “TapRoot” program, which provides root-cause analysis and corrective actions to deal with those programs.

The decision to close down came in advance of the National Transportation Safety Board's (NTSB's) roundtable discussion on September 6 addressing Part 135 safety issues in Alaska. At the request of the board, Rock said, Medallion did not participate.

“With accidents at a 10-year high, it’s not good that Medallion is closing down,” Rock added.

The FAA did not comment on the move, but agency officials during the NTSB hearing said they were searching for new homes for the simulators that provided critical training to Alaskan operators. Meanwhile, operators at the hearing appealed for organizations to take over the key safety programs such as ASAP.

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