Pursuant to a congressional request, GAO examined Federal Aviation Administration (FAA) inspection of airlines and related aviation activities, focusing on whether FAA: (1) has sufficient information to provide effective oversight of its inspection program; (2) targets its inspection resources to airlines posing the greatest safety risks; and (3) has a system similar to the one developed by the Department of Defense (DOD) to assess the performance of commercial airlines with which it contracts.

GAO found that: (1) FAA lacks complete and accurate information on its inspection program; (2) without such information, FAA cannot determine whether it achieves inspection priorities, conducts adequate and timely follow-up activities, and uses resources effectively; (3) FAA inspectors spent only 23 percent of their time performing inspections instead of the 35 percent required for fiscal year (FY) 1990; (4) FAA required one operations, maintenance, and avionics inspection annually for each airline, but 36 percent of the airlines did not receive the required inspections in FY 1990; (5) although FAA maintains numerous databases on airline-related safety information, it does not inspect airlines on the basis of safety risk; (6) FAA often spent more inspection time on airlines DOD rated as better performers than on poorer performing airlines; and (7) FAA recognizes that a system similar to the DOD system can help FAA better manage its inspection program and hopes to develop and evaluate a prototype system for air carriers by FY 1993.