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Transportation Secretary Federico Pena got out the budget shears today and proposed deep cuts in his federal department that will save $6.4 billion over five years. Pena proposed collapsing 10 DOT divisions into three, reducing staff 12 percent by 1999 and privatizing several key functions. Under the plan, most of the department would be consolidated into an Intermodal Transportation Administration, which would assume the functions of highway, railway and other transit offices. Air traffic control would handled by a quasi-independent body outside the Department. Legal and accounting duplication would be eliminated. Pena will send a detailed plan by March...

Author: /time Magazine | Title: NO PENA, NO GAIN | 2/2/1995 | See Source »

...American Eagle commuter plane crashed on its approach to Raleigh-Durham International Airport in rainy and foggy weather, killing 15 of the 20 people aboard. The fatal accident was the second in two months for the shaken airline. Trying to allay mounting passenger fears, Transportation Secretary Federico Pena announced that approval of toughened safety standards for commuter flights would be speeded up, but the Federal Aviation Administration said it could take a year to put the new rules in place...

Author: /time Magazine | Title: The Week December 11 -17 | 12/26/1994 | See Source »

...government officials were also becoming increasingly concerned. Last week, after touring the muddy crash site of Flight 3379, Transportation Secretary Federico Pena said that within 100 days, tougher safety regulations for small commuter planes will be formulated. He also announced plans to bring aircraft makers, pilots and other industry members to Washington for an aviation-safety summit. Jerome Lederer, president emeritus of the Flight Safety Foundation, says the airline industry needs to take advice from people in the field: "The airlines express an interest in safety, but the guys in the shops regularly are not consulted." Other experts...

Author: /time Magazine | Title: Air Safety: Under a Cloud | 12/26/1994 | See Source »

...wake of last night's American Eagle crash in North Carolina -- the second commuter airline crash this fall -- Transportation Secretary Federico Pena today declared that such small aircraft have 100 days to meet the same safety standards imposed on larger planes. "We are very troubled by the number of accidents we've had this year," Pena said after visiting the crash site near Raleigh-Durham International Airport. The rule changes -- which follow last month's warning by the International Airline Passengers Association urging fliers to avoid all flights on planes with under 31 seats -- tighten safety inspections, reduce the number...

Author: /time Magazine | Title: EAGLE CRASH . . . FEDS TOUGHEN STANDARDS | 12/14/1994 | See Source »

...Motors that frees the auto maker from recalling five million pickup trucks alleged to be unsafe in some collisions. In return GM agreed to spend about $50 million in safety and research programs. The move is a 180-degree switch by the government: On October 17, Transportation Secretary Federico Pena issued a scathing attack on GM, saying that the trucks -- made between 1973 and 1987 -- present an unreasonable risk of fire in side-impact collisions since their fuel tanks are mounted outside the vehicle's frame. Today, Pena sang a different song: "Proceeding with the recall process would have taken...

Author: /time Magazine | Title: GM OFF THE RECALL HOOK | 12/2/1994 | See Source »

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