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The Crash of Cougar Flight 491: A Case Study of Offshore Safety and Corporate Social Responsibility

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Abstract

On March 12, 2009, a Sikorsky S-92A helicopter travelling to two offshore oil installations crashed into the sea about 55 km away from the coastal city of St. John’s in Newfoundland and Labrador (NL), Canada. It sank quickly with the loss of 17 lives. There was one survivor. The article examines the circumstances of the crash to assess the effectiveness of an instrumental, business case for safety and, by extension, for corporate social responsibility (CSR). The article fills a gap in the business and the management literature by adopting a qualitative, case study methodology to complement earlier, predominantly quantitative research. The study analyzes a comprehensive set of documentary data available from the offshore regulator’s public inquiry website, including many days of verbatim testimony from the industry, the union, regulators, investigators, the lone survivor and families of the deceased, in addition to written submissions and expert reports. Investigatory reports from the Transportation Safety Board of Canada and the NL Inquiry were analyzed, as were regulatory documents and media coverage. Although offshore safety has improved since the Ocean Ranger disaster in 1982 (Wells http://www.cnlopb.nl.ca/ohsi_phase_one.shtml, 2010), the empirical evidence in this case study adds to our understanding of how reliance on a voluntary, instrumental business case for CSR in the absence of a normative concept of CSR is likely to fail, largely because of the existence of a powerful tension between oil exploration and production and investment in safety.

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Notes

  1. Lori Chynn, widow of John Pelley, at a press conference, Ottawa (Wells 2011, Appendix I, p. 216). In July 2011, she said during a media interview “I just feel that once again we’re saying money is trumping safety. Safety is taking a back seat to the bottom line which is cost, and that’s unfortunate when you’re talking about people’s lives” (Tutton 2011, p. 2).

  2. Parties of full standing were the three oil operators offshore at the time of the crash; the NL helicopter operator, Cougar Helicopters; the Communication, Energy and Paperworkers’ Union, Local 2121 (CEP); the NL Government; the families of deceased passengers and of the flight crew; and the survival training organization, the Marine Institute at Memorial University in St. John’s (Wells 2010, p 47).

  3. From now on, unless otherwise noted, all references to the TSB will be from their report dated 2010.

  4. “Cold shock is a reflex response causing an initial gasp and an inability to control breathing for the first few minutes of immersion in cold water” (Coleshaw 2010, p. 3). Hyperventilation, involuntary water intake, dangerously high levels of heart rate with the possibility of cardiac arrest or arrhythmia, are other characteristics (TSB, p. 33).

  5. In September 2010, Cougar and their insurers sued Sikorsky for misleading claims about the S-92’s 30-min run dry capability, alleging that the pilots of Cougar flight 491 acted properly in attempting to fly back to land within 30-min flying time, when there was catastrophic failure of the MGB and immediate loss of control of the helicopter (Baird 2010; Huber 2010; Problems Seen Before Fatal N.L. Chopper Crash: Investigator 2011). This law suit is ongoing, having being mired in a dispute over whether the case should be heard in the US or in NL, Canada. Families of the deceased passengers and the lone survivor had earlier filed a lawsuit against Sikorsky, also alleging false claims about the helicopter’s safety, and that the corporation knew about the problems with the MGB yet still marketed the S-92 as “the safest helicopter in the world” (Suit Over Deadly Helicopter Crash Settled 2010; Moore 2011).The settlement with the families occurred shortly after the Inquiry began, in January 2010 and was confidential.

  6. On the day of the crash the federal government SAR helicopters were all away from their base in Gander, NL, on a training mission in the province of Nova Scotia. The standing arrangement was that Cougar would provide standby SAR services in their absence.

  7. According to the CNLOPB, construction of the Hebron platform will take from 2012 to 2015, which is even shorter than CEP Counsel’s estimation, with first oil anticipated in 2017 (Baird 2011). Thus, it will take 3 years to build and 5 years from the project beginning to the production of oil.

  8. The TSB (2011c) noted the need for the FAA to understand the extreme climate in current and future offshore developments, including NL, when they assess the adequacy of a 30-min run dry capability.

  9. For a full account of safety improvements by industry made since the crash, see Wells (2011, pp. 16–38) and TSB (2010, pp. 142–147).

  10. There is some evidence for this view. For example, the “Sikorsky S-92A program was formally announced at the Paris Air Show in 1995. From the first announcement, the new design was promoted as providing unprecedented levels of safety and reliability (TSB, p. 104)”. According to Sean Coyle, former test pilot and helicopter safety expert, the S-92A was billed by the FAA as “the safest helicopter in the world” (CBC, The Fifth Estate, n.d.).

Abbreviations

AD:

Airworthiness Directive

AFT:

Auxiliary fuel tank

ASB:

Alert Service Bulletin

CAPP:

Canadian Association of Petroleum Producers

CNLOPB:

Canadian-Newfoundland and Labrador Offshore Petroleum Board

CBC:

Canadian Broadcasting Corporation

CEP:

Communication, Energy and Paperworkers’ Union Local 2121

CSR:

Corporate Social Responsibility

EBS:

Emergency Breathing System

EFS:

Emergency Flotation System

ELT:

Emergency Location Transmitter

EASA:

European Aviation Safety Agency

FAA:

Federal Aviation Administration

HMDC:

Hibernia Management and Development Company Ltd

HUMS:

Health and Usage Monitoring System

HUET:

Helicopter Underwater Escape Training

JOP:

Joint Operators’ Panel

JOSH:

Joint Occupational Safety and Health Committee

MGB:

Main gearbox

NL:

Newfoundland and Labrador

NLFL:

Newfoundland and Labrador Federation of Labour

PLB:

Personal Locator Beacon

SAR:

Search and rescue

TSB:

Transportation Safety Board of Canada

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    Susan M. Hart

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Hart, S.M. The Crash of Cougar Flight 491: A Case Study of Offshore Safety and Corporate Social Responsibility. J Bus Ethics 113, 519–541 (2013). https://doi.org/10.1007/s10551-012-1320-8

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