There are plenty of instances of the FAA not thoroughly regulating certain aspects. Just because COlgan hasn't been shut down doesn't mean corners were (are) not cut.

As for CO cancelling their COntract with them, they probably can't without reasonable cause. Also, remember CO's attitude at the time of the incident -- they at first tried to say they weren't responsible since it wasn't them, and they were so COnfident of that position, they did so publicly.

While we like to hold CO up to a high standard on this board, keep in mind they've been flying around with uncertified Koito seats for years now (knowingly for about a year). While they have a reprieve from the FAA on those for the time being, if they really were so noble and wanted to do the right thing, wouldn't they have replaced them by now? It's been long enough.