QNH and INS on a TAF?

Where's the danger? For all but a few airports, the altimeter will indicate higher than your actual height above MSL, so you'll still be clearing the obstacles.

Does anybody know why AAL decided to use QFE? I could never understand the logic behind it, especially when their airplanes had radio altimeters.

Read all about it. In relevant part as to "why" (40-41):
During descent and prior to arrival at the final approach fix (FAF), AAL procedures require the flightcrew to use the standby altimeter with the QNH setting for intermediate air traffic control or approach plate directed level-offs. According to AAL procedures, upon arrival at the FAF, the flightcrew should begin using their primary altimeters which are set QFE. If a missed approach is commenced, the flightcrew should revert to the standby altimeter (QNH) for altimeter information.

According to many AAL flightcrews, one advantage of the QFE system over the QNH system is the standardization of approaches with regard to altitudes seen by flightcrews from the FAF until landing. This is especially true, they said, during ILS approaches that usually have minimum altitudes of 200 feet above the ground. Most approaches flown by AAL flightcrews are ILS approaches. Regardless of the field elevation above sea level, flightcrews become accustomed to using 200 feet above the ground as a minimum altitude. Each approach, no matter what the airport elevation, will appear the same to flightcrews, concerning minimum altitude.

Form your own judgments...I understand the want to standardize, but nonprecision approaches don't lend themselves to making all approaches look the same.
 
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