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Ans is B for adhering to the 'not only' but also' correlative conjunction parallelism norms.
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The question tests || and the use of subjunctive mood.

To maintain parallelism in idiomatic construction "not only X but also Y" we need: "have not only failed ... but also ignored". We do not need to repeat "have" a second time ("twice inside, once outside" rule)

To follow grammatical usage of subjunctive (BossyVerbs), we need to follow a formula: BossyVerb + THAT + bare infinitive

Quote:
(A) crash, but they have also ignored demands by the pilots union that the investigation should be expedited
- "they" breaks ||, as a verb is not parallel to a full clause
Quote:
(B) crash but also ignored demands by the pilots union that the investigation be expedited
- Correct
Quote:
(C) crash but have ignored demands for expediting the investigation by the pilots’ union
- "have" is excessive, we already have "have" before "not only ... but also" that relate to both vers inside the idiomatic constuction
Quote:
(D) crash, but they are also ignoring the pilots’ union’s demands to expedite the investigation
- Incorrect for same reason as B
Quote:
(E) crash: the demands by the pilots’ union that the investigation should be expedited have also been ignored
- violation of subjunctive "formula"
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I have two doubts here.
1. not only X, but also Y. (I think there should be a comma between the not only & but also)
2. The verb in the OA (B) is not "demands", so is the use of subjunctive verb form after "that" is OK?
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1. not only X, but also Y. (I think there should be a comma between the not only & but also)
That's a very good question shailee09. It seems that GMAT does not really have a position on this.

For example, following two correct official answers:

The psychologist William James believed that facial expressions not only provide a visible sign of an emotion but also actually contribute to the feeling itself.
- Notice there is no comma before but also.

Many policy experts say that shifting a portion of health-benefit costs back to the workers not only helps to control the employer's costs, but also helps to limit medical spending by making patients more careful consumers.
- Notice there is a comma before but also.

In any case, there are very few instances in GMAT where you should ignore/select an option solely based on presence/absence of a comma (a notable exception is a run-on sentence).

Quote:
2. The verb in the OA (B) is not "demands", so is the use of subjunctive verb form after "that" is OK?
The word that triggers the subjunctive (demands in this case) need not always be a verb.

For example:

People complied with the Government's diktat that everyone maintain social distancing.

Again, diktat is not a verb, but triggers subjunctive.
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Thanks EducationAisle for promptly clearing the doubts.

Posted from my mobile device
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