MIAMI – The Federal Aviation Administration (FAA) has announced that Boeing will be required to pay US$5.4m in penalties for “failing to meet its performance obligations” from a 2015 agreement.
In addition, Boeing will have to pay US$1.21m to settle pending enforcement cases. The cases allege that Boeing failed to follow mandatory quality control practices in its development of aircraft. A different case against Boeing alleges that the company pressured or interfered with ODA (Organization Designation Authority) members.
The FAA-approved ODA program allows Boeing to act and perform functions on behalf of the FAA. The case stipulates that managers at Boeing’s South Carolina put pressure on FAA designees. Despite this, the FAA stated that the ODA members were able to effectively execute their responsibilities to assess aircraft for airworthiness certification.
Furthermore, a separate case, costing Boeing US$5.4m, states that Boeing failed to change its internal processes and practices to prioritize regulatory compliance.
This is the latest of a series of tumbles for Boeing, whose sound reputation in the industry has been marred by its two most recent aircraft programs, the 787 Dreamliner and the 737 MAX.
The latter has been under the spotlight after two fatal crashes, which caused the grounding of the type worldwide for over 18 months, and cast doubts about the business practices of the Chicago-based airframer.
FAA Administrator Stevee Dickson said, “Boeing failed to meet all of its obligations under the settlement agreement, and the FAA is holding Boeing accountable by imposing additional penalties.”
He continued, “I have reiterated to Boeing’s leadership time and again that the company must prioritize safety and regulatory compliance, and that the FAA will always put safety first in all its decisions.”
Featured image: Boeing 737 MAX. Photo: Nick Sheeder/Airways