FAA charges $12 million in Penalty on Boeing

The US Government will receive a penalty of $12 million from Boeing, which has also agreed to modify its commercial aircraft production procedures. The penalty is in lieu of settlements of complaints regarding Boeing’s failure to meet safety and quality standards. The second-highest enforcement penalty has been reached by the Federal Aviation Administration (FAA).

According to the FAA, Boeing will have to pay up to $24 million in additional penalties in case it fails to keep up with the agreement over a period of next five years. Under the agreement, Boeing is required to enhance its management oversight, accountability and internal audits. Furthermore, the company is supposed to organize additional training programs and gradually follow more stringent quality and timeliness performance parameters.

The agreement has been formed to settle two FAA enforcement cases and 11 other complaints registered with Boeing during last few years. One of the two FAA cases involve the missing of deadline by Boeing to give directions to airlines for fitting 747 and 757 jets in 2012, to avoid the explosion of fuel tanks. It became mandatory to install these devices following the explosion of a TWA-operated 747 jumbo jet in 1996. In 2013, Boeing installed inappropriate fasteners on 777s and subsequently failed to resolve the issue during the next two years.

Boeing repeatedly failed to achieve the deadlines of its own action plans, according to the FAA. Boeing’s infringements include postponing installment of crucial safety equipment and unable to supervise its own production processes. However, now Boeing has reported that it has already completed several enhancements, as required under the accord, while others are under process.