Boeing to Pay $12M in FAA Settlement
Joe Cortez December 22, 2015
Under FAA settlement, Boeing agrees to pay $12 million in penalties and improve internal processes
Boeing will pay $12 million in fines as the result of an agreement that will settle multiple cases against the commercial aircraft manufacturer. The Federal Aviation Administration announced the deal, which comes with several key performance measurements Boeing must face to avoid further financial penalties.
The penalties revolve around fuel tank design flaws on the 747 and 757 aircraft, similar to those that contributed to the TWA Flight 800 incident in 1996. By 2008, the FAA issued a mandate that all aircraft manufacturers address the situation through design changes, with an approval deadline of 2010. However, an AP report suggests Boeing missed the deadline by over a year. In addition, Boeing was accused of repeatedly setting deadlines on action plans that would address the fuel tank design flaws, but did not continue to follow through.
Under the settlement, Boeing has agreed to meet several conditions set by aviation authorities surrounding internal auditing, management oversight and accountability. Specifically, Boeing must implement safety management systems, regularly review compliance performance and reach stronger performance metrics in written reports to the FAA. If Boeing does not meet these obligations, the Seattle-based manufacturer could face an additional $24 million in fines between now and 2020.
“It is imperative that everyone complies with our aviation system’s high safety standards,” transportation secretary Anthony Foxx said in the press release. “This agreement is an important step toward ensuring that Boeing fully meets all applicable compliance standards going forward.”
The AP reports the negotiated settlement is down from an original proposed settlement of over $15 million. In the statement, the FAA noted that the issues revolved around delays in submitting required safety information and did not accuse Boeing of issues that “created unsafe conditions.”
[Photo: Boeing]
12 millions USD for lack of safety management ? TWA 800 called an "incident" ? Life is really cheap in this world ...