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Boeing to Pay Over $6 Million in Deferred Civil Penalties to the FAA

Boeing to Pay Over $6 Million in Deferred Civil Penalties to the FAA
Joe Cortez

The Federal Aviation Administration is levying another deferred civil penalty against The Boeing Company for violating a 2015 agreement. The company will pay $6.6 million for missing improvement targets on prioritizing regulatory compliance improvement targets.

The Boeing Company is facing another deferred civil penalty to the Federal Aviation Administration, after failing to meet obligations from a 2015 settlement agreement. The agency announced they will assess $5.4 million in penalties for missing improvement targets.

Boeing Fails to Meet Improvement Targets From Settlement Agreement

Under the original 2015 settlement agreement with the FAA, the Chicago-based aircraft manufacturer agreed to adopt a safety management system “…as an integrated system among design, planning, production, and maintenance for the continued operational safety, certification, and airworthiness” on all Boeing Commercial Aircraft products. The agreement goes on to discuss details on documentation, auditing, compliance and quality controls needed to satisfy the FAA.

The agreement was related to fuel tank design flaws on the Boeing 747 and 757 aircraft, which directly contributed to the explosion of TWA Flight 800 in 1996. Boeing paid $12 million as part of the deal, with the potential of additional fines to be levied along the way.

In the latest release, the FAA says that Boeing missed improvement targets, while some managers “did not sufficiently prioritize compliance with FAA regulations.” As part of the original agreement, Boeing was not allowed to appeal the FAA’s penalty assessment and the term of the agreement.

“Boeing failed to meet all of its obligations under the settlement agreement, and the FAA is holding Boeing accountable by imposing additional penalties,” FAA administrator Steve Dickson said in the release. “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.”

In addition, Boeing will pay an additional $1.21 million in settlement of two enforcement cases. One alleged that Boeing implemented an improper structure of the FAA-approved Organization Designation Authorization program. The other accuses the company of failure to follow quality-control processes, which subjected ODA members to “undue pressure or interference in relation to an aircraft airworthiness operation.”

New Deferred Civil Penalties Adds to Government Payouts This Year

The new deferred civil penalties are the latest payouts Boeing has made to the government in 2021, bringing the total to beyond $250 million. In January 2021, the aerospace giant paid a $243.6 million criminal monetary penalty to the Justice Department over problems in the Boeing 737 MAX Program, as part of a $2.5 billion settlement package.

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