Boeing Agrees to Settle FAA Cases, Pay $12 Million

Boeing Commercial Airplanes has agreed to make improvements in management oversight and accountability, internal auditing, supplier management, and regulatory submissions.

Boeing has agreed to pay $12 million in settling cases involving Federal Aviation Administration allegations that Boeing Commercial Airplanes was slow to develop information for the installation of fuel tank flammability reduction equipment on Boeing 747 and 757 aircraft and took insufficient corrective action after discovering that a supplier had been providing incorrectly shaped fasteners. FAA acknowledged that it did not allege these issues created unsafe conditions.

In a statement, Boeing said it "appreciates the dedication of both the Federal Aviation Administration and Boeing personnel who worked to reach the agreement announced today. This agreement reflects Boeing's deep and shared commitment to safety, quality and compliance – a commitment that has helped make travel on large commercial airplanes the safest means of transportation in history. Boeing believes that this agreement not only fairly resolves announced and potential civil penalty actions – most of which date back years, and two of which were previously announced in 2012 and 2013 – but also will further enhance Boeing's self-correcting quality and compliance systems. Under the terms of the agreement, Boeing has agreed to pay $12 million and make additional quality and compliance process improvements. Many of the improvements listed in the agreement have already been implemented or are in the process of implementation. As a company we take responsibility for our actions, and we will never compromise on our commitment to quality and compliance – a commitment that is one of the core reasons we build the best airplanes in the world. We are actively working on the areas identified in the agreement and see this as another way to continually improve our compliance system."

FAA said Boeing Commercial Airplanes has agreed to implement and improve several certification processes that will further enhance the airworthiness and continued compliance of its products. "It is imperative that everyone complies with our aviation system's high safety standards," U.S. Transportation Secretary Anthony Foxx said in a statement. "This agreement is an important step toward ensuring that Boeing fully meets all applicable compliance standards going forward."

Boeing Commercial Airplanes has agreed to make improvements in management oversight and accountability, internal auditing, supplier management, and regulatory submissions.

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