Boeing, FAA Reach Settlement

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Key Takeaways:

  • The FAA and Boeing Commercial Airplanes (BCA) reached a settlement regarding 13 complaints of non-compliance with aviation standards.
  • Under the agreement, Boeing must pay $12 million and implement significant changes to its certification processes to enhance airworthiness and compliance.
  • The FAA's investigation was prompted by issues such as delays in providing information about fuel-tank fire reduction equipment for 747/757s and insufficient corrective action for faulty supplier fasteners.
  • Boeing believes the agreement resolves past civil penalty actions and will further enhance its quality systems, with potential for additional fines if commitments are not met.
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The FAA said today it has reached a settlement with Boeing Commercial Airplanes (BCA) regarding 13 complaints that the company had failed to meet various compliance standards. Under the agreement, BCA must pay the government $12 million and also must implement changes to several certification processes, “to further enhance the airworthiness and continued compliance of all BCA products,” the FAA said. “It is imperative that everyone complies with our aviation system’s high safety standards,” added U.S. Transportation Secretary Anthony Foxx.

The FAA investigation was prompted by the amount of time it took for BCA to provide information about the installation of equipment that would reduce the likelihood of a fuel-tank fire in 747 and 757 airplanes, according to USA Today. FAA regulators also cited “the company’s insufficient corrective action after discovering that a supplier had been providing incorrectly shaped fasteners.”

Boeing said in a statement today it believes the agreement “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 – [and] also will further enhance Boeing’s self-correcting quality and compliance systems.” Many of the improvements listed in the agreement have already been implemented or are in the process of implementation, Boeing said. If Boeing fails to meet its commitments, it could be subject to more penalties and up to $24 million in additional fines, the FAA said.

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