FAA Plans to Impose Penalty of $3.1 Million on Boeing Due to Prevalent Safety Breaches
The Federal Aviation Administration (FAA) has been scrutinising Boeing's manufacturing processes following a series of safety concerns and violations. The troubled aircraft manufacturer is currently under investigation by the FAA, the Department of Justice (DOJ), and the National Transportation Safety Board (NTSB), among others.
The FAA's findings have led to a production cap of 38 737 MAX planes per month, a cap that remains in place. FAA Administrator Bryan Bedford has yet to make a decision on whether to lift this cap or on how the FAA will oversee Boeing production moving forward.
The FAA's concerns stem from several incidents. One such incident involved a Boeing employee pressuring another Boeing worker to sign off on a 737 MAX airplane, despite the aircraft not complying with standards. The FAA also found hundreds of quality system violations at Boeing's 737 factory in Renton, Washington, and Spirit AeroSystems' 737 factory in Wichita, Kansas.
In addition, the FAA discovered that Boeing presented two unairworthy aircraft to the FAA for airworthiness certificates. The FAA's in-person oversight of Boeing production has been enhanced since early 2024, and the FAA continues to inspect each 737 MAX and 787 aircraft before an airworthiness certificate is issued and cleared for delivery.
The government watchdog report issued in October criticised the FAA's oversight of Boeing, stating that it does not have an effective system to oversee production factories. The report also stated that the FAA has not been able to resolve allegations of undue pressure on Boeing employees acting on the FAA's behalf.
The mid-air cabin blowout incident involving an Alaska Airlines MAX airplane, which caused damage to Boeing's reputation, further exacerbated the issues. The incident led to a grounding of the MAX 9 for two weeks.
The NTSB stated that Boeing failed to provide adequate training, guidance, and oversight in June. This failure led to the Justice Department opening a criminal investigation into Boeing. Boeing was declared not in compliance with a 2021 deferred prosecution agreement by the Department of Justice.
Despite the ongoing investigations and findings, Boeing is working to strengthen its safety culture and improve quality and accountability across its operations. The company has 30 days to respond to the proposed fines of $3.1 million from the FAA. Spirit AeroSystems and Alaska Airlines declined to comment.
The DOJ announced a $3.1 million bond against Boeing, subject to a possible offset review in June 2024. The FAA's scrutiny of Boeing continues, and it remains to be seen how these ongoing investigations will shape the future of the aircraft manufacturer.
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