The FAA last week announced in a news release a $5.4 million dollar fine against the Chicago-based Boeing Company, the aerospace manufacturer whose reputation was severely crippled following the grounding of its 737 Max in March 2019. Over the past two years, the company has continued absorbing both financial and reputational hits against the Max and other aircraft models despite the ungrounding of the Max last fall.
FAA Plants $5.4 Million Fine on Boeing
Key Takeaways:
- The FAA fined Boeing $5.4 million for failing to meet its obligations under a 2015 settlement agreement designed to improve regulatory compliance and prioritize safety.
- Boeing also agreed to pay an additional $1.21 million to settle two separate FAA enforcement actions related to improper organizational structure, quality control failures, and exerting undue pressure on ODA unit members.
- The FAA reaffirmed its commitment to vigilant oversight, emphasizing safety and regulatory compliance, and plans to use new legislation (2020 Aircraft Certification, Safety, and Accountability Act) to assess even greater penalties for undue pressure on ODA members.
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