Wed, Jun 02, 2004
Boeing, AAL To Pay Stiff Fines
The Federal Aviation Administration
(FAA) has reached agreement with American Airlines and Boeing
Commercial Airplane Group on settlement of civil penalties totaling
more than $3.3 million. Both settlements involve alleged violations
of Federal Aviation Regulations.
American has agreed to pay $2.5 million to settle 50 pending
flight operations and maintenance enforcement cases filed by the
FAA from 1997 through 2003. The cases include actions against
American, its American Eagle regional airline unit and Reno Air, a
Nevada-based airline bought by American in 1998.
Among the 50 violations covered in
the settlement agreement are maintenance, flight operations,
training, safety and record-keeping irregularities. In many cases,
they included operation of aircraft when they were allegedly not in
compliance with regulations. Under terms of the agreement, the
settlement and payment do not constitute admissions of wrongdoing
by American, American Eagle or Reno Air.
Boeing has paid a civil penalty of $824,800 for the
company’s alleged failure to maintain its quality control
system on the 737, 747, 767, and 777 airplane programs. Failure to
follow procedures for a company’s FAA production certificate
violates the regulations.
FAA investigations from October 1998
to April 2002 revealed that some Boeing production processes did
not comply with the company’s quality assurance program.
Boeing has since worked with the FAA to identify areas to improve
quality assurance. The company will audit improvements through
random sampling, establish procedures for evaluating design change
work, measure actions, and report results to the FAA.
This announcement is in accordance with the FAA's policy of
posting information for the public on newly issued enforcement
actions in cases involving penalties of $50,000 or more.
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