The Federal Aviation Administration has fined Boeing $6.6 million in penalties to settle three enforcement cases, including those related to its Organisation Designation Authorization (ODA) programme.
The amount includes a $5.4 million penalty for Boeing’s alleged failure to fulfill obligations set out in a 2015 settlement that the company made with the FAA, the FAA says on 25 February.
That settlement did not involve the 737 Max but did relate to Boeing’s ODA – its internal division authorised by the FAA to perform aspects of aircraft certification.
The 2015 settlement stemmed from 13 FAA enforcement reports citing production, delegation and certification violations, according to government documents.
“The FAA assessed $5.4 million in deferred penalties under the terms of the 2015 agreement because Boeing missed some of its improvement targets, and because some company managers did not sufficiently prioritise compliance with FAA regulations,” the agency says.
“Boeing failed to meet all of its obligations under the settlement agreement, and the FAA is holding Boeing accountable by imposing additional penalties,” FAA administrator Steve Dickson says. “I have reiterated to Boeing’s leadership time and again that the company must prioritise safety and regulatory compliance, and that the FAA will always put safety first in all its decisions.”
Boeing had previously settled the 2015 case by paying $12 million in penalties.
“Boeing believes that the announcement today fairly resolves previously-announced civil penalty actions while accounting for ongoing safety, quality and compliance process improvements,” the company says in a statement. “We look forward to ongoing engagement with, and direction from, the FAA as we continuously improve safety and quality in our processes.”
The Chicago airframer will also pay $1.2 million to settle two previously-disclosed enforcement cases, also involving the company’s ODA.
In August 2020, the FAA had proposed settling those cases for $1.25 million.
“The FAA alleges that Boeing managers exerted undue pressure or interfered with the work of FAA designees at the company’s plant in South Carolina,” the agency said in August 2020.
Boeing’s statement adds that the company is “strengthening our work processes and operations to ensure we hold ourselves accountable to the highest standards of safety and quality”.