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Boeing agrees to pay $12 Million and enhance its compliance systems to settle enforcement cases

Boeing

The U.S. Department of Transportation’s Federal Aviation Administration today announced a comprehensive settlement agreement with Boeing Commercial Airplanes (BCA) that resolves multiple pending and potential enforcement cases.

Under the agreement, Boeing pledged to implement and improve several certification processes to further enhance the airworthiness and continued compliance of all Boeing products.

“It is imperative that everyone complies with our aviation system’s high safety standards,” said U.S. Transportation Secretary Anthony Foxx. “This agreement is an important step toward ensuring that Boeing fully meets all applicable compliance standards going forward.”

“Compliance requires all certificate holders to develop and implement internal controls that ensure they’re operating according to the highest standards,” said FAA Administrator Michael Huerta. “Boeing has agreed to implement improvements in its design, planning, production and maintenance planning processes, and has already implemented several of these improvements.”

BCA’s obligations commit the company to meeting specific performance targets. They are designed to enhance BCA’s early discovery and self-disclosure of potential regulatory compliance problems, as well as the timely development and implementation of effective corrective actions.

The company also must make an immediate payment to the United States Treasury in the amount of $12 million and faces stiff penalties for failing to follow through on its commitments.

Following today’s settlement announcement by the U.S. Federal Aviation Administration, Boeing said in a statement:

“Boeing appreciates the dedication of both the Federal Aviation Administration and Boeing personnel who worked to reach the agreement announced today. This agreement reflects Boeing’s deep and shared commitment to safety, quality and compliance – a commitment that has helped make travel on large commercial airplanes the safest means of transportation in history”.

“Boeing believes that this agreement not only 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 – but also will further enhance Boeing’s self-correcting quality and compliance systems. Under the terms of the agreement, Boeing has agreed to pay $12 million and make additional quality and compliance process improvements. Many of the improvements listed in the agreement have already been implemented or are in the process of implementation. As a company we take responsibility for our actions, and we will never compromise on our commitment to quality and compliance – a commitment that is one of the core reasons we build the best airplanes in the world. We are actively working on the areas identified in the agreement and see this as another way to continually improve our compliance system”.

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