SEATTLE — The Federal Aviation Administration said Thursday that Boeing will pay at least $17 million in penalties and undertake multiple corrective actions over its production of the 737.
The FAA said Boeing installed equipment on 759 Boeing 737 MAX and NG aircraft containing sensors that were not approved for that equipment; submitted about 178 Boeing 737 MAX aircraft for airworthiness certification when the aircraft potentially had nonconforming slat tracks installed; and improperly marked those slat tracks.
Under a settlement agreement, the company will pay the penalties within 30 days. If Boeing does not complete certain corrective actions within specific time frames, the FAA will levy up to $10.1 million in additional penalties.
The immediate penalties are a reduction from the $25.1 million total proposed by the FAA when it announced the two cases covered by the settlement.
“Keeping the flying public safe is our primary responsibility. That is not negotiable, and the FAA will hold Boeing and the aviation industry accountable to keep our skies safe,” said FAA Administrator Steve Dickson in a statement.
The FAA said the corrective actions required for Boeing in the settlement include:
- Strengthening procedures to ensure that Boeing does not install on aircraft any parts that fail to conform to their approved design.
- Performing Safety Risk Management analyses to determine whether Boeing’s supply-chain oversight processes are appropriate and whether the company is ready to safely increase the 737 production rate.
- Revising its production procedures to enable the FAA to observe production rate readiness assessments, the data on which the company bases the assessments, and the results of the assessments.
- Taking steps to reduce the chance that it presents to the FAA aircraft with nonconforming parts for airworthiness certification or a Certificate of Export.
- Enhancing processes to improve its oversight of parts suppliers.