Workers assemble a Boeing 787 Dreamliner aircraft at the Boeing Everett Factory in Everett, Washington.
Patrick T. Fallon | Bloomberg | Getty Images
The Federal Aviation Administration announced Thursday that Boeing was fined $ 5.4 million for failing to meet terms of a 2015 deal, and an additional $ 1.21 million, by two to settle further security-relevant cases.
The agency said Boeing failed to honor a 2015 agreement requiring the company to improve its safety and regulatory oversight.
“Boeing has not met all of its obligations under the settlement agreement, and the FAA is holding Boeing accountable by imposing additional penalties,” FAA Administrator Steve Dickson said in a statement. “I have consistently reminded the Boeing leadership that they must prioritize safety and regulatory compliance and that the FAA always puts safety first in all of its decisions.”
The company paid $ 12 million in the 2015 settlement.
In one of the cases Boeing has set up shop, the FAA alleged that some of the manufacturer’s employees who performed certification tasks on behalf of the agency between November 2017 and July 2019 were not authorized to do so. In the other, the FAA said the company failed to follow quality control processes and that some employees charged with performing certification work for their 787 Dreamliner were facing “undue pressure”. The FAA said that despite the alleged problems, Boeing staff made sure planes were safe before they were allowed to fly.
Boeing is grappling with assembly issues related to its 787 Dreamliners. Inspections to fix manufacturing defects in the double aisle aircraft have resulted in delivery delays and withdrawn much-needed cash from Boeing to deal with the crisis resulting from two 737 Max crashes. Demand for Dreamliners, which are often used on international routes, has declined due to the coronavirus pandemic.
“We are strengthening our work processes and procedures to ensure that we meet the highest safety and quality standards,” said the Chicago-based company in a statement. “Boeing believes that today’s announcement resolves civil sanctions that have already been announced in a fair manner while taking into account ongoing improvements to the safety, quality and compliance process.”
The shares were hardly changed in over-the-counter trading.