NEW YORK: Boeing agreed to pay a $17 million fine and enhance its supply chain and production practices after installing unapproved equipment on hundreds of planes, US regulators said Thursday.
The Federal Aviation Administration (FAA) said the manufacturer installed unapproved sensors on 759 Boeing 737 MAX and NG aircraft. The company also submitted about 178 Boeing 737 MAX planes for airworthiness certification despite having equipment installed that may not have been approved for use.
Besides the $17 million fine, Boeing agreed to a number of corrective actions “within specific timeframes,” the FAA said. If Boeing fails to meet these conditions, the FAA will levy up to $10.1 million in additional penalties, the agency said.
The “corrective actions” include strengthening procedures to ensure that unapproved parts are not installed and reviewing supply chain processes connected to production rate decisions. The company also must take steps to allow closer FAA oversight of its production rate assessments.
“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. Boeing said it has enhanced its processes since the problems were raised by regulators two years ago.
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