FAA PROPOSES $1.25 MILLION IN CIVIL PENALTIES AGAINST BOEING
September 18, 2020
On August 5, 2020, the FAA proposed two civil penalties totaling $1.25 million against the Boeing Company for alleged violations of a program that allows the aircraft manufacturer to perform certain functions on behalf of the FAA. 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 first civil penalty, for $1,066,655, alleges Boeing implemented an improper structure of its FAA-approved Organization Designation Authorization (ODA) program, through which employees in two ODA units reported to managers who were not in approved ODA management positions. Furthermore, the FAA alleges that Boeing failed to ensure ODA administrators were in a position to effectively represent the FAA’s interests and that non-ODA Boeing managers exerted undue pressure or interfered with ODA unit members.
The second civil penalty, for $184,522, alleges that on February 26, 2020 Boeing failed to follow its quality control processes and subjected ODA members to undue pressure or interfered with an airworthiness inspection of a Boeing 787-9.
Despite the alleged undue pressure or interference from Boeing managers, the FAA asserts that ODA unit members fulfilled their FAA responsibilities to ensure aircraft were conforming and in a condition for safe operation prior to issuance of their airworthiness certificates.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Andy Orr (aorr@eckertsemans.com or 202-659-6625).
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