BOEING TO PAY AT LEAST $17M TO SETTLE 737 ENFORCEMENT CASES
June 10, 2021
On May 27, 2021, FAA announced that they had reached a settlement agreement with Boeing, available here, regarding the resolution of three enforcement cases related to issues discovered with the 737 MAX and NG aircraft. Per the settlement’s terms, Boeing will pay a civil penalty of $27.1M in resolution of the three enforcement cases, with $17M of that civil penalty to be paid in the next 30 days. FAA has agreed to defer payment of the remaining $10.1M of the civil penalty if Boeing completes the corrective actions listed in the settlement agreement, which include:
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Strengthening procedures to ensure that it does not install any parts that fail to conform to their approved design;
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Performing certain Safety Risk Management analyses;
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Revising its production procedures to enable the FAA to observe production rate readiness assessments, related data, and assessment results;
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Taking certain steps to reduce the chance that nonconforming parts are presented to FAA for airworthiness certification or a Certificate of Export; and
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Improving oversight of Boeing parts suppliers;
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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