Boeing will pay at least $17 million in penalties and undertake multiple changes to its production procedures having struck a deal with the Federal Aviation Administration (FAA).
The $17 million penalty levied on the company, which generated $76.6 billion in 2019, must be paid within 30 days of signing the agreement, while the improved procedures are designed to ensure the aircraft manufacturer does not install parts that fail to conform to their approved design.
It must now perform Safety Risk Management analyses to determine whether its supply-chain oversight processes are appropriate and whether it is ready to safely increase the Boeing 737 production rate.
It must also revise 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.
Boeing must also take steps to reduce the chance that it presents to the FAA aircraft with nonconforming parts for airworthiness certification or a Certificate of Export, while also enhancing processes to improve its oversight of parts suppliers.
Boeing faces additional penalties of $10.1 million if it does not make certain corrections with a specific timeframe.
The sanctions come following findings by the FAA that Boeing had installed equipment on 759 Boeing 737 MAX and NG aircraft containing sensors that were not approved for them.
FAA administrator Steve Dickson said: “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.”
The investigation occurred following the deadly crashes of two of 737 MAX aircraft in 21018 and 2019 that killed a total of 346 people.