International Finance

Federal Aviation Administration (FAA) to fine Boeing $1.25 mn

FAA Boeing_IFM_Image
FAA alleges that Boeing exerted undue pressure on workers who handle safety oversight work on behalf of the agency

The Federal Aviation Administration (FAA) is planning to fine Chicago-based aircraft manufacturer Boeing around $1.25 million, the media reported.

The FAA alleges that Boeing exerted undue pressure on its workers who handle safely oversight work on behalf of the agency at its plant in North Carolina.

Over the last couple of years, Boeing has come under immense criticism after two of its 737 Max aircraft crashed last year.

The aircraft has been grounded since mid-March last year following two crashes – a Lion Air flight and an Ethiopian Airlines flight – within five months of each other. Back then, the Chicago-headquartered company also reduced production of the 737 MAX from 52 to 42 per month.

During the month of June, Boeing carried out flight safety tests for its 737 Max aircraft.

Boeing was working together with regulators to carry out the safety test which lasted for three days.

Last year, the European Union Aviation Safety Agency (EASA) revealed that it will allow the Boeing 727 MAX aircraft to fly only after Boeing meets four critical conditions.

Firstly, the changes made by Boeing to these aircraft would have to be approved by the agency. Secondly, the agency will carry out a broader review of the design of the critical safety systems on these flights, which was earlier done by the FAA.

Thirdly, the EASA needs to have a clear and detailed understanding of the two accidents and lastly, Boeing must adequately train its flight crews with regard to the changes being made to the aircraft’s software.

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