Boeing to Pay $12 Million to Settle U.S. Jet-Safety Cases

  • Settlement is U.S. FAA's second-highest enforcement case ever
  • Some provisions in accord are already in place, company says
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Boeing Co. agreed to pay a $12 million penalty to the U.S. government and make broad changes in how it builds commercial aircraft to settle complaints that its safety and quality processes fell short of standards.

The penalty is the second-highest enforcement case ever settled by the Federal Aviation Administration. Additional penalties of as much as $24 million could be levied if Boeing doesn’t adhere to the accord in the next five years, the FAA said Tuesday in a statementBloomberg Terminal. Among other requirements, Boeing must improve management oversight, accountability and internal audits; conduct more training; and “meet progressively more stringent performance metrics in the quality and timeliness” of reports to the FAA.