FAA Wants to Fine Boeing $2.75 Million for Quality Control Failure
The Federal Aviation Administration released a statement Friday outlining a proposal to fine Boeing $2.75 million for the airplane manufacturer's alleged failure to maintain its quality control systems.
The root of the dispute stems to September 2008, when Boeing revealed that its 777 fastener components didn't conform to the FAA's standards. From October onward, Boeing and the FAA began a back-and-forth investigation correspondence. The FAA alleges that Boeing continually submitted action plans but failed to follow through by agreed-upon deadlines. Only in November 2010 did the company fully address the issue.
"Safety is our top priority, and a robust quality control system is a vital part of maintaining the world's safest air transportation system," said U.S. Transportation Secretary Anthony Foxx in a statement. "Airplane manufacturers must take prompt and thorough steps to correct safety and compliance problems once they become aware of them."
Boeing has a month to reply to the FAA's proposed fine.
The article FAA Wants to Fine Boeing $2.75 Million for Quality Control Failure originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.