By Andy Pasztor and Andrew Tangel
U.S. aviation authorities are considering new safety-related
penalties or other enforcement action against Boeing Co., according
to a person briefed on the details, as they prepare to allow the
plane maker's beleaguered 737 MAX fleet back in the air as soon as
the middle of next week.
The Federal Aviation Administration's move to lift the MAX
fleet's grounding, expected to be promptly followed by regulators
in Canada, Brazil, Europe and elsewhere, follows extensive delays
and public debate that roiled the industry and plunged Boeing into
its biggest financial crisis prior to the pandemic.
Barring last-minute changes, the decision is to be announced
Nov. 18, according to government and industry officials, capping a
historical reassessment of pilot reaction times regarding aircraft
designs. Widespread MAX operations aren't expected to start until
early next year, following required maintenance and pilot-training
measures.
In a statement Monday, the FAA indicated it was in the final
stages of signing off on the package of safety fixes to the MAX
fleet. The agency has said it set no firm timeline for approving
the MAX for passenger flights.
Boeing declined to comment. In the wake of the MAX crashes,
Boeing has retooled its internal safety-monitoring systems.
Boeing's efforts to resolve numerous problems associated with a
hazardous flight-control system on the MAX have taken nearly two
years, and started even before regulators grounded the fleet in
March 2019. Misfires of that automated feature, called MCAS, took
346 lives in two crashes over less than five months.
Separately, according to the person briefed on the details, the
agency has alerted Boeing that alleged quality-control lapses on
assembly lines and undue management pressure on engineers
certifying safety systems could amount to violations of a 2015
settlement of systemic safety oversight problems. The FAA is
examining issues affecting several aircraft models, this official
said, including production of the 787 Dreamliner.
The five-year old agreement was a response to persistent safety
shortcomings identified by the FAA among some of Boeing's engineers
and inside its airliner factories. The company agreed to pay $12
million in penalties, but the FAA reserved the right to seek up to
an additional $24 million from the company if it was determined to
be out of compliance by the end of 2020. Under the original
agreement, Boeing was obligated to submit its final compliance
report to the FAA last month.
Potential enforcement action focuses on issues previously
identified by the FAA. Those include manufacturing lapses affecting
the plane maker's widebody 787 Dreamliner aircraft, debris left
inside MAX fuel tanks and the company's failure to promptly turn
over chat messages that suggested a former senior 737 pilot may
have unintentionally misled the agency.
The 2015 agreement spelled out procedures to ensure Boeing
assembly-line workers strictly followed production rules and
engineers provided the FAA with regular audits demonstrating
compliance with safety and design standards.
Agency chief Steve Dickson has repeatedly said all enforcement
options are on the table, without elaborating. But in recent weeks,
according to the person briefed on the details, the FAA has
presented specific concerns to Boeing and formally alerted the
company that the agency is weighing whether terms of the agreement
have been breached. It wasn't immediately clear whether the FAA
would seek to impose fines or other remedies available under the
2015 agreement, or impose a new compliance plan.
Boeing executives have said the company was focused on
preventing a repeat of such tragedies. "Not a day goes by that we
don't remember, reflect, rededicate ourselves to ensuring accidents
like these never happen again," Chief Executive David Calhoun told
analysts last month.
The FAA's leadership is wrapping up plans to alert lawmakers,
airlines and foreign regulators in anticipation of the Nov. 18
announcement, according to U.S. officials briefed on the plans. The
schedule could slip, the officials said, but technical details have
been locked in while agency officials and lawyers are in the final
stages of drafting language and responding to public comments.
Mr. Dickson, a former military and airline pilot, flew the
aircraft earlier this year so he could personally vouch for the
aircraft. In a statement Monday, Mr. Dickson said the overall
process was "near the finish line" but reiterated he won't act
until all outstanding safety issues have been resolved.
Boeing has revamped its engineering and safety processes, as
part of a push to reduce cost and schedule pressures and give
senior leaders greater visibility of emerging problems.
Mr. Dickson, however, has said the FAA will ratchet up oversight
until the results of those initiatives to change corporate culture
are evident. "We'll be working with them on those issues," he said
after his test flight, adding "it's something we are watching very
closely."
Despite the adjustments, bigger changes have not materialized.
The FAA has made some limited adjustments to its
aircraft-certification processes, but no big personnel or
structural changes. Congress hasn't passed any major legislative
changes, though government and industry officials have said they
see a slim chance a Democrat-drafted House bill still could get
through the Republican-controlled Senate during the lame duck
session.
Fallout from the crisis hasn't abated. Boeing said Tuesday that
more than 1,000 jetliner orders have been cancelled this year
because of the pandemic-driven travel slump and delays in returning
the 737 MAX to service.
--Doug Cameron contributed to this article.
Write to Andy Pasztor at andy.pasztor@wsj.com and Andrew Tangel
at Andrew.Tangel@wsj.com
(END) Dow Jones Newswires
November 10, 2020 13:18 ET (18:18 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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