CNBC Television FAA fines Boeing $ for defective 737 Max parts
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FAA fines Boeing $ for defective 737 Max parts and Southwest Airlines $ for weight infractions. CNBC’s Phil LeBeau reports.
The Federal Aviation Administration is seeking a $ fine against Boeing for faulty wing parts on dozens of 737 Max planes.
The planes have been grounded worldwide since March after two fatal crashes, but FAA’s proposed penalty does not refer to the flight-control software that was implicated in those two deadly flights.
The proposed fine caps a devastating week for Boeing. A Boeing plane crashed in Iran killing all 176 people on board and hundreds of internal messages were released that revealed employees boasted about bullying regulators to limit government scrutiny of the 737 Max.
Former CEO Dennis Muilenburg, who was fired last month, exacerbated the company’s 737 Max problems over the planes by repeatedly issuing forecast about when the planes would return to service, drawing rare public rebukes from the Federal Aviation Administration.
Muilenburg was also criticized by lawmakers for taking too long to accept blame in the crashes and for failing to spot safety risks before the planes, Boeing’s best-seller, came to market in 2017.
On Friday, Boeing denied Muilenburg severance and he gave up at least $44 million in stock, the company said Friday.
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