American, Boeing to pay FAA fines

  • Associated Press
  • Tuesday, June 1, 2004 9:00pm
  • Business

WASHINGTON – American Airlines and the Boeing Co. agreed to pay more than $3.3 million in fines for violating federal aviation regulations, the Federal Aviation Administration said on Tuesday.

American paid $2.5 million to settle FAA allegations that the airline and two of its carriers – American Eagle and Reno Air – violated rules governing flight operations and maintenance. The company didn’t admit that it had done anything wrong.

“We protested many of the fines and the amounts of the fines,” said American spokesman John Hotard. “We agreed to a global settlement because the cases were several years old and didn’t reflect the outstanding compliance record for the carriers nor the safety programs that we have in place today.”

Boeing paid a civil penalty of $824,800 for its alleged failure to maintain its quality control system for production of its 737, 747, 767 and 777 jets from October 1998 to April 2002.

“Boeing has since worked with the FAA to identify areas to improve quality assurance,” the FAA said in a statement.

Boeing spokeswoman Cindy Wall said the company started an internal assessment of its production processes to correspond with the FAA audit.

“We implemented immediate improvements,” Wall said. “None of the findings has recurred.”

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