FOR IMMEDIATE RELEASE

-
April 23, 2002
Contact: Allen Kenitzer
Phone: 425-227-2004

FAA Proposes $764,250 Fine Against Boeing Commercial Airplane Group

Washington,DC. -- The FAA has proposed
to assess a $764,250 civil penalty
against the Boeing Commercial Airplane
Group. The proposed penalty is for
violating FAA regulations, particularly
for failures to maintain Boeing’s
quality control system in accordance
with the data and procedures approved
in its production certificate.

During Oct. 1999, the FAA became aware
that the adhesives used to fabricate
the flight deck dripshields and
Environmental Control System (ECS)
ducts resulted in parts that did not
meet the FAA flammability requirements.
The dripshields manufactured from 1993-
1999, were installed on Boeing 747,
757, 767, and 777 model airplanes. The
ECS ducts manufactured from 1995-1999
were installed on Boeing 737, 747, 757,
and 767 model airplanes.

Boeing failed to comply with an
approved design by allowing material
substitutions, one adhesive for
another, resulting in Boeing's failure
to maintain the designed flammability
resistance for dripshields and ECS
ducts. After further FAA evaluation, it
was determined that these bonded
materials presented an unsafe condition
which led to the issuance of FAA
Airworthiness Directives.

Since Oct. 1999, Boeing immediately
replaced or reworked the dripshields
and ducts on all affected airplanes in
production. Boeing's rework of the
airplanes entailed installing fire
resistant materials around the
dripshield; removing and rewrapping the
ECS ducts with the proper materials.

After the identification of additional
issues during Feb. 2000, Boeing
collaborated with the FAA in conducting
additional root cause investigations,
and identified areas of broad systemic
improvements.

Areas identified for improvements
include clarifying and simplifying
procedures and process, conducting
additional training of personnel;
emphasizing an attitude of internal
compliance to those new processes and
procedures and implementing metrics to
gauge the health of the new processes
and procedures.

Boeing has been provided with an
opportunity to respond to the FAA’s
allegations in this case.

This announcement of the proposed civil
penalty is made in accordance with the
FAA’s policy of releasing information
to the public on enforcement actions in
cases involving penalties of $50,000 or
more.

###