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BUSINESSWednesday 23 December
US fines Boeing $12M for fuel tank, other violations
JOAN LOWY The settlement is the sec- are part of an effort to ad- tions were to explain how 777 airliners.
Associated Press ond largest for regulatory dress problems that caused to install systems that would The FAA alleges that Boe-
WASHINGTON (AP) — Boe- violations in the history of a Boeing 747 fuel tank to replace the oxygen in air- ing repeatedly submitted
ing has agreed to pay $12 the FAA. “It is imperative explode over the Atlan- plane fuel tanks with non- action plans that set dead-
million for failing to meet a that everyone complies tic Ocean off Long Island, flammable nitrogen gas, re- lines for fixing the problem,
deadline to submit service with our aviation system’s New York, in 1996. All 230 ducing the risk of explosion. but subsequently failed
instructions that would en- high safety standards,” said people aboard TWA Flight Boeing missed the dead- to implement those plans.
able airlines to reduce the Transportation Secretary 800 were killed. line for submitting service Boeing finally implemented
risk of fuel tank explosions Anthony Foxx. Boeing said In 2008, the FAA published instructions for the 747s by a plan to address the fas-
on hundreds of planes, in a statement that the fine regulations that required 301 days, delivering them tener issue in November
among other violations, the “fairly” addresses the mat- manufacturers to develop to the FAA on Oct. 24, 2011. 2010, more than two years
U.S. Federal Aviation Ad- ter. “As a company we design changes and ser- Another violation involved after the company first
ministration said Tuesday. take responsibility for our vice instructions for install- Boeing’s delay in address- learned of the problem.
Boeing must also take a se- actions, and we will never ing systems to reduce fuel ing incorrectly shaped fas- The FAA first proposed fin-
ries of actions to improve compromise on our com- tank flammability. The regu- teners used on airliners, the ing Boeing $13.6 million for
the safety certification of its mitment to quality and lations gave manufacturers FAA said. In September the fuel tank violations in
planes and its aircraft pro- compliance,” the state- until Dec. 27, 2010, to sub- 2008, Boeing discovered 2012, and $2.7 million for
duction quality control, the ment said. mit service instructions for that it had been installing the fastener problem in
FAA said in a statement. The fuel tank instructions FAA approval. The instruc- the incorrect fasteners in 2013.q
US existing home sales plunged sharply in November
JOSH BOAK in November. Home values The median home sales nual increase from a year by the Consumer Finan-
AP Economics Writer are also rising at more than price was $220,300 in No- ago. cial Protection Bureau to
WASHINGTON (AP) — double the pace of wages. vember, a 6.3 percent an- The new rules introduced inform homebuyers about
Home sales plunged sharp- interest rates and fees may
ly in November, as buyers A home is for sale in Coral Gables, Fla. The National Association of Realtors said Tuesday, Decem- have delayed the comple-
faced rising prices and ber 22, 2015, that sales of existing homes collapsed 10.5 percent to a seasonally adjusted annual tion of sales last month.
new regulations that might rate of 4.76 million. It was the weakest pace in 19 months. It took 41 days to close a
have delayed some clos- sale in November, com-
ings. (AP Photo/Lynne Sladky) pared to 36 days a year
The National Association ago.
of Realtors said Tuesday The extended timeframe
that sales of existing homes means that some sales
collapsed 10.5 percent to may have been pushed
a seasonally adjusted an- back into December.
nual rate of 4.76 million. It Sales fell in all major geo-
was the weakest pace in graphic regions, including
19 months. the Northeast, Midwest,
The setback follows solid South and West.
gains in real estate for Still, an improving job mar-
much of 2015. Sales of ex- ket and relatively low mort-
isting homes are on track gage rates have encour-
to rise roughly 5 percent for aged home-buying for this
the entire year. But the in- year. Unemployment at a
troduction of a new disclo- healthy 5 percent has en-
sure form in October likely dowed more people with
prevented many home- a sense of financial cer-
buyers from closing on sales tainty. q
Southwest to pay $2.8 million to settle FAA lawsuit
DAVID KOENIG work. The Federal Aviation before the maintenance Inc. in Everett, Washing- ant between the panels
AP Airlines Writer Administration sued South- work was done properly. In ton. The FAA said South- and install new fasteners
DALLAS (AP) — Southwest west in November 2014 court filings, Southwest had west was still responsible for within a limited time.
Airlines agreed to pay $2.8 in federal district court in denied all of the FAA alle- making sure that the work ATS workers placed fasten-
million to settle a lawsuit by Seattle, and the case was gations and called some of was done correctly. ers in only some of the rivet
the federal government scheduled to go to trial them hyperbole. Southwest The FAA charged that from holes during the allowed
over fuselage repairs that next March. FAA Adminis- spokesman Brad Hawkins 2006 to 2009 Southwest time, and they didn’t prop-
a contractor performed on trator Michael Huerta said said Monday that safety used 44 Boeing 737 planes erly support the fuselage
dozens of planes. The Jus- the settlement give South- is the airline’s top priority. that had undergone im- during the work, the FAA
tice Department said this west strong incentives to “We remain committed to proper fuselage repairs. charged. The FAA said it
week that Southwest also correct problems discov- meeting or exceeding all According to Boeing in- alerted Southwest about
agreed to pay up to $5.5 ered by FAA investigators. applicable FAA safety reg- structions, when repairs are the improper work in April
million in additional penal- The government asked the ulations,” he said. made to overlapping alu- 2009 but the airline contin-
ties if it fails to improve over- court to let it fine Southwest The FAA faulted work done minum panels that make ued to use the planes for
sight of contractors it hires $25,000 to $27,500 for each by Southwest’s contractor, up a plane’s fuselage, another six months before
to perform maintenance time one of the planes flew Aviation Technical Services workers are to apply seal- doing further repair work.q
