FAA orders inspection of oxygen systems on 2,600 Boeing 737s Economic News

The Federal Aviation Administration said on Monday it has ordered inspections of 2,600 aircraft. Boeing 737 because the passengers' oxygen masks could malfunction in an emergency.

The Federal Aviation Administration said in a statement that it required the inspections of 737 MAX aircraft after multiple reports that oxygen generators in the passenger service compartment were shifting out of position, a problem that could prevent the provision of supplemental oxygen to passengers in the event of low pressure.

The aviation administration said Boeing sent a notice to airlines on June 17 requesting the inspections.

It noted that its airworthiness directive was effective immediately and required inspections of the 737s and necessary corrective actions within 120 to 150 days.

The FAA also prohibits airlines from installing potentially defective parts.

The agency said airlines should conduct a general visual inspection and, if necessary, replace oxygen generators with new or serviceable ones, install thermal insulation pads and relocate affected oxygen generators.

Recently, multiple issues have affected Boeing (Reuters)

Reaching an Agreement

Notably, the U.S. government said in court filings today that Boeing agreed to end the Justice Department's investigation by pleading guilty to criminal charges of conspiracy to commit wire fraud related to two crashes of two 737 MAX aircraft that killed hundreds of people.

The declaration, filed by authorities late Sunday and still requiring approval by a federal judge, would expose the aircraft maker to criminal charges.

The U.S. Justice Department said in a filing in federal court in Texas that the document outlines an agreement in principle and that Boeing will also pay a $243.6 million criminal fine.

The allegation relates to two 737 MAX crashes in Indonesia and Ethiopia within five months of each other in 2018 and 2019 that killed 346 people and prompted calls from victims' families to sue Boeing.

A guilty plea could threaten the company's ability to win lucrative government contracts with entities such as the U.S. Department of Defense.Pentagon(and NASA)NASABoeing was criminally indicted after the Justice Department found in May that the company had not complied with a 2021 settlement over two crashes.

However, the guilty plea spares Boeing from a potentially controversial trial and exposes many of the company's decisions that led to the two crashes to wider public scrutiny, and will make the company more receptive to a new chief executive as it works to move forward with its planned acquisition of Spirit AeroSystems later this year.

A Boeing spokesman confirmed that the company had “reached an agreement in principle with the Justice Department on terms to conclude (the case)”.

The company also agreed to invest at least $455 million over the next three years to bolster its safety programs, according to court documents.

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