The <a href="https://www.wionews.com/world/boeing-recommends-737-max-simulator-training-before-return-to-service-272832">Federal Aviation Administration</a> (FAA) said on Friday it was seeking to&nbsp;fine&nbsp;Boeing&nbsp;Co&nbsp;$5.4&nbsp;million&nbsp;(£4.14&nbsp;million), alleging it failed to prevent the installation of&nbsp;defective&nbsp;parts&nbsp;on&nbsp;<a href="https://www.wionews.com/business-economy/faa-seeks-39-million-fine-from-boeing-for-defective-parts-on-737-ng-planes-266792">737&nbsp;MAX&nbsp;aeroplanes</a>.

The FAA alleged&nbsp;Boeing&nbsp;"failed to adequately oversee its suppliers to ensure they complied with the company's quality assurance system, Boeing&nbsp;knowingly submitted aircraft for final FAA airworthiness certification after determining that the&nbsp;parts&nbsp;could not be used due to a failed strength test."

The FAA proposed a $3.9&nbsp;million&nbsp;civil penalty against&nbsp;Boeing&nbsp;for the same issue in December involving 133&nbsp;737&nbsp;NG aeroplanes, which is the prior generation of the&nbsp;737.

The&nbsp;737&nbsp;MAX&nbsp;has been grounded since March after two fatal crashes killed 346 people.&nbsp;Boeing's safety record on a number of issues&nbsp;have come under scrutiny from lawmakers and the FAA.

Watch:&nbsp;The Downfall Of Boeing

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The&nbsp;parts&nbsp;issue is completely unrelated to the crashes,&nbsp;Boeing&nbsp;said.

The FAA disclosed in June that about 300 NG and&nbsp;<a href="https://www.wionews.com/world/we-prefer-to-download-black-boxes-iran-after-plane-crash-blamed-on-missile-273396">737&nbsp;MAX</a>&nbsp;aeroplanes&nbsp;could contain improperly manufactured&nbsp;parts&nbsp;and said it would require these&nbsp;parts&nbsp;to be quickly replaced.

The&nbsp;parts&nbsp;at issue are tracks on the leading edge of the wings used to guide the movement of slats that provide additional lift during takeoff and landing, the FAA said. The issue could result in a slat striking an aeroplane, potentially resulting in injury to passengers or preventing a safe landing.

The FAA said&nbsp;Boeing's oversight failure "resulted in the installation of slat tracks that were weakened by a condition known as hydrogen embrittlement that occurred during cadmium-titanium plating."

Boeing&nbsp;said Friday it was aware of the proposed penalty and said it has not seen any in-service issues&nbsp;with the&nbsp;parts, which are covered by a service bulletin and airworthiness directive.

"We will ensure that all inspections and any necessary part replacements are performed on all&nbsp;737&nbsp;MAXs before they return to service. We have not been informed of any in-service issues&nbsp;related to the slat tracks themselves,"&nbsp;Boeing&nbsp;said.

The Federal Aviation Administration (FAA) said on Friday it was seeking to fine Boeing Co $5.4 million (£4.14 million), alleging it failed to prevent the installation of defective parts on 737 MAX aeroplanes.

The Federal Aviation Administration (FAA) said on Friday it was seeking to fine Boeing Co $5.4 million (£4.14 million), alleging it failed to prevent the installation of defective parts on 737 MAX aeroplanes. The FAA alleged Boeing "failed to adequately oversee its suppliers to ensure they complied with the company's quality assurance system, Boeing knowingly submitted aircraft for final FAA airworthiness certification after determining that the parts could not be used due to a failed strength test." The FAA proposed a $3.9 million civil penalty against Boeing for the same issue in December involving 133 737 NG aeroplanes, which is the prior generation of the 737. The 737 MAX has been grounded since March after two fatal crashes killed 346 people. Boeing's safety record on a number of issues have come under scrutiny from lawmakers and the FAA. Watch: The Downfall Of Boeing × The parts issue is completely unrelated to the crashes, Boeing said. The FAA disclosed in June that about 300 NG and 737 MAX aeroplanes could contain improperly manufactured parts and said it would require these parts to be quickly replaced. The parts at issue are tracks on the leading edge of the wings used to guide the movement of slats that provide additional lift during takeoff and landing, the FAA said. The issue could result in a slat striking an aeroplane, potentially resulting in injury to passengers or preventing a safe landing. The FAA said Boeing's oversight failure "resulted in the installation of slat tracks that were weakened by a condition known as hydrogen embrittlement that occurred during cadmium-titanium plating." Boeing said Friday it was aware of the proposed penalty and said it has not seen any in-service issues with the parts, which are covered by a service bulletin and airworthiness directive. "We will ensure that all inspections and any necessary part replacements are performed on all 737 MAXs before they return to service. We have not been informed of any in-service issues related to the slat tracks themselves," Boeing said.

US regulator to fine Boeing $5.4 million for defective parts of 737 MAX planes

Boeing, acting without adequate oversight from US&nbsp;regulators, failed to grasp risks in the design of cockpit software on its 737 MAX airliner, sowing the seeds for a Lion Air crash that also involved errors by airline workers and crew, Indonesian investigators found.

The fatal crash followed less than five months by another at Ethiopian Airlines, led to a <a href="https://www.wionews.com/business-economy/boeing-profit-slumps-53-as-max-grounding-takes-heavy-toll-257743">global grounding</a> of the&nbsp;Boeing&nbsp;737 MAX and a crisis for the world's biggest planemaker, which this week <a href="https://www.wionews.com/world/boeing-ousts-airliner-chief-as-737-max-crisis-grows-257742">ousted its commercial</a> airplanes chief.

In its final report into the October&nbsp;29, 2018, Lion Air crash that killed all 189 people on board, Indonesia made recommendations to&nbsp;Boeing, the airline, the US&nbsp;Federal Aviation Administration (FAA) and other agencies.

A copy was seen by Reuters and it is due to be released publicly later on Friday or on Saturday, an investigator said.

Indonesian regulators criticised the design of the anti-stall system known as MCAS, which automatically pushed the plane's nose down, leaving pilots fighting for control.

"The design and certification of the MCAS did not adequately consider the likelihood of loss of control of the aircraft," the report said.

Boeing&nbsp;has been working on a redesign of MCAS although it has yet to certified by the FAA.

The report also said "deficiencies" in the flight crew's communication and manual control of the aircraft contributed to the crash, as did alerts and distractions in the cockpit.

The accident had been caused by a complex chain of events, Indonesian air accident investigator Nurcahyo Utomo told reporters at a news conference, repeatedly declining to be drawn on providing a single dominant cause.

"From what we know, there are nine things that contributed to this accident," he said. "If one of the nine hadn't occurred, maybe the accident wouldn't have occurred."

During the flight, the first officer was unable to quickly identify a checklist in a handbook or perform tasks he should have had memorised, it said, adding that he had also performed poorly in training exercises.

The captain did not properly brief the first officer when handing over control just before the plane entered a fatal dive, it also said.

The report noted that according to the cockpit voice recorder, the first officer told the captain the flight was not in his initial schedule and he had been called at 4 a.m. to be informed of the revision, while the captain said he had the flu.

A critical angle of attack (AOA) sensor providing data to the MCAS anti-stall system had been miscalibrated by a company in Florida and that there were strong indications that it was not tested during installation by Lion Air maintenance staff, the report said.

Lion Air should have grounded the jet following faults on earlier flights, it said, and added that 31 pages were missing from the airline's October maintenance logs.

A Lion Air spokesman said the crash was an "unthinkable tragedy" and it was essential to take immediate corrective actions to ensure a similar accident never occurred again.

Boeing&nbsp;said in a statement that it was addressing Indonesia's safety recommendations and taking actions to enhance the safety of the 737 MAX.

FAA said it welcomed the report's recommendations and would carefully consider them and all others as it continued to review&nbsp;Boeing's proposed changes to the 737 MAX.

Boeing&nbsp;faces a slew of investigations by regulators, US&nbsp;Congress, and the Department of Justice over its development of the 737 MAX, its previously best-selling workhorse for short-haul travel.

Boeing&nbsp;last month settled the first claims stemming from the Lion Air crash, a US&nbsp;plaintiffs' lawyer said.

Three other sources told Reuters that families of those killed would receive at least $1.2 million each.

The manufacturer is facing nearly 100 lawsuits over the Ethiopian Airlines crash on March 10 which killed all 157 people on board the flight from Addis Ababa to Nairobi.

Indonesia has offered to aid Ethiopian authorities in their investigation into that crash but to date there has been no response, said Soerjanto, the head of Indonesia's accident investigator.

Boeing&nbsp;CEO Dennis Muilenburg said this week the company was making "daily" progress on testing the final software fix for the 737 MAX and developing related training materials. The FAA has said it would need at least several more weeks for review.

The Indonesia report said that&nbsp;Boeing's safety assessment assumed pilots would respond within three seconds of a system malfunction but on the accident flight and one that experienced the same problem the previous evening, it took both crews about eight seconds to respond.

It called for the systems to be designed not just for highly skilled test pilots but also for regular commercial airline pilots.

The FAA had delegated increasing authority to&nbsp;Boeing&nbsp;to certify the safety of its own aircraft, Indonesian investigators said in the report, recommending that all certification processes received adequate oversight.

A panel of international air safety regulators this month also faulted&nbsp;Boeing&nbsp;for assumptions it made in designing the 737 MAX and found areas where&nbsp;Boeing&nbsp;could improve processes.

Boeing, acting without adequate oversight from US regulators, failed to grasp risks in the design of cockpit software on its 737 MAX airliner, sowing the seeds for a Lion Air crash that also involved errors by airline workers and crew, Indonesian investigators found.

Boeing, acting without adequate oversight from US regulators, failed to grasp risks in the design of cockpit software on its 737 MAX airliner, sowing the seeds for a Lion Air crash that also involved errors by airline workers and crew, Indonesian investigators found. The fatal crash followed less than five months by another at Ethiopian Airlines, led to a global grounding of the Boeing 737 MAX and a crisis for the world's biggest planemaker, which this week ousted its commercial airplanes chief. In its final report into the October 29, 2018, Lion Air crash that killed all 189 people on board, Indonesia made recommendations to Boeing, the airline, the US Federal Aviation Administration (FAA) and other agencies. A copy was seen by Reuters and it is due to be released publicly later on Friday or on Saturday, an investigator said. Indonesian regulators criticised the design of the anti-stall system known as MCAS, which automatically pushed the plane's nose down, leaving pilots fighting for control. "The design and certification of the MCAS did not adequately consider the likelihood of loss of control of the aircraft," the report said. Boeing has been working on a redesign of MCAS although it has yet to certified by the FAA. The report also said "deficiencies" in the flight crew's communication and manual control of the aircraft contributed to the crash, as did alerts and distractions in the cockpit. The accident had been caused by a complex chain of events, Indonesian air accident investigator Nurcahyo Utomo told reporters at a news conference, repeatedly declining to be drawn on providing a single dominant cause. "From what we know, there are nine things that contributed to this accident," he said. "If one of the nine hadn't occurred, maybe the accident wouldn't have occurred." During the flight, the first officer was unable to quickly identify a checklist in a handbook or perform tasks he should have had memorised, it said, adding that he had also performed poorly in training exercises. The captain did not properly brief the first officer when handing over control just before the plane entered a fatal dive, it also said. The report noted that according to the cockpit voice recorder, the first officer told the captain the flight was not in his initial schedule and he had been called at 4 a.m. to be informed of the revision, while the captain said he had the flu. A critical angle of attack (AOA) sensor providing data to the MCAS anti-stall system had been miscalibrated by a company in Florida and that there were strong indications that it was not tested during installation by Lion Air maintenance staff, the report said. Lion Air should have grounded the jet following faults on earlier flights, it said, and added that 31 pages were missing from the airline's October maintenance logs. A Lion Air spokesman said the crash was an "unthinkable tragedy" and it was essential to take immediate corrective actions to ensure a similar accident never occurred again. Boeing said in a statement that it was addressing Indonesia's safety recommendations and taking actions to enhance the safety of the 737 MAX. FAA said it welcomed the report's recommendations and would carefully consider them and all others as it continued to review Boeing's proposed changes to the 737 MAX. Boeing faces a slew of investigations by regulators, US Congress, and the Department of Justice over its development of the 737 MAX, its previously best-selling workhorse for short-haul travel. Boeing last month settled the first claims stemming from the Lion Air crash, a US plaintiffs' lawyer said. Three other sources told Reuters that families of those killed would receive at least $1.2 million each. The manufacturer is facing nearly 100 lawsuits over the Ethiopian Airlines crash on March 10 which killed all 157 people on board the flight from Addis Ababa to Nairobi. Indonesia has offered to aid Ethiopian authorities in their investigation into that crash but to date there has been no response, said Soerjanto, the head of Indonesia's accident investigator. Boeing CEO Dennis Muilenburg said this week the company was making "daily" progress on testing the final software fix for the 737 MAX and developing related training materials. The FAA has said it would need at least several more weeks for review. The Indonesia report said that Boeing's safety assessment assumed pilots would respond within three seconds of a system malfunction but on the accident flight and one that experienced the same problem the previous evening, it took both crews about eight seconds to respond. It called for the systems to be designed not just for highly skilled test pilots but also for regular commercial airline pilots. The FAA had delegated increasing authority to Boeing to certify the safety of its own aircraft, Indonesian investigators said in the report, recommending that all certification processes received adequate oversight. A panel of international air safety regulators this month also faulted Boeing for assumptions it made in designing the 737 MAX and found areas where Boeing could improve processes.

Indonesia report on 737 MAX crash faults Boeing design, says Lion Air made mistakes

Boeing reported a second-quarter loss of $2.9 billion Wednesday as the grounding of 737 MAX following two deadly crashes continues to weigh on the company.

The loss, the biggest ever in a single quarter for the aerospace giant, follows last week's announcement that Boeing would set aside $4.9 billion after taxes to compensate airlines for cancelled flights and the delay in plane deliveries.&nbsp;

Revenues tumbled 35.1 per cent to $15.8 billion, reflecting the hit from a halt to deliveries of the 737 MAX, a top-selling plane.

Boeing also pushed back the timeframe for first flights of the 777X, a new long-haul plane under development. It pointed to problems with the 777X engine, which is being built by General Electric.&nbsp;

The 737 MAX has been grounded since mid-March following the second of two crashes that together claimed 346 lives.

Boeing is developing a software fix to address a problem with a flight handling system that was linked to both crashes.

"Disciplined development and testing is underway and we will submit the final software package to the FAA once we have satisfied all of their certification requirements," Boeing said.

Boeing has said it is targeting early in the fourth quarter to win approval from regulators.

The company, which has pulled its full-year profit forecast due to uncertainty about the MAX, boosted dividend payments in the second quarter. Compared with last year, Boeing spent $1.2 billion in dividends, up 20 per cent from the year-ago period.

Shares fell 0.8 per cent to $369.84 in pre-market trading.

Boeing reported a second-quarter loss of $2.9 billion Wednesday as the grounding of 737 MAX following two deadly crashes continues to weigh on the company. The loss, the biggest ever in a single quarter for the aerospace giant, follows last week's announcement that Boeing would set aside $4.

Boeing reported a second-quarter loss of $2.9 billion Wednesday as the grounding of 737 MAX following two deadly crashes continues to weigh on the company. The loss, the biggest ever in a single quarter for the aerospace giant, follows last week's announcement that Boeing would set aside $4.9 billion after taxes to compensate airlines for cancelled flights and the delay in plane deliveries. Revenues tumbled 35.1 per cent to $15.8 billion, reflecting the hit from a halt to deliveries of the 737 MAX, a top-selling plane. Boeing also pushed back the timeframe for first flights of the 777X, a new long-haul plane under development. It pointed to problems with the 777X engine, which is being built by General Electric. The 737 MAX has been grounded since mid-March following the second of two crashes that together claimed 346 lives. Boeing is developing a software fix to address a problem with a flight handling system that was linked to both crashes. "Disciplined development and testing is underway and we will submit the final software package to the FAA once we have satisfied all of their certification requirements," Boeing said. Boeing has said it is targeting early in the fourth quarter to win approval from regulators. The company, which has pulled its full-year profit forecast due to uncertainty about the MAX, boosted dividend payments in the second quarter. Compared with last year, Boeing spent $1.2 billion in dividends, up 20 per cent from the year-ago period. Shares fell 0.8 per cent to $369.84 in pre-market trading.

Boeing reports $2.9 billion loss in 2Q, biggest quarterly loss ever

Boeing Co said on Wednesday it will dedicate half of a $100 million fund it created after two crashes of its 737 MAX planes to provide payments to families of those killed, with veteran US compensation expert Ken Feinberg hired by the world's largest plane maker to oversee the distribution.

The announcement of Feinberg's hiring came minutes before a US House of Representatives hearing featuring dramatic testimony by Paul Njoroge, a father who lost three children, his wife and mother-in-law in a 737 MAX Ethiopian Air crash in March.

Feinberg told Reuters his team will "start immediately drafting a claims protocol for those eligible," with the first meeting with officials from Chicago-based Boeing later this week in Washington. Feinberg has administered many compensation funds including for victims of Sept. 11, 2001, attacks on the United States, the 2010 Deepwater Horizon oil spill, General Motors ignition switch crashes, and numerous school shootings.

The 737 MAX, Boeing's best-selling jet, was grounded globally in March following the Ethiopian Airlines crash after a similar Lion Air disaster in Indonesia in October. The two crashes killed 346 people.

Njoroge, 35, told reporters after he testified he did not think the public would trust <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/american-airlines-extends-boeing-737-max-cancellations-for-fourth-time-236054&amp;sa=U&amp;ved=2ahUKEwjHxNOjnL7jAhXk6nMBHVP0B_YQFjACegQIEBAC&amp;usg=AOvVaw0dYuY323zoRH-ru_mwOQiO">Boeing</a> going forward. "Do you want to fly in those planes? Do you want your children to fly in those planes?" Njoroge asked. "I don't have any more children."

Njoroge told a House subcommittee he still has "nightmares about how (his children) must have clung to their mother crying" during the doomed flight.

Njoroge, who was born in Kenya and lives in Canada, said Boeing has blamed "innocent pilots who had no knowledge and were given no information on the new and flawed MCAS system that could overpower pilots."

Boeing did not address specific questions raised by Njoroge but said in a statement "we truly regret the loss of lives in both of these accidents and we are deeply sorry for the impact on the families and loved ones of those on board."

A Boeing official told Reuters last month that after a new software flaw emerged the company will not submit an MCAS software upgrade and training revision until September, which means the planes will not resume flying until November at the earliest. U.S. airlines have cancelled flights through early November as a result of the 737 MAX's grounding.

Boeing shares closed up 1.9% on Wednesday.

Acting FAA Administrator Dan Elwell told Fox Business Network on Wednesday that the agency has made a lot of progress since the plane's grounding.

"We have discovered some anomalies and then we have directed Boeing to mitigate those anomalies," Elwell said, declining to set any timetable for returning the plane to service.

"The 737 MAX is not going to fly until it passes the most thorough and intense look," said Elwell, adding that he had spent several hours with Njoroge during a recent meeting.

Boeing said on July 3 it would give $100 million over multiple years to local governments and non-profit organizations to help families and communities affected by the crashes in Indonesia and Ethiopia.

Feinberg, who will jointly administer the fund with lawyer Camille Biros, said the other $50 million in the fund was earmarked for government and community projects.

Boeing reiterated on Wednesday that the money distributed through the fund would be independent of the outcome of any lawsuits. The company is facing a slew of litigation from the families of victims of both crashes.

"Through our partnership with Feinberg and Biros, we hope affected families receive needed assistance as quickly and efficiently as possible," Boeing Chief Executive Dennis Muilenburg said in a statement.

Boeing's initial announcement of the $100 million funds was met with anger by some victims' families, who described the offer as a publicity stunt.

At the hearing in Washington, Representative Peter DeFazio, chairman of the House Transportation Committee, said he would call Boeing officials to testify at a hearing. DeFazio said the committee was in the middle of an in-depth investigation and had just received a "trove" of documents that panel investigators were reviewing.

Boeing Co said on Wednesday it will dedicate half of a $100 million fund it created after two crashes of its 737 MAX planes to provide payments to families of those killed, with veteran US compensation expert Ken Feinberg hired by the world's largest plane maker to oversee the distribution.

Boeing Co said on Wednesday it will dedicate half of a $100 million fund it created after two crashes of its 737 MAX planes to provide payments to families of those killed, with veteran US compensation expert Ken Feinberg hired by the world's largest plane maker to oversee the distribution. The announcement of Feinberg's hiring came minutes before a US House of Representatives hearing featuring dramatic testimony by Paul Njoroge, a father who lost three children, his wife and mother-in-law in a 737 MAX Ethiopian Air crash in March. Feinberg told Reuters his team will "start immediately drafting a claims protocol for those eligible," with the first meeting with officials from Chicago-based Boeing later this week in Washington. Feinberg has administered many compensation funds including for victims of Sept. 11, 2001, attacks on the United States, the 2010 Deepwater Horizon oil spill, General Motors ignition switch crashes, and numerous school shootings. The 737 MAX, Boeing's best-selling jet, was grounded globally in March following the Ethiopian Airlines crash after a similar Lion Air disaster in Indonesia in October. The two crashes killed 346 people. Njoroge, 35, told reporters after he testified he did not think the public would trust Boeing going forward. "Do you want to fly in those planes? Do you want your children to fly in those planes?" Njoroge asked. "I don't have any more children." Njoroge told a House subcommittee he still has "nightmares about how (his children) must have clung to their mother crying" during the doomed flight. Njoroge, who was born in Kenya and lives in Canada, said Boeing has blamed "innocent pilots who had no knowledge and were given no information on the new and flawed MCAS system that could overpower pilots." Boeing did not address specific questions raised by Njoroge but said in a statement "we truly regret the loss of lives in both of these accidents and we are deeply sorry for the impact on the families and loved ones of those on board." A Boeing official told Reuters last month that after a new software flaw emerged the company will not submit an MCAS software upgrade and training revision until September, which means the planes will not resume flying until November at the earliest. U.S. airlines have cancelled flights through early November as a result of the 737 MAX's grounding. Boeing shares closed up 1.9% on Wednesday. Acting FAA Administrator Dan Elwell told Fox Business Network on Wednesday that the agency has made a lot of progress since the plane's grounding. "We have discovered some anomalies and then we have directed Boeing to mitigate those anomalies," Elwell said, declining to set any timetable for returning the plane to service. "The 737 MAX is not going to fly until it passes the most thorough and intense look," said Elwell, adding that he had spent several hours with Njoroge during a recent meeting. Boeing said on July 3 it would give $100 million over multiple years to local governments and non-profit organizations to help families and communities affected by the crashes in Indonesia and Ethiopia. Feinberg, who will jointly administer the fund with lawyer Camille Biros, said the other $50 million in the fund was earmarked for government and community projects. Boeing reiterated on Wednesday that the money distributed through the fund would be independent of the outcome of any lawsuits. The company is facing a slew of litigation from the families of victims of both crashes. "Through our partnership with Feinberg and Biros, we hope affected families receive needed assistance as quickly and efficiently as possible," Boeing Chief Executive Dennis Muilenburg said in a statement. Boeing's initial announcement of the $100 million funds was met with anger by some victims' families, who described the offer as a publicity stunt. At the hearing in Washington, Representative Peter DeFazio, chairman of the House Transportation Committee, said he would call Boeing officials to testify at a hearing. DeFazio said the committee was in the middle of an in-depth investigation and had just received a "trove" of documents that panel investigators were reviewing.

Boeing to make $50 million in payments to 737 MAX crash victims' families

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US regulator to fine Boeing $5.4 million for defective parts of 737 MAX planes

Indonesia report on 737 MAX crash faults Boeing design, says Lion Air made mistakes

Boeing reports $2.9 billion loss in 2Q, biggest quarterly loss ever

Boeing to make $50 million in payments to 737 MAX crash victims' families