📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

U.S. FAA revokes certification of Xtra Aerospace after Lion Air crash

Published 10/25/2019, 11:44 AM
© Reuters. An aerial photo shows Boeing 737 MAX aircraft, including Lion Air, NordStar and Neos-branded airplanes at Boeing facilities at the Grant County International Airport in Moses Lake

WASHINGTON (Reuters) - The U.S. Federal Aviation Administration (FAA) on Friday revoked the repair certification of Florida-based Xtra Aerospace LLC, which fixed a sensor suspected of contributing to the catastrophic crash of a Lion Air 737 MAX a year ago.

"Xtra failed to comply with requirements to repair only aircraft parts on list of parts acceptable to the FAA that it was capable of repairing," the FAA said, which had opened an investigation soon after the October 2018 crash.

Xtra responded in a statement that it had been cooperating closely with the FAA "and though we have reached a settlement with the FAA, we respectfully disagree with the agency's findings."

The company noted the FAA action was separate from the Indonesia's "investigation and report of the Lion Air Boeing (NYSE:BA) 737 Max accident and is not an indication that Xtra was responsible for the accident."

A final report into the Lion Air 737 MAX crash by Indonesian investigators made public on Friday recommended that the FAA improve oversight of maintenance organizations.

Xtra Aerospace had conducted a repair on a Lion Air sensor that was miscalibrated, the report said, and gave erroneous readings that led to the activation of an anti-stall system that pushed down the plane's nose. The report added that the lack of a "written procedure" at Xtra Aerospace was not detected by the FAA, which indicates "inadequacy of FAA oversight."

The FAA order was part a settlement agreement with the company in which it agreed to waive its right to appeal the revocation to the National Transportation Safety Board or any court.

© Reuters. An aerial photo shows Boeing 737 MAX aircraft, including Lion Air, NordStar and Neos-branded airplanes at Boeing facilities at the Grant County International Airport in Moses Lake

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.