Company Facing $1.76 Million Penalty for Producing Aircraft Galley Carts without FAA Approval

Commercial Aircraft Equipment produced and sold 160 modified airline galley carts without approval

Company Facing $1.76 Million Penalty for Producing Aircraft Galley Carts without FAA Approval
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December 29, 2017

The Federal Aviation Administration (FAA) has proposed a $1.76 million civil penalty against Commercial Aircraft Equipment for allegedly producing aircraft galley carts without the required FAA approval.

Commercial Aircraft Equipment (CAE) is a subsidiary of Biskay Holdings LLC.

Sold carts were not approved

The FAA alleges that, in August 2016, CAE produced and sold 160 modified airline galley carts for Atlas Air without first holding an FAA Parts Manufacturer Approval (PMA) to produce them.

The FAA further alleges that, despite not holding this approval, CAE attached metal FAA-PMA tags to each of the carts before they were delivered.

"A Parts Manufacturer Approval is a critical element in our safety system," said FAA Administrator Michael Huerta. "It means that a particular aircraft part meets the FAA's safety standards for design and manufacturing quality, as well as crashworthiness requirements."

What happens next?

CAE has 30 days from the receipt of the FAA's enforcement letter to respond to the agency.