Arrow Air is to pay $5 million to settle claims that it falsely certified the airworthiness of parts removed from two Boeing 727s.
The cargo carrier has pleaded guilty will pay a $3 million fine and make a $2 million contribution to the Center for Aerospace Safety Education at Embry-Riddle Aeronautical University. The aircraft had been operated outside the USA by foreign airlines before being broken up for spares. As a result, they did not hold US airworthiness certificates.
Arrow says the agreement "-puts behind us" problems which led it to ground its fleet voluntarily in early 1995. It paid $1.5 million in fines to the US Federal Aviation Administration and underwent reverification before resuming operations in June 1995.
Source: Flight International