FAA proposes Boeing $5.4 million fine for defective 737 Max parts

• The planes have been grounded worldwide since March 2019 after two fatal crashes.
• FAA's proposed penalty does not refer to the flight-control software that was implicated in those two deadly flights.
• The proposed fine caps a devastating week for Boeing. A plane crashed in Iran killing all 176 people on board and hundreds of internal messages were released that revealed employees boasted about bullying regulators to limit government scrutiny of the 737 Max.

The Federal Aviation Administration is seeking a $5.4-million fine against Boeing for faulty wing parts on dozens of 737 Max planes.

The planes have been grounded worldwide since March after two fatal crashes, but FAA's proposed penalty does not refer to the flight-control software that was implicated in those two deadly flights.

The proposed fine caps a devastating week for Boeing. A Boeing plane crashed in Iran killing all 176 people on board and hundreds of internal messages were released that revealed employees boasted about bullying regulators to limit government scrutiny of the 737 Max.

An employee works on the wing of a 737 Max 8 plane destined for China Southern Airlines at the Boeing Co. manufacturing facility in Renton, Washington, U.S., on Tuesday, Mar. 12, 2019.

David Ryder | Bloomberg | Getty Images

Former CEO Dennis Muilenburg, who was fired last month, exacerbated the company's 737 Max problems over the planes by repeatedly issuing forecast about when the planes would return to service, drawing rare public rebukes from the Federal Aviation Administration.

Muilenburg was also criticized by lawmakers for taking too long to accept blame in the crashes and for failing to spot safety risks before the planes, Boeing's best-seller, came to market in 2017.

On Friday, Boeing denied Muilenburg severance and he gave up at least $44 million in stock, the company said Friday.