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Federal Agency Proposes Fine against Boeing for Failure to Meet Deadline

Tuesday, July 31, 2012

The Federal Aviation Administration is taking strict action against Boeing for that company's failure to provide airlines with information on how to prevent fuel tank explosions. The company has been fined $13.5 million for the delay. If the Federal Aviation Administration does decide to go ahead with the fines, California plane crash attorneys believe that these would be the second-heaviest penalties proposed by the agency.

Fuel tank flammability was linked to a deadly tragedy involving a TWA flight that killed 230 people. In 1996, TWA flight 800 crashed off the coast of Long Island, killing all on board. The cause of the crash was a tank explosion on the Boeing 747. The tank exploded just minutes after the plane had taken off from John F. Kennedy airport.

In 2008, the then, Transportation Secretary, Mary Peters announced new fuel tank safety regulations that aircraft manufacturers would have to meet. Those new regulations involved retrofitting of current planes with new tank systems that have lower flammability risks.

As part of the Federal Aviation Administration's regulations, aircraft manufacturers were required to develop instructions for the installation of the new fuel tank systems that would reduce the risk of fuel tank explosions and flammability. Manufacturers were ordered to provide guidelines to carriers about fuel tank service and design issues.

Federal agencies have found that Boeing has been tardy in complying with those regulations. All of the other manufacturers have met the federal deadline, but Boeing was found to be more than 300 days late in developing those instructions for its 747 fleet. The company was also found to be more than 400 days late in delivering these guidelines for its 757 fleet.

San Bernardino Announces Intention to File for Bankruptcy

Friday, July 20, 2012

After the Stockton bankruptcy, it's the turn of yet another California city to announce its plans for bankruptcy. The San Bernardino City Council this week declared that it was in serious financial trouble, and took the first step towards filing for bankruptcy protection without mediating with creditors.

According to the San Bernardino City Council, the city is currently faced with a fiscal emergency, and will not be able to go through proceedings with creditors. Within 30 days the city will likely file for bankruptcy protection. According to the City Council, the city has already spent most of its cash reserves, and also does not have any other options to pay off its long-standing deficit. The city currently faces a deficit of close to $46 million.

According to the City Council, this is not a totally unexpected situation for San Bernardino. The city has been on a path toward bankruptcy for a while now. However, citizens only became aware of the extent of San Bernardino’s financial struggles last week. On July 10, the San Bernardino City Council kicked off the process of moving towards Chapter 9 bankruptcy protection.

Not surprisingly, San Bernardino residents are against any bankruptcy, fearful of the impact this will have on the community's image and long term economic prospects. There are reasons for the city's public employees to be concerned too. In Stockton, the other California city that recently filed for bankruptcy, spending cuts have included ending health-care benefits and pensions for retired employees. More cuts could be in the offing. California business bankruptcy attorneys expect a similar situation in San Bernardino.

With this, San Bernardino becomes the 3rd California city to file for bankruptcy. Earlier, Stockton and Mammoth Lakes had already made this decision. Compton too is believed to be considering bankruptcy proceedings.

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