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Aviation Parts Corruption

Updates:  2018/12/30 - engine companies updates; Economist 2018/03 article;08/21/2017 finishing shift/deletions/link editing from general aviation corruption page to this one; page started week of 08/14/17; SYSTEM ABUSE - AVIATION Aviation Parts Corruption AVIATION PARTS CORRUPTION AND ISSUES Parts  Manufacturer corruption and other issues   Crashes involving known parts:  Engines: Crashes/Engines/Airbus     Crashes/Engines/Boeing  Companies:  Manufacturers/Engines Corruption, Issues Section     Top 3 Article Summary     Pratt & Whitney   Rolls Royce     GE (GEAE) Rudders:   Rudder issues     Crashes/Boeing 737 rudder issues     Parker Hannifin issues (rudders and other) Lap Joints   Lap Joints/Boeing ENGINES Jet engine issues - crashes, manufacturer corruption Crashes - engines (and other incidents) Airbus Crashes/Engines/Airbus American Airlines 191/Airbus - engine fell off shortly after take-off (05/1979) Boeing Crashes/Engines/Boeing American AIrlines 383/Boeing 767 (2016) American AIrlines/ Boeing 767 (06/2006) British Airtours 58M/Boeing 737 (08/221985) Pacific Western Airlines 501/Boeing 737 (03/221984) engine - compressor disc flew apart Singapore Airlines 368/Boeing 777-300ER (06/27/2016) engine oil leak and warning - landing with right engine catching fire Southwest Flight 1380 Boeing 737-700  (2018/04/17) lost an engine about 50 miles from Philadelphia Companies - Engines - Main Ones In this section:  Past and Present General Engines for Aircraft; Top few; Top Jet Engine Companies; Electric Engine Companies Lists: Wikipedia: List past and present - there are a lot https://en.wikipedia.org/wiki/List_of_aircraft_engine_manufacturers Quora: CFM, General Electric, Pratt and Whitney, Rolls Royce, Rotax, Turbomecha, and a few Russian factories. https://www.quora.com/Who-are-the-top-aircraft-engine-manufacturers-in-the-world-currently IB Times: World’s Top 3 Jet Engine Makers exploit booming airline market.  By Nish Amarnath (07/10/2012) http://www dot ibtimes dot com/worlds-top-3-jet-engine-makers-exploit-booming-airline-market-722046 Excerpt:  The world's top three jet engine makers are ramping up research and development (R&D) efforts to cash in on a booming global market for commercial airliners that has produced a huge number of orders.  Fairfield, Conn.- based General Electric Company (NYSE: GE), whose jet engine business -- its most profitable operation -- is worth about $18 billion, is working to develop a commercially viable technique for mass producing engines of carbon fiber and ceramics, materials that are two-thirds lighter than nickel and titanium alloys currently used to make engines.  Boeing's rivals are focusing their R&D on new designs. London-based Rolls-Royce Holdings (LON: RR) is on the brink of a significant upgrade to its Trent 1000-TEN engine, which is used on Boeing's 787 Dreamliner, Bloomberg News said. The (upgraded) Trent 1000-TEN will deliver 3 percent better fuel burn than the current model, Robert Nuttall, vice president of strategic marketing at Rolls-Royce said on Tuesday, during a briefing at the Farnborough Air Show outside London. The Trent 1000-TEN would be fielded in 2016, he said.  Meanwhile, Pratt & Whitney, owned by United Technologies Corporation (NYSE: UTX), recently launched its so-called PurePower PW1200G engine with a high- pressure compressor, a low-emissions combustor and a state-of-the-art stub wing, MarketWatch said Tuesday. The engine features an improved gear system that helps the engine fan operate at higher speeds than those of lower- pressure compressors and turbines. It will be used to power the Mitsubishi Aircraft Corporation's Mitsubishi Regional Jet, the company said.  http://www dot ibtimes dot com/worlds-top-3-jet-engine-makers-exploit-booming-airline-market-722046 Economist: 2018/03/22: The World’s Three Biggest Engine Makers Hit a Snag https://www.economist.com/business/2018/03/22/the-worlds-three-biggest-engine-makers-hit-a-snag Electric Plane Engines: https://www.siemens.com/press/en/feature/2015/corporate/2015-03-electromotor.php?content[]=Corp https://www.cnbc.com/2017/11/28/tesla-type-planes-to-be-developed-by-airbus-rolls-royce-and-siemens.html http://fortune.com/2017/11/28/hybrid-electric-plane-rolls-royce-airbus/ -Rolls Royce  Reuters: Rolls-Royce could face prosecution in bribery probe.  By Rhys Jones and Kirstin Ridley (12/06/2012) http://www.reuters.com/article/us-rolls-royce-sfo-idUSBRE8B50M120121206 Ainonline: Rolls-Royce Settles Corruption Case with $812 Million in Fines  by Charles Alcock   (01/17/2017) Excerpt: The SFO investigation, which began in 2012, covered multiple instances in which various intermediaries acting on behalf of Rolls-Royce in different countries made improper payments and gifts to secure deals for engines for civil and military aircraft, as well as for industrial energy generation equipment. The company faced charges of 12 counts of conspiracy to corrupt and failure to prevent bribery relating to the activities of the intermediaries. The actions in question included dealings involving contracts with Indonesian airline Garuda, Thai Airways and China Eastern Airline http://www.ainonline.com/aviation-news/aerospace/2017-01-17/rolls-royce-settles-corruption-case-812-million- fines Financial Times: Rolls Royce humbled by long list of corruption offences https://www.ft.com/content/5c85eab6-dcd5-11e6-86ac-f253db7791c6 Telegraph: Rolls Royce aerospace head quits as bribery fears mount By Graham Ruddick (05/04/2013) Notice the connection of Rolls Royce/aerospace to Singapore in this article - ie, Fat Leonard Case. http://www.telegraph.co.uk/finance/newsbysector/industry/10037809/Rolls-Royce-aerospace-head-quits-as- bribery-fears-mount.html -GE Aviation GE Aviation Website - Engines https://www.geaviation.com/commercial/engines/genx-engine FCPA Stanford: United States of America v. General Electric Company. Prosecuting Agency: US Department Justice. (07/22/1992) http://fcpa.stanford.edu/enforcement-action.html?id=22 LA Times:  GE Pleads Guilty to Fraud in Arms Deal : Defense: The company will pay a $69-million penalty in the sale of jet engines to Israel.  By Henry Weinstein (07/23/1992) http://articles.latimes.com/1992-07-23/business/fi-4384_1_ge-aircraft-engines Excerpt:  General Electric Co. pleaded guilty to criminal fraud charges and agreed to pay $69 million in criminal and civil penalties Wednesday in a massive fraud and bribery scandal involving the sale of military jet engines to Israel.  In a federal court in Cincinnati, GE agreed to reimburse the U.S. Treasury $59.5 million to resolve a civil fraud suit, making it the largest settlement of a whistle-blower-initiated government fraud lawsuit in U.S. history. The company also agreed to a $9.5-million criminal fine, according to Allen K. Tolen, special agent in charge of the FBI's Cincinnati office.  The announcement marked the latest chapter in a case that has rocked the Israeli air force--and is still not concluded. Tolen said the FBI investigation is ongoing. It is anticipated that individuals, including some GE employees involved in the scandal, will be indicted.  U.S. District Judge Carl B. Rubin approved the settlement, in which GE admitted diverting $40 million in U.S. military aid intended for Israel. http://articles.latimes.com/1992-07-23/business/fi-4384_1_ge-aircraft-engines Law 360:  $6.6M Settlement Unsealed In GE Aviation Fraud Case. By Dietrich Knauth Case filed 2011 https://www.law360.com/articles/453422 Excerpt:  An Ohio federal judge on Wednesday revealed a $6.6 million settlement in a previously sealed False Claims Act suit over GE Aviation Systems LLC's sale of nonconforming jet fighter fuel tanks to the Navy.  U.S. District Judge S. Arthur Spiegel unsealed the settlement at the request of the U.S. Department of Justice, which said Wednesday that the settlement was part of a multiyear investigation by the local California offices of the Defense Contract Management Agency, the Defense Contract Audit Agency, the Defense Criminal Investigative Service and the Navy Criminal Investigative Service.  The complaint, which was filed under seal in May 2011 by former GEAS employee Jeffrey Adler, alleged that GEAS knowingly failed to comply with contract specifications and required quality-control procedures in connection with 641 fuel tanks that it sold for use on the Navy’s F/A-18 Hornet strike fighter jet. The lawsuit also claimed that GEAS falsely told another government contractor that GEAS had completed required inspections on landing gear used in Army UH-60 Blackhawk helicopters.  “In this case, some of the hardware sold to the government did not meet quality-control standards, and that failure could have put our service members at risk,” said Andre Birotte Jr., U.S. attorney for the Central District of California.  “This multimillion-dollar settlement is designed to ensure that General Electric Aviation Systems does not engage in this type of misconduct in the future, and this case should serve as a warning to any government contractor who thinks it can cut corners.” https://www.law360.com/articles/453422 -Pratt & Whitney (United Technologies)  - engines aviation Wikipedia: Pratt & Whitney Excerpt:  Pratt & Whitney is an American aerospace manufacturer with global service operations. It is a subsidiary of United Technologies (UTC). Pratt & Whitney's aircraft engines are widely used in both civil aviation (especially airlines) and military aviation. Its headquarters are in East Hartford, Connecticut.[2] As one of the "big three" aero-engine manufacturers, it competes with General Electric and Rolls-Royce, although it has also formed joint ventures with both of these companies. In addition to aircraft engines, Pratt & Whitney manufactures gas turbines for industrial and power generation, and marine turbines https://en.wikipedia.org/wiki/Pratt_%26_Whitney Reuters:  Pratt's F135 engine chief, other employees leave after ethics issue. By Andrea Shalal (01/13/2017) http://www.reuters.com/article/us-utc-pratt-management-idUSKBN14X291 Excerpt:  Ten employees of United Technologies Corp's (UTX.N) Pratt & Whitney unit, including the head of its F135 engine program, have left the company after an internal audit uncovered an ethics issue linked to a visit by a South Korean delegation, sources familiar with the matter told Reuters.  Three sources said the ethics problem occurred during a business trip by South Korean military officials to the United States several years ago but only came to light in an internal audit launched in 2016. http://www.reuters.com/article/us-utc-pratt-management-idUSKBN14X291 US Aero Arms Summit Bribery:  FBI eyes possible corruption in aerospace By Andrea Shalal Esa (09/09/2011) Excerpt:  U.S. law enforcement officials are tracking possible bribery and corruption issues involving the global aerospace industry and foreign state-owned airlines, according to legal and government sources.According to a document obtained by Reuters, the FBI briefed other government agencies in June about a project focused on possible corruption associated with sales and maintenance contracts between aerospace companies and state-owned airlines. While the aerospace industry has long been subject to such scrutiny, the new initiative focuses on sales and maintenance contracts on the commercial side, not in defense. http://www.reuters.com/article/us-aero-arms-summit-bribery-idUSTRE78876G20110909 Anti-Corruption Digest:  Qatar Airways says Pratt & Whitney engines not adequately tested. By “Anti-Corruption Digest.”  (03/10/2016) http://anticorruptiondigest.com/anti-corruption-news/2016/03/10/qatar-airways-says-pratt-whitney-engines- not-adequately-tested/#axzz4nhMOhC5D Excerpt:  The head of Qatar Airways kept up pressure on U.S. engine maker Pratt & Whitney over delays and technical problems on Wednesday, saying engines for its Airbus A320neo aircraft had not been adequately tested. Qatar Airways was due to be the first airline to receive the recently revamped aircraft, but has refused to take them because of engine glitches. Last month, it threatened to switch to alternative engine supplier CFM International. “I don’t think this engine was tested adequately, especially for the temperatures in which Qatar Airways will operate,” Qatar Airways Chief Executive Akbar Al Baker said. “We will only accept it when we are fully satisfied that it can operate efficiently and safely at Qatar operations (and)…once we get sufficient performance guarantees and undertakings from both Airbus and Pratt and Whitney,” he told a news conference at the ITB tourism exhibition in Berlin.  http://anticorruptiondigest.com/anti-corruption-news/2016/03/10/qatar-airways-says-pratt-whitney-engines- not-adequately-tested/#axzz4nhMOhC5D Justice dot gov:  United Technologies Subsidiary Pleads Guilty to Criminal Charges for Helping China Develop New Attack Helicopter.  United Technologies, Pratt & Whitney Canada and Hamilton Sundstrand Corporations Also Agree to Pay More Than $75 Million to U.S. Government  (06/28/2012) https://www.justice.gov/opa/pr/united-technologies-subsidiary-pleads-guilty-criminal-charges-helping-china- develop-new  Excerpt:  BRIDGEPORT, Conn. – Pratt & Whitney Canada Corp. (PWC), a Canadian subsidiary of the Connecticut- based defense contractor United Technologies Corporation (UTC), today pleaded guilty to violating the Arms Export Control Act and making false statements in connection with its illegal export to China of U.S.-origin military software used in the development of China’s first modern military attack helicopter, the Z-10.  In addition, UTC, its U.S.-based subsidiary Hamilton Sundstrand Corporation (HSC) and PWC have all agreed to pay more than $75 million as part of a global settlement with the Justice Department and State Department in connection with the China arms export violations and for making false and belated disclosures to the U.S. government about these illegal exports. https://www.justice.gov/opa/pr/united-technologies-subsidiary-pleads-guilty-criminal-charges-helping-china- develop-new New York Times:  Military Contractors Are Fined Over Aid to China By Michael Schmidt (06/28/2012) Excerpt:  WASHINGTON — A Canadian subsidiary of the Connecticut-based military contractor the United Technologies Corporation pleaded guilty on Thursday to federal charges that it had illegally helped the Chinese government develop an attack helicopter now in service there.  As part of a settlement with the Justice and State Departments, the military contractor, the Canadian subsidiary and another American subsidiary agreed to pay more than $75 million to the departments for making false statements to federal authorities.  The helicopter, known as the Z-10, seats two people and is designed mainly to attack tanks, armored vehicles and other ground forces. It is being mass produced in China. http://www.nytimes.com/2012/06/29/business/global/arms-contractor-pleads-guilty-on-china-exports.html Globe and Mail:  Pratt & Whitney Canada pleads guilty in military software case.  By Bertrand Marotte (06/28/2012) https://www.theglobeandmail.com/report-on-business/pratt-whitney-canada-pleads-guilty-in-military-software- case/article4377357/ Huffington Post: Pratt & Whitney Canada Pleads Guilty To Exporting Military Software To China . By Ross Marowits (06/28/2012) http://www.huffingtonpost.ca/2012/06/28/pratt-whitney-canada-arms-china_n_1635277.html Connecticut Mirror: Pentagon blames Pratt & Whitney suppliers for F-135 engine problems By Ana Radelat (04/26/2016) https://ctmirror.org/2016/04/26/pentagon-blames-pratt-whitney-suppliers-for-f-135-engine-problems/ Excerpt:   The quality of Pratt & Whitney’s F-135 engine – and the company’s supply chain – came under scrutiny Tuesday by a key Senate panel  as part of a review of the status of the problem-plagued Joint Strike Fighter program.  “I’m particularly concerned about the performance of the F-135, given that Pratt & Whitney was recently selected to build the engine for the B-1 (bomber),” said Sen. Joe Donnelly, whose home state of Indiana lost a bid to build an alternative to the F-135 engine through a partnership between General Electric and Rolls-Royce.  Donnelly also said he was concerned about Pentagon reports of “recurring manufacturing quality issues that have been an issue for Pratt & Whitney for the F-135.”  Testifying at the Senate Armed Services hearing, Air Force Gen. Christopher C. Bogdan, head of the Pentagon’s F-35 Lightning II Joint Program, said the fault was “primarily not at the Pratt & Whitney level but at the suppliers level.” Setty Southam: Did Pratt-Whitney do all it could to avoid a corrupt deal (01/12/2015) https://settysoutham.wordpress.com/2015/01/12/did-pratt-whitney-do-all-it-could-to-avoid-a-corrupt-deal/ WSJ https://www.wsj.com/articles/utx-expects-pratt-whitney-canada-arm-to-post-870-million-charge-1452087916 Bloomberg https://www.bloomberg.com/news/articles/2016-10-25/u-s-said-to-be-closing-in-on-venezuelan-asset-seizures- charges FCPA http://fcpaprofessor.com/companies-resolved-fcpa-enforcement-actions-currently-fcpa-scrutiny-helping-change- world/ Republic Report https://www.republicreport.org/2012/f35-conflict-interest/ Rudders Rudder issues Note: see also Airbus crashes involving rudders (ie, compare and contrast with Boeing) Parker Hannifin           Wikipedia: Boeing 737 Rudder Issues Excerpt:  During the 1990s, a series of rudder issues on Boeing 737 aircraft resulted in multiple incidents. In two separate accidents, pilots lost control of their Boeing 737 aircraft due to a sudden and unexpected movement of the rudder, and the resulting crashes killed everyone aboard. A total of 157 people aboard the two aircraft were killed.[1] Similar rudder issues led to a temporary loss of control on at least one other Boeing 737 flight before the problem was ultimately identified. The National Transportation Safety Board ultimately determined that the accidents and incidents were the result of a design flaw which could result in an uncommanded movement of the aircraft's rudder.[2]:13[3]:ix The issues were resolved after the NTSB identified the cause of the rudder malfunction and the Federal Aviation Administration ordered repairs for all Boeing 737 aircraft in service. https://en.wikipedia dot org/wiki/Boeing_737_rudder_issues Aviation:  What happens after a rudder hardover https://aviation.stackexchange.com/questions/15250/what-happens-after-a-rudder-hardover ABC News:  737 Rudder Problems Remain? ABC news, Seattle, Sept. 13, no year given no real author. http://abcnews.go.com/Travel/story?id=118674 Excerpt:  Efforts to fix rudder problems in the Boeing 737, the world’s most common jetliner, have not eliminated malfunctions that “could be catastrophic,” the National Transportation Safety Board concluded.In a report released in July, the board detailed its investigation into the 1991 crash of United Airlines Flight 585 in 1991 in Colorado Springs, Colo., and the crash of USAir Flight 427 near Pittsburgh in 1994. All 157 people on the two 737s died.The 737 is the only commercial jet with a rudder controlled by a single hydraulic valve. Other jets have multiple valves that can compensate for each other if one jams.  Single Valve Danger:The single valve has shown a tendency to jam, causing rogue deflections of the sort that apparently affected a Metrojet flight in February, officials said.  The crew reported that the rudder pedal appeared to move without being touched, at one point causing the 737-200 to turn to the right. The crew managed to land safely, partly by shutting down the plane’s main hydraulic system. Had the rudder remained jammed, the plane could have rolled into a high-speed dive.  The NTSB report lists 112 such “rudder events” on Boeing 737 flights in the past two decades.  “The 737 series airplanes ... remain susceptible to rudder system malfunctions that could be catastrophic,” the 346-page report said. http://abcnews.go.com/Travel/story?id=118674 Lap Joints               Lap Joints/Boeing ABC News: SW Emergency Landing: Boeing Knew of 737 Crack Problem.By Lisa Stark, Matt Hosford, Bradley Blackburn (04/05/2011) http://abcnews.go.com/US/southwest-airlines-boeing-knew-737-flaw-expect-problem/story?id=13300089 Excerpt:  The aviation giant Boeing admitted today that it was aware of weaknesses in its 737 jets, but it never expected a 15-year-old Southwest Airlines jet to crack open in mid-flight.  In a conference call with reporters, Boeing officials acknowledged that they knew of problems with the lap joints that bind together the fuselage of the plane, but they didn't expect it to be an issue until the 737 jets had been through many more takeoff and landing cycles than the plane that got into trouble Friday.  "Our plan was to recommend inspections at 60,000 cycles. Obviously, none are close to that at this point in time," said Paul Richter, the chief project engineer for Boeing's 737 classic. "It is regrettable that we had to accelerate our plans based on an event of this nature."  The 15-year-old Southwest Airlines jet, which tore open along its lap joint last Friday, had 39,000 takeoff and landing cycles.  Boeing's 737 classics were manufactured from 1984 until 2000. In 1993, Boeing redesigned its 737 due to problems with the lap-joint design, but the problem Southwest jet was manufactured after that redesign. http://abcnews.go.com/US/southwest-airlines-boeing-knew-737-flaw-expect-problem/story?id=13300089 New York Times: Hole in Southwest Jet Attributed to Crack. By Joseph Berger, Duff Wilson  (04/03/2011) http://www.nytimes.com/2011/04/04/business/04plane.html Irish Times: Aircraft has history of rudder problems https://www.irishtimes.com/news/aircraft-has-history-of-rudder-problems-1.1128845 Popular Mechanics: Airplane crashes that changed aviation [includes rudder] http://www.popularmechanics.com/flight/g73/10-airplane-crashes-that-changed-aviation/ http://www.airliners.net/forum/viewtopic.php?t=227667 Times online:  Flight 427 NTSB Rudder problem likely cause of plane crash http://www.timesonline.com/flight427/ntsb-rudder-problem-likely-cause-of-plane-crash/article_fab7f60d-f0ca-5872- b826-03192fbc5ebc.html