The Federal Aviation Administration (FAA) is proposing a $1,050,000 civil penalty against the Boeing Company for allegedly failing to correct a known problem in production and installation of the central passenger oxygen system in its B-777 airliners.

The FAA based its proposed civil penalty on inspections of nine newly assembled aircraft between April and October, 2010. Inspectors discovered that spacers in the oxygen delivery system distribution tubing on the aircraft were not installed correctly. Improper installation could result in the system not supplying oxygen to passengers should depressurization occur.

“There is no excuse for waiting to take action when it comes to safety,” said Transportation Secretary Ray LaHood. “We will continue to insist on the highest levels of safety from our aircraft manufacturers.”

“The FAA has strict regulations when it comes to the maintenance and installation of aircraft systems that all manufacturers and operators must follow,” said FAA Administrator Randy Babbitt.

Boeing has 30 days from the receipt of the FAA’s enforcement letter to respond to the agency.