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Guilty Pleas in Major Unapproved-Parts Settlements

Arrow Air of Miami, Florida was dunned $5 million by a U.S. District Court judge in July 1998, following its guilty plea to six counts of making false statements to the FAA. Arrow Air, an all-cargo air carrier, removed some 3,000 aircraft parts from planes not registered or operated in the United States, then represented the parts as FAA- anctioned for installation in this country. In a precedent-setting ruling, $2 million of the levy against the firm was categorized as restitution, designated for the use of the Center for Aerospace Safety Education at Embry-Riddle Aeronautical University in Daytona Beach, FL. The school will use the funds to educate and perform research related to problems caused by unapproved parts in civil aviation.