FORT WORTH The U.S. Department of Transportations Federal Aviation Administration proposes a $1.76 million civil penalty against Commercial Aircraft Equipment of Dallas, Texas, for allegedly producing aircraft galley carts without the required FAA approval. CAE is a subsidiary of Biskay Holdings LLC.

The FAA alleges that in August 2016, CAE produced and sold 160 modified airline galley carts for Atlas Air without first holding an FAA Parts Manufacturer Approval (PMA) to produce them. The FAA further alleges that despite not holding this approval, CAE attached metal FAA-PMA tags to each of the carts before they were delivered.

A Parts Manufacturer Approval is a critical element in our safety system, said FAA Administrator Michael Huerta. It means that a particular aircraft part meets the FAAs safety standards for design and manufacturing quality, as well as crashworthiness requirements.

CAE has 30 days from the receipt of the FAAs enforcement letter to respond to the agency.