The Federal Aviation Administration (FAA) proposed a $1,050,000 civil penalty 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 the 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, which could have resulted in the system not supplying oxygen to passengers if depressurization occured.