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Raytheon fined $200 million for export law violations involving combat aircraft

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Raytheon fined $200 million for export law violations involving combat aircraft
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AVWeb | AVWeb

Raytheon Technology Corp. (RTX) has been fined $200 million for violating export laws related to the exchange of information on U.S. combat aircraft with prohibited countries. The violations pertain to the International Traffic in Arms Regulations. According to the U.S. State Department, RTX improperly classified and controlled exports of defense articles, including classified material.

Sensitive information on the F-22 Raptor, F-35 Lightning II, and B-2 Spirit bomber was mistakenly made available to Russia, China, and Iran.

According to a Reuters report, RTX voluntarily disclosed its errors. At a July 25 earnings call with investors, the company stated it had earmarked $1 billion to resolve three separate legal issues primarily identified during the integration of Rockwell Collins and Raytheon/United Technologies into RTX in April 2020.

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A U.S. State Department document released last week indicated that one transgression involved providing Chinese nationals in Shanghai with more sensitive information than RTX employees realized on “an aluminum display housing component of the F-22 Raptor Fighter Aircraft.”

On the earnings call, RTX informed investors, "As part of the resolution of each of these three matters, we will be required to retain independent compliance monitors over the three-year term of the agreements." Half of the fine will fund a remedial compliance program.

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