13-6-2024 (WASHINGTON) Boeing, the embattled aviation giant, is facing a critical juncture as it contests the U.S. Department of Justice’s determination that the company can be prosecuted for violating a 2021 deal that allowed it to escape criminal prosecution over the two fatal Boeing 737 MAX crashes.
The company delivered its official response on Wednesday, contesting the Justice Department’s assessment, according to Bloomberg News, citing unnamed sources. Boeing has confirmed its commitment to engaging transparently with the Department throughout the term of the agreement, but declined to comment on specific communications.
The case revolves around a deferred prosecution agreement (DPA) related to the 2018 and 2019 Boeing 737 MAX crashes in Indonesia and Ethiopia, respectively, which tragically claimed the lives of 346 individuals. As Boeing grapples with this legal challenge, it also faces intensifying scrutiny following recent manufacturing and safety issues.
Coinciding with Boeing’s response deadline, Federal Aviation Administrator Mike Whitaker is set to testify before the Senate Commerce Committee on Thursday, addressing Boeing’s recently unveiled plan to upgrade its safety and quality control efforts.
Adding to the mounting pressure, Boeing Chief Executive Dave Calhoun is scheduled to appear before the Senate Permanent Subcommittee on Investigations next Tuesday, where he can expect intense questioning regarding the company’s conduct.
The aviation giant has been under heightened scrutiny since a Jan 5 incident involving a Boeing 737 MAX operated by Alaska Airlines, which was forced to make an emergency landing after a mid-flight fuselage panel blew out. This incident occurred shortly before the three-year DPA was due to conclude, potentially jeopardizing the agreement’s successful completion.
Had the Department of Justice (DOJ) been satisfied with Boeing’s conduct, it could have moved to drop the charges altogether. However, in a May 14 letter to U.S. Judge Reed O’Connor, the DOJ concluded that Boeing “breached its obligations” under the agreement, citing several provisions.
The January 2021 agreement, which required Boeing to pay $2.5 billion to settle fraud charges over the certification of the Boeing 737 MAX, mandated the implementation of a robust compliance and ethics program, strengthened internal controls, and prohibited the provision of “deliberately false, incomplete or misleading” information about its compliance efforts.
Boeing has maintained its stance, stating, “We believe that we have honoured the terms of that agreement,” and vowing to defend itself against the potential prosecution.
Families of the victims who perished in the two MAX crashes have been vocal in their calls for accountability, strongly urging the DOJ to prosecute Boeing rather than pursue a negotiated plea agreement. They have demanded full transparency, including a criminal trial on conspiracy and other potential charges against Boeing and its executives responsible for the tragedies.
The Justice Department has set a July 7 deadline to determine its course of action in this high-stakes case, which has far-reaching implications for Boeing’s reputation, finances, and the broader aviation industry.
