Boeing Faces Recommended Criminal Charges Following Alleged Violations

Boeing

US prosecutors have advised the Department of Justice (DoJ) to pursue criminal charges against Boeing following allegations of breaching a settlement related to two fatal crashes involving its 737 Max aircraft, resulting in 346 deaths.

Boeing declined to comment when approached by the BBC but has previously denied violating the deferred prosecution agreement. The DoJ has until July 7 to finalize its decision on whether to proceed with prosecution. The specifics of any potential criminal action remain undisclosed, as reported by CBS, the BBC's US partner.

Ed Pierson, Executive Director of the Foundation for Aviation Safety and a former senior Boeing manager, emphasized the significance of the impending decision, highlighting ongoing concerns with Boeing's planes, including the 737 Max and 787 models.

The two crashes involving Boeing's 737 Max occurred within a span of six months, with incidents in Indonesia and Ethiopia in late 2018 and early 2019, respectively.

Relatives of the crash victims recently urged prosecutors to seek a $25 billion fine against Boeing and pursue criminal charges. In a 2021 agreement, Boeing agreed to a $2.5 billion settlement, contingent on fulfilling specific conditions outlined in the deferred prosecution agreement, which the DoJ now asserts Boeing has breached.

Boeing's CEO, Dave Calhoun, defended the company's efforts to address past issues, including whistleblower protections, amid ongoing investigations into production concerns raised by whistleblowers earlier this year.

The company faced renewed scrutiny earlier this year when a door panel fell off a new 737 Max plane during a flight by Alaska Airlines, prompting further public attention.

Calhoun, who will step down as CEO at the end of 2024, received a compensation package worth $33 million. He assumed leadership from Dennis Muilenburg, who was dismissed following the crashes.

Critics, including Pierson, have characterized leadership changes at Boeing as superficial, emphasizing the enduring impact of decisions made by executives on millions of people over many years.