The US Department of Justice (DOJ) has announced that Boeing agreed to a plea deal to avoid trial for two deadly crashes that took palace within 6 months of each other in 2018 and 2019 that killed 346 people.
In 2019, all Boeing 737 Max aircraft were grounded for one and a half years after two fatal crashes, a Lion Air flight, in Indonesia, and an Ethiopian Airlines flight, from Addis Ababa to Nairobi. Investigations revealed that both accidents were caused by a system Boeing did not tell pilots about that could cause the plane to nosedive, triggerable by only one sensor, that could easily fault, and with no override option from pilots.
At the time, the aircraft manufacturer was charged with conspiring to defraud the Federal Aviation Administration (FAA) for not informing the authority of the system and for claiming pilots would not need to receive any training or even be informed of its existence.
Following an investigation into the crashes, Boeing and the DOJ agreed on a $2.5 billion settlement, including the $243.6 million fine, in 2021. The settlement also gave the manufacturer 3 years to reach full compliance with anti-fraud laws. In exchange, the DOJ halted the prosecution.
Since the review after the 3-year deadline found that Boeing did not keep up their end of the bargain, the case was opened again. To avoid trial, again, Boeing agreed to plead guilty, pay another $243.6 million fine and invest at least $455 million in its compliance and safety programs over the next 3 years, with an independent monitor appointed to oversee the company’s compliance with the terms.
While both parties agreed on the terms, a federal judge still needs to approve the deal. Lawyers representing the families of those who died in the accidents have called it just a “slap on the wrist”, asking the judge to reject it. If it is not approved, a trial is however not guaranteed, with another round of negotiations and a new deal more likely.
“This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died. Through crafty lawyering between Boeing and DOJ, the deadly consequences of Boeing’s crime are being hidden”, said Paul Cassell, one of the lawyers for the victims’ families.
Regardless of whether it is approved or not, the deal, and case overall, only covers Boeing behaviour up to the crashes and does not protect the company from prosecution on other incidents that have started coming to light this year. Neither does it protect individuals, i.e. company management, from prosecution related to the crashes or any other investigation.
The 2021 deal expired just days after a plug-in panel fell off a 737 Max 9 plane during an Alaska Airlines flight in January this year. The 737 Max production is still limited pending FAA investigation into the incident, while the FBI has since indicated it is also looking into the issue as a possible crime.
Meanwhile, two former Boeing employees have come forward as whistleblowers, reporting serious structural flows and oversight in the production of the company’s 787 Dreamliner aircraft, one of its most ordered planes. One of the two men was found dead in his car while in the middle of making depositions against the manufacturer in March, which a police investigation ruled out as suicide. Following these reports, the FAA has also launched an investigation into the 787 Dreamliner production.
