Boeing could face criminal charges, according to reports. US prosecutors reportedly informed the Department of Justice that Boeing had violated a settlement relating to two fatal crashes of 737 Max aircraft.
According to Reuters and CBS News, the DoJ leaders must decide by 7 July whether they intend to bring criminal charges against Boeing following the recommendation of prosecutors in this case.
Last month, the DoJ told a federal Texas court that Boeing violated terms of a settlement for 2021 in which it had agreed to make $2.5bn in penalties and compensation in order to airline customers and family members of those who were killed in two fatal crashes. According to a court filing, Boeing failed to “design and implement a compliance programme that would prevent and detect any violations of US fraud laws in its entire operations”.
The two crashes have prompted new criminal charges. In total, 346 people died when the Boeing 737 Maxes of Ethiopian Airlines and Indonesia’s Lion Air crashed in late 2018 or early 2019.
Boeing’s most popular aircraft were grounded for almost two years after the crashes, the biggest crisis in company history.
The crashes were caused because of a new design which, unbeknownst to the pilots, automatically lowered the noses of the planes to compensate for moving larger engines forward. The system known as the manoeuvring characteristic augmentation system (MCAS) left planes vulnerable in case a single sensor failed.
The agreement deferring prosecution protected the company against a fraud charge relating to its alleged concealment from aviation regulators of information about how the system operated. The DoJ stated that at the time of the settlement: “Boeing employees chose profit over honesty.”
The company faces renewed scrutiny over its safety record following an incident that occurred two days before the Settlement expired. A panel on an Alaska Airlines aircraft blew out in mid-air.
Reuters reported that a final decision on whether to proceed with the new charges has not yet been made. According to a source, Boeing may face additional charges beyond the original 2021 charge of fraud conspiracy. The DoJ has the option to extend the settlement by an additional year or propose new, more stringent terms.
The New York Times reported previously that Boeing could escape criminal prosecution.
The new charges will also cast a dark shadow on the last few months of Dave Calhoun’s tenure as chief executive. He will retire this year following a period dominated by the aftermaths of the crashes. Calhoun admitted in testimony before the US Senate that “something went terribly wrong” after whistleblowers were allegedly retaliated against for raising safety concerns at factories.
Boeing declined to comment. The DoJ refused to comment on Reuters’ and CBS News’ inquiries.
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