Boeing Faces Scrutiny Over 737 Max Crashes
Families who lost loved ones in the Boeing 737 Max crashes have intensified their calls for accountability, labeling the incident as the 'deadliest corporate crime in U.S. history.' In a recent letter to the Department of Justice, they requested a maximum fine of $24 billion and urged for criminal prosecutions against Boeing and its responsible officials, including former CEO Dennis Muilenburg.
The Justice Department is currently evaluating whether to pursue criminal charges against Boeing. This follows the company's breach of a 2021 deferred prosecution agreement, which allowed Boeing to avoid charges over the 737 Max crashes in Indonesia and Ethiopia that resulted in 346 fatalities. The agreement was criticized for its leniency, as Boeing had already agreed to pay most of the $2.5 billion settlement to airlines and victims' families.
Boeing's Ongoing Quality Issues
The letter from the families also calls for an independent corporate monitor to oversee Boeing's safety measures. The Justice Department had previously notified Boeing about its non-compliance following an incident in January where a fuselage plug burst on an Alaska Airlines flight. This incident has raised further concerns about the safety and quality of Boeing's aircraft.
Boeing CEO Dave Calhoun testified before the US Senate, apologizing to the victims' families and admitting that the company has significant work to do to regain public trust. Despite Boeing's assurances of compliance with the 2021 agreement, the Justice Department will decide by July 7 whether to proceed with criminal charges.
Boeing's recent string of safety lapses has compounded the company's financial woes, with more than $20 billion in direct costs from the 737 Max grounding and additional losses from production and quality issues on other aircraft models like the 787 Dreamliner and 777. The families' letter suggests that a substantial portion of the fine could be used to fund improvements in Boeing's compliance and safety programs.
- The Justice Department has yet to determine its course of action but has indicated that Boeing will have an opportunity to respond regarding its failure to comply with the agreement. The department will notify the court by July 7 on how it plans to proceed.
- Boeing has faced multiple audits and investigations revealing numerous deficiencies in its quality control processes. The company submitted a comprehensive action plan to the FAA in an attempt to address these issues. However, the stakes remain high as Boeing could face criminal charges in federal court.
- Families of the victims continue to press for swift criminal proceedings against Boeing, emphasizing the urgency to act before the statute of limitations expires. They seek a trial within 70 days after the July 7 deadline.
