US Prosecutors Recommend Criminal Charges Against Boeing Over 737 Max Violations

US prosecutors have recommended that the Department of Justice (DoJ) file criminal charges against Boeing. This follows claims that the aircraft manufacturer violated a settlement agreement related to two fatal crashes involving its 737 Max aircraft, which resulted in the deaths of 346 people.

The DoJ has accused Boeing of breaching a deferred prosecution agreement made in 2021. Under this agreement, Boeing was required to pay a $2.5 billion settlement and was promised the possibility of dropping a criminal charge after three years, provided the company complied with certain conditions. These conditions included implementing a comprehensive compliance and ethics program to prevent violations of US fraud laws. However, the DoJ claims Boeing failed to meet these requirements.

Boeing has denied violating the deferred prosecution agreement but declined to comment further when contacted by the BBC. The DoJ has until July 7 to make a final decision on whether to prosecute the company and has also declined to comment on the recommendation.

The recommendation does not constitute a final decision, and the specifics of any potential criminal action remain unclear, according to CBS, the BBC’s US partner.

Ed Pierson, executive director of the Foundation for Aviation Safety and a former senior manager at Boeing, emphasized the significance of this decision on BBC Radio 4’s Today programme: “There are issues with these aeroplanes. We’re seeing problems with these planes and I’m talking about 737 Max, 787 and it is reflective of the leadership.”

The two fatal crashes involved Indonesia’s Lion Air in October 2018 and an Ethiopian Airlines flight in March 2019, occurring within six months of each other.

Last week, families of the victims urged prosecutors to impose a $25 billion fine on Boeing and pursue criminal prosecution.

Boeing’s outgoing CEO, Dave Calhoun, faced tough questioning from US senators last week. He testified that the company had “learned” from past mistakes and claimed the whistleblower process “works.” However, lawmakers criticized him for not doing enough to address a culture of retaliation.

Boeing whistleblowers have informed the Senate of serious production issues with the 737 Max, 787 Dreamliner, and 777 models. The company recently faced scrutiny when a door panel fell off a new 737 Max plane during an Alaska Airlines flight in January, leaving a large hole.

Calhoun, who will step down as CEO at the end of 2024 after less than five years in the role, will leave with a $33 million pay package and remain on Boeing’s board. He succeeded Dennis Muilenburg, who was fired after the two crashes.

Pierson criticized the leadership changes at Boeing as “superficial,” noting that Calhoun had already been with the company for a decade before becoming CEO. “They are making those decisions that are affecting millions and millions of people for many, many years,” he said.