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US Prosecutors Recommend Criminal Charges Against Boeing Over 737 Max Crashes
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By Nithya Bose in Business News, posted June 24, 2024
US prosecutors have recommended the Department of Justice (DOJ) bring criminal charges against Boeing.
This recommendation follows allegations Boeing violated a settlement agreement related to two fatal crashes involving its 737 Max aircraft, which killed 346 people.
The DOJ has until July 7 to make a final decision on whether to prosecute the company.
According to CBS, the BBC's US partner, the recommendation is not a final decision, and the details of any potential criminal action remain unknown.
Ed Pearson, the executive director of the Foundation for Aviation Safety and a former senior manager at Boeing, said: "This is a really critical decision that is coming up."
Speaking to the BBC's Radio 4 Today program, he expressed concern over ongoing issues with Boeing aircraft.
These include the 737 Max and the 787, attributing these problems to leadership failures.
The two crashes involving Boeing's 737 Max aircraft occurred within six months of each other.
One was with Indonesia's Lion Air in October 2018 and the other with Ethiopian Airlines in March 2019.
Ed Pearson, executive director of the Foundation for Aviation Safety: "This is a really critical decision that is coming up"
Relatives of the crash victims have urged prosecutors to impose a $25 billion fine on Boeing and pursue criminal charges.
Under a deal reached in 2021, Boeing agreed to a $2.5 billion settlement.
Prosecutors agreed to drop a criminal charge after three years if the company complied with the deferred prosecution agreement's stipulations.
However, the DOJ said last month Boeing breached the agreement by failing to "design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations."
Last week, Boeing's outgoing chief executive Dave Calhoun, faced tough questions from US senators.
He testified that the company had "learned" from past mistakes and that the process for employee whistleblowers "works."
However, lawmakers still accused him of not doing enough to rectify a culture of retaliation.
As part of an ongoing investigation, Boeing whistleblowers told the Senate in April the 737 Max, the 787 Dreamliner, and the 777 models had serious production issues.
The company was also scrutinized recently when a door panel fell off a new 737 Max plane during an Alaska Airlines flight in January.
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After less than five years in the role, Mr. Calhoun will step down as chief executive at the end of 2024, with a pay package worth $33 million.
He will remain on Boeing's board.
He succeeded Dennis Muilenburg, who was fired after the two crashes.
Mr. Pierson described the changes in Boeing's leadership as "superficial," noting that Mr. Calhoun had already been with the company for a decade when he became CEO in 2019.
He said: "They are making those decisions that are affecting millions and millions of people for many, many years."
Boeing declined to comment when contacted by the BBC but has previously denied violating the deferred prosecution agreement.
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