US prosecutors have advised the Department of Justice (DoJ) to bring criminal charges against Boeing, following allegations that the aircraft manufacturer violated a settlement agreement related to two tragic crashes involving its 737 Max aircraft. These crashes, which occurred within six months of each other, involved Indonesia’s Lion Air in October 2018 and Ethiopian Airlines in March 2019, resulting in the deaths of 346 people. Despite being contacted by the BBC, Boeing declined to comment, although it has previously denied breaching the deferred prosecution agreement. The DoJ has until July 7 to make a final decision on whether to prosecute the company.
Ed Pierson, executive director of the Foundation for Aviation Safety and a former senior manager at Boeing, emphasized the significance of the upcoming decision. Speaking to BBC Radio 4’s Today programme, he pointed out persistent issues with Boeing’s 737 Max and 787 aircraft, attributing these problems to leadership failures. This sentiment was echoed by victims’ relatives, who recently urged prosecutors to impose a $25 billion fine on Boeing and pursue criminal charges. Under a 2021 agreement, Boeing committed to a $2.5 billion settlement, with the understanding that prosecutors would drop a criminal charge after three years if Boeing adhered to specific conditions outlined in the deferred prosecution agreement.
However, the DoJ recently claimed that Boeing breached this deal by failing to establish and enforce a compliance and ethics program to prevent violations of US fraud laws. This allegation has placed Boeing under intense scrutiny once again. Recently, Boeing’s outgoing CEO, Dave Calhoun, faced a grilling from US senators, during which he asserted that the company had learned from past mistakes and improved its whistleblower processes. Despite these assurances, lawmakers criticized him for not doing enough to address a culture of retaliation within the company. Whistleblowers have reported serious production issues with the 737 Max, 787 Dreamliner, and 777 models, further tarnishing the company’s reputation.
Boeing’s challenges were highlighted when a door panel fell off a new 737 Max during an Alaska Airlines flight in January, leaving a gaping hole in the aircraft. Calhoun, who is stepping down at the end of 2024 with a $33 million pay package, will remain on Boeing’s board. He succeeded Dennis Muilenburg, who was fired after the two crashes. Pierson argued that the leadership changes at Boeing were superficial, noting that Calhoun had been with the company for a decade before becoming CEO in 2019. He expressed concern that decisions made by Boeing’s leadership would continue to affect millions of people for many years.
