By T. Jayani, JadeTimes News
U.S. prosecutors have recommended that the Department of Justice (DoJ) pursue criminal charges against Boeing. This follows allegations that the aircraft manufacturer violated a settlement related to two fatal crashes involving its 737 Max planes, which resulted in 346 deaths.
Boeing declined to comment on the recommendation but has previously denied breaching the deferred prosecution agreement. The DoJ has until July 7 to decide whether to prosecute Boeing, and it has also declined to comment on the matter.
The recommendation is not final, and details of potential criminal action remain unclear, according to CBS, U.S. partner. Ed Pierson, executive director of the Foundation for Aviation Safety and a former senior manager at Boeing, emphasized the importance of this decision, noting ongoing issues with Boeing's 737 Max and 787 aircraft, which he attributes to leadership problems.
The crashes involved Boeing's 737 Max aircraft, with Indonesia's Lion Air crash occurring in October 2018, followed by an Ethiopian Airlines crash in March 2019. Last week, relatives of the crash victims urged prosecutors to seek a $25 billion fine against Boeing and to pursue criminal prosecution.
In a 2021 deal, Boeing agreed to a $2.5 billion settlement, with prosecutors pledging to drop a criminal charge after three years if Boeing complied with certain conditions. However, the DoJ recently stated that Boeing breached the agreement by failing to implement an adequate compliance and ethics program to prevent fraud.
Boeing's outgoing CEO, Dave Calhoun, faced tough questioning from U.S. senators last week. He testified that the company had learned from past mistakes and that its whistleblower process was effective, though lawmakers accused him of not sufficiently addressing a culture of retaliation. Boeing whistleblowers had previously informed the Senate in April of serious production issues with the 737 Max, 787 Dreamliner, and 777 models.
In January, a door panel fell off a new 737 Max plane during an Alaska Airlines flight, highlighting ongoing production concerns. Calhoun, who will step down as CEO at the end of 2024 with a $33 million pay package, will remain on Boeing's board. He succeeded Dennis Muilenburg, who was fired following the two crashes.
Pierson criticized the leadership changes at Boeing as superficial, noting that Calhoun had been with the company for a decade before becoming CEO. He stressed the long term impact of decisions made by Boeing's leadership on millions of people.