Boeing has negotiated a settlement of $2.5 billion in which the company will pay and invest more than $1.1 billion. This deal will spare Boeing from any criminal prosecution related to two fatal crashes involving its 737 Max planes. The settlement is in direct response to claim against Boeing. They reportedly deceived the Federal Aviation Administration (FAA) on key issues related to the aircraft prior to its flight certification.
Just over a year later in 2018 and 2019, crashes with similar tragic outcomes took place off the coast of Indonesia and in Ethiopia. These tragic incidents were responsible for 346 deaths. After each of these crashes, investigators found erroneous sensor data. These mistakes led the planes’ noses to uncontrollably pitch downwards, and pilots were unable to recover. Boeing has settled for a further $445 million with families of those lost in the crashes. This decision stems from that settlement.
It’s about enough serious criminal charges of criminal fraud Boeing should suffer from the crashes. Allegations further allege that the company deceived U.S. regulators about the safety measures built into the 737 Max jetliner. The proposed settlement seeks to address these issues head on. It makes sure that Boeing lives up to its obligations under a 2021 agreement with the Justice Department that the company defaulted on when it failed to make important, agreed-upon changes to identify and avoid violations of federal anti-fraud laws.
U.S. District Judge Reed O’Connor will preside over the expected motion to dismiss the criminal charges. He is yet to determine whether to accept the terms of any non-prosecution agreement. He has directed all attorneys in the case to prepare a joint briefing schedule. They have to accomplish that in response to the government’s motion by June 4th.
Boeing’s spokesperson issued a statement expressing remorse for the losses endured by the victims’ families.
“We are deeply sorry for their losses, and remain committed to honoring their loved ones’ memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture.” – Boeing spokesperson
Even with this settlement agreement, some victims’ families of fatal crashes are still hesitant to accept Boeing’s firm assurances that it will prioritize safety moving forward. As one of the crash victims’ family members, activist Nadia Milleron, made clear, the case against Boeing is cut and dried. She just thinks the evidence should speak for itself.
“This is not a difficult or complex case because Boeing signed a confession.” – Nadia Milleron
Mark Lindquist, a family member who was personally devastated by the tragedy, expressed his desire to see changes made. He hopes the criminal case and lawsuits will force Boeing to improve its safety practices.
“At this point, I can only hope the criminal case and the lawsuits motivated Boeing to improve safety.” – Mark Lindquist
Boeing has committed to investing billions to improve safety culture across the company. This would be a major commitment under the details of the agreement. This settlement is a complete victory for Boeing. The automaker’s future depends on their cast iron resolve to get beyond this dark chapter in their company’s operational history. The impetus for the company’s Max jets to be grounded after those crashes until a software redesign could be developed and implemented.
This latest turn of events comes as Boeing continues to encounter legal turbulence. It further raises larger questions about concern with aviation safety, civil oversight of the regulatory process. The outcome of this case could have significant implications for how future safety protocols are enforced within the aviation industry.
