Boeing might face new charges for violating a settlement that allowed the company to avoid criminal prosecution after two fatal crashes involving its 737 MAX jets. The US Justice Department claims that Boeing breached the agreement by not making the promised changes to prevent violations of federal anti-fraud laws. Officials will decide by July 7, 2024, whether to file charges against Boeing.
The safety issues with Boeing’s 737 MAX jets came into the spotlight after two tragic crashes. In October 2018, a jet crashed in Indonesia, followed by another in Ethiopia in March 2019. These incidents resulted in the loss of 346 lives. To avoid prosecution, Boeing reached a $2.5 billion settlement with the Justice Department in January 2021, agreeing to a single charge of fraud for misleading federal regulators during the plane’s approval process.
The Justice Department now asserts that Boeing failed to uphold the terms of the settlement. This failure includes not implementing the changes necessary to detect and prevent future violations of anti-fraud laws. As a result, Boeing could face prosecution for any known federal criminal violations, including the fraud charge it previously hoped to avoid.
“The government is determining how it will proceed in this matter,” stated the Justice Department in a court filing. Boeing has until June 13, 2024, to respond to these allegations. The department will consider Boeing’s explanation before deciding on prosecution.
Boeing’s Response and Ongoing Investigations
In response to the Justice Department’s allegations, Boeing stated, “We believe that we have honored the terms of that agreement and look forward to the opportunity to respond to the Department on this issue. As we do so, we will engage with the department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident.”
Boeing faces renewed scrutiny following an incident in January involving an Alaska Airlines flight. A door plug blew out of a 737 MAX, creating a hole in the jetliner. This incident has led to multiple investigations into Boeing’s manufacturing quality and practices.
Source: Asian Aviation
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