Boeing CEO apologizes to families of 737 Max victims; Justice Department faces prosecution decision concerning national interest.

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2024-06-21

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"Boeing faced significant consequences due to design flaws in the 737 Max aircraft, resulting in fatal crashes shortly after takeoff for Lion Air in October 2018 and Ethiopian Airlines in March 2019, claiming a total of 346 lives. All aircraft of the same type were grounded until the cause was identified and addressed. Families of the victims collectively pressured the U.S. Department of Justice to prosecute Boeing and impose a $24.8 billion fine.

On the 18th, Boeing CEO Dave Calhoun testified before the Permanent Subcommittee on Investigations of the Senate, admitting the company’s mistakes and acknowledging retaliation against whistleblowers. He stood to apologize to the families of the victims, stating that lessons had been learned and employee feedback would be heeded. Families, some traveling from other countries, emphasized ongoing pressure on the U.S. government to hold Boeing and its executives criminally responsible for the 346 deaths. They also believed that part of the fine should be allocated to an independent oversight body for Boeing.

Paul Cassell, an attorney representing some victims, urged the Justice Department, emphasizing that Boeing’s actions caused significant loss of life, and the proposed fine was reasonable and appropriate.

According to The Wall Street Journal, there is still no consensus within the Justice Department on whether to prosecute Boeing. The case is highly sensitive due to Boeing’s significant impact on future U.S. defense weapon and aircraft sales, prompting Attorney General Merrick Garland to personally modify the prosecution’s court filings.

In 2021, Boeing reached a deferred prosecution agreement with authorities, but a safety incident involving an Alaska Airlines Boeing 737 MAX 9 in January 2024 (where a cabin door detached mid-flight) led to Boeing violating the previous agreement. Prosecutors must decide by July 7 whether to proceed with criminal charges against Boeing, negotiate a plea agreement, or potentially extend the prior deferred prosecution agreement for another year."