Boeing is confronting a deadline, set for Thursday, to counter a determination by the US Department of Justice that the aerospace giant could face prosecution for violating terms of a 2021 agreement. This deal allowed Boeing to avoid criminal charges related to two fatal crashes involving the 737 MAX.
According to Bloomberg News, Boeing submitted its formal rebuttal on Wednesday, contesting the Justice Department’s assessment, although specific details remain undisclosed. Boeing responded to the Bloomberg report by stating, “We’ll decline to comment on any specific communications with the Justice Department, however we continue to engage transparently with the Department, as we have throughout the term of the agreement.”
The ongoing case stems from a deferred prosecution agreement (DPA) concerning crashes in 2018 and 2019 that claimed a total of 346 lives. Boeing faces intensified scrutiny amidst recent manufacturing and safety issues.
In related developments, Federal Aviation Administrator Mike Whitaker is scheduled to testify before the Senate Commerce Committee on Boeing’s recent efforts to enhance safety and quality control on Thursday. Additionally, Boeing’s CEO Dave Calhoun is slated to appear before the Senate Permanent Subcommittee on Investigations next Tuesday.
Boeing’s troubles escalated after a January 5 incident involving an Alaska Airlines-operated 737 MAX, which made an emergency landing due to a fuselage panel failure mid-flight. This incident occurred shortly before the conclusion of the three-year DPA.
The Department of Justice, in a letter to US Judge Reed O’Connor on May 14, asserted that Boeing had “breached its obligations” under the agreement, citing various stipulations. The original agreement, finalized in January 2021, required Boeing to pay $2.5 billion to settle fraud charges related to 737 MAX certification.
Boeing maintains its adherence to the agreement’s terms, expressing readiness to defend its position. Meanwhile, families of crash victims have urged the DOJ to pursue prosecution rather than a negotiated settlement, advocating for full transparency, including potential criminal trials against Boeing executives.
A decision on how the DOJ will proceed is expected by July 7, while scrutiny of Boeing’s safety culture continues to mount, influencing its financial outlook and leadership transitions.
