Boeing, the aerospace giant, finds itself under severe scrutiny as relatives of the victims from two 737 MAX 8 crashes have called for unprecedented fines and criminal proceedings. The plea, which stems from the combined loss of 346 lives in these tragedies, brands Boeing’s alleged misconduct as the “deadliest corporate crime in US history.”
In a detailed letter to the US Department of Justice (DOJ), these families urged for a repeal of a 2021 agreement that had previously protected Boeing from criminal prosecution. Under this deferred prosecution agreement, Boeing had consented to a $2.5 billion settlement to close the investigation relating to its operational practices, which also included compensation for victims’ families and pledges to enhance compliance measures.
However, this agreement is under renewed examination following an incident in January where a Boeing 737 MAX 9, operated by Alaska Airlines, experienced a mid-air panel blowout, igniting fresh concerns and investigations led by the DOJ among other agencies. Despite Boeing’s assertion last week of adhering to the agreement’s terms, doubts persist, exacerbated by its historical grounding of the MAX 8 fleet post the catastrophic crashes in 2018 and 2019.
The families’ representative, Paul Cassel, argued in their submission that a fine exceeding $24 billion is not only justified but “clearly appropriate” given the scale of the tragedy. Because Boeing’s crime is the deadliest corporate crime in US history, a maximum fine of more than \$24bn is legally justified and clearly appropriate,” Cassel wrote, suggesting that parts of this financial penalty could be contingent on Boeing’s commitment to enhanced safety protocols and oversight.
This situation has placed additional pressure on Boeing, contributing to a major corporate reshuffle that will see the departure of its chief executive and chairman. The controversy has also led to production constraints imposed by regulators, impacting Boeing’s financial performance and affecting its clients, like Ryanair, who have voiced frustrations over disrupted schedules and financial setbacks.
In the midst of these challenges, Boeing’s CEO, Dave Calhoun, defended the company’s safety record in a recent Senate hearing, while also extending his condolences to the families affected by the crashes. Concurrently, new allegations have surfaced from Sam Mohawk, a quality assurance investigator, claiming that Boeing concealed evidence from the Federal Aviation Administration (FAA) during scheduled inspections.
As Boeing navigates through these turbulent times, with its share value plummeting and regulatory and legal challenges mounting, the aerospace industry watches closely. The outcome of these proceedings could set significant precedents regarding corporate accountability in the sector.