The U.S. Department of Justice (DOJ) has just dropped a criminal fraud conspiracy charge against Boeing. This decision is a big step in the right direction after the deadly 737 Max crashes that took 346 lives. Boeing came under fire last fall when it was accused of intentionally withholding important details regarding its flight control software from federal regulators. The law firm did not contest the underlying allegations. In 2021, to escape criminal prosecution, these auto firms paid $2.5 billion in fines and compensation.
In late 2018, a shocking disaster hit Indonesia. Only a few months later Ethiopian Airlines flight 302 crashed, taking 157 lives—including all 8 Americans on board—exposing even more cracks in Boeing’s safety defense. Last year, prosecutors sought to reach a new settlement. It has resulted in greater financial penalties and safety commitments from Boeing to improve safety practices.
In the most recent settlement, Boeing will spend an additional $243 million. This comes in addition to the prior fines and victims compensation, bringing its total financial liabilities to about $1.1 billion. The company agrees to hire an independent compliance consultant. A court-appointed overseer will watch their progress for an undetermined period to make sure they catch up and comply with safety standards.
Boeing’s CEO expressed a commitment to ongoing improvements, stating, “We are committed to continuing the significant efforts we have made as a company to strengthen our safety, quality, and compliance programs.” These steps are intended to restore confidence with the traveling public after the tragic events.
The recent settlement follows a prior deal rejected by Judge Reed O’Connor due to concerns over the selection of an appropriate monitor for Boeing’s operations. Judge O’Connor went on to stress the importance of holding passenger rail operators accountable and ensuring public safety in his statements. He stated that the courts must not “stand silently by while an injustice is perpetrated,” highlighting the importance of oversight in the aviation industry.
The DOJ spokesperson noted the significance of the new agreement, asserting, “Rather than allow for protracted litigation, this agreement provides finality for the victims and requires Boeing to act now.” Additionally, they stated that they were “confident that this resolution…the most just outcome…” for everyone involved.
Families of the crash victims have expressed ambivalence about the settlement. The DOJ acknowledged “a broad set of views regarding the resolution,” indicating that while some families may find closure, others may still seek further accountability.
Boeing’s challenges extend far past fiscal repercussions. It needs to navigate the convoluted landscape of public perception and regulatory scrutiny while doing so. We’re excited about the company’s new strides since those tragedies. To regain public trust, it’s time for it to be all about transparency and safety.