Boeing has reached a multi-billion dollar settlement agreement with the US Department of Justice (DOJ). This settlement results from the company’s 737 Max aircraft that contributed to two horrific crashes that killed 346 people. Earlier this month Boeing announced a deferred prosecution agreement. In pleading guilty to a criminal charge of “conspiracy to obstruct and impede” the investigation of the FAA, the company is on the hook for more than $1.1 billion in fines.
The initial accident occurred in October 2018. A Boeing 737 Max operated by Lion Air crashed into the Java Sea minutes after departing Jakarta, Indonesia. Only five months later, another Ethiopian Airlines Boeing 737 Max took off from Addis Ababa and crashed minutes later. Tragically, none of the 157 souls—passengers and crew alike—on board survived. These incidents led to widespread outrage and calls for investigation into Boeing’s safety procedures and adherence to regulations.
According to the settlement agreement, as part of the resolution Boeing “knowingly” obstructed federal aviation officials. This clocking happened while the FAA was under investigation for the crashes. The DOJ stated that the agreement “guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”
Boeing fully admitted its guilt. This accepted fact forms the basis of the company’s non-prosecution agreement that keeps the company from ever facing any additional legal liability. The settlement furthers a prior 2021 agreement. Under that deal, Boeing was shielded from criminal prosecution for three years—as long as the company fulfilled a set of specified requirements.
The agreement faced scrutiny from a federal judge who expressed concerns about potential race-based considerations under Biden-era diversity, equity, and inclusion policies in selecting an independent monitor to oversee Boeing’s compliance with the terms of the settlement. The corporate aspect of this complicated judicial review further demonstrates the plight of corporate accountability in these high-stake cases like this one.
Safety issues at Boeing have come back in the headlines in recent weeks. An emergency landing by an Alaska Airlines 737 Max 9 last Friday is ringing alarm bells. Just two days before the non-prosecution agreement was set to expire, a door panel detached from the aircraft in midair. This incident illustrates persistent safety problems across the company’s fleet.