Boeing, the American aerospace giant, recently concluded yet another settlement with the U.S. Justice Department. That follows weeks of negative headlines from the company’s role in two fatal crashes of its 737 Max planes. The company is trying—to follow the rules, to atone—for the erasure of 346 lives. It has faced criticism for its internal practices and regulatory oversight.
After the crash of Lion Air flight 610 in October 2018, followed by Ethiopian Airlines flight 302 in March 2019. These tragedies ignited public outrage about Boeing’s approach to safety and corporate governance. In 2021, the company paid a $243.6 million criminal penalty in reaching a settlement related to this wrongdoing. They created a $500 million fund to support families affected by the crashes. On top of that, it set aside $1.77 billion to pay off its airline customers. U.S. prosecutors subsequently announced that Boeing had violated the terms of the settlement. They let down investors by not establishing an effective compliance and ethics program.
In a major surprise, Boeing has now agreed to plead guilty to a criminal charge of defrauding the federal government. This agreement is one piece of a larger settlement same announced in early 2024. This settlement require $487.2 million criminal fine, including $243.6 million credit from the previous agreement.
Boeing’s not giving an inch even in the face of these difficulties. They recently won a multi billion-dollar deal to produce the next-generation fighter jet. The company is engaged in military programs, such as outfitting two new presidential jets, showcasing its ongoing influence in both commercial and defense sectors.
Mark Forkner, Boeing’s former chief pilot, was a central character in the debacle over the 737 Max. In December of 2022, he was acquitted of fraud charges. Forkner allegedly pressed the Federal Aviation Administration (FAA) to remove critical information regarding the recently introduced MCAS flight control system from training manuals. This recommendation was a truly dangerous blow to aviation safety. He has notoriously said that they’ll be able to “jedi-mind trick” regulators into allowing this training product.
David Burns of the Justice Department expressed this sentiment in the days after the recent settlement. In business dealings he continued, “Boeing’s employees chose the path of profit over business ethics and culled critical information from the FAA regarding the unsafe operation of its 737 Max airplane, and attempted to conceal their fraud.” This reaffirmation of that sentiment is a reminder of how serious Boeing’s actions and its impact are.
The intent behind the latest settlement is to promote more accountability going forward, while delivering benefits to affected individuals right away. The Justice Department determined that the terms set forth in the Agreement represent a fair and just resolution. They claim that it is in the public interest. The agency underscored that this settlement provides immediate accountability and extraordinary benefits to Boeing. It gives parties the benefit of avoiding the unpredictability and potential litigation hazards associated with trial.
Not everyone agrees with this resolution. Paul Cassell, an attorney for victims’ families, strongly condemned the deal not to prosecute. He labeled it “unprecedented” and “obviously wrong” for the deadliest corporate crime in U.S. history. He indicated that families affected by the crashes would likely object to this settlement and seek to convince the court to reject it.