The US Justice Department has notified Boeing that it breached its 2021 agreement in which the company avoided criminal charges for two fatal 737 Max crashes. This comes after a series of safety missteps earlier this year, including a door plug incident on an Alaska Airlines flight. The Justice Department stated that Boeing is now subject to criminal prosecution for failing to fulfill the terms of the agreement.
Despite the notification of breach of agreement, the Biden administration has not yet determined how it will proceed with Boeing. The company will have an opportunity to respond to the breach and steps it has taken to remediate the situation by June 13. The Justice Department will notify the court by July 7 on how it will proceed with the case. This notification comes as the Justice Department investigates Boeing’s operations following the door plug incident.
Boeing had previously paid $2.5 billion in penalties and promised to improve safety and compliance protocols under the deferred prosecution agreement from January 2021. Families of the victims of the Lion Air and Ethiopian Airlines crashes had criticized the agreement, arguing that it denied them justice. Families and lawyers representing them met with the Justice Department to request an end to the agreement in light of multiple safety lapses at Boeing.
Attorney Paul Cassell, representing the victims’ families, has criticized the deferred prosecution agreement as “rigged” and brokered without the involvement of the families. The Justice Department has notified the families of the breach of agreement and plans to continue working with them on next steps. The Department of Justice is scheduled to meet with the families on May 31 to discuss the situation.
The Justice Department stated in a letter to the federal judge overseeing the prior agreement that Boeing breached its obligations by failing to enforce a compliance and ethics program to prevent violations of US fraud laws. Despite Boeing’s promises to improve, the company has faced a series of quality and safety lapses since the deferred prosecution agreement was reached.
Recent incidents at Boeing include finding empty tequila bottles inside Air Force One jets, delays in deliveries of the 737 Max due to non-standard manufacturing processes, and safety issues with engines on the 737 Max and 787 Dreamliner. The FAA has issued reports critical of Boeing’s culture and production practices, and announced investigations into whistleblower complaints about manufacturing shortcuts. Boeing has disputed these complaints, and the FAA continues to monitor the company’s operations for compliance.
