Report reveals Boeing avoids criminal prosecution
After five years since the tragedies involving two Boeing 737-Max jets, the possibility of a criminal probe against the company seems to be dwindling. Sources close to the discussions, as reported by the New York Times, suggest that the US Justice Department might opt for an independent supervision for Boeing instead. This decision stems from the potential financial instability of the firm.
Instead of pursuing criminal charges in relation to the two 737-Max plane crashes, which claimed a total of 346 lives, the Justice Department is rumored to propose a suspension of such charges. In its place, an independent oversight body for the company could be established, as per the newspaper's report.
According to insiders, high-ranking officials in the Department view a trial as "legally risky." They believe that appointing an independent oversight agency would be a "swifter and more efficient" means to guarantee that Boeing enhances its manufacturing processes and quality control. The paper added that this approach would likely prevent the company from filing for bankruptcy.
In May, the Department announced that Boeing could once again face criminal charges for the 2018 Indonesia and 2019 Ethiopia crashes of two 737-MAX planes, which resulted in 346 fatalities. However, the Department rescinded an early 2021 agreement with US regulators to halt the investigations, stating that Boeing had breached the terms of the agreement. The company denies these allegations.
Crucial for US economic stability and security
The Justice Department now needs to make a decision and has agreed to update the presiding judge in Texas, who is managing the case, by no later than July 7. The Department chose not to comment on the report. History shows that criminal proceedings can lead to companies filing for bankruptcy. Given Boeing's significance to the American economy and national security, such an outcome would be detrimental.
Lately, numerous technical issues with Boeing aircraft have sparked concerns. For instance, in early 2023, a part of the cabin wall on a Boeing 737 MAX 9 operated by Alaska Airlines separated during a flight, necessitating an emergency landing. The Federal Aviation Administration (FAA) then ordered a temporary grounding of all 737 MAX planes in January.
During a Senate committee hearing on Tuesday, Boeing's CEO, Dave Calhoun, expressed apologies to the families of the victims. He acknowledged that the company's culture still has room for improvement but claimed progress was being made. Calhoun also sought forgiveness from the families of the victims from the years 2018 and 2019.
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Despite the US Department of Justice considering criminal charges for Boeing's role in the 2018 Indonesia and 2019 Ethiopia Boeing 737 Max plane crashes, which resulted in 346 fatalities, recent developments suggest a different approach. Sources indicate that the Justice Department may opt for an independent oversight body instead of pursuing criminal prosecution, as the trial is perceived as "legally risky" and could lead to financial instability for Boeing.
In light of Boeing's significant role in the US economy and national security, avoiding bankruptcy through an independent oversight body would be beneficial. The Justice Department is reportedly considering this approach to guarantee that Boeing enhances its manufacturing processes and quality control, preventing any future plane crash incidents involving Boeing 737 Max planes.
