The Justice Department is expected to allow Boeing to escape criminal prosecution for violating the terms of a 2021 settlement related to problems with the company’s 737 Max 8 model that led to two deadly plane crashes in 2018 and 2019, according to sources familiar with the discussions.
Instead of facing criminal charges, Boeing is likely to be offered a deferred prosecution agreement, which would require the company to install a federal monitor to oversee safety improvements. This decision comes after federal prosecutors found that Boeing had violated the terms of a previous deferred prosecution agreement by failing to set up a program to detect and prevent violations of U.S. anti-fraud laws.
The potential agreement has sparked debate within the Justice Department, with some officials believing that prosecuting Boeing would be too legally risky. By appointing an independent monitor, the department aims to ensure that Boeing improves its safety, manufacturing, and quality control procedures in a more efficient manner.
If Boeing were to be convicted of felony fraud, it could face restrictions on receiving government contracts, including military ones, which are a significant source of revenue for the company. This would further compound the challenges Boeing has been facing, including recent safety issues such as the incident involving an Alaska Airlines flight in January.
Critics have also raised concerns about the Federal Aviation Administration’s oversight of Boeing, with some saying that the agency relies too heavily on the company to conduct safety work on its behalf. The Justice Department’s decision to appoint a federal monitor is seen as a signal that it does not trust the F.A.A. to hold Boeing accountable for necessary safety and quality changes.
While a deferred prosecution agreement would allow the Justice Department to resolve Boeing’s violation without a trial, it may not satisfy the families of the victims of the Max 8 crashes. These families have expressed frustration with the department for not aggressively pursuing Boeing, particularly after the Alaska Airlines incident.
Ultimately, the decision on whether to prosecute Boeing over the 2021 settlement violation is still pending, but it is clear that the outcome will have significant implications for the company, its stakeholders, and the families of those affected by the tragic plane crashes.
