A new twist in the safety crisis involving Boeing could lead to the airline being sued for the 737 MAX 8 accidents in 2018 and 2019, which left 346 people dead.
It was revealed on Tuesday night that the US Department of Justice (DOJ) has filed a lawsuit accusing the planemaker of violating its obligations under a 2021 agreement that protected Boeing from criminal prosecution for the crashes.
Then, Boeing agreed to pay $2.5 billion to resolve the investigation into its conduct, compensate victims’ families, and review its compliance practices.
The terms of that agreement – known as a deferred prosecution agreement – were set to expire in January of this year, but two days earlier, a Boeing 737MAX 9 aircraft operated by Alaska Airlines suffered a panel explosion in the air.
The explosion was the subject of investigations by several agencies, including the DoJ.
Its lawsuit exposes Boeing to potential criminal prosecution over the 2018 and 2019 crashes, which could bring even harsher financial sanctions and tougher oversight, deepening the renewed corporate crisis and reputational damage from the January explosion.
The DoJ said that while Boeing is now subject to prosecution, it would consider the steps the planemaker took to address and remedy the breach of the pact before determining how to proceed.
It ordered the company to respond by mid-June and said it would make a decision on whether to pursue further criminal proceedings by July 7.
Boeing CEO: ‘We fly safe planes’
“We believe we have honored the terms of this agreement and look forward to the opportunity to respond to the Department on this matter,” Boeing said in a statement.
He added: “In doing so, we will interact with the Department with the utmost transparency, as we have done throughout the term of the agreement, including in responding to its questions following the Alaska Airlines 1282 crash.”
Reuters news agency reported that DoJ officials were expected to meet families of those killed in the 2018 and 2019 crashes as part of their deliberations.
Relatives of the victims demanded that US authorities hold Boeing responsible for the accidents. Photo: Reuters
Relatives have long criticized the original deferred prosecution agreement, saying it let Boeing off the hook.
The MAX 8 fleet was removed from service for 20 months after Ethiopian Airlines Flight 302 disaster outside Addis Ababa in March 2019.
All 157 on board died.
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Six months earlier, a Leo Air The 737 MAX 8, carrying 189 passengers and crew, crashed in Indonesia.
Poorly designed flight control software was to blame for both accidents.
Screws missing from Alaska Airlines door
The MAX 9 incident on January 5th of this year resulted in a new wave of scrutiny.
Regulators have limited Boeing’s production schedules and a widespread management change is underway.
The effects of the crisis have hampered deliveries and expansion plans for its customers, which include Ryanair.
The planemaker and regulators have been widely accused of failing to learn lessons from the past.
During a Senate hearing in April, a Boeing engineer testified that the company took dangerous shortcuts in manufacturing certain planes and sidelined him when he raised safety concerns.
Boeing denied the allegations and any suggestion that it put profits before safety.
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